TBM for AI

Managing AI economics and value—and using AI to advance Technology Business Management

Artificial intelligence is changing how organizations invest in, deliver, and consume technology. AI capabilities are becoming embedded in enterprise applications, business processes, digital products, and technology operations. Their economics can differ substantially from traditional technology services, with consumption-based pricing, shared infrastructure, variable workloads, specialized labor, and evolving operating requirements.

These characteristics create new management challenges. Technology leaders need to understand what AI costs, what drives consumption, which services and consumers benefit, and whether investments are producing meaningful organizational value. They also need to determine when AI capabilities should be expanded, improved, replaced, or discontinued.

Technology Business Management (TBM) provides a structured approach to these questions by connecting financial, operational, and business information with technology resources, solutions, consumers, and investment decisions.

AI also creates opportunities to improve TBM itself. With appropriate data, controls, and oversight, AI can assist practitioners with classification, modeling, analysis, forecasting, reporting, and the delivery of insights.

This page explores both relationships: how organizations can use TBM to manage AI investments and operations, and how they can use AI to strengthen the TBM practice.

Understanding the Relationship Between TBM and AI

TBM supports three complementary areas of AI management.

Managing AI spending and consumption

AI costs may originate in cloud infrastructure, model providers, software subscriptions, data platforms, internal labor, external services, and shared enterprise capabilities. Consumption may be measured through tokens, requests, compute hours, licenses, or other units, depending on the technology and commercial arrangement.

TBM helps organizations bring these costs and consumption measures into a consistent management context. By connecting financial records and operational usage with technology services and consumers, leaders can understand spending patterns, establish accountability, and identify opportunities to improve resource allocation.

Managing AI investments and organizational value

Knowing what AI costs is necessary, but insufficient for determining whether an investment is worthwhile.

AI initiatives may be intended to improve productivity, reduce operating costs, enhance experiences, create new capabilities, strengthen decision-making, or support other organizational objectives. Their value depends on what changes as a result of their adoption and whether those changes justify the resources and consequences involved.

TBM connects technology economics with business priorities and relevant performance information, supporting investment evaluation, portfolio governance, and decisions throughout the AI lifecycle.

Using AI to improve TBM

AI can also assist the people responsible for operating the TBM practice.

Potential applications include recommending classifications for financial records, identifying unusual data patterns, explaining cost variances, developing forecasts, preparing scenarios, and helping stakeholders interpret technology information.

These applications require appropriate controls. AI-generated recommendations should remain traceable to governed data, established business rules, and accountable human decisions.

Two directions of AI and TBM

  • Use TBM to manage AI: Understand AI resources, spending, consumption, investments, and organizational value.
  • Use AI to improve TBM: Strengthen data management, analysis, forecasting, reporting, and practitioner effectiveness.

Both depend on reliable information, clear ownership, and disciplined decision-making.

Managing AI Spending and Consumption

AI spending can be difficult to understand because costs are often distributed across technologies, vendors, organizational budgets, and consumption models.

An AI-enabled application may use a commercial model API, enterprise data services, cloud infrastructure, application integration, security controls, monitoring tools, and specialized personnel. Some costs can be attributed directly to a product or service. Others are shared across multiple workloads or embedded within existing software contracts.

Traditional financial reporting may identify the vendor, account, or cost center responsible for spending without revealing which AI capability consumes the resources or which business activity benefits.

TBM addresses this challenge by connecting financial and operational information through the TBM Model.

Establishing AI cost transparency

A useful starting point is identifying where AI-related costs originate and distinguishing direct costs from shared or embedded costs.

Relevant information may include:

  • Cloud and model-provider billing, including consumption quantities and charges.

  • Software subscriptions and AI-related licensing.

  • Dedicated and shared compute, storage, networking, and data services.

  • Engineering, development, integration, and operational support costs.

  • Security, monitoring, evaluation, and governance activities.

  • Service ownership, application relationships, and business consumers.

Organizations should avoid assuming that all AI costs can be identified through a single vendor, account, or technology category. AI functionality may be embedded in broader services, and some spending may require additional classification or attribution.

Connecting consumption to accountability

Consumption measures become more useful when connected to the services and consumers responsible for demand.

For example, API usage records may identify a model deployment or application, while a service catalog establishes which business capability that application supports. Combining these relationships allows leaders to examine consumption and cost at a level relevant to management decisions.

Shared costs require documented allocation methods. Direct metering is generally preferable where reliable usage data exists. Where direct attribution is unavailable, organizations may use supported consumption drivers or reasonable proxies, provided their assumptions and limitations remain visible.

This supports showback, chargeback where appropriate, budgeting, forecasting, and more informed conversations about demand.

Understanding the Full Economics of AI

AI cost management should extend beyond the price of an individual model request or unit of compute.

Tokens, inference requests, GPU hours, and subscription seats can provide useful measures of consumption. However, these measures do not necessarily represent the full cost of delivering an AI-enabled product or service.

The total economic picture may include development and integration, data preparation, infrastructure, software licensing, evaluation, security, monitoring, operational support, workforce requirements, and ongoing changes to the capability.

Different AI delivery models also create different cost structures. A commercial SaaS capability, an internally developed application using external models, and a self-hosted model may require substantially different forms of investment and operational support.

TBM helps leaders compare these alternatives by relating their costs to the services delivered and the outcomes they are expected to support.

AI unit economics

Unit economics connects the cost of a capability with a meaningful measure of its output or consumption.

Depending on the application, useful measures might include cost per completed business transaction, cost per processed document, cost per supported interaction, cost per active user, or cost per successful workflow.

Technical measures such as cost per thousand tokens or cost per GPU hour remain useful for infrastructure and platform management. However, they should not automatically be treated as measures of business value.

Comparisons must also account for differences in workload complexity, model performance, quality, reliability, and service requirements. A lower unit cost is not necessarily better if the alternative produces poorer results or requires more downstream work.

Total cost of ownership and investment evaluation

Total cost of ownership provides a broader view of the resources needed to establish, operate, maintain, and eventually replace or retire an AI capability.

When connected with business performance information, this supports evaluation of expected and realized benefits, financial trade-offs, and alternative investments.

For a deeper examination, read Beyond Tokenomics: TBM Delivers the Full Economic Picture for Accurate AI ROI.

Connecting AI Investments to Organizational Value

AI initiatives should be evaluated according to the organizational objectives they are intended to support, not simply their technical capabilities or adoption levels.

