AI Model Training vs Inference: Companies Face Surprise AI Usage Bills
SMRTR summary
Companies are experiencing surprise costs with AI systems due to inference—the ongoing usage phase where AI actually generates outputs. While initial model training is a one-time expense, inference creates recurring charges every time employees use AI tools. One construction company saw costs jump from $200 to $10,000 monthly once people started using their AI analytics tool. Though inference costs are declining rapidly, businesses must focus on managing these ongoing expenses rather than just the headline-grabbing model capabilities.
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