Vendor diligence

The AI token cost trap

Why ongoing-cost language matters more than headline price. The single most expensive procurement pattern of 2026.

Score a vendor in 5 min Read the methodology

How the trap works

Vendor offers a low headline retainer. Token consumption is "your responsibility". As usage scales, the buyer absorbs 100% of the variable cost. We have seen six-figure surprises in the first quarter post-signing.

What good looks like

Per-token pricing is fine if it is capped, reviewed, and bounded by 30-day notice. Buyers need a lever to renegotiate as usage grows. Vendors who refuse caps are pricing for uncapped upside.

The four clauses

Monthly cost cap. Quarterly cost review. 30-day cost-change notice. Itemised ongoing cost. These four clauses transform a token-pass-through engagement from a CFO trap into a manageable spend.

Real case examples

Anonymised cases in our scorecard PDF: a SaaS company that absorbed a 4x usage spike, a fintech that re-negotiated mid-quarter, and a logistics buyer that walked away when the vendor refused a cap.

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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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