A successful AI investment may improve Financial Performance, Operational Efficiency, Experience, Innovation, Risk & Compliance, or Sustainability. A single initiative may influence several of these Organizational Value Drivers simultaneously, sometimes in competing ways.

For example, an AI-enabled service may improve employee productivity while increasing technology operating costs. An automation initiative may reduce processing time but introduce new oversight requirements. A new customer-facing capability may improve experience while creating additional operational dependencies.

TBM provides the financial and operational context needed to evaluate these consequences alongside business evidence.

From expected benefits to realized outcomes

An investment proposal may describe expected time savings, reduced costs, improved quality, or increased capacity. These expectations should be connected to measurable changes in the organization.

Time saved does not automatically become a financial benefit. Adoption does not establish effectiveness. Technical accuracy does not necessarily demonstrate an improved customer or employee experience.

Leaders should distinguish operational indicators from realized organizational outcomes and identify the additional evidence needed to establish value.

Managing competing priorities

Investment decisions should account for financial costs, opportunity costs, operational requirements, risk exposure, and expected benefits.

TBM helps leaders compare alternatives, understand resource commitments, and make informed decisions about where AI investments should be directed.

The objective is not to maximize AI adoption. It is to fund and manage AI capabilities that contribute meaningfully to organizational priorities.

Managing the AI Investment Lifecycle

AI investments require continuing management after initial approval.

An initiative that appears promising during experimentation may become uneconomic at scale. A capability that initially delivers value may later be surpassed by another technology, become redundant with existing software, or fail to achieve expected adoption and outcomes.

TBM supports governance across the investment lifecycle.

Experiment and evaluate

During experimentation, leaders need visibility into development costs, resource requirements, intended outcomes, and the evidence needed to justify further investment.

The objective is to learn whether the capability can deliver useful results and whether its likely economics support continued development.

Deploy and scale

As an initiative moves into production, the management focus expands to service ownership, consumption, operational support, security, reliability, financial accountability, and realized business outcomes.

Costs that were insignificant during experimentation may become material at scale. Forecasting should therefore reflect expected usage, architecture, service requirements, and operating responsibilities.

Optimize and improve

Production AI capabilities should be evaluated for opportunities to improve cost, quality, performance, reliability, and business effectiveness.

Optimization may involve changing models, adjusting infrastructure, improving application design, managing demand, or revising operating processes.

Rationalize and retire

Not every AI capability should continue indefinitely.

Organizations may need to consolidate overlapping services, replace expensive implementations, discontinue low-value initiatives, or redirect resources toward more promising opportunities.

These decisions should consider the complete economic and organizational consequences of change, including transition costs, contractual obligations, dependencies, and expected benefits.

Read When AI Doesn’t Deliver: Using TBM to Guide AI Rationalization for a closer examination of these decisions.

Governance as a continuing discipline

Effective governance connects technology investment decisions with financial accountability, operational responsibilities, and business priorities. It should support timely decisions throughout the lifecycle rather than functioning solely as an approval process.

Explore Transforming Tech Governance into Business Decision-Making for related guidance on using TBM to strengthen technology investment governance.

Using AI to Improve the TBM Practice

AI presents opportunities to improve how TBM practitioners collect, prepare, analyze, interpret, and communicate technology information.

Many TBM activities involve large datasets, recurring transformations, complex relationships, and substantial manual investigation. AI can assist with selected tasks, potentially reducing repetitive work and helping practitioners identify issues or opportunities that might otherwise receive less attention.

However, TBM depends on consistent definitions, governed allocation logic, reliable data, and explainable results. AI should strengthen these characteristics rather than introduce uncontrolled variation.

Data preparation and classification

AI can recommend classifications for financial records, identify potential Taxonomy mappings, and help practitioners investigate unmapped or inconsistently classified data.

Recommendations should be evaluated against approved rules and source evidence before they become part of the governed TBM Model.

Data quality and anomaly detection

AI-assisted analysis may help identify unusual spending patterns, missing records, unexpected changes in consumption, inconsistent mappings, and other conditions requiring investigation.

Anomalies are indications for review, not proof of error. Legitimate business changes can produce unusual patterns, and model recommendations must be validated.

Analysis, forecasting, and scenario development

AI can assist practitioners in exploring trends, preparing analytical explanations, developing forecast assumptions, and comparing scenarios.

These applications are most useful when they operate on governed information and distinguish observed facts from estimates, assumptions, and generated interpretations.

Reporting and stakeholder engagement

AI may help translate complex TBM information into accessible explanations, draft recurring reports, and support natural-language exploration of approved datasets.

This can make TBM information easier to use, particularly for stakeholders who do not regularly work with detailed financial or modeling reports.

Any generated interpretation should preserve traceability to the underlying evidence and remain subject to appropriate review.

Suggested callout: AI-assisted TBM requires governed information

AI can recommend classifications, identify patterns, and prepare analyses. It should not independently change approved mapping rules, allocation methods, financial results, or management decisions without appropriate authorization and validation.

Reliable TBM remains the foundation for useful AI-assisted analysis.

Practical TBM and AI Use Cases

The following use cases illustrate how organizations can apply TBM to AI management and how AI can support the operation of a TBM practice.

Each blueprint identifies the management problem, required information, minimum modeling or data requirements, recommended methods, expected outputs, and the decisions it can support.

The first three use cases apply TBM to AI investments and operations. The final three apply AI within the TBM practice. Their technical requirements differ accordingly.

Using TBM to Manage AI

AI Cost Transparency and Allocation

Management problem

AI spending is frequently fragmented across cloud platforms, model providers, software contracts, internal labor, and shared enterprise services. Financial records may identify who purchased a resource without establishing which AI capability consumes it or which business consumer benefits.

This limits budget accountability, demand management, forecasting, and the ability to distinguish productive consumption from avoidable expense.

Decisions supported

  • Which AI services and consumers are responsible for spending?
  • What drives changes in AI consumption and cost?
  • Where should costs be attributed directly or allocated?
  • Which spending requires investigation or improved accountability?

Required data

Minimum inputs include general ledger or accounts payable records, cloud and AI-provider billing, usage quantities where applicable, accounting periods, and identifiers connecting resources to applications, services, or owners.

Additional useful information includes SaaS entitlements and assignments, service catalogs, deployment identifiers, cost center ownership, shared-platform consumption, and contract commitments.

