Total Cost

What is our organization actually spending on AI tools in total, and how does that number differ from what our invoices show?

What it shows

The Larridin Total Cost card is the starting point for any honest AI spend conversation. It shows the org's aggregate AI tool spend over the selected period, with a week-over-week trend, and a toggle between two cost bases: Actual (invoiced/billed spend) and Observed (usage-derived cost estimate). The Gross view strips out any credits or discounts to show the real rate at which AI consumption is growing.

Why it matters

Most enterprises believe they know their total AI bill. In practice, they know their invoices, which is a different number. Seat licenses, flat-rate subscriptions, and API calls each bill differently, and none of them show up in a single place. Larridin's Total Cost card aggregates all sources into one view and surfaces the gap between what was billed and what was actually consumed. That gap is often the first number that surprises a CFO.

The Larridin angle

The Actual/Observed toggle is unique to Larridin. A flat-fee seat license reads as $0 in Actual spend. Larridin's Observed view reconstructs what that usage would cost at API rates, surfacing the real consumption picture that invoice-only approaches hide completely.

Related AI Spend Intelligence Metrics

Common questions

How does the Actual/Observed toggle in the Larridin Total Cost card benefit our financial analysis?

The Actual/Observed toggle allows you to see both the invoiced spend and the usage-derived cost estimate, offering a more comprehensive view of AI tool consumption. This feature helps identify discrepancies between billed amounts and actual usage, providing a clearer picture of AI expenditure.

What insights can the week-over-week trend in the Total Cost card provide?

The week-over-week trend shows whether the total AI spend has increased or decreased compared to the previous period. This insight helps track spending patterns and identify any significant changes that may require further investigation.

Why is it important to view AI spend on a Gross basis?

Viewing AI spend on a Gross basis strips out any credits or discounts, revealing the true rate of AI consumption growth. This perspective is crucial for understanding the underlying cost dynamics without the distortion of temporary financial incentives.

How can the Total Cost card assist in identifying cost drivers within the organization?

The Total Cost card provides a consolidated view of AI spend, serving as a starting point for deeper analysis. By drilling down into related metrics like Spend by Source or Team Level Breakdown, leaders can pinpoint specific platforms or teams contributing to cost changes.