PETER GALLOWAY
№ 15 / 14 Budget & Spend May 29, 2026
An Analogy

The Open Bar

Why your AI bill explodes — and the right policy answer when it does

3 min
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The Setup

The open bar analogy.

A company sets up an open bar at the party — no drink tickets, no cap, just "have what you need." Bill is $40K. The right answer wasn't "no bar." It was bar, tab cap, bartender watching the glasses. AI tokens are an open bar. Don't ration. Instrument.

By the numbers $500M

one company, one month, no per-seat cap

— the AI-spend horror story Polymarket surfaced May 28, 2026. The consultant declined to name the company. The number stayed the same regardless.

AI tokens are an open bar. The fix isn't no bar. It's a bartender watching the glasses.
Peter Galloway

On the wire

Three pieces from the last 30 days that reinforce this analogy. Forward to the executive who's still calling it hype.

AI SpendGovernanceBudget PolicyPer-Seat Caps
For Executive Teams

Run this analogy in your next leadership meeting.

The catalog is free. The live session is where The Open Bar gets applied to your specific stuck conversation — built for boards, ELTs, and founder-CEO 1:1s. Half-day, $7,500.