Databricks' engineering org was burning through AI tokens so fast that coding agent spend became one of its top three R&D line items.
A single runaway automation loop can burn a month's budget in an afternoon.
So they published their playbook. Four levers, stacked:
1. Route traffic to cheaper models. 50% savings. Most coding tasks don't need frontier intelligence.
2. Dynamic routing by task complexity. 30% savings. "Rename this component" doesn't need the same model as "design the architecture."
3. Visibility plus progressive friction instead of hard caps. 10% savings. Engineers who hit limits get a Slack nudge, not a shutdown.
4. Cut token overhead. 10% savings. Databricks found nearly half the tokens reaching models were context nobody asked for.
The result: per-task costs down 90% in some scenarios. Developer adoption went up, not down.
The lesson for every CIO watching their AI line item explode: the next cost crisis isn't GPU capacity. It's token waste.
Audit your AI coding agent spend this week. If you don't have per-engineer visibility into what tokens are actually producing, you're already behind.
Databricks just cut its AI coding costs by 90%. Your token bill is next.
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