Indian firms face rising AI cloud bills as infrastructure costs outpace labour savings

Indian companies adopting artificial intelligence are facing rapidly rising cloud and infrastructure costs as enterprise spending shifts away from labour-heavy IT services towards GPUs, cloud subscriptions and AI platforms.

“The assumption was that companies could remove labour costs and replace them with cheaper AI infrastructure, but in many cases AI infrastructure spending is now growing faster than payroll savings,” said an analyst tracking enterprise AI spending trends who wished to be unnamed. “Firms are discovering that AI improves productivity, but not always enough to offset rising inference, cloud and subscription costs.”