Vendor diligence

AI vendor pricing transparency

Why per-token pricing is a CFO trap without monthly caps. The cost language CFOs negotiate before signing in 2026.

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The token-cost trap

Per-token (or hybrid) pricing with "your responsibility" infrastructure language pushes 100% of usage risk onto the buyer. We have seen six-figure surprises within the first quarter.

The all-inclusive too-good clause

All-inclusive monthly retainer with no usage caps tends to fall apart when usage scales. Vendors either renegotiate or under-deliver. Demand the cost-assumption disclosure.

What good looks like

Itemised line-item ongoing cost, monthly cap, quarterly review, 30-day notice. These four clauses give the CFO the levers they need to manage the spend.

How to negotiate

Frame caps as a shared risk-management tool. Vendors who refuse to cap usage are signalling that their pricing model depends on uncapped growth - which is exactly the risk you are trying to avoid.

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What kind of vendor are they?

Different archetypes carry different risk profiles. Boutique consultancies, agencies, SaaS vendors, freelancers, and staff-aug shops all fail in distinct ways - we adapt the rest of the questions to the archetype you pick.

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