Are AI Costs Running Out Of Control?

Introduction

The AI revolution unofficially launched with the advent of ChatGPT in November 2022. Nearly 4 years ago! Bringing AI to the masses and also a new wave of AI adoption into enterprise, the bandwagon sees no sign of slowing down, or does it? Companies are now realising they are investing huge sums into AI and are asking the question, ‘are AI costs running out of control?’

What Are The Cost Concerns?

Uber has burned through its entire AI budget for 2026 in just four months! Now you could argue the budget wasn’t set high enough. But when the leadership team cannot work out a direct correlation between spend and increased performance, that clearly is not the case.

Microsoft has had to revoke external AI licences due to spiralling costs. It does beg the question why employees were not using Copilot and GitHub?

All Aboard The AI Train

What the lessons from Uber and Microsoft tell us is that even the ‘big boys’ can rush to implement AI without a clear plan and accountability for its use. It is easy to get excited about new technology but it is a tool, a means to an end. Not the end itself. Organisations need a clear plan and objectives as to what AI is being used for, not just using it ‘because everyone else is.’

Harnessing AI Correctly

Saascoms has written a series of 5 blogs on how to correctly harness Conversational AI into your organisation. From setting clear targets to avoiding common mistakes, only implementing what your business is capable of, to meeting customer expectations.

At Saascoms, AI is at the heart of our omnichannel digital chat platform, Omnireach, but we have been developing it for nearly 5 years. AI integration didn’t happen overnight!

Making AI Costs Accountable

Are AI costs running out of control? They don’t have to. It’s important to set plans and targets as with any other project in your organisation. AI might not always be the solution, but where it is, make it accountable. Just as you would with any other technology or cap ex investment.