AI bills could spike by 1,000%, warns Gartner
Gartner, a leading research and advisory company, has issued a warning about the potential financial implications of adopting artificial intelligence (AI). The firm's VP analysts Mary Mesaglio and Kristian Steenstrup emphasized that organizations must effectively manage both the emotional and monetary costs associated with this technology. The cautionary note was sounded during Gartner's flagship Symposium event in Australia.
Mismanagement could lead to significant cost overruns
During the symposium, Mesaglio drew parallels between initial reactions to cloud computing bills and potential responses to AI-related expenses. She warned that mismanagement of AI could result in cost overruns ranging from 500% to 1,000%. Factors contributing to these inflated costs include vendor price increases and neglecting the expense of utilizing cloud-based resources.
Inappropriate usage and data access structure also inflate costs
Mesaglio highlighted that inappropriate use of AI, such as deploying it for simple queries instead of search functions, could also contribute to cost overruns. She further noted that the cost of AI workloads or queries can vary depending on how organizations structure their AI's access to data. Allowing AI to process unstructured data may yield more information and better results but at a higher cost.
AI's success can lead to 'productivity leakage'
Mesaglio introduced the concept of "productivity leakage," a potential downside to successful AI implementation. She cited Gartner research indicating that employees using AI could save up to 43 minutes per day, but questioned whether this time would be used productively or contribute to a 10% to 30% drain on AI's benefits. The analysts also noted that the productivity gains from AI do not apply equally across all employees, with less experienced workers potentially benefiting more than their seasoned counterparts.
Adoption pace should be industry-specific, suggest analysts
As per the analysts, the organizations should adopt a pace of AI implementation that aligns with their industry's rate of change. For industries not significantly impacted by AI, a slower approach may be sufficient. However, organizations aiming to lead with AI may need to adopt an accelerated stance. They emphasized that each organization is running its own race and can choose the speed that best suits its needs.