Minimum TBM Model depth

Resource Towers provide a useful starting point for identifying and grouping AI-related technology costs. Mapping to Technology Solutions is needed to establish meaningful service-level costs. Technology Consumers are needed when the objective includes allocating costs to business recipients.

The appropriate minimum therefore depends on the reporting objective. A Resource Tower view can support infrastructure transparency, but it cannot independently establish complete AI service or consumer costs.

Allocation methods

Directly attributable charges should be assigned using reliable resource, subscription, application, or deployment identifiers.

Shared inference and compute costs may be allocated using measured workload consumption, adjusted where necessary for meaningful differences in resource demand. Software licenses may be attributed through assignments or contractual entitlements. Shared labor and platform costs may require documented effort, service consumption, or other reasonable drivers.

Where measurement is unavailable, estimates should remain distinguishable from observed usage. Allocated spending must reconcile to the relevant source totals.

Expected outputs and measures

Useful outputs include AI spending by provider, Resource Tower, Technology Solution, and consumer; consumption and cost trends; budget variance; unallocated spending; and the proportion of costs attributed through direct measurement versus allocation estimates.

Relevant TBM Outcomes

Transparency, Insights, Alignment, and Optimization.

Organizational Value Drivers

Primarily Financial Performance and Operational Efficiency. Other Value Drivers may be influenced by decisions made using the information.

Implementation considerations

Begin with a manageable set of AI services and establish ownership and cost reconciliation before introducing complex allocations. Validate resource identifiers, avoid double-counting shared charges, and distinguish embedded AI functionality from separately identifiable AI spending.

Showback can be introduced before chargeback to test allocation credibility and improve stakeholder understanding.

Management problem

Organizations may compare AI alternatives using model prices, token rates, or infrastructure costs without accounting for the full resources required to deliver a functioning business capability.

This can distort build-versus-buy decisions, obscure ongoing operating commitments, and make it difficult to determine whether an AI service is becoming more economical as consumption grows.

Decisions supported

  • What does it cost to deliver an AI-enabled service or business transaction?
  • How do different delivery architectures compare?
  • Which components contribute most to total cost?
  • Are changes in consumption improving or worsening unit economics?
  • Should the organization build, buy, redesign, or replace a capability?

Required data

Required information includes technology costs, usage or output volumes, service ownership, and the relationships connecting underlying resources to the AI capability.

For a fuller TCO analysis, include development and integration labor, software and model-provider charges, infrastructure, data services, evaluation, security, monitoring, operational support, contracts, and expected lifecycle changes.

Business output measures should be defined with the service owner. Depending on the application, these may include completed transactions, processed documents, resolved interactions, or successful workflows.

Minimum TBM Model depth

Resource Towers can support infrastructure-level unit costs, such as cost per GPU hour, when cost and consumption boundaries align.

Technology Solutions are the recommended minimum for evaluating complete AI product or service economics. Mapping to Technology Consumers and business capabilities improves attribution and supports evaluation of business-level outcomes.

Allocation and calculation methods

Assign directly attributable costs to the relevant solution. Allocate shared infrastructure and services using measured consumption where possible, or documented drivers reflecting resource demand.

Calculate unit cost by dividing the relevant total cost by a consistently defined unit of output over the same period.

Technical consumption measures should be normalized only when the underlying workloads are genuinely comparable. Token counts cannot be converted into a universal number of standardized inferences, and differences in model quality or task complexity can invalidate simple benchmark comparisons.

TCO should distinguish one-time implementation costs from recurring operating costs and make the analysis period explicit.

Expected outputs and measures

Outputs may include cost per completed business transaction, cost per AI-enabled service interaction, total lifecycle cost, fixed versus variable cost, cost by delivery alternative, and forecast unit costs at different demand levels.

Comparisons should include service quality, reliability, and relevant operating requirements alongside cost.

Relevant TBM Outcomes

Transparency, Insights, Benchmarking, Strategy, and Optimization.

Organizational Value Drivers

Financial Performance and Operational Efficiency, with potential implications for Experience, Innovation, and other drivers depending on the capability.

Implementation considerations

Define the unit of output before building the calculation. Avoid comparing unlike workloads, confusing infrastructure cost with complete service cost, or treating expected productivity improvements as realized financial savings.

Use sensitivity analysis to evaluate changes in consumption, pricing, service requirements, and implementation assumptions.

Management problem

AI portfolios often contain initiatives at different stages of development, with inconsistent business cases, fragmented ownership, and limited evidence of realized benefits.

Without continuing evaluation, organizations may scale initiatives that have not demonstrated sufficient value, maintain redundant capabilities, or overlook opportunities to redirect resources.

Decisions supported

  • Which AI initiatives should be funded, expanded, redesigned, consolidated, or discontinued?
  • Are expected benefits being realized?
  • How do initiatives compare against organizational priorities?
  • What financial and operational commitments accompany each investment?
  • Where could resources create greater value if reallocated?

Required data

Minimum inputs include an AI initiative inventory, ownership, investment and operating costs, lifecycle status, intended outcomes, and approved business cases or investment assumptions.

Additional information may include adoption and usage, service performance, business KPIs, forecast costs, contract commitments, operational dependencies, risk assessments, and realized benefits.

Measures should reflect the purpose of each initiative rather than imposing a universal AI ROI calculation.

Minimum TBM Model depth

Technology Solutions provide a useful minimum for connecting AI capabilities to their costs and operating responsibilities.

Mapping to Technology Consumers and business capabilities is recommended for understanding who benefits and how investments relate to enterprise priorities.

Some early-stage initiatives may initially be managed through project or investment records before a stable production Solution exists. Those records should remain connected to the relevant financial information.

Allocation and evaluation methods

Direct project and service costs should be attributed to the relevant initiative. Shared platform, labor, and support costs should be allocated using documented consumption or effort drivers where appropriate.

Evaluation should compare expected and actual costs, adoption, operational performance, and business outcomes. Financial benefits should distinguish avoided expenditure, realized cost reduction, capacity creation, revenue contribution, and other forms of value.

A portfolio review should also consider transition costs, contractual obligations, dependencies, and opportunity costs before recommending rationalization.

Expected outputs and measures

Useful outputs include an AI investment portfolio, lifecycle status, spending against plan, forecast commitments, benefit realization, adoption and performance indicators, and investment decision recommendations.

Each initiative should have an identified owner, intended outcome, relevant evidence, and a review cadence appropriate to its maturity.

