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Forrester
Forrester
7/21/2026
The original headline is: "CIOs: Use Rate Variance Analysis To Get To The Bottom Of Runaway Token Spend"

The original headline is: "CIOs: Use Rate Variance Analysis To Get To The Bottom Of Runaway Token Spend"

Original: CIOs: Use Rate Variance Analysis To Get To The Bottom Of Runaway Token Spend

Short summary

Forrester advises CIOs to move beyond simply blaming token consumption for blown AI budgets and instead apply rate variance analysis to isolate the true drivers of cost overruns. Token spend is influenced by multiple interacting factors, making it insufficient as a standalone diagnostic metric. The article frames a structured financial-analysis approach to help technology leaders regain control over escalating AI infrastructure costs.

  • Token consumption alone is not a conclusive metric for diagnosing AI budget overruns
  • Rate variance analysis can help CIOs isolate the specific factors driving runaway spend
  • Targeted at executive technology leaders managing AI infrastructure budgets

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