Learn · AI for leaders

What does AI cost to run?

Chat seats cost a flat monthly fee, while automated workflows pay by the page read and written. Split a workflow between a large model and a small one, and watch the monthly bill.

Free lesson, about five minutes. Updated

  • Step on large model
  • Step on small model
All on large
$4,500a month
With split
$4,500a month now
One task
45.0¢5 large, 0 small
Saved
$0$0 a year
  1. 1 PredictWhat happens when every step uses the biggest model?

    An operations team runs an AI workflow 10,000 times a month. Each task reads 20 pages of documents across 5 steps: sorting, pulling fields, checking dates, formatting, and writing one judgment call. What does the monthly model bill look like if all 5 steps use a large frontier model instead of routing the 4 routine steps to a small model?

  2. 2 TryMove the routine steps to a small model

    Move Steps on small model from 0% to 80% (4 of the 5 steps), and watch the bars and the monthly bill.

    Monthly bill
    $4,500
    Saved a month
    $0
    Use your own numbers
  3. 3 ObserveWere you right?

    Commit to a prediction first.

  4. 4 ExplainWhy does it come out this way?

  5. 5 ApplyA new case

    Your team builds an internal search tool over 50,000 company PDFs. The first prototype sends the top 30 full PDFs (600 pages in all) to a frontier model on every employee question, and the bill hits $18,000 in the first month. What do you fix first?

The math behind the figure

  • One page of text is taken as about 500 tokens (roughly 375 words), including the prompt and a short structured reply at each step.
  • The large frontier model is priced at $4.50 per 1,000 pages read and answered (equivalent to $9 per million tokens blended), or 9 cents for a 20-page step.
  • The small model is priced at $0.30 per 1,000 pages (equivalent to $0.60 per million tokens blended), or 0.6 cents for a 20-page step, one fifteenth the cost.
  • One task costs the large-model steps plus the small-model steps. At 5 steps on 20 pages, all large is 45 cents a task; 1 large and 4 small is 11.4 cents a task.
  • Prompt caching and plain code lower the bill further when the same 20 pages are reused across steps or when a step can be done by a script with no model at all.

AI for leaders

Five lessons on what AI is, where the money is, and what has to be true first.

  1. 1Why does the same question get different answers?5 minutes
  2. 2What is one workflow worth?5 minutes
  3. 3Why can’t AI answer questions about your own business?5 minutes
  4. 4Where does your data go when you ask AI?5 minutes
  5. 5What does AI cost to run?This lesson

Next course: How agents work. What is an agent harness?