AI & Machine Learning
Business Insiderabout 23 hours ago
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Claude Code’s creator offers a better way to measure AI success than token burn

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Boris Cherny, creator of Claude Code, suggests tracking human hours saved rather than tokens spent to measure AI ROI. His framework comes as companies reassess rising AI costs.

Claude Code’s creator offers a better way to measure AI success than token burn

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The Big Picture
Boris Cherny, the creator of Anthropic's Claude Code, outlined a four-step framework for enterprise AI adoption on X, emphasizing that companies should measure AI success by human hours saved, not just token usage. He argues that tracking token burn only measures activity, not return, and that the real value comes from comparing AI costs to the manual engineering effort that would have been required. Cherny also noted that the biggest payoff occurs when AI handles maintenance in the background, allowing teams to focus on new capabilities. His comments reflect a broader industry shift away from 'tokenmaxxing' toward cost efficiency, with executives from Coinbase, Vercel, JPMorgan, and OpenAI all discussing how to maximize AI ROI amid rising expenses.
Why It Matters
As companies face skyrocketing AI costs, Boris Cherny's framework shifts the focus from vanity metrics like token usage to tangible human hours saved. This reframes AI ROI as a measure of engineering efficiency and innovation capacity, helping businesses justify spend and prioritize tools that deliver real productivity gains.

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Boris Cherny, creator of Anthropic's Claude Code, during an interview on "The Circuit with Emily Chang" at Anthropic's headquarters in San Francisco, California, US, on Tuesday, April 28, 2026.
Boris Cherny, creator of Anthropic
Boris Cherny, the creator of Claude Code, gave a handy metric for assessing AI success.

Bloomberg/Getty Images

  • Boris Cherny says companies should track human hours saved, not just tokens spent.
  • The Claude Code creator's comments come as companies reassess skyrocketing AI bills.
  • Getting a good return on investment from AI is one of the hottest topics in business.

Claude Code's creator addressed one of the biggest enterprise questions of the day: how companies can track the returns on their AI spend.

Boris Cherny, the maker of Anthropic's biggest coding tool, outlined a four-step framework for enterprise AI adoption in a series of X posts on Thursday.

In the third step, Cherny talked about measuring returns from AI once employees have adopted it into their workflows.

"Once your teams are bought in, how do you track it? Usage is worth watching (e.g., a dashboard), but it measures activity, not return," he wrote.

Instead of only measuring AI token burn on a dashboard, he said the better question is whether the company would have spent engineering effort on the task.

"If yes, how much and what would it have cost in manual eng-hours? That's your return," Cherny added.

He went one step further in his next X post, saying that the bigger payoff "comes when fixing and maintaining happens in the background," and teams can focus on building. This is when companies can start "doing things that weren't even in range before," he added.

This is not the first time Cherny has talked about return on investment from AI spending. In a recent fireside chat with Scale AI, he said companies are right to think about how much value they're getting from AI, but returns can take other forms, such as engineers generating code faster.

Cherny's posts come as the "tokenmaxxing" trend that dominated the AI scene for the first half of the year has now subsided. Now, companies are evaluating how to get more value for their money. Executives from Coinbase and Vercel have publicly shared strategies for reducing costs without limiting employees' AI use, such as using cheaper Chinese models.

AI return on investment is a major topic du jour, with big voices in business weighing in. On Wednesday, JPMorgan CEO Jamie Dimon told CNBC that companies are seeing AI costs "going up rapidly."

"So, of course, we're all going to be rational about it like any other resource we use," Dimon said.

OpenAI CEO Sam Altman said last week that AI ROI was a hot topic at the Allen & Co. Sun Valley Conference.

"Everyone's asking what we can do to help reduce spend or increase value," he said in an interview with CNBC from the Idaho event.

Read the original article on Business Insider
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