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title: Companies rein in AI spending as running costs mount
description: A Cloudera survey of 1,500 IT leaders finds 89% of organisations have limited or redesigned AI use cases as token costs rise. Only 19% continuously monitor...
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# Companies rein in AI spending as running costs mount

**[TechCentral](https://daily.dev/sources/techcentral)** · 4 min read · 0 upvotes · 0 comments

## Summary

A Cloudera survey of 1,500 IT leaders finds 89% of organisations have limited or redesigned AI use cases as token costs rise. Only 19% continuously monitor token and inference spend, and 99% have taken some action, including 45% moving workloads elsewhere and 24% pausing or canceling a use case. Separately, 98% have pulled back a deployment due to failures or hallucinations. OpenAI's chat-latest model now costs $30 per million output tokens, double its ChatGPT-4o predecessor, while Google's Gemini 4 Argon is set to double to $4/$20 from December 1. Gartner has warned AI coding costs could approach or exceed developer salaries within two years.

## Full article

daily.dev links to this article rather than hosting it. Read it at the original source: <https://techcentral.co.za/ai-token-costs-corporate-rethink/287719>

## Questions this post answers

### How much does OpenAI's chat-latest model cost compared to ChatGPT-4o?

OpenAI's chat-latest model, the 'Instant' model used in ChatGPT, lists at $30 per million output tokens, double the $15 that OpenAI's documentation gave for its ChatGPT-4o predecessor. Input pricing stayed at $5 per million tokens. This roughly 88% rand-denominated increase in output cost came even as the rand strengthened against the dollar.

_Budgeting for GPT API usage, developers compare current and past model pricing on daily.dev._

### Why are enterprise AI bills rising even when some model prices are falling?

Bills climb mainly because of rising token volume and 'reasoning' or 'thinking' tokens that get billed as output, not just list price changes. Anthropic says the tokenizer in Claude 4.7 and later models produces about 30% more tokens for the same text, which narrows an apparent 37% rand price cut on Sonnet models to roughly an 18% real saving.

_Tracking real-world token consumption, teams managing AI budgets follow cost breakdowns like this on daily.dev._

### What percentage of companies have cut back AI use cases due to cost or reliability problems?

89% of organisations have limited or redesigned AI use cases because rising token consumption drove up running costs, per a Cloudera survey of 1,500 IT leaders at director level or above conducted in September 2026. Separately, 98% have pulled back a deployment at least once due to failures, hallucinations, or unexpected behavior, and only 19% continuously monitor token and inference spend.

_Weighing whether to scale back an AI deployment, teams benchmark their situation against surveys like this on daily.dev._

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---

Tags: [#llm](https://daily.dev/tags/llm), [#openai](https://daily.dev/tags/openai), [#anthropic](https://daily.dev/tags/anthropic)

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