McKinsey flags looming AI spending surge for US agencies as subsidised deals give way to market pricing
US government agencies could face a sharp rise in artificial intelligence (AI) spending as subsidised access to AI tools expires and usage expands, with McKinsey warning that falling technology costs are not translating into lower overall bills, as per its latest report.
The report said agencies must start treating AI spending as a separate budget category and link costs to measurable outcomes to avoid unexpected bills and disruption to ongoing programmes.
