GenAI sticker shock sends CIOs in search of solutions

Energy consumption: Another cost consideration

CIOs are also mindful of the massive energy consumption of generative AI applications, which is another hefty cost to consider.

“AI is compute-intensive and it’s impacting data centers globally,” says Bryan Muehlberger, former CIO at Vuori and currently CTO of Schumacher Homes. “Unless we solve our energy problems nationally, this will eventually become a much bigger problem and the costs will be passed down the companies using the services.”

As AI continues to evolve, innovative solutions for managing hardware costs and maximizing processing power are likely to emerge, Cloudbench’s Richer says, adding that the environmental impact of running powerful GPUs will be a concern for some organizations.

“Cloud providers are increasingly focusing on sustainable practices, and utilizing cloud-based GPUs can be a more energy-efficient solution compared to on-premise hardware,” says Richers, “However, it’s crucial for CIOs to carefully evaluate the trade-offs between cost, performance, and data security when choosing a GPUaaS solution.”