CIOs: Use Rate Variance Analysis To Get To The Bottom Of Runaway Token Spend
Your AI budget is hemorrhaging. Here's why token consumption metrics alone won't save you.
Why it matters
As enterprises struggle with runaway LLM costs, a Forrester analysis reveals that token spend variance requires multi-factor root cause analysis—not just consumption tracking. Critical for CFOs and CTOs managing AI TCO in 2026.
The key facts
9 to knowFocus on rate variance analysis vs. token consumption alone
Token spend is driven by multiple factors, not a single metric
Relevant to CIO/CFO cost management and budget governance
Published July 2026 — current enterprise AI cost crisis
Token consumption alone is insufficient to explain budget overruns
Rate variance analysis required for root-cause analysis of AI spend
Widespread budget exhaustion across enterprise CIO base
Multiple factors drive token spend beyond raw consumption
Published by Forrester (credible analyst source)
Go to the source
Forrester Blogforrester.com
Publisher excerpt: So you’ve blown through your AI budget. Join the club. Blaming token consumption may have worked once. But as the adage goes, “Fool me once, shame on you. Fool me twice … ” you know the rest. Token consumption is a combination of multiple factors and not conclusive on its own. Hence, you need a […]