Relevant TBM Outcomes

Strategy, Alignment, Insights, Transparency, and Optimization.

Organizational Value Drivers

Potentially all six Organizational Value Drivers, depending on the initiative. The relevant drivers should be selected according to the intended organizational consequences rather than assigned automatically.

Implementation considerations

Establish common governance requirements without assuming every initiative requires the same metrics or approval thresholds.

Separate evidence of technical success from evidence of organizational value. Revisit business cases as initiatives mature, and provide explicit decision options for continuation, expansion, redesign, consolidation, and retirement.

Portfolio governance should support learning and resource reallocation, not simply compliance with an approval process.

Using AI to Improve TBM

AI-Assisted Data Classification and Taxonomy Mapping

Management problem

TBM practitioners frequently spend substantial time reviewing financial records, resolving inconsistent descriptions, maintaining classification rules, and mapping source data to the TBM Taxonomy.

These activities can become difficult to scale when organizations have many source systems, changing vendors, inconsistent account structures, or large volumes of unmapped records.

AI can assist by identifying likely classifications and presenting evidence for practitioner review.

Decisions and activities supported

  • Which source records are likely to belong to particular Cost Pools or Resource Towers?

  • Which records appear inconsistent with approved mapping rules?

  • Where are new vendors, descriptions, or accounting patterns creating mapping exceptions?

  • Which classification recommendations can be approved, and which require further investigation?

Required data

Inputs include source financial and operational records, approved Taxonomy definitions, existing mapping tables, historical classifications, account and vendor reference data, and documented exceptions.

Useful supporting information includes service catalogs, organizational ownership, contract descriptions, and prior practitioner decisions.

The system should retain source identifiers and the classification rules or evidence used to generate each recommendation.

Minimum TBM Model depth

No completed downstream Taxonomy mapping is required to begin. This use case can operate on source records before they enter the TBM Model.

The required target depth depends on the classification task. Initial applications may focus on Cost Pools or Resource Towers. More advanced recommendations involving Technology Solutions or Consumers require reliable relationship and ownership information.

AI processing approach

Use approved rules and existing mappings as the primary reference. AI can recommend classifications for unresolved records, identify similarities with previously classified items, and highlight potential inconsistencies.

Recommendations should include supporting evidence and a confidence or review-priority indicator. Confidence values should not be treated as reliable probabilities unless calibrated and validated.

Approved classifications can then be incorporated into governed mapping tables through established change-control procedures.

Expected outputs and measures

Outputs include proposed classifications, exception queues, records requiring additional evidence, mapping consistency reports, and approved updates.

Useful measures include classification accuracy on a representative reviewed sample, percentage of records requiring manual investigation, exception resolution time, and the proportion of spending remaining unmapped.

Relevant TBM Outcomes

Transparency, Insights, and Optimization.

Organizational Value Drivers

Potentially Operational Efficiency and Financial Performance through reduced manual effort and improved decision information. These benefits must be measured rather than assumed.

Implementation considerations

Begin with a limited classification problem and an approved reference dataset. Evaluate recommendations against known correct classifications before expanding use.

Protect sensitive financial information, retain a complete review history, and prevent AI-generated classifications from silently changing production mapping logic.

Management problem

TBM practitioners must interpret large volumes of financial and operational information, explain variances, identify emerging trends, and develop forecasts or scenarios for management decisions.

These activities can require extensive manual analysis, particularly when changes involve multiple cost drivers, services, vendors, and business consumers.

AI can assist with investigation, interpretation, and scenario preparation when supported by governed data and reliable analytical methods.

Decisions and activities supported

  • What explains significant changes in technology costs or consumption?

  • Which patterns warrant investigation?

  • How might spending change under different demand or pricing assumptions?

  • What are the likely consequences of alternative sourcing, capacity, or investment decisions?

  • Which findings should be brought to management attention?

Required data

Inputs may include historical actuals, budgets, forecasts, operational consumption, service and consumer mappings, allocation rules, vendor pricing, contractual commitments, and known business drivers.

Additional information may include project schedules, planned capacity changes, business demand forecasts, and documented management assumptions.

Data should retain time periods, organizational boundaries, units of measure, and source provenance.

Minimum TBM Model depth

No universal minimum applies. The necessary depth depends on the analysis.

Cost Pools and Resource Towers may support infrastructure cost forecasting. Technology Solutions are needed for service-level analysis. Technology Consumers improve demand attribution and business-level scenario evaluation.

The analytical model should use the deepest mapping necessary to answer the management question reliably, without implying that greater detail always produces better forecasts.

AI processing approach

AI can help identify unusual patterns, formulate investigative questions, summarize validated analytical findings, and assist practitioners in constructing scenarios.

Calculations should use controlled analytical methods. Forecasting models should be selected and tested against historical results, with assumptions and limitations documented.

Generated explanations should distinguish observed relationships from inferred causes. AI should not invent drivers to explain an unexplained variance.

Expected outputs and measures

Outputs may include variance explanations, exception reports, forecast scenarios, assumptions registers, sensitivity analyses, and management summaries.

Measures include forecast accuracy, completeness of variance explanations, time required for analysis, and the percentage of generated findings supported by verifiable evidence.

Relevant TBM Outcomes

Insights, Benchmarking, Strategy, Alignment, and Optimization, depending on the application.

Organizational Value Drivers

Potentially Financial Performance and Operational Efficiency, with additional drivers determined by the decisions supported.

Implementation considerations

Begin with a bounded analytical workflow and compare AI-assisted results with established practitioner methods.

Validate calculations independently, prevent unauthorized access to sensitive information, and maintain clear separation between source facts, model estimates, scenario assumptions, and recommendations.

Forecasts should remain subject to accountable human review before they influence budgets or investment decisions.

Management problem

TBM information can be difficult for stakeholders to interpret when it is presented through complex dashboards, detailed financial reports, or unfamiliar modeling terminology.

Practitioners may also spend considerable time preparing recurring explanations, responding to similar questions, and tailoring information for different audiences.

AI can help translate governed TBM information into accessible narratives and support more responsive stakeholder engagement.

Decisions and activities supported

  • What changed in technology spending, consumption, or service economics?

  • Which information is relevant to a particular stakeholder?

  • How should significant findings be explained?

  • What follow-up questions should be investigated?

  • How can recurring reporting be prepared more efficiently?

