The financial risks associated with enterprise generative AI (GenAI) deployment can vary significantly depending on the chosen strategy. Companies have options like purchasing GenAI as part of a larger product suite, customizing foundation models, or utilizing cloud-based infrastructure.
Key cost considerations include:
- Vendor pricing and contract negotiation: Careful analysis of pricing models and negotiation of favorable terms are crucial.
- License optimization: Avoiding overprovisioning and ensuring efficient use of licenses can lead to significant savings.
- Business value assessment: Quantifying the productivity gains and other benefits of GenAI is essential for justifying investments.
- Infrastructure costs: The choice of deployment environment (public, private, or hybrid cloud) and the scale of operations will impact infrastructure expenses.
By carefully considering these factors and adopting effective cost management strategies, organizations can navigate the financial challenges of GenAI deployment and maximize their return on investment.