Enterprises may soon be paying as much for their developers’ AI token usage as they do for their salaries.
According to Gartner, these costs will meet, or even exceed, the typical software engineer’s monthly salary within the next two years.
This is not only because developers are increasingly adopting generative AI and agentic tools, it reflects a trend toward consumption-based licensing models as vendors balance infrastructure investments with profitability. Rather than the flat per-seat SaaS model of the past, enterprises now pay for developer token use as well.
Gartner senior principal analyst Nitish Tyagi explained that it’s important to note that Gartner’s prediction is based on a global average salary of $2,000 per month; it doesn’t mean AI token usage will exceed all salaries. For instance, in the US, yearly pay rates can be six digits or more.
However, that kind of spend is not out of the realm of possibility, Tyagi emphasized. “I have heard scary numbers like ‘My developer co
AI agents are moving beyond individual productivity and into government operations. According to Gartner, at least 80% of governments will deploy AI agents to automate routine decision-making, enhancing efficiency and service delivery by 2028. Because of this, government leaders are challenged to determine where they can deliver value with AI agents while maintaining public trust. Their [...]
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Tech industry experts are urging IT decision-makers to be wary of AI vendor gimmicks such as free tokens, and to adopt a multi-vendor and multi-model strategy to avoid vendor lock-in.
“Don’t be afraid to adopt a multi-vendor approach to get value from different AI tools rather than risk lock-in with a single one,” said Max Goss, senior director analyst at Gartner.
It is unlikely one AI vendor or model will meet an organization’s requirements, Goss said.
The advice comes as more AI vendors are offering cheap tokens subsidized by venture capital in a land grab for customers. The companies are also hiring forward-deployed engineers (FDEs) to push their models to enterprises.
Once companies start developing business processes around specific AI models, they get locked into their ecosystem. “People are adopting hybrid strategies…to cut token costs, and adopting more token-efficient models,” said Jack Gold, principal analyst at J. Gold Associates.
Free and low-cost tokens from AI vendors cou
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