AI costing companies more money than human workers:Microsoft Uber find AI tools to be more expensive than expected, says report

Many companies thought Artificial Intelligence (AI) would help them save a lot of money. They hoped AI could do the work of human employees and wouldn’t cost as much. However, according to a report by Fortune, tech giants like Microsoft and Uber are now finding out that AI is actually costing them more money than human workers. High Costs and Big Energy Bills: Building and running advanced AI systems is extremely expensive. To make AI work, companies need to buy special computer chips that cost thousands of dollars. They also have to build massive data centers. These data centers use huge amounts of electricity to keep the computers running and operational. Because of these massive electricity and equipment bills, the cost of using AI has gone up quickly. Humans are Still Cheaper Top bosses at Microsoft and Uber have pointed out a surprising fact: for many daily tasks, it is still cheaper to pay a human worker than to use an AI program. For example, using AI to write code, answer customer questions, or sort data requires a lot of electricity. Every time a worker asks an AI a question, it costs the company money. When thousands of employees use AI all day, the bills add up fast. In contrast, a human worker does not require millions of dollars of computer hardware to do the same job. Looking to the Future Experts say this does not mean AI is a failure. It just means the technology is still very new and expensive. Over time, tech companies hope to find ways to make AI smarter and cheaper to run. But for now, businesses looking to cut their budgets quickly are finding out that AI is not the cheap fix they expected. ​