Business News | AI Token Use May Jump 78% as Falling Prices Fail to Guarantee Lower Costs: Accenture
Get latest articles and stories on Business at LatestLY. Artificial intelligence (AI) costs may not fall in line with declining token prices as consumption is expected to surge by 78 per cent over the next two years, potentially offsetting savings for businesses, according to an Accenture Research report.
New Delhi [India], October 28 (ANI): Artificial intelligence (AI) costs may not fall in line with declining token prices as consumption is expected to surge by 78 per cent over the next two years, potentially offsetting savings for businesses, according to an Accenture Research report.
The report estimates that average AI token prices will decline by around 19 per cent over the next 24 months, while token consumption is expected to “skyrocket” by about 78 per cent.
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“Lower unit costs do not necessarily translate into lower overall spend,” the report said, highlighting the need for companies to assess the total cost of AI-enabled work rather than focus only on falling prices.
Accenture's research found that only 35 per cent of organisations can precisely calculate the cost per business outcome for their highest-volume AI use case, indicating that many businesses may lack a clear picture of the returns they receive from AI deployment.
The report also examined how companies might use potential savings if AI prices fall further. If prices decline by 25 per cent or more, only 5 per cent of organisations would retain the savings. Meanwhile, 42 per cent would expand AI use to more employees, while 35 per cent would introduce applications previously considered too expensive.
The findings underline the challenge facing businesses as they expand AI adoption: lower prices per unit may encourage wider use, making it important to measure spending against the value generated.
Accenture said organisations must decide how to deploy the additional capacity created by AI, including directing it towards growth, innovation, customer service and other higher-value activities. Its survey found that 60 per cent of executives plan to redirect newly released capacity towards higher-value or more strategic work, while 51 per cent intend to invest it in growth initiatives.
The report also highlighted the continued importance of human skills as AI takes on more routine and analytical tasks. While 70 per cent of surveyed organisations said AI was primarily being used to augment human effort, only 4 per cent said it was mainly being used to replace it.
Accenture said businesses would need to continuously reassess how they allocate work between people and AI, track the cost of delivering business outcomes and reinvest released capacity where it can create the greatest value. (ANI)
(The above story is verified and authored by ANI staff, ANI is South Asia's leading multimedia news agency with over 100 bureaus in India, South Asia and across the globe. ANI brings the latest news on Politics and Current Affairs in India & around the World, Sports, Health, Fitness, Entertainment, & News. The views appearing in the above post do not reflect the opinions of LatestLY)