• Written by Azhar Aliyar, Director

When a procurement manager at a large organisation evaluates AsscherAi, a platform that lets them query their own data in natural language and get answers in real time, they need to consider the total cost of ownership for AI, which is the cost of the AI model itself plus the cost of integrating it with existing systems, maintaining it, and training staff to use it.

Definition

The total cost of ownership for AI includes the purchase price of the AI platform, the cost of any necessary hardware or software upgrades, and the cost of training data and personnel. It also includes ongoing costs such as maintenance, support, and updates. This definition is important because it helps organisations understand that the cost of AI is not just the initial purchase price, but also the ongoing costs of using and maintaining it.

For example, a shift supervisor at a manufacturing plant may use AsscherAi to query data on equipment maintenance, but the total cost of ownership for AI also includes the cost of integrating AsscherAi with the plant's existing maintenance log system, and training the shift supervisor and other staff to use it.

Difference from other costs

Some people confuse the total cost of ownership for AI with the cost of the AI model itself, but these are not the same thing. The cost of the AI model is just one part of the total cost of ownership, which also includes all the other costs associated with using and maintaining the AI system. Most people get wrong the idea that the cost of AI is just the cost of the model, and they are wrong because the other costs, such as integration and training, can be significant.

The cost of the AI model is like the cost of a new machine on the factory floor, but the total cost of ownership for AI is like the cost of the machine plus the cost of installing it, maintaining it, and training staff to use it.

Applications in a large organisation

In a large organisation, the total cost of ownership for AI can apply to many different systems and departments. For example, the category manager may use AsscherAi to compare data on different suppliers, and the total cost of ownership for AI would include the cost of integrating AsscherAi with the organisation's procurement system, and training the category manager and other staff to use it.

A large organisation may have many different systems and departments that use AI, and the total cost of ownership for AI would need to be calculated separately for each one. This can be a complex and time-consuming process, but it is necessary to get an accurate picture of the costs involved.

For more information on how AsscherAi can be used in a large organisation, please visit our website.

Limitations

The total cost of ownership for AI does not include the cost of the data itself, but rather the cost of using and maintaining the AI system that queries the data. It also does not include the cost of any changes to business processes that may be necessary to get the most out of the AI system.

Some people may think that the total cost of ownership for AI includes all the costs associated with using AI, but this is not the case. The total cost of ownership for AI is just one part of the overall cost of using AI, and it should be considered in conjunction with other costs, such as the cost of data and business process changes.

When it is the wrong choice

The total cost of ownership for AI may not be the right choice for every organisation, or for every situation. For example, if an organisation is only using AI for a small pilot project, it may not be necessary to calculate the total cost of ownership for AI. In this case, the organisation may just want to consider the cost of the AI model itself, and any other costs that are directly associated with the pilot project.

If you are considering using AsscherAi in your organisation, and you would like to know more about the total cost of ownership for AI, please contact us for more information.