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KPMG finds many executives blindsided by usage-based AI bills

by TechDefused Newsroom
The image features the top of a modern office building with a prominent IBM logo displayed on its facade. The architectural design reflects a sleek and contemporary style, indicating a corporate environment. — Credit: Photo by Denny Müller / Unsplash cPhoto by Denny Müller / Unsplash
Photo by Denny Müller / Unsplash

KPMG, the Big Four accounting firm, found a large share of corporate leaders are unexpectedly facing high AI bills after vendors moved from flat-rate contracts to usage-based pricing.

The survey of 2,145 senior executives across 20 countries found 29% had no idea where growing AI costs were coming from and roughly a third said their understanding of AI economics was a barrier to deploying AI successfully.

KPMG’s report links the shift to rising computational costs and a retreat from subsidised flat-fee LLM deals, a change that the firm says is pushing vendors and customers into a more defensive posture.

The report’s findings mirror reporting and workplace conversations that many organisations treated AI as a plug-and-play route to lower overheads without building the controls needed to forecast and manage running costs.

"As usage-based pricing models become more common, many organizations are still building the capabilities required to forecast, monitor, and manage AI spending effectively," the report authors write.

by TechDefused Newsroom