Bosses confused by new AI pay-as-you-go model

A KPMG survey shows about 29% of global executives don't know why AI costs are rising, and nearly a third admit they don't understand the economics of AI, hurting real workplace deployment. The survey covered 2,145 executives across 20 countries.

Companies used to get AI cheap with fixed-price contracts, but as computing costs rise, the tech industry is shifting to a defensive stance. The pay-as-you-go model is becoming common, but many organizations lack the ability to predict, monitor, and manage AI spending.

The report says a third of executives haven't figured out how to use AI efficiently. Once AI is no longer like an all-you-can-use subscription, problems show up when the meter starts running. This confirms what employees think: many leaders treat AI as a plug-and-play cost-cutting tool without understanding how to actually use it.