AI Briefing: Why Data, FinOps and the Right Model Make or Break Your AI
What you'll learn
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Three things make or break enterprise AI, in order: data readiness, FinOps discipline and model selection. Skip any one and the pilot dies at scale, not in demo.
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Garbage in, garbage out has a new cost dimension. Systems not designed for AI still spend the tokens; you pay real money to generate wrong answers when the underlying data is misaligned or inconsistent.
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Model selection is a FinOps question, not a hype question. Running Opus 4.8 for small text generation is wasteful; running Haiku for hard data engineering is negligent. The technique: start with the most expensive model, step down until quality visibly drops, then stay one rung above.
By the end of this episode you should be able to run one FinOps pass on your current AI usage: audit data readiness, forecast token spend, and step down model tier by tier until quality drops.
In this episode
- Why data readiness is still the precondition for AI
- AI FinOps: the token bill nobody budgeted for
- Choosing the right model for the right job
Tom from Concept to Cloud is back with another AI Briefing. This episode covers the three things that make or break AI adoption in organisations running on legacy systems: getting your data AI-ready (integrity, alignment and consistency — garbage in, garbage out still applies), managing cost with an AI FinOps mindset, and choosing the right model for the right job rather than always reaching for the most expensive one.
Concept to Cloud helps organisations modernise their systems and data to leverage AI effectively and cost-efficiently.
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Explore AI ServicesTranscript
Hi folks. Welcome back to another AI briefing. Um, [clears throat] I know it's been a while. Um, so for those of you who do not know me, my name is Tom, and I work for Concept 2 Cloud. Um, and we deal an awful lot with, um, [clears throat] legacy systems engineering, enhancements, improvements to be able to leverage data more effectively inside an AI ecosystem, along with helping enable other companies leverage their systems as effectively as possible.
Since I last did an AI briefing, the world has moved on a reasonable amount still. Um, and so what you've got to think about is how you're going to leverage the data, the systems, and the applications that you currently use in a modern AI-centric environment. And of course, data remains key because without data there isn't really any AI enablement that you can do because there's nothing for it to be able to deal with. You know, even if you just think about a frontier model, it's trained with, you know, a huge corpus of data. And so if you want to be able to leverage that inside of your organization, not the huge corpus of data, but le- leverage AI to better the, uh, discovery of information inside of your organization, then you need to think about things like data integrity, data alignment, data consistency.
Because as ever, even in an AI world, you will get garbage in and garbage out. On top of the garbage out, it will cost you more money for systems that are not designed to, um, enable AI from a token perspective. Now, every time you run a query using AI, ask it a question, whatever, there's a number of tokens that are used, and that's starting to cost money. And so the other thing you need to bear in mind is also like FinOps, trying to understand how much AI is gonna cost you as an organization going forward, so that when you come to budget for it, you can use it in the most cost-effective manner. Which brings me on to point number three, and the final one, is finding the right model for the right job.
Because running Opus Four Point Eight for a small text generation, uh, project is probably not what you're after. Whereas having it understand, um, you know, an awful lot of data engineering, for example, write code, Opus is probably what you're after. And those things cost different amounts of money. So if you're using Haiku versus Opus, the amount that it costs you to write that query and get that response is different. So make sure that whilst you're leveraging AI, you use the right model, you pick the right model.
Do some research.
Further reading
Not all AI is created equal
The written companion to the 'right model for the job' point at the end of the episode.
Why your AI project is actually a data project
The extended argument behind the 'data first' framing that opens the episode.
AI data preparation
The engagement that fixes data integrity, alignment and consistency before you spend on models.
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