Independent analysis of AI cost and value
Make AI investment economically legible
AI Economics Hub connects AI cost, evidence and business outcomes so leaders can decide what to fund, redesign, stop or scale.
Prefer to watch? The narrated explainer, with captions
What do you need to work out?
- MeasureUnderstand my AI costsLeave with a clearer cost boundary.
- ProveProve a use case's valueLeave with a stronger evidence plan.
- DecidePrepare an investment decisionLeave with a decision brief.
Or browse by understand or implement, or pick a route by task or role.
Map of the site
The AI Economics System
One chain from AI cost to an investment decision
- 1 MeasureWhat does AI fully cost, where is it consumed, and who owns it?
- Start Here, interchangeChange for The AI Economics Map
- The first 100 days
- The portfolio and cost register
- AI TCO framework
- Attribution coverage calculator, interchangeChange for The AI Value Gap
- 2 ProveWhat changed because AI was used, and how strong is the evidence?
- How to measure AI value
- The instrumentation blueprint
- The AI value ledger, interchange
- 3 DecideGiven the economics and the evidence, what should be scaled, held, redesigned or stopped?
- Scale, hold, redesign, stop
- Decision cases
- The AI Portfolio Review Pack, interchange
- 4 OperateWho owns each part, how often is it reviewed, and what reaches the board?
- Operating model
- Board reporting pack
Understand
The argument, the evidence and the models
Reference shelf
Look something up
Every station is a page. Ringed stations are interchanges, where one line of thinking meets another.
Same arithmetic, different decision
A positive return is not enough on its own. The evidence behind it decides how much to commit next.
Document processing assistant
- Annual cost
- £60,000
- Forecast annual benefit
- £96,000
- Base-case net benefit
- £36,000
- Evidence
- Before and after
Hold expansion and test against a comparison group.
Key numbers
- PwC, 29th Global CEO Survey
- 56%
of CEOs report no significant financial benefit from AI so far; 12% report both cost and revenue gains
PwC, 29th Global CEO Survey, 2026
4,454 CEOs in 95 countries and territories, surveyed 30 September to 10 November 2025 - State of FinOps 2026 (FinOps Foundation)
- 98%
of FinOps practitioners now manage AI spend, up from 31% two years earlier
State of FinOps 2026 (FinOps Foundation), 2026
1,192 respondents, over 83bn USD annual cloud spend, self-selected practitioners - Gartner, reported by CFO.com
- 57%
of finance AI use cases had unclear returns, even though 55% of finance leaders reported positive returns overall
Gartner, reported by CFO.com, 2026
160 senior finance-function leaders; fieldwork dates not stated in coverage
Surveys describe their respondents, not the whole market. All verified figures and caveats.
Work with your own numbers
- AI value maturity self-assessmentBrowser tool. Twenty questions on where your AI evidence is thinnest.
- AI value calculatorBrowser tool. Attribution coverage and value density from five figures.
- Attribution coverage calculatorBrowser tool. How much AI spend is tied to a measured outcome.
- Cost per successful outcomeBrowser tool. Compare model setups on the cost of finished work.
Built to be challenged
By Ed Epstein, who works at IBM. The postings on this site are my own and don't necessarily represent IBM's positions, strategies or opinions. AI tools are used in research, drafting and production under human editorial direction, and material claims are checked against the cited source before publication.
Used the method on a real decision? Contribute a case.