Executives confront rising AI bills after rapid adoption

A KPMG survey of 2,145 senior executives across 20 countries found that 29% do not know what is driving their organizations' rising AI expenses, and one-third say limited understanding of AI economics hinders implementation. The shift to usage-based pricing by AI vendors is making costs less predictable, pressuring executives to monitor spending more closely.

Executives confront rising AI bills after rapid adoption A growing number of business leaders are finding it difficult to manage the rising cost of artificial intelligence https://qazinform.com/tag/ai as AI providers move away from fixed pricing toward usage-based billing, according to a new global survey by consulting and accounting firm KPMG, Qazinform https://qazinform.com/ News Agency correspondent reports, citing https://futurism.com/future-society/executives-corporations-ai-bills-metered-billing Futurism. The survey, which covered 2,145 senior executives across 20 countries, found that 29% of respondents said they did not know what was driving their organizations' increasing AI expenses. Another one-third said their limited understanding of AI economics had become a barrier to successfully implementing the technology in their businesses. The findings come as many AI https://qazinform.com/tag/ai vendors increasingly adopt usage-based pricing, charging customers according to the amount of computing power or AI services they consume rather than offering flat-rate contracts. The shift has made AI spending less predictable for many organizations and increased pressure on executives to monitor costs more closely. KPMG said many companies are still developing the capabilities needed to forecast, track and manage AI expenditures under the new pricing models. The survey suggests that while businesses continue to invest heavily in AI, many have yet to establish clear financial strategies for deploying the technology efficiently. The findings also highlight a broader challenge facing companies adopting AI. Many organizations have embraced the technology with expectations that it would improve productivity or reduce costs, but some executives now face growing expenses without fully understanding how AI consumption translates into higher bills. Earlier, Qazinform https://qazinform.com/ News Agency reported that the Five Eyes intelligence alliance warned https://qazinform.com/news/five-eyes-warn-ai-cyber-threat-is-months-away-06fa0f that advanced AI models capable of launching sophisticated cyberattacks against governments and businesses could emerge within months.