The reports may throw cold water on the bets tech’s biggest firms have placed on the technology. While some cling to the promise of an AI “renaissance” or “revolution,” the cost of adoption is proving a stubborn bottleneck. These developments also suggest that the economics of replacing or augmenting human labor with AI may be more complicated than some early forecasts originally implied. That echoes what Bryan Catanzaro, vice president of applied deep learning at Nvidia, recently said in an interview with Axios.

“For my team, the cost of compute is far beyond the costs of the employees,” he said.

Microsoft reports are exposing AI's real cost problem: Using the tech is more expensive than paying human employees | Fortune

Companies are racing to incentivize employees to use AI. But as some companies are finding, the more employees that use the technology, the heavier the bill.

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