Westpac Banking Corp. has initiated a new strategy to manage the rising costs associated with artificial intelligence, according to recent reports. The Australian lender is now closely tracking AI tokens across its entire organization to ensure fiscal responsibility in its digital transformation efforts.
Optimizing Model Efficiency
As part of this initiative, Westpac is encouraging staff toward what it calls 'sensible' model use. This involves routing simpler, routine tasks to less expensive AI models while reserving high-performance, costly compute power for complex analytical requirements. By implementing this tiered approach, the bank aims to maximize the utility of AI tools without incurring unnecessary overhead.
Focus on Token Management
The monitoring of AI tokens—the basic units of text processed by large language models—allows the firm to gain granular visibility into which departments and projects are driving expenses. This move reflects a broader trend among global financial institutions to balance the rapid adoption of generative AI with the reality of significant infrastructure and operational costs.

