UK firms are spending billions on hidden infrastructure costs — money they can't spend on hiring or AI
The UK overspends £3.8 billion on infrastructure every year – one third is directed to AI. But it means hiring and training are taking a hit.
UK firms are spending billions on hidden infrastructure costs, a sum that prevents them from hiring or investing in emerging technologies like AI. A study by Wasabi and the Centre for Economics and Business Research (CEBR) reveals that unexpected infrastructure spend costs UK businesses £3.8 billion annually, rising to £47.4 billion across multiple nations.
AI and ML infrastructure account for one-third (32%) of overspending in the UK, with 22% of UK businesses describing this expense as unpredictable. AI platform and model licensing fees are by far the highest category of overspend, at 66%, compared to token and usage-based charges at 36%.
The scale of unexpected spend is concerning, as 73% of businesses globally report budget pressures, and 77% of British companies have had to make cost-driven trade-offs, such as reducing hiring, limiting tech investments, or spending less on worker training.
CEBR head of economics advisory Owen Good notes that businesses are "blindsided by unpredictable infrastructure costs that prevent them from driving their innovation agendas forward." Wasabi COO Marty Falaro adds that this unpredictability is making AI spending more challenging to manage. The modelling suggests that recovered infrastructure spend could support over 8,200 jobs.
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