Saturday, 18 July

Saturday, 18 July2026

The Hidden Tax on Smart Tech: Why 60% of AI Budgets Are Spent Fixing Flawed Answers

By TechShots Studio
The Hidden Tax on Smart Tech: Why 60% of AI Budgets Are Spent Fixing Flawed Answers
A new McKinsey report reveals that enterprise GenAI deployment is transitioning from a technical race to a complex economic hurdle. As companies shift toward autonomous AI agents, massive operational costs are surfacing. Alarmingly, nearly 60% of agentic AI operating expenses are eaten up purely by verifying and refining responses. High token usage, long context maintenance, and tool orchestration are forcing executives to rethink financial sustainability.
Read full story at CIO ECONOMIC TIMES

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