Danny FeldmanOPERATOR · ADVISOR · DECISION PARTNER Talk with Danny →

Are You Building AI, or Funding a Leak?

Throwing more developer hours at a fragile setup doesn't fix the economics. It locks the mistake in.

The first version of an AI workflow is usually cheap. Someone builds it in a few days, it mostly works, and everyone's impressed. Then it needs fixing. Then a new edge case appears. Then a second tool gets added to cover what the first one can't do.

A year later, the company is spending real money every month on something nobody decided to fund at that level. The cheapest AI decision in month one can become the most expensive one by month twelve.

The four costs nobody adds up

Compare it to the process, not the price

Build versus buy usually gets framed as a software price comparison. That's the wrong frame. The real question is what the setup costs compared to the business process it's supposed to change.

Picture a team that built an AI assistant for customer support. It costs a modest amount in tokens, but one developer spends a third of every week keeping it running, and support headcount hasn't changed. When they add it up, the "cheap" tool costs more than a purpose-built product would, and it hasn't moved the outcome it was built for.

That isn't a failure of AI. It's a failure to model the economics before the setup became permanent.

Watch for the warning signs

You may be funding a leak if fixes are a regular line on the engineering agenda, nobody can say what the AI setup costs in total each month, you're paying for more than one tool that does roughly the same job, or the process it was meant to change still has the same headcount and cycle time.

What to do this week

  1. Add up monthly developer hours spent maintaining AI workflows, not building new ones.
  2. Pull last month's API and AI software bills into one number.
  3. List every AI tool you pay for and mark the overlaps.
  4. Name the process this setup is meant to transform, and its current monthly cost.
  5. Project 12 months forward and decide: keep, rebuild, replace or stop.
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Build vs. Buy & Token Leak Calculator

The Build vs. Buy & Token Leak Calculator models the next 12 months of developer labor, API and token spend, AI software subscriptions and overlap against the business process the setup is meant to transform, so you can see the real cost and return before you commit another dollar.

If the current setup survives 12 more months, know what you'll have spent and what you'll actually own.

Open Build vs. Buy & Token Leak Calculator →
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About Danny Feldman

Danny Feldman is a 3× founder and the advisor behind Feldman Advisory. He founded and scaled Stellar to $100M in annual revenue across 15 states, raised $55M+ as a founder, and used AI to double revenue before exiting to private equity. Earlier, he recruited and trained 55,000+ sales reps at Cutco and grew a division from 1 to 58 locations. Operator to operator, he now helps founders of $1M–$20M companies get out of the middle of the business, build the leadership team, and raise capital. Book a 30-minute call →

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