Source: Fortune
Summary
Business leaders are re-evaluating their spending on AI as costs balloon. Companies like Uber have burned through their AI budgets quickly, and executives are questioning the return on investment. Amazon’s Peter DeSantis says this is a normal phase of new technology adoption, but companies are now shifting from experimentation to controlling usage and budgets. Buyers are becoming more selective, using cheaper models for certain tasks and measuring the cost of AI in business decisions.
Our Reading
The numbers tell one story.
Uber’s COO is struggling to justify AI spend, and a consultant reported a client burned through half a billion dollars in a month. Amazon’s Peter DeSantis acknowledges the cost shock, but says it’s a normal phase. Philippe Rambach, Schneider Electric’s chief AI officer, is taking a more deliberate approach, matching use cases to cheaper models. The free-for-all phase of AI adoption may be coming to an end as companies start counting the cost.
Companies are coming back to reality.
Author: Evan Null
