Enterprise AI Measurement Guide
Cost
Total Cost
What do the Total Cost figure, trend %, Gross basis, and Actual/Observed toggle show in the Engineering Cost tab?
What it shows
The Engineering Cost Total Cost card shows the department's aggregate AI tool spend for the selected period with a week-over-week trend, a Gross basis view that strips credits and discounts to show the raw consumption rate, and the Actual/Observed toggle that compares invoiced costs against Larridin's usage-derived cost estimate. This is the engineering-scoped version of the org-wide Total Cost card, it isolates engineering's AI spend from finance, HR, sales, and other departments.
Why it matters
Engineering AI spend is typically the largest single department line in an enterprise AI budget, and often the most volatile, because engineering is where agentic tools are most heavily used. The Gross view prevents discount structures and credits from masking the real consumption trajectory: an engineering team whose Gross spend is growing 40% month-over-month while Net spend looks flat due to volume discounts is on a cost curve that will eventually outpace the discount tier. CTOs need the Gross number to have an honest budget conversation with the CFO.
The Larridin angle
The department-scoped Cost view lets engineering leaders answer the AI budget question without pulling from the org-wide spend dashboard, which may include spend from other departments using different tools for different purposes. Engineering's AI cost story is distinct from the company's AI cost story, and it needs its own measurement surface.
Related Cost Metrics
Common questions
What does the Engineering Cost Total Cost card show?
It displays the aggregate AI tool spend for the engineering department over a selected period, including a week-over-week trend and a Gross basis view that excludes credits and discounts.
Why is the Gross basis view important for engineering leaders?
The Gross basis view reveals the true consumption rate by excluding discounts, helping leaders understand the actual cost trajectory and prepare for future budget discussions.
How does the Actual/Observed toggle function in the Total Cost card?
The toggle allows comparison between invoiced costs and Larridin's usage-derived cost estimate, providing a clearer picture of actual expenses versus estimated usage.
Why is it important to isolate engineering's AI spend from other departments?
Engineering's AI cost story is distinct and often the largest and most volatile, requiring its own measurement to accurately manage and budget for AI tool expenses.