Required data

Inputs include approved TBM reports, metric definitions, governed datasets, business glossaries, reporting periods, organizational ownership, and access permissions.

Supporting information may include prior approved reports, known business events, service descriptions, and documented explanations of significant variances.

The system must distinguish information the requesting stakeholder is authorized to access.

Minimum TBM Model depth

No additional Taxonomy mapping is inherently required beyond that supporting the underlying report or question.

Cost Pools and Resource Towers may be sufficient for financial or infrastructure reporting. Technology Solutions and Consumers are needed when explaining service economics, business demand, or consumer accountability.

AI processing approach

AI may draft narratives from approved reports, summarize changes, explain defined metrics, and help users navigate available information through natural-language questions.

Where supported, responses should retrieve information from governed sources and provide references to the relevant data, reporting period, and calculation definitions.

Generated explanations should not introduce unsupported causal claims or present recommendations as approved management decisions.

Expected outputs and measures

Outputs may include recurring management reports, executive summaries, stakeholder-specific explanations, question-and-answer responses, and follow-up investigation requests.

Useful measures include report preparation time, factual accuracy, source traceability, stakeholder adoption, and the proportion of responses requiring correction.

Relevant TBM Outcomes

Transparency, Insights, Alignment, and Strategy.

Organizational Value Drivers

Potentially Operational Efficiency and Experience, with indirect implications for other Value Drivers when better information supports subsequent decisions.

Implementation considerations

Start with a defined set of approved reports and common stakeholder questions.

Apply role-based access controls, require source references for material claims, and establish review requirements for financial or executive communications.

The objective is to make TBM information easier to understand and use without compromising its accuracy, confidentiality, or governance.

Getting Started with TBM and AI

Organizations can begin applying TBM to AI without waiting for a comprehensive AI cost model or a fully developed AI governance program. Similarly, practitioners can begin evaluating AI-assisted TBM workflows without introducing AI across the entire practice.

The most effective starting point is a specific management problem with a clear owner, available information, and an identifiable decision or improvement objective.

Getting started: Using TBM to manage AI

  1. Identify the AI services and investments that matter. Begin with a defined portfolio, service, provider, or business capability where spending, consumption, or value is not adequately understood.

  2. Establish financial and operational visibility. Identify relevant costs, usage measures, ownership, and available service relationships. Determine which information is directly measured and which requires estimation.

  3. Connect resources to solutions and consumers. Extend the TBM Model to the depth needed for the management question, using documented allocation methods where direct attribution is unavailable.

  4. Define the decisions and measures. Establish what leaders need to decide and what evidence will support those decisions. Select unit costs, performance measures, and business outcomes appropriate to the capability.

  5. Incorporate the information into governance. Use the resulting understanding to guide funding, demand management, optimization, scaling, and rationalization decisions. Review results as conditions change.

Getting started: Using AI to improve TBM

  1. Select a bounded practitioner workflow. Choose a recurring activity such as classification review, variance analysis, or report preparation where the expected benefit can be evaluated.

  2. Establish a governed information source. Provide approved data, definitions, mapping rules, and examples of correct outputs.

  3. Define AI’s permitted role. Determine whether AI will recommend, classify, summarize, analyze, or draft—and which activities require human authorization.

  4. Test accuracy and usefulness. Compare AI-assisted outputs with established methods, evaluate errors, and document limitations before expanding use.

  5. Integrate with practice operations. Establish ownership, review procedures, access controls, performance measures, and a process for correcting or discontinuing ineffective applications.

Suggested callout: Begin with a management question

Whether using TBM to manage AI or AI to improve TBM, start by identifying the decision or process that needs improvement. Then determine the data, methods, controls, and evidence required to produce a useful result.

AI, TBM Outcomes, and Organizational Value

TBM Outcomes and Organizational Value Drivers play different roles in managing AI.

TBM Outcomes—including Transparency, Insights, Benchmarking, Strategy, Alignment, and Optimization—provide capabilities that help leaders understand technology and make informed decisions.

Organizational Value Drivers describe the dimensions of value those decisions and subsequent actions can influence.

AI initiatives may contribute to Financial Performance through improved economics, Operational Efficiency through better execution, Experience through improved interactions, Innovation through new capabilities, or other dimensions of organizational value. They may also introduce risks, resource dependencies, or competing consequences that must be evaluated.

The relationship is not automatic. Better AI cost transparency does not itself reduce spending, and an AI-assisted forecast does not itself improve financial performance. Value depends on how leaders use the information, which decisions they make, and what results those decisions produce.

Explore the Organizational Value Drivers and the TBM Framework for a broader understanding of these relationships.

Explore TBM and AI Resources

The following Council publications provide additional guidance on AI economics, technology modeling, investment governance, and organizational value.

Understanding AI economics

Beyond Tokenomics: TBM Delivers the Full Economic Picture for Accurate AI ROI

Explore why technical consumption measures alone are insufficient for evaluating AI economics and how TBM supports a more complete understanding of AI investments.

Managing the AI portfolio

When AI Doesn’t Deliver: Using TBM to Guide AI Rationalization

Examine how TBM can support decisions to improve, consolidate, replace, or discontinue AI capabilities when actual results do not justify continued investment.

Understanding technology resource costs

Technology Resource Towers in TBM Modeling & Technology Value Management

Learn how Resource Towers contribute to technology cost modeling and why connecting resources to solutions and consumers is important for understanding business value.

Strengthening technology investment governance

Transforming Tech Governance into Business Decision-Making

Explore how TBM can connect technology governance with the information and decisions needed to manage investments against business priorities.

Building executive confidence

How the Best TBM Practices Build a Trust Premium

Consider how reliable information, consistent management practices, and stakeholder confidence contribute to the effectiveness of TBM.

Connecting technology to enterprise priorities

Creating Superior Business Value with Technology: How You Can Use TBM to Help Your C-Suite Deliver on Their Goals

Explore how technology management can be connected to the objectives and priorities of enterprise leadership.

Developing the TBM discipline

Building the TBM Body of Practice for the Age of AI

Explore the importance of developing governed, repeatable TBM methods as AI introduces new opportunities and management requirements.

Managing AI as Part of Technology Business Management

AI is becoming part of the technology portfolio and the broader operating environment of the enterprise. Managing it effectively requires more than tracking spending or selecting promising technologies. Organizations need to understand AI’s complete economics, its consumption and operational dependencies, the business capabilities it supports, and the organizational consequences of investment decisions.

