Inside the complex anatomy of agency AI bills

The makeup of an agency’s AI bill is getting more complicated. Agency execs say AI costs are growing and metered model usage is becoming a trend, forcing execs to take a closer look at AI expenses and who foots the bill. 

If an exec were to get a regular bill for third-party AI tool costs, here’s what would be on it: subscriptions for the tools—like Claude, ChatGPT and Google’s suite of AI-powered offerings, tokens to use said tools and employee costs to pay staff who are using the tools.

For the most part, agencies are carving out a piece of their existing tech budgets to fuel AI spend rather than creating a new line item on the P&L. According to research from Ramp, about 31% of companies spend more than $10,000 per month on AI, indicating AI is a formal budget line. All three of the agency execs Digiday spoke with declined to outline specific AI spend figures. 

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Author: Kimeko McCoy

Search & Affiliate Marketing Strategist since 1993