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AI Glossary

AI Budget

A defined spending limit for AI usage, typically allocated per department, team, or individual user.

TL;DR

  • —A defined spending limit for AI usage, typically allocated per department, team, or individual user.
  • —Understanding AI Budget is critical for effective AI for companies.
  • —Remova helps companies implement this technology safely.

In Depth

AI budgets set financial guardrails around AI usage to prevent uncontrolled spending. They can include hard caps (which stop usage when reached), soft alerts (which notify administrators), and auto-renewal logic. Effective AI budgeting normalizes costs across different providers and models using universal credit systems.

Related Terms

AI FinOps

The practice of managing and optimizing AI and LLM costs through financial governance, budgeting, and usage analytics.

Credit System

A universal currency that normalizes AI costs across multiple providers into a single internal unit.

Inference Cost

The computational cost of running a query through an AI model, typically measured per token.

Token

The basic unit of text processing in LLMs — typically a word, subword, or character that models use for input and output.

Knowledge Hub

Glossary FAQs

AI Budget is a fundamental concept in the AI for companies landscape because it directly impacts how organizations manage a defined spending limit for ai usage, typically allocated per department, team, or individual user.. Understanding this is crucial for maintaining AI security and compliance.
Remova's platform is built to natively manage and optimize AI Budget through our integrated governance layer, ensuring that your organization benefits from this technology while mitigating its inherent risks.
You can explore our full AI for companies glossary, which includes detailed definitions for related concepts like AI FinOps and Credit System.

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