'There is no reliable, economical one-size-fits-all model on the horizon': Experts claim AI costs will grow fivefold by 2028, as demand continues to soar

• Implementing AI systems will become more expensive as models become cheaper, experts warn
• Cost-efficient tokens are resulting in more complex AI agents
• Soaring costs could result in changes to how businesses rely on AI, as the inference paradox becomes more apparent

The drive towards agentic AI workflows could be about to hit its first real challenge: cost. With more companies using agentic AI over chatbots, the costs are set to mount up.

Analysts have raised the alarm on token economics, citing evidence that as the price of a token decreases, the resulting workflows are becoming increasingly complicated. Consequently, rather than driving agentic AI workflow costs down, increased token use is pushing costs up.

The research by Gartner warns of the realities of the "inference paradox," which may lead to businesses reappraising their approach to AI development and use.

What is the inference paradox?

Gartner’s report, which has identified trends...

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