Corporations Reeling From Huge AI Costs With No Clear Benefits
By: Victor Tangermann (Futurism via Yahoo)
Surprise! Artificial intelligence is not free labor.
S E E D E D C O N T E N T
May 29, 2026 -- Costs to access powerful AI tools are soaring, forcing company leaders to ask some difficult questions. As Axios reports, the early warning signs are already here, with Microsoft planning to remove its Anthropic Claude Code licenses after opening up access to the tool just six months ago, reportedly for financial reasons.
Uber COO Andrew Macdonald also admitted during a recent podcast appearance that gains in productivity simply weren’t being reflected in the company’s soaring AI-related expenses.
Meanwhile, industry leaders including OpenAI CEO Sam Altman and Anthropic CEO Dario Amodei are walking back their initial claims that AI will lead to a jobs apocalypse, further stoking concerns that the tech may not be all it was initially cracked up to be during the height of the AI hype cycle.
It’s a perfect storm as companies ponder the real-world benefits from their costly investments in AI, if there even are any. That’s particularly true for companies finding that some of their employees are using AI models for meaningless tasks — like checking the weather, as one CTO told Axios, which is an incredibly expensive and roundabout way of getting a meteorological update.
CloudBees CEO Anuj Kapur told the publication that use cases for the tech are limited and that the “reality of AI right now is that it only works for coding.”
Simply put, many are finding that AI just isn’t exactly a money maker. Former Microsoft chief AI officer Sophia Velastegui added that “most people default to automating tasks they dislike rather than tasks most valuable to the company.”
Then there are ongoing concerns over allowing AI agents to run autonomously could open companies up to new risks, such as data leaks.
It’s an uncomfortable predicament to be for an AI industry making trillion-dollar bets on imminent surges in demand and soaring revenues. As the Wall Street Journal reported last month, OpenAI missed its own targets of reaching one billion weekly active users for ChatGPT by the end of 2025, as well as several revenue goals.
In other words, enterprise customers reeling from soaring costs is the very last thing the AI industry needs. Without meaningful use cases and more clarity on a possible return on investment, firms may think twice before spending vast sums on the tech — a harsh reality check for an industry that has long heavily relied on hype and seemingly endless investor enthusiasm.
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As the Clinton era gutting of the Federal workforce demonstrated, utilizing contract labor only shifts the costs to a different column on the accounting sheet. It's a way for middle managers to make themselves look good. And that approach is typically more expensive for day to day work.
For all the hype about AI, it appears no one has invested in strategic planning for how to best use AI. The boardroom planning seems to be: spend enormous amounts of money on AI >> a miracle occurs >> profits flow like water. Unrealistic expectations are often the most expensive.
I can easily see this. People jumping on the bandwagon without a clear strategy.
AI represents a profound change of paradigm. A change of paradigm will have upfront costs. One needs to approach this with a clear strategy and a well-conceived plan and then execute with proper management. One does not just buy AI and drop it in and expect magic.