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    AI Strategy

    Total cost of ownership

    Also known as: TCO

    What is total cost of ownership?

    Total cost of ownership is the full lifetime cost of an AI system: implementation, model and infrastructure spend, integration upkeep, monitoring, retraining, and the internal time spent supervising it.

    A useful rule of thumb from delivery work: ongoing annual cost commonly runs at 20–40% of the initial build for systems that touch live customer data. Budget for it or the system quietly degrades.

    Last reviewed by the gAIcko editorial team.