# ERP AI budget line items: what to put on the sheet before finance asks > Source: https://netray.co/erp-help/cio-erp-ai-budget-line-items-template > Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems. > Section: ERP Help ## Short answer Budget ERP AI in eight groups: infrastructure, software and model licences, integration, data preparation, security and compliance, people and change, run cost, and contingency plus exit. The costs that surprise teams are data cleanup, internal time and ongoing evaluation, not the model itself. ## Kind cio ## System cio ## Erp ERP AI (any ERP) ## Module Budgeting and finance ## Query ERP AI budget line items ## Alternate Queries - what to put in the budget for an ERP AI project - AI project budget template manufacturing CIO - hidden costs of ERP AI - capex vs opex for on-prem AI ## Applies To Any ERP with a pilot or first production use case. Figures are structures and ratios to fill with your own quotes, not prices. ## Steps ### Build the budget in this order **Items:** - Fix the scope first: use cases, number of users, read-only or write-back, on-prem or private cloud. A budget without scope is a wish list. - List infrastructure: GPU servers or reserved cloud GPU, storage for vector indexes and logs, network and backup. Decide capex versus opex with finance before quoting. - List software: model serving stack, retrieval or vector database, orchestration, observability, and any commercial assistant licences. Open-weight models have no per-token fee but have serving and evaluation cost. - List integration: ERP connectors, API or read replica setup, single sign-on, role mapping, and document source connections. Add partner or vendor time at their rate card. - List data preparation: master data cleanup, document ingestion, metadata, and test question sets. This is usually the most underestimated group. - List security and compliance: threat modelling, penetration test, data protection assessment, audit evidence work, and legal review of contracts. - List people: internal project owner, business subject experts, training, support, and ongoing evaluation. Cost internal time even if it does not hit a cost centre. - Add run cost, contingency and an exit line, then split the sheet into one-off and recurring before submission. ## Sections ### Infrastructure: capex, opex and sizing honestly **Body:** For private deployments the biggest sizing driver is concurrent users and context length, not total employees. A pilot for a few dozen planners and buyers can run on a modest GPU server; an entire plant asking questions all day needs more. Ask any supplier to size against your expected concurrent peak and your longest realistic prompts, which include retrieved ERP rows and documents. Capex versus opex is a finance policy question, not a technical one. Owned GPUs are capex with depreciation and power and cooling in opex. Reserved cloud GPU or a sovereign private cloud is opex. If you are not sure the use case will survive the pilot, opex or short reserved terms reduce stranded asset risk. If you are certain of a multi-year steady load, ownership can be cheaper per query. Do not forget non-production environments. You will want a test instance of the assistant pointed at an ERP test company or copy, otherwise every change is tested against production data. ### Software, integration and the costs that hide **Body:** Software lines are usually smaller than expected for open-weight stacks, but check licence terms of each model: some open-weight licences restrict certain uses or large-scale deployment. Have legal read them. If you also license a vendor copilot, list it separately so the comparison is visible. Integration is mostly time. Typical work includes a read-only database user or API client per ERP, mapping ERP security groups to assistant permissions, SSO, and connecting document stores such as quality procedures or supplier contracts. Partner-led delivery is common; get fixed-scope quotes for the pilot and time-and-materials caps beyond it. Hidden costs: ongoing evaluation (a test set of real questions rerun when models or ERP versions change), prompt and retrieval tuning, user support, and ERP upgrades that change table or field names. Budget a recurring line for these rather than hoping they vanish. **Code:** Budget sheet skeleton (fill with quotes) A. Infrastructure one-off | recurring B. Software + models one-off | recurring C. Integration one-off | recurring D. Data preparation one-off | recurring E. Security/compliance one-off | recurring F. People + change one-off | recurring G. Run cost (power, support, evaluation) recurring H. Contingency + exit one-off ### Contingency, exit and how to present it to finance **Body:** Carry contingency as an explicit line, not hidden padding. For a first deployment a range of 15 to 30 percent is a reasonable conversation starter, adjusted for how much is unknown. Finance respects an honest line more than inflated unit prices. Include an exit line: the cost to switch off, export logs and indexes, and return or decommission hardware. Designs on open-weight models and standard retrieval stores have low exit cost compared with a platform where prompts, fine-tunes and workflows live in a proprietary format. That is a real budget argument for portability. Present the sheet with three columns: pilot, first production, and steady state. Boards and finance leaders are more comfortable approving the first column while seeing that the others exist and are bounded. ## Pitfalls - Budgeting only GPUs and licences and forgetting data cleanup, which often equals or exceeds integration. - Counting internal subject expert time as free. If it is not on the sheet, it is not protected on the calendar. - Sizing by headcount rather than concurrent users and context length. - Ignoring ERP upgrade effects. A SyteLine, SAP or NetSuite release can change fields and break retrieval mappings. - Assuming per-token pricing is the whole cost of a hosted model. Egress, logging, evaluation and security review are separate. - No test environment line, so changes are validated against production. ## Ai Angle A grounded assistant such as ERPray can help with the data preparation estimate itself: it can query the ERP for counts of items with missing descriptions, vendors without payment terms, or open orders with zero-cost lines, giving you evidence-based scope for the cleanup line rather than a guess. It does not set your budget, but it replaces some of the guesswork in the riskiest line. ## Faq ### What share of the budget is the model itself? **Answer:** For open-weight deployments, usually a small share. Most spend goes to integration, data preparation, security work and people time. That is why comparing vendors on model price alone misleads. Compare total cost over three years for the same scope, including run cost and evaluation. ### Should ERP AI be capex or opex? **Answer:** Follow your finance policy and your certainty. Owned GPU hardware is capex plus running cost. Reserved or sovereign cloud capacity is opex. If the use case is unproven, shorter opex terms limit stranded assets. If load is steady and long-lived, ownership can be economical. Decide with your controller before requesting quotes. ### How much contingency is reasonable? **Answer:** For a first project many teams carry 15 to 30 percent as a visible line, higher when data quality is unknown. The right number depends on how much of the scope is still undiscovered. Show it explicitly with what it covers, such as data fixes and ERP version changes. ### Do we budget for ongoing evaluation? **Answer:** Yes. Keep a test set of real questions with known good answers and rerun it after model changes, ERP upgrades or retrieval changes. It is a modest recurring effort, but without it quality drifts silently and trust drops. Treat it like regression testing for any integration. ## Search terms ERP AI budget, AI project budget template, hidden costs of AI ERP, capex vs opex GPU, AI budget line items CIO, on-prem AI cost breakdown, AI contingency budget, ERP AI total cost of ownership --- Talk to an engineer: https://netray.co/contact?intent=erp_ai | Machine catalog: https://netray.co/agent/catalog.json