Cloudera study finds 89% of enterprises redesign AI use cases amid rising costs

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A global survey commissioned by Cloudera found that 89% of enterprises have limited or redesigned AI use cases because of rising token consumption, while 84% said data residency, sovereignty or jurisdictional requirements influence where AI workloads are deployed.

The State of Enterprise AI 2026: The New Rules of Scale report, conducted by Wakefield Research among 1,500 IT leaders and decision-makers, highlights rising costs, governance demands and regulatory requirements as constraints on enterprise AI deployment.

The survey found that 98% of respondents had pulled back an AI deployment due to failure, hallucinations or unexpected behaviour. Governance and compliance were cited as barriers to scaling by 75%, while 55% reported faster-than-expected growth in related costs. Meanwhile, 45% had moved AI workloads in response to higher or more volatile costs.

Sovereignty requirements are also affecting infrastructure decisions. While 84% said residency or sovereignty rules influence workload placement, 58% reported that moving workloads requires...

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