The AI pricing time bomb

Are businesses heading for an AI pricing time bomb? With companies like Uber suddenly raising concerns about the inability to draw a clear line between token usage and visible improvements, there is a growing question about the real cost of AI and agents.

On this episode of the ITPro Podcast, Bobby Hellard and Ross Kelly are joined by the CEO of Mendix, Raymond Kok, to discuss the different scenarios facing businesses as the true cost of AI hits home.

Highlights

"I think more and more the conversation is shifting in that direction. So, starting with what are the business-relevant use cases, and I'm saying business-relevant on purpose, because there are plenty of interesting use cases around generative AI, but it's about the business-relevant use cases. Then it's about what is the job that needs to get done, and then to your question, how do you actually budget for agents like you budget for your human workforce in any company? And I think slowly but surely that narrative is changing, right, and I think what we're going to go see is that after the IPO of Anthropic and OpenAI, the prices will further soar, and I think this conversation will become more and more important."

"I'm glad that actually you're talking about it in your podcast, because I think it's now really becoming an issue, meaning that CEOs and CIOs were obviously promoting their employees to become AI literate and started to make AI tooling available to their workforce. 24 months ago, they were able to sign attractive deals with the big technology providers and get their people going, but now the bill is starting to show up. It used to be maybe 10, 20, maybe 50k a month for a larger company, but it's now moving into the hundreds of ks, and guess what, because this is also usage-based, it's very hard to control, right, so most of the monetization models, as you know, of these large language providers are based on usage."

Footnotes

• Could rising token costs boost interest in on-premises hardware?
• 'One-size-fits-all' agent governance sets enterprises up to fail
• IT leaders are bullish on agents, but keeping falling at the final hurdle – here's why