AI Economics: Total Cost of Ownership Models for Enterprise AI — A Practitioner Framework
Abstract
Total Cost of Ownership (TCO) analysis for enterprise AI systems presents unique challenges that traditional IT TCO frameworks fail to address. This paper presents a comprehensive TCO model specifically designed for AI implementations, introducing the four-phase framework encompassing design, development, deployment, and operational costs, with attention to hidden cost multipliers. Empirical validation across 47 enterprise AI implementations reveals that organizations using comprehensive TCO models experience 40-60% fewer budget overruns.
Fields of Study & Subjects
Artificial Intelligence Applications
Information Technology Governance and Strategy
Life Cycle Costing Analysis
Publication details
- Journal / source
- Zenodo (CERN European Organization for Nuclear Research)
- Publication date
- 12 February 2026
- Language
- EN
- Document type
- Preprint