Companies that rushed to pilot generative AI are now tightening budgets as hefty cloud and compute bills outpace measurable returns. Finance chiefs are scrutinizing projects that promised productivity gains but delivered mixed results, pressuring vendors and raising questions about the durability of AI-driven revenue for Big Tech. The pullback underscores the high costs of training and inference, as well as integration, data quality, and compliance hurdles. Investors are watching whether AI spending shifts from experimental pilots to targeted deployments—or stalls—given implications for corporate margins and U.S. growth.
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