CIOs face mounting pressure as AI costs and complexities threaten enterprise value

“Every enterprise must assess the return on investment (ROI) before launching any new initiative, including AI projects,” Abhishek Gupta, CIO of India’s leading satellite broadcaster DishTV said. “It’s essential to evaluate all AI initiatives using the same criteria. Once a specific business use case for AI is identified, a thorough cost estimation should be conducted and compared against the anticipated business outcomes to ensure alignment and value.

Without a precise understanding of how AI expenses scale, companies risk underestimating costs by as much as 1,000%, making financial missteps that could cripple broader technology initiatives, Gartner said.

“As a CIO, you need to understand your AI bill,” LeHong stressed. “You must understand the cost components and pricing model options, and you need to know how to reduce these costs and negotiate with vendors. CIOs should create proofs of concept that test how costs will scale, not just how the technology works.”