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Marketing agencies manage rising AI costs through media arbitrage
Marketing agencies are increasingly managing the rising costs of artificial intelligence through complex financial arrangements. Reports indicate that some agencies may be absorbing client AI infrastructure costs by utilizing media arbitrage. In one reported instance involving a major agency, a client was offered to cover AI costs in exchange for directing 70% of their media budget through the holding company’s principal inventory, allowing the agency to fund AI expenses through markups on bulk-purchased media.
To manage these evolving expenses, new financial tools are being developed to help organizations forecast AI spending. These tools aim to provide real-time projections of monthly AI costs based on booked usage, allowing finance leads to compare current spending against previous months and provide actionable data to CFOs before the month-end invoice is finalized.