TBM provides a common management discipline for developing that understanding and connecting it to governance, resource allocation, and ongoing evaluation.

At the same time, AI offers opportunities to improve the effectiveness of the TBM practice. Applied to governed information and well-defined workflows, AI can help practitioners manage data, develop insights, evaluate alternatives, and communicate findings more effectively.

The opportunity is therefore reciprocal: TBM can make AI investments more understandable and manageable, while AI can help make TBM more capable and responsive. Both contribute when reliable information leads to better decisions and those decisions produce meaningful organizational value.

The principle of designing value from the beginning is critically important to AI solutions which require early, high-stakes decisions on architecture, infrastructure, training approaches, and operating models. Applying TBM only after AI is deployed limits its ability to influence strategy or justify spend. With TBM by Design, AI capacity, TCO, and ROI modeling become inputs to planning and architecture decisions—guiding innovation toward the highest-value outcomes.

How TBM by Design supports AI:

  • Incorporates TCO and capacity forecasts into AI funding and business case approvals
  • Supports build-vs-buy decisions based on projected costs, performance, and ROI
  • Enables early identification of high-cost or low-yield solutions
  • Aligns scarce resources (GPUs, data science time, etc.) to priority use-cases

Embedded TBM delivers:

  • AI investment governance based on modeled cost and value tradeoffs
  • Faster time-to-value with more confident go/no-go decisions
  • Greater agility in adjusting AI roadmaps as real costs and results emerge

Getting Value Quickly from TBM for AI

AI doesn’t wait—and neither should your TBM practice. You don’t need perfect models to get started:

  • Begin with SaaS-based AI solutions and map costs to basic Taxonomy structures
  • Use directionally correct models to identify major cost drivers for more complex AI
  • Leverage existing billing, infrastructure, and labor data—even if partial—to create early insights

In many cases, a rough TCO model delivered in the first 60–90 days is more valuable than a “perfect” model 12 months later—especially if it prevents waste or strengthens the case for further investment.

Take the Next Step

Innovation thrives on clarity, alignment, and momentum. TBM brings all three to AI initiatives. Whether you’re piloting chatbots or scaling agentic platforms, TBM gives you the tools to model costs, forecast needs, and prove value.

  • Start where you are—model even partial data
  • Engage with AI leaders through the TBM Council community
  • Embed TBM into the foundations of every AI initiative

Explore more in the TBM for AI Community or dive into the TBM Taxonomy 5.0 to begin mapping AI to value.

Red Hat built the world’s largest enterprise open-source software company, growing into a multi-billion-dollar firm before being acquired by IBM Corp. This open-source heritage often placed the value of technology in the product and engineering realm rather than with IT. Thus, not surprisingly, Red Hat’s TBM journey started with a new CFO wanting to know why IT costs were so high. Through the TBM framework and discipline, Red Hat IT successfully delivered cost transparency of all IT spend and then became a model for technology spend planning and forecasting. The IT team added the FinOps discipline to its capabilities and is now managing a broad hybrid cloud portfolio. However, TBM and FinOps have remained in the realm of IT only, until now. Red Hat’s current CIO, Jim Palermo, is driving TBM, FinOps, and Enterprise Agile Management across the company based on IT’s success and through the lens of value stream management. in this session, Jim will walk through Red Hat’s TBM journey and its current transformation to an operational business architecture framework built on value streams aligned to business outcomes.


Speaker:

  • Jim Palermo, VP, CIO, Red Hat

When the team at Tenet Healthcare made the decision to move towards a model that provided more accurate financial transparency, they looked to TBM practices and solutions. Join Paola Arbour, EVP and CIO at Tenet healthcare as she answers the question “why TBM?”, including what Tenet was trying to solve with the TBM Taxonomy, the effectiveness of their KPIs, and how building support and momentum across the entire company was critical to their successful TBM adoption. In this session, Paola will also share how Tenet continues to evolve their use of TBM, including for mergers, acquisitions, and divestiture activity, as well as segmenting cost structures.


Speaker:

  • Paola Arbour, EVP & CIO, Tenet Healthcare

Data driven decision making has been a key to longevity and delivering best in class service to State Farm’s customers over the past 100 years. Recently, State Farm decided to use a managed services company for the day-to-day support of their Infrastructure Services. Today’s technology leaders need to be able to make real-time, informed decisions to help ensure technology investments are meeting their customer’s needs, while continuing to support company long-term goals. Ashley Pettit, SVP & CIO at State Farm, will be joined by Randy McBeath, Enterprise Technology Executive, and Andy Moore, Technology Director, and together they will share how TBM aided in State Farm’s analysis and decision to move to a managed service provider.


Speakers:

  • Ashley Pettit, SVP & CIO, State Farm Insurance
  • Andy Moore, Technology Director, State Farm Insurance
  • Randy McBeath, Enterprise Technology Executive, State Farm Insurance

There is fast evolution occurring in the overall technology spend and value management market, with the advancements of cloud, Kubernetes, AI/ML, and other innovations. At the same time, we are seeing vast changes in the roles of the CIO, CFO, and business/digital leadership. In addition, TBM is intersecting with other disciplines and frameworks, such as Cloud FinOps, Agile engineering, and portfolio resource management. How is this affecting the TBM discipline, the TBM Council, and Apptio? For one, TBM is moving down market, becoming more accessible to all sizes and maturity of organizations, with easier ways to get started and a faster time to value. Cloud FinOps, meanwhile, is advancing and adding capabilities previously in TBM to the cloud cost management space. Join Apptio CEO Sunny Gupta as he explores the evolving TBM landscape and how he believes it will bring even greater opportunity and value to organizations worldwide.


Speaker:

  • Sunny Gupta, Co-Founder & CEO, Apptio

In today’s challenging economic times it is critical that CFOs, CIOs, and CTOs speak the same language when it comes to the value of technology spend. Having a single source of truth that everyone can feel confident in, track progress continuously throughout the year with shared insights, and analyzing options for resourcing and funding in order to reduce waste is where TBM deepens their partnership. In this discussion, join members of the TBM Council Board of Directors as they discuss the pivotal conversations and steps taken to collectively adopt TBM practices across the organization, including responding to naysayers and gaining allies.


