Most CIOs see a lack of money as a major concern as they face pressure to extract value from AI. And underestimating the costs can be catastrophic.
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CIOs feeling the pressure to deploy successful AI projects have a second concern: that they don’t have the money to pull it off.
Ninety percent of CIOs recently surveyed by Gartner say that managing AI costs is limiting their ability to get value from AI. In addition, if CIOs don’t fully understand the cost of scaling generative AI, they could miscalculate by 500% to 1,000%, says Hung LeHong, an analyst focused on executive leadership for digital business at Gartner. Depending on the AI project, a mistake of that magnitude could cost millions of dollars.
In many cases, using an LLM for simple AI tasks, such as transcribing and translating, can be expensive when cheaper tools are available, LeHong said during a recent webcast. “Some of the CIOs just don’t understand all …