Analyze cost drivers

Overview

The Cost intelligence view for resources in Cost Analyzer includes a built-in AI capability, Analyze cost drivers, available under AI Agents, that breaks down what is driving the cost of an Azure resource — showing which meters contribute the most, how the bill is structured, and what actions are most likely to reduce spend.

What the AI Agent analyzes

• Resource type, SKU, and pricing tier
• Active billing meters and their usage rates
• Cost behavior — fixed, variable, and volatile charges
• Pricing model in use (Pay-As-You-Go, Reserved, Spot)
• Hidden or easily overlooked cost items

Insight breakdown

1. Anatomy of the bill

Lists all active billable meters with their rate, usage, monthly cost, and percentage of the total.

2. Top cost drivers

Ranks the meters contributing the most to the cost, with an explanation of why each is high and what would cause it to rise or fall.

3. Cost behaviour

Categorizes charges into Fixed, Variable, and Volatile costs, helping users understand which parts of the bill are predictable and which carry risk.

4. Why your bill might change next month

Lists specific scenarios that would increase or decrease the cost — such as resizing the VM, changing uptime, or switching pricing models.

5. Pricing model decoder

Explains the current pricing model and compares alternatives — Reserved Instance, Azure Hybrid Benefit, and Spot pricing — with estimated savings for each.

6. Hidden costs to watch

Surfaces charges that are easy to overlook, such as secondary compute meters or always-on billing patterns.

Sample illustration

The GIF below highlight the insights provided by the AI Agent for an Azure Virtual Machine resource: