Cloud computing offers organizations flexibility, scalability, and efficiency, but it can also become quite costly if resources are not managed well. Many companies face unplanned and unexpected expenses and waste resources because cloud services have complicated pricing models. Usage patterns change daily. Artificial Intelligence (AI) provides a smarter method to reduce cloud costs by analyzing data, making predictions, and automating actions. AI driven framworks can review past usage patterns of utilized resources, forecast future requirements, and recommend the best settings. This includes adjusting resource sizes, automatically turning services on or off, and choosing the right service options. AI can also detect unusual spending, alert organizations about potential cost increases, and make automatic adjustments to prevent waste. By using AI in this way, organizations save money, boost system performance and reliability, and comply with regulations more easily. This improves the efficiency of cloud operations and makes sure that costs match business goals. This paper looks at how AI-driven cost optimization functions, its benefits, and its challenges. It highlights its importance for sustainable and cost-effective cloud usage in the future.

Artificial Intelligence (AI), Hybrid cloud, Cloud Computing, Cost Optimization, Predictive Analytics, Automation, Resource Management, Cloud Governance, Anomaly Detection

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