UBS Finds Enterprises Throttling AI Spending

UBS analysts found that roughly 60% of enterprises are throttling AI spending by adding guardrails, creating a modest headwind for AI model makers. The trend boosts the value of cheaper open-source and Chinese models like DeepSeek, while token-spend optimization becomes a core IT focus.

For practitioners: Reduced AI token spend changes cost profiles for model providers and cloud billing teams and raises the value of cheaper open models and optimization tooling. According to Business Insider reporting on a UBS research note, UBS analysts Karl Keirstead, Timothy Arcuri, and Taylor McGinnis wrote that "based on a dozen+ conversations" roughly 60% of enterprises were "in some manner throttling AI spend" by adding guardrails. The analysts described this as a modest "emerging headwind" for AI model makers and said token-spend optimization has become a core focus for many IT teams. The note flagged that open-source and Chinese models, including DeepSeek , could benefit, while the analysts emphasized they "are not ringing the alarm bells" and called the trend "a healthy problem." Business Insider / UBS