Companies tighten AI budgets, cost optimization becomes key concern

UBS analysts found that executives are increasingly controlling AI spending. About 60% of surveyed companies have taken measures to tighten AI budgets. Token costs are a major concern for large firms, with Uber's COO saying AI returns are thin and rising costs are hard to justify.

Analysts say model makers like OpenAI and Anthropic will face the most pressure. Open-source models like DeepSeek and Chinese local models could benefit, especially for non-coding needs. The industry is seeing a "healthy adjustment pain," but no company has stopped AI adoption entirely.

Companies say the focus has shifted from "whether to use tokens" to "how to use them efficiently." Some firms have cut AI tools from five to two and strictly control usage. Analysts believe new models trained on next-gen chips could further lower costs, keeping the outlook positive.