Workplaces look for cheaper AI as ‘tokenmaxxing’ fades as a corporate fad
Companies are pulling back as token bills double and executives say the practice often fails to deliver matching productivity gains.
- A corporate fad of "tokenmaxxing" on artificial intelligence technology is hitting its limits as workplaces throwing AI at everything see costs rise without a similar spike in productivity.
- Palantir CEO Alex Karp told CNBC earlier this month that something had gone "Completely wrong," channeling the voice of American businesses privately "livid" about paying so much for tokens that create no value.
- Bain & Company management consultant Jue Wang said many big businesses are examining investment returns as "The token cost for them has been doubling, almost every other month." At $200 per developer monthly across 20,000 developers, costs quickly exceed planned budgets.
- BNY CFO Dermot McDonogh said the bank prioritizes capacity creation over token volume, stating, "We haven't reduced the footprint, but it's allowed us to do more with the footprint that we have."
- Over the next 12 to 18 months, enterprises are shifting from raw scale to accountability, with spend continuing to grow but under pressure to show value. Bitz expects engineering teams to be measured on AI-driven output rather than tooling adoption.
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14 Articles
Most enterprise AI spend still hasn’t left the lab
New research puts a hard number on something a lot of IT leaders already suspected. Most AI pilots never make it into production, and the spend behind them isn’t disappearing, it’s just sitting in limbo. Jon Bitz, chief relationship officer and co-founder at KloudStax, says that limbo isn’t the failure it looks like from the outside. The […] This story continues at The Next Web
Associated Press News
A flex in corporate America, AI ‘tokenmaxxing’ fades as workplaces look to cut tech spending
A corporate fad of “tokenmaxxing” on artificial intelligence technology is hitting its limits as workplaces throwing AI at everything are seeing the costs rise without a similar spike in productivity.
Workplaces look for cheaper AI as ‘tokenmaxxing’ fades as a corporate fad
A corporate fad of “tokenmaxxing” on artificial intelligence technology is hitting its limits as workplaces throwing AI at everything are seeing the costs rise without a similar spike in productivity.
AI ‘tokenmaxxing’ fades as workplaces look to cut tech spending
A corporate fad of “tokenmaxxing” on artificial intelligence technology is hitting its limits as workplaces throwing AI at everything are seeing the costs rise without a similar spike in productivity
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