Panelists:

  • George Maddaloni, EVP, CTO, Operations, Mastercard
  • Laura Walsh, CIO, Smithfield Foods
  • RJ Hazra, SVP & CFO, Technology & Security, Equifax
  • Moderated by Chad Doiran, Managing Director, Tech. Strategy & Advisory, Accenture

Fumbi Chima has led technology teams across multiple organizations throughout her esteemed career, including retail, manufacturing, media, and financial services. As a turnaround and high growth leader, Fumbi has leveraged TBM as a foundational practice to bring repeatable processes, purchasing guidelines, and cost/resource savings. Now at Boeing Employe Credit Union (BECU) serving more than 1.2 million members, Fumbi is driving their digital transformation with a clear vision and strategy to optimize their public-cloud with TBM and Cloud-FinOps, adopt a product model, and set the groundwork for future innovation and growth. Join Fumbi and Larry Blasko, President, Field Operations at Apptio, as they discuss the lessons Fumbi has learned along her TBM journey, and where this transformation leader sees the evolution of TBM taking the Technology industry.


Speakers:

  • Fumbi Chima, Chief Technology & Transformation Officer, BECU
  • Larry Blasko, President, Field Operations, Apptio

Technology leaders have a unique opportunity to transform their organizations into environmental champions with sustainable business practices. In this session, Neal Ramasamy, CIO at Cognizant and Phil Alfano, Field CTO at Apptio will share how TBM can be leveraged to achieve comprehensive visibility into real-time data-driven tracking to ensure company goals and actions are being met to achieve a sustainable future.


Speakers:

  • Neal Ramasamy, CIO, Cognizant
  • Phil Alfano, Field CTO, Apptio

For McGraw Hill, having a transparent framework that drives smart investment strategies and a common language across this 135-year-old company is critical. Known as one of the “big three” education publishers, McGraw Hill must stay ahead of their competitors with innovation and value delivery. Join Yuliya Oberman, Finance Director for McGraw Hill Education and Eileen Wade, General Manager of the TBM Council as they discuss how TBM is essential to McGraw Hill’s enterprise resource strategies and digital transformation journey.


Speakers:

  • Yuliya Oberman, Finance Director, McGraw Hill Education
  • Eileen Wade, General Manager, TBM Council

In this fireside chat, Matt Yanchyshyn, GM, AWS Marketplace & Partner Engineer at AWS will join incoming General Manager of the TBM Council, Jack Bischof, for a discussion on best practices for building successful TBM practices focused on cloud financial management. Including a deep dive into the nuances, learnings, and milestones that the world’s 9th largest insurance company is achieving on their Cloud FinOps journey.


Speakers:

  • Matt Yanchyshyn, GM, AWS Marketplace & Partner Engineering, AWS
  • Jack Bischof, Incoming General Manager, TBM Council

Hear from Ajay Patel, COO at Apptio and Zubin Irani, CEO at Cprime as they discuss how the intersection of TBM and enterprise agile planning is a critical strategy for organizations to adopt if they want to drive business growth more efficiently, in real-time, and keep up with the speed of change that today’s organizations face.


Speakers:

  • Ajay Patel, COO, Apptio
  • Zubin Irani, CEO, Cprime

Join Origin Energy’s Adrian Thivy, GM, Enterprise Technology Services, as he shares how TBM is creating complete confidence in their spend-to-value ratios across IT and the broader company, allowing a rapid response to the market forces driving significant pressure on the “cost to serve” customers. A finalist for the 2022 TBM Council Award for TBM Pacesetter, hear how their TBM practice was built in record time, including lessons learned as they developed business capabilities and managed a significant cloud migration and transformation.  

Session topics will include:  

  • Establishing a clear purpose and common goals that drive cross-functional understanding
  • Utilizing an adaptative governance framework to ensure accountability across all stakeholders 
  • Leveraging TBM and ServiceNow CSDM to deliver a transparent, flexible, and sustainable model in a shorter time frame
  • How bespoke logic has dramatically improved transparency of cost more than 90%


Presented by:

  • Adrian Thivy, GM, Enterprise Technology Services, Origin Energy 

Many organizations aspire for a cloud-native posture, however few have the time, resources and budget to transform into 100% public cloud operations. Equifax has broken through those barriers to modernize its infrastructure globally — driving faster innovation for customers, more business agility, and stronger cybersecurity. Hear from Manav Doshi, GM, Technology Solutions on how the Equifax team is rebuilding a century-old company, with a real-time approach to optimizing cost and revenue growth in the cloud.

 

Presented by:

  • Manav Doshi, GM, Technology Solutions, Equifax 

Transport for NSW is the winner of the 2022 TBM Council Award for TBM Pacesetter, which recognizes significant progress and value with TBM in a relatively short period of time. In this session, hear how the merger of Roads and Maritime Services (RMS) and Transport for New South Wales resulted in the fastest consolidation of TBM data, models, and reports into a single TBM practice. Hear from Poonam Kataria, Sr. Manager of TBM, as she shares how TBM is driving Transport’s three key strategic outcomes: connecting a customer’s whole life; successful places for communities; and enabling economic activity.

Session topics will include: 

  • Utilizing the TBM Taxonomy to align M&A practices and drive behavioural change 
  • How the right level of support sets the right culture and TBM processes
  • Driving change in the organization based on data-driven facts

Presented by: 

  • Poonam Kataria, Sr. Manager, TBM, Transport for NSW 

Discuss how TBM supports visibility of investments across the enterprise to support setting best practices and standards for managing the impact of environmental, societal, and governance strategies by IT departments and organizations.

The TBM Council Standards Committee has built out TBM integration models with other IT disciplines, including Enterprise Agile and Product Thinking, as well as ServiceNow CSDM. Current findings will be shared to drive group discussion, experience, and feedback. 

Public cloud strategies are often embraced for the promise of rapid scalability, on-demand agility, and best-in-class security, resiliency, and features. However, public cloud adoption presents significant financial challenges that, when not addressed, inhibit any firm’s ability to exploit the promises of public cloud.  

To address these challenges, customers need to simultaneously resolve current inefficiencies and build capability to ensure avoidance of waste in the long term.  

In this session we discuss a detailed framework combining TBM-Cloud with FinOps, allowing customers to understand how to implement a program to overcome these challenges and financially succeed in the cloud. 

