As cloud adoption rises, managing operational costs has become a critical challenge for organizations. Amazon Web Services (AWS), the leading cloud provider, offers various services with flexible pricing models. However, without effective cost optimization strategies, cloud expenses can escalate quickly. This paper presents a comprehensive approach to cost optimization in AWS, combining traditional BEST PRACTICES with cutting-edge automation techniques using Large Language Models (LLM). The paper explores strategies such as right-sizing compute resources, leveraging Savings Plans, utilizing Spot Instances, optimizing storage, minimizing data transfer costs, and cleaning up unused resources. In addition to AWS-native services, the paper delves into advanced LLM-based solutions for anomaly detection, resource management, and predictive scaling. These AI-driven tools provide real-time insights and automate cost-saving measures, offering organizations intelligent ways to reduce their cloud footprint. The paper also introduces lesser-known AWS services, such as Instance Scheduler, S3 Select, VPC Endpoints, and Glacier Deep Archive, which can be utilized for further cost savings. By employing these strategies in tandem with automated solutions, organizations can significantly reduce their AWS spending while maintaining the scalability and performance of their cloud infrastructure. The findings suggest that organizations using AI-powered optimization tools and AWS BEST PRACTICES can cut costs by up to 60% while improving resource utilization. This paper serves as a detailed guide for businesses looking to optimize their AWS infrastructure and prepare for the future of AI-driven cloud management.