The end of the AI subsidy era, As we know it
By Vidisha Suman, Partner, and Shiv Raj, Principal, Kearney India
During the initial phase of enterprise AI adoption, the underlying usage economics remained relatively obscured. Vendors absorbed inference costs, innovation budgets reduced pressure to demonstrate returns, and bundled pricing masked the true consumption profile of AI-enabled applications.
This environment encouraged rapid experimentation. Organisations deployed copilots, summarization tools, AI assistants, and workflow automation capabilities without fully accounting for the long-term operating costs of large-scale deployment.
That environment is now changing.
This progression is not unusual. Most technology waves initially prioritize accessibility and deployment speed before governance, cost visibility, and operating discipline mature. AI may be entering this phase earlier because usage economics are more directly linked to consumption patterns.
At the same time, enterprise demand for AI continues to expand. Organisations are embedding AI into software development, customer operations, internal workflows, and productivity tools at increasing scale. The opportunity remains significant,...
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