Session discussion topics include: 

  • A detailed view of the activities required to implement a TBM-Cloud with FinOps Journey 
  • Detail the flow of information required for each task 
  • Provide guidance on which activities should be performed when

 

Presented by:

  • Nathan Besh, TBM-Cloud Evangelist, TBM Council 

Project to Product Transition

Outcome-focused development via agile transformation

For organizations looking to transition from projects to products, TBM can help organize resources and outcomes into value streams – the specific sets of activities that align to business outcomes.

Accelerating Cloud Adoption

Drive measurable outcomes with your cloud strategy

For organizations trying to accelerate their cloud journey, TBM provides a way to map a plan and measure the outcomes from cloud migration to cloud cost management to cloud optimization.

Morning Sessions

A look back at 10 years of TBM leadership and community building.


Speaker:

  • Ashley Pettit, SVP & CIO, State Farm Insurance

Introduced more than 10 years ago, Technology Business Management (TBM) was born out of the need for CIOs to have a management system to drive their technology operating strategy. At its core, the TBM discipline gives visibility into technology spend to provide common ground and enable a collaborative partnership across teams for prioritizing resources and achieving business outcomes. In this session, the TBM Council Standards Committee Chair, Atticus Tyson will share how over the past few years TBM has evolved to ensure leaders are able to accelerate digital initiatives, embrace the cloud, and communicate today’s complex technology landscape. TBM enables organizations to frequently and quickly evaluate projects, platforms, and investments to address the needs of the modern enterprise.


Speaker:

  • Atticus Tysen, SVP Product Development, Chief Information Security & Fraud Prevention Officer, Intuit

Atticus Tyson and Phil Alfano will guide the group through an executive discussion to capture “What is digital success to you?”. Is it how your organization creates new business capabilities? The elimination of legacy processes and systems? Funding innovation? Or all of the above as long as it drives an improved customer experience? Discuss with your table mates, as an overall group, and capture learnings and takeaways to bring back to your own team.


Speakers:

  • Atticus Tyson, SVP Product Development, Chief Information Security & Fraud Prevention Officer, Intuit
  • Phil Alfano, Field CTO, Apptio

How does a 170-year-old financial institution deliver a new, fully modernized technology strategy while supporting 24×7 service to their customers across a multitude of platforms, including point-of-sale, mobile, and web services? Mike Brady, Nicole Holmes, and Chad Schmidt will share how at Wells Fargo, they are creating a Technology Infrastructure team founded in the TBM discipline and responsible for aligning with internal partners to adopt an automation first approach for accelerating the delivery of services and deploying enhancements at speed. All while remaining compliant, secure, and agile.


Speakers:

  • Mike Brady, EVP, Technology Infrastructure, Wells Fargo
  • Nicole Holmes, EVP, CFO for Technology, Wells Fargo
  • Chad Schmidt, SVP, Technology Finance Modernization, Wells Fargo

It’s been two years since the World Health Organization declared Covid-19 a global pandemic. To re-imagine employee and customer experiences, every company was forced to speed up their shift to digital from multi-year project plans to instead creating, executing, and delivering new business models in a matter of weeks. As we emerge from this crisis, we recognize this shift is not slowing down but exponentially increasing as businesses continue to respond to societal expectations of anytime, anywhere. In this session, Sunny Gupta will share how the companies best positioned to quickly respond to changing market conditions and hyper competition have a holistic view of their technology spend so they can be agile in their investment decisions, use the cloud as a competitive advantage, and align their resources to product delivery models and continuously measure value.


Speaker:

  • Sunny Gupta, Co-Founder & CEO, Apptio

Afternoon Sessions

Spinning up a cloud-native posture is a desired strategy for many organizations, however few have the time, resources, and budget to achieve 100% public cloud operations. In 2018, Equifax set a 5-year goal to achieve this, striving to provide their customers with faster innovation, more flexible business agility, and stronger cybersecurity. Hear from RJ Hazra, SVP & CFO, Technology on the lessons and successes the Equifax team has found along their journey, and what remains as they cross into their final year of their company-wide digital transformation.


Speaker:

  • RJ Hazra, SVP & CFO, Technology & Security, Equifax

The cloud is a significant shift in computing and companies need to get maximum value from it. FinOps is the evolving cloud financial management practice that empowers organizations to track and maximize cloud spend and enable tech, finance, and business teams to collaborate on data-driven spending decisions. In this talk, J.R. Storment, Executive Director of the FinOps Foundation will explore the intersection between TBM and the FinOps practice and the benefits achieved. Session discussion topics include: 

  • Creating a culture of ownership over cloud usage and spend
  • The most important challenges to tackle for delivering products faster while gaining financial control and predictability
  • FinOps organization structures in large and small organizations from the State of FinOps 2022 report

 


Speaker:

    • J.R. Storment, Executive Director, FinOps Foundation

In this engaging conversation, executive leaders will share both the challenges and best practices realized on their journey to embrace product-based innovation.

Session discussion topics include:

  • Achieving results as you shift from a projects-to-products innovation model
  • Maximizing CIO/CFO partnerships in this new paradigm
  • Building your innovation strategy around value streams, stable teams, and a high degree of customer centricity

Speakers:

  • John Wilson, VP, IT Costing & Performance Management, MetLife
  • Kaarina Bourquin, Director, Strategy & Portfolio Operations & Technology, The Standard
  • Moderated by Toyan Espeut, Chief Customer Officer, Apptio

Session abstract coming soon


Speakers:

    • Brendan Kinkade, VP, Build ISV, Technology & Hybrid Cloud, IBM
    • Moderated by Phil Alfano, Field CTO, Apptio Foundation

TBM empowers hundreds of decision makers with the facts they need to execute a digital strategy faster, without bias, and in alignment across business units. This includes technology consumers, service and application owners, LOB CIOs, enterprise PMOs, compliance leaders, budget coordinators, and many more. What are the fundamentals of developing and executing a successful TBM practice? In this session, experienced practitioners will share the lessons and foundations they’ve learned delivering business value for their organizations with TBM.

Session discussion topics include:

  • Fundamentals of proper support and sponsorship across key stakeholders
  • Demonstrating how and why TBM is core to strategy and a digital operating model
  • Developing, educating, and enabling your core team
  • Implementing or enhancing the necessary TBM processes

Speakers:

    • Jeri Koester, CIO, Marshfield Clinic Health System
    • Latrise Brissett, Managing Director, Global IT, Accenture
    • Leslie Scott, VP & CIO, IT Enterprise Services, Stanley Black & Decker
    • Moderated by Jason Byrd, Managing Director, Technology Strategy & Advisory, Accenture