The Playbook: A Data-Driven Framework for AI Vendor Governance
In Part 1, we established that AI is a new spend category. Now, we provide the practical framework to control it, turning visibility into action.
The Three Fuel Sources of Uncontrolled AI Spend
AI cost growth is not random; it is driven by predictable forces that require specific countermeasures.
Vendor Bundling
AI features are frequently bundled into renewals with limited transparency. Spend creeps upward while stakeholders believe they are "just renewing".
Consumption Economics
Costs for inference and tokens behave like cloud usage. This demands FinOps-style discipline, not annual-budget complacency.
Shadow Adoption
Employees adopt tools before governance catches up, creating blind spots regarding real usage, cost, and data movement.
A Disciplined, Data-Driven Framework
The foundation is a centralized inventory combining commercial models, renewal dates, and utilization signals. Without this, you have opinions, not governance.
Keep classification simple to ensure it is actually used.
| Lane | Description | Action |
|---|---|---|
| Lane A | Enterprise-Standard Tools | Approved, supported, and negotiated with guardrails. |
| Lane B | Controlled Experimentation | Time-boxed pilots with explicit measurement criteria. |
| Lane C | Unauthorized / Redundant | Retire, replace, or move to Lane B for evaluation. |
Define who can approve what using templates. The goal is to make the compliant path the path of least resistance.
Meter usage in plain English (cost per document, cost per user). Set budgets at the product level, not just the department level.
Require clean decomposition of core price vs. AI feature price. If the vendor cannot explain the incremental value, you are buying marketing.
Renewal signals must include adoption trends, redundancy checks, and data risk assessments well before the renewal event.
Quarterly reviews should be factual and outcome-based: usage, total cost, scope changes, and decisions needed.
Metrics Executives Actually Understand
Stop reporting AI spend as a blob. Report it as a governed portfolio.
| Metric | Description |
|---|---|
| AI Spend Under Governance | Percentage of total AI spend actively managed. |
| Lane Distribution | Number of AI tools in Lane A, B, and C. |
| Redundancy Savings | Dollars saved and tools retired. |
| Unit Economics | Cost per user or cost per workflow by major use case. |
| Renewal Risk Calendar | Upcoming renewals in the next 180 days. |
Your First 90 Days
Build the inventory and classify tools into lanes. Identify top 10 AI renewals. Freeze new approvals unless routed through the fast path.
Rationalize duplicates in crowded categories. Stand up metering for top usage-based tools. Implement the 120-day signal pack.
Negotiate AI add-ons as separate line items. Launch the QBR cadence. Publish a simple AI tools catalog for employees.
