CIOs and CTOs spent years lauding AI. Now, with costs rising, they’re putting limits on how it’s used
After making AI tools widely accessible for employees, leaders are putting caps on usage and retraining staff to understand small and cheaper models can often do the job.
Chief Information Officer Stephen Franchetti from tech firm Samsara has embraced various artificial intelligence tools to enhance workflow automation for the company's 4,100 employees. Samsara has implemented daily tracking of AI expenses, while capping usage for non-technical employees and allowing more flexibility for research and development teams.
The company's cautious approach aims to ensure employees have control over their AI tool selection, with a focus on small and cost-effective models. AI spending is expected to reach $2.5 trillion this year, resulting in a 44% increase over previous levels. CIOs and technology leaders are finding themselves in a challenging position, as some companies have overspent on AI tools without achieving significant business value.
Experts warn that AI coding costs could surpass the average developer's salary by 2028. Companies are adjusting their AI coding agents to reduce token usage, which can quickly become expensive due to reading extensive code bases. Some businesses are promoting training on AI model usage and implementing stricter management of digital spending, treating AI costs similarly to headcount budgets.
Written by urgent.news from Fortune's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
