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AI Vendor Consolidation Decision Matrix Generator

Decide when to consolidate AI vendors based on savings potential, concentration risk, and execution readiness. Generate an owner-ready matrix for procurement, finance, risk, and AI operations.

Decide whether to consolidate AI vendors now, pilot selectively, or hold. Quantify savings, concentration risk, and operational complexity with owner-ready next actions.

Decision summary

Recommendation: Keep multi-vendor and improve controls first

Consolidation score: 35.2 / 100 | Concentration risk score: 43.9 / 100

Projected annual savings: $308,000 | Annual complexity drag: $81,840

Critical actions: 3 | High actions: 1

  1. Commercial leverage - Start clause-prioritized negotiation with executive sponsor and weekly close plan. (Critical)
  2. Portfolio complexity - Document overlap boundaries and maintain quarterly rationalization review. (Medium)
  3. Concentration risk - Maintain secondary-path testing cadence and contract-level exit protections. (High)
  4. Execution readiness - Do not consolidate yet; close readiness gaps then re-score. (Critical)
  5. Renewal timing - Finalize decision track and executive approvals before renewal notice deadline. (Critical)
# AI Vendor Consolidation Decision Matrix - Global AI Vendor Portfolio

## Portfolio inputs
- Annual AI spend baseline: $2,200,000
- Active vendors: 5
- Workload overlap: 62.0%
- Projected consolidation savings: 14.0%
- Contract fragmentation: High
- Avg renewal window: 5 months
- Migration readiness: Medium
- Governance maturity: Medium
- Concentration risk tolerance: Medium

## Decision summary
- Recommendation: Keep multi-vendor and improve controls first
- Consolidation score: 35.2 / 100
- Projected annual savings: $308,000
- Estimated annual complexity drag: $81,840
- Concentration risk score: 43.9 / 100

## Action matrix
| # | Focus area | Finding | Owner | Priority | Success metric | Next action |
|---|---|---|---|---|---|---|
| 1 | Commercial leverage | Projected savings is $308,000 annually with 5 active vendors today. | Procurement Lead | Critical | Signed term sheet with net savings at or above modeled target | Start clause-prioritized negotiation with executive sponsor and weekly close plan. |
| 2 | Portfolio complexity | Annual complexity drag is estimated at $81,840 due to overlap and contract fragmentation. | AI Platform Ops | Medium | At least 25% reduction in duplicated workflow coverage | Document overlap boundaries and maintain quarterly rationalization review. |
| 3 | Concentration risk | Concentration risk score is 43.9 / 100 under current fallback and tolerance settings. | Risk + Architecture | High | One tested fallback path for each critical workflow | Maintain secondary-path testing cadence and contract-level exit protections. |
| 4 | Execution readiness | Consolidation score is 35.2 / 100 with migration readiness set to medium. | Program Manager | Critical | All critical tasks closed before next renewal checkpoint | Do not consolidate yet; close readiness gaps then re-score. |
| 5 | Renewal timing | Renewal window is near-term and can be used as an immediate consolidation leverage point. | Vendor Manager | Critical | Negotiation package finalized before renewal notice window | Finalize decision track and executive approvals before renewal notice deadline. |

## 90-day execution plan
1. Stabilize governance controls and migration playbooks before committing to consolidation.
2. Reduce vendor overlap noise by standardizing workload-to-vendor ownership.
3. Re-run this matrix after 60 days with improved readiness and clean benchmark data.

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