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Frameworks in Practice

Your AI management system is silent on cost

Peter O'Hanlon, founder of Koncura

Frameworks in Practice: all 12 articles

Thesis

A certified AI management system proves you are governing AI. It doesn’t prove you can afford it. Annex A.4.2 to A.4.6 stop at inventory, and nothing in the SC 42 catalogue covers cost. Cost discipline has to sit on top of the AIMS.

Reader

Boards, CFOs and NfP treasurers.

Beats (already drafted)

  1. The resource controls stop at what you use, not what it costs.
  2. Visibility: AI spend is buried in tools you already bought (links to piece 5).
  3. Proportionality: a heavyweight model on a job a small model or plain search would do.
  4. Duplication: paying twice for the same access through layered tools.
  5. The number that justifies the investment is the number nobody governs.

Edit to make

Add one line for NfPs: when the budget is donor or grant money, ungoverned AI spend becomes a stewardship question for the board.

What you can do on Monday

Ask finance for every line item that includes AI, including inside SaaS subscriptions, and add them up.