Gartner predicts AI coding costs will surpass average developer salaries by 2028
According to Gartner, the rapid adoption of AI coding agents is set to significantly increase software development costs, with AI coding expenses expected to surpass the average developer’s salary by 2028. The primary driver is the surge in large language model (LLM) token consumption, coupled with the industry’s shift from fixed seat-based licensing to consumption-based pricing models.
Gartner notes that while organizations are scaling AI-assisted development to boost productivity, many underestimate the financial impact of token usage. Developers often prioritize speed and convenience, resulting in higher token consumption and escalating costs. Limited transparency from vendors around token billing further complicates cost forecasting and budget management.
The analyst firm also highlights governance gaps as a major contributor to rising expenses. Uncontrolled agent autonomy, oversized context windows, and inadequate monitoring mechanisms can quickly inflate AI spending. At the same time, many AI coding platforms still lack mature cost-optimization features.
To address these...
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