{
  "id": 17380822,
  "title": "AI usage doesn't equal value, Oracle warns, as businesses struggle with unpredictable costs",
  "url": "https://urgent.news/2026/10/31/ai-usage-doesnt-equal-value-oracle-warns-as-businesses-struggle-with",
  "topic": "ai",
  "section": "AI",
  "published": "2026-10-31T10:00:00.000Z",
  "source": {
    "name": "TechRadar",
    "slug": "techradar",
    "url": "https://www.techradar.com/pro/ai-usage-doesnt-equal-value-oracle-warns-as-businesses-struggle-with-unpredictable-costs"
  },
  "original_language": "en",
  "account": "The demand for artificial intelligence (AI) continues to rise, yet more AI does not necessarily translate to better returns for businesses. According to Oracle's Head of AI Strategy Hammad Hussain, some companies are underestimating the costs associated with scaling AI from pilot projects to production. Companies often struggle to manage unpredictable AI costs as they transition from flat, seat-based pricing models to variable, consumption-based pricing. A recent Splunk study found that three in five businesses consider unpredictable billing hikes more problematic than higher but flat costs. Hussain emphasized that AI adoption does not automatically equate to value and urged businesses to focus on measurable outcomes rather than simply using more AI. Companies should evaluate whether AI is creating more experiences, efficiencies, or products, rather than merely increasing usage. The financial implications of scaling AI can be significantly different from the initial pilot phase. Hussain suggested that a hybrid approach might be the best solution, utilizing advanced AI models for critical workloads while relying on conventional CPUs for less demanding tasks. Another emerging solution involves using dedicated AI clusters with open-weight models, which allows companies to pay fixed amounts for a cluster that uses these models instead of per-token charges. Hussain expects that the pendulum will swing back from consumption-based pricing to a more balanced approach where organizations can choose the pricing strategy that best suits their needs. The key to success with AI investments lies in defining the returns they generate and ensuring that employees adopt the new technology. Only about 20% of organizations capture 75% of the value, and Hussain believes that the difference lies in their ability to rewire their businesses using AI. The future of AI adoption will likely involve a hybrid approach to both the amount of workload handled by AI and the pricing model used to pay for those computations. Successful companies will be those who can effectively turn AI investments into tangible returns.",
  "summary": "Companies are still struggling to identify AI ROI, and Oracle's latest warning proves using more doesn't just create more value.",
  "key_points": [
    "Oracle warns AI usage doesn't equate to value or better returns for businesses.",
    "Companies struggle with unpredictable AI costs during scaling from pilot to production.",
    "Hybrid approach and dedicated AI clusters with fixed pricing suggested to manage costs."
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}