How Enterprises Measure LLM Costs: 53% Lack Formal Metrics

How Enterprises Measure LLM Costs: 53% Lack Formal Metrics

Most enterprise leaders don’t assess a large language model (LLM) solely based on its cost-per-token pricing. Instead, they focus on the potential savings it offers. In its AI Custom Research, G2 surveyed 102 U.S. enterprise leaders, and the findings support this approach. Among 98 respondents who explained how they compare model costs, 60% prioritize ROI and labor savings over the price per million tokens. However, when questioned about cost per outcome—a method to formally calculate the price of a completed piece of work—53% of 96 respondents admitted they lack a formal metric for this.

Evaluating savings relative to cost is a sensible purchasing strategy, yet G2’s analysis indicates that many organizations rely more on judgment than on precise measurements. This subjective approach becomes challenging when finance departments review the expenses.

This article explores the concept of LLM cost per outcome, how leaders calculate it, the point at which enterprise LLM spending limits scaling, strategies to manage costs, and the extent to which enterprises measure ROI.

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