URL has been copied successfully!

“Invoice amounts for AI services can be extremely high”

“Invoice amounts for AI services can be extremely high”

by Erik Bouwer
September 11 2024

CostsGartner warns of high billings for AI services. Two leading analysts, Mary Mesaglio and Kristian Steenstrup, made the comparison with the so-called cloud bill shock.

 

In the early days of cloud, user organizations often had no clarity on what was being used and billed. “The same will likely happen with AI billing; 500 to 1000 percent errors in AI cost estimates will be possible.”

These cost fluctuations could be due in part to vendors changing their pricing. Another cause could be that managers are not paying attention to the costs of using cloud resources, which is affecting AI use. Unbridled AI use could also be a cause. Users like it and start writing longer and more complex queries that cost more under token-based pricing systems. Both analysts also warned against overestimating productivity. Do the time savings achieved by AI actually translate into more productivity? (The Register)

Technology

Give a reaction

Your email address will not be published. Required fields are marked with *

Top