Holberton & Co

AI pricing leaves businesses struggling to predict costs

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According to a BBC report, businesses investing in Artificial Intelligence (AI) are finding it increasingly difficult to predict what their technology bills will look like, as reliance on AI increases.


Software purchasing is generally straightforward in that businesses typically pay a fixed monthly or annual fee based on the number of users or licences required. However, AI charges are increasingly being linked to usage rather than simple subscriptions.


Many AI tools are priced according to “tokens”, the units used to measure how much information is processed used by an AI model. While this may make sense to an AI provider, for businesses it can be difficult to estimate how many tokens employees will consume in normal day-to-day use.


As AI systems become more capable, the problem becomes more pronounced. New AI “agents” can carry out multi-step tasks. A user might only make a single request; however the system could perform numerous tasks in the background. This makes the eventual costs even harder to predict.


Some organisations are finding that staff are using up tokens more rapidly than they anticipated. This uncertainty has prompted them to monitor AI more closely and reassess which tools are providing them with the best value for money.


Businesses that increasingly use AI for their own processes will also need to consider how they pass on the costs to their own customers. This can be challenging when the costs are fluctuating from month to month.


Many smaller businesses are currently able to use flat fee accounts, which avoids unpredictability. However, Goldman Sachs is forecasting that between 2026 and 2030, token consumption will increase by 24 times. As a result, AI firms are likely to come under increasing pressure from their shareholders to raise their fees.


For businesses then, the current challenge is not just whether to adopt AI, but also how to ensure that its benefits outweigh what could become an unpredictable bill.


See: https://www.bbc.co.uk/news/articles/c872r52x7jgo

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