{"id":666409,"date":"2026-05-26T17:23:08","date_gmt":"2026-05-26T17:23:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/666409\/"},"modified":"2026-05-26T17:23:08","modified_gmt":"2026-05-26T17:23:08","slug":"how-to-keep-ai-from-breaking-your-budget","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/666409\/","title":{"rendered":"How To Keep AI From Breaking Your Budget"},"content":{"rendered":"

There\u2019s no question that every company needs to include AI in its tech budget. But as costs climb, it\u2019s worth taking another look at what your company is spending and how to make it more reasonable. Cost structures that charge per \u201cseat\u201d on an enterprise model, or per agent created, may be ways to quantify use, but they can also get expensive quickly. And buying a finite number of \u201ctokens\u201d for amounts of AI compute that are used can also end badly. Uber, which used all of its AI budget for the year in just four months<\/a>, is one example of companies finding themselves losing the tech spending race.<\/p>\n

Sameet Gupte, CEO and cofounder of AI platform EvoluteIQ, thinks the best way to charge companies for AI technology is based on the results they get. He believes many companies are moving toward this kind of pricing, and talked to me about how to negotiate with AI companies over price\u2014and determine what\u2019s worth it and what isn\u2019t. An excerpt from our conversation is later in this newsletter.<\/p>\n

Until next time.<\/p>\n

This is the published version of Forbes’ CFO newsletter, which offers the latest news for chief finance officers and other leaders focused on the budget. Sign up here<\/a> to get it delivered to your inbox every Tuesday.<\/p>\n

ECONOMIC INDICATORS<\/p>\n

Federal Reserve Chairman Kevin Warsh at his swearing-in ceremony last week.<\/p>\n

Anna Moneymaker\/Getty Images<\/p>\n

Although Kevin Warsh was confirmed as the new Federal Reserve chairman earlier this month, minutes released<\/a> last week from the Open Market Committee\u2019s April meeting signify President Donald Trump may not get the quick interest rate cuts he wants. The board voted to hold baseline interest rates steady between 3.5% and 3.75%, but according to the minutes, a majority of participants stressed an interest rate increase may be needed if inflation above the Fed\u2019s 2% goal persists. <\/p>\n

Board members said the ongoing Iran war has significant implications for employment and inflation, especially as it gets longer. Inflation has continued to creep upwards, hitting a three-year high of 3.8% in April, according to Bureau of Labor Statistics numbers. And while Forbes senior contributor Simon Moore writes<\/a> that most analysts expect interest rates to hold steady at the Fed\u2019s June meeting\u2014Warsh\u2019s first as chair\u2014the odds are increasing for a hike later in the year.<\/p>\n

NOTABLE NEWS<\/p>\n

The long-rumored and highly anticipated mega-IPO of SpaceX is preparing for liftoff. Elon Musk\u2019s space exploration, AI and satellite internet company officially filed paperwork<\/a> for its IPO last week with a target of becoming publicly traded in June. The company\u2019s valuation could range from $1.75 trillion to $2 trillion, making it the largest IPO of all time.<\/p>\n

The IPO filing brought many of SpaceX\u2019s finances into public view for the first time. The company generated $18.7 billion in revenue last year, which represents a 33% year-over-year increase. It had $4.9 billion in losses and $20 billion in capital expenses in 2025. On the AI and social media<\/a> side of the business, xAI had an operating loss of $6.35 billion and $3.2 billion in revenue last year. X has about 550 million monthly active users. The connectivity part of the business, which includes Starlink satellite internet, is the only profitable<\/a> part of the company. The filing also showed that Musk controls 85% of the company\u2019s shareholder voting power\u2014no other entity has a stake larger than 5%.<\/p>\n

SpaceX\u2019s paperwork is the first concrete move for several potential blockbuster IPOs that may happen in 2026. OpenAI is also rumored to be looking at an IPO this year and is reportedly about<\/a> to file its first confidential paperwork with the Securities and Exchange Commission.<\/p>\n

POLICY + REGULATIONS<\/p>\n

The Small Business Administration announced last week that it will double its maximum loan amount to $10 million. Forbes\u2019 John Schroyer writes<\/a> that, in addition to the $5 million companies can borrow through 7(a) loans, the same companies will also be able to take out $5.5 million 504 loans, designated for \u201cmajor fixed assets.\u201d This means that more capital-intensive businesses\u2014such as manufacturing, construction and retail\u2014have greater access to the federal government\u2019s loan program. The largest downside as of now? The new policy doesn\u2019t start until July 4, so businesses have time to plan how to use those funds, but need to wait a bit to access them.<\/p>\n

OFF THE LEDGERHow To Tame Your Company\u2019s AI Costs<\/p>\n

EvoluteIQ cofounder and CEO Sameet Gupte.<\/p>\n

EvoluteIQ<\/p>\n

AI platforms and technology are extremely important for companies, but, from a financial perspective, they can be unsustainable. The way AI providers are charging companies for their technology\u2014from the “per seat” models of traditional enterprise software to a finite number of “tokens” for compute actions\u2014is beginning to add up. <\/p>\n

I spoke with Sameet Gupte, CEO and cofounder of AI automation platform EvoluteIQ, about what CFOs should consider when deciding on their AI tech investments\u2014and how to negotiate something that will not break the bank in the future. This conversation has been edited for length, clarity and continuity.<\/p>\n

When a CFO is trying to figure out investments in AI, how do they define a good use? What is worth paying for? <\/p>\n

Gupte: A lot of AI tools and apps out there will come and say, \u2018Oh, we bring in efficiency by 30%. We bring in productivity. We cut down headcount. We do this. We do that.\u2019 All may be true, but a good CFO has to look at all these different use cases and see how it actually translates into real cash and real numbers on the P&L. Not adjusted EBITDA, but genuine net cash, savings or productivity\u2014where the revenue is really going up because you have implemented an AI tool and you don\u2019t need to hire new salespeople, but the app is learning by itself. <\/p>\n

You can truly say, \u2018My revenue went up by 20%, but my sales and marketing cost is flat.\u2019 That\u2019s real data. Or, \u2018When I implemented AI in my order to cash or report to the board use cases, I was able to collect $4 million 17 days before, which I\u2019ve not done in the last six quarters.\u2019 <\/p>\n

When you can quantify that and touch and feel, that\u2019s when this is a real use case\u2014because there\u2019s a lot of dressing up, a lot of lipstick on the pig that\u2019s going on. Let\u2019s count the cash, which is the real money that is either coming on your top line or bottom line.<\/p>\n

Are AI companies negotiating with CFOs over the way they bill companies for services? And are CFOs able to get deals that work for them?<\/p>\n

Truth be told, everyone has realized the writing is on the wall: they need to move toward outcome-based pricing\u2014both the vendor as well as the customer. We have a lot of baggage and history over the last so many years for people to just flip the switch. What we are seeing is, for [AI companies] to overnight go and say, \u201cI\u2019m going to cannibalize the revenue because now I\u2019m going to be outcome driven,\u201d it will have a massive impact\u2014not just on the software companies, but on the stock price and pension funds and other investments. The ripple effect will be to people who have got 401ks, because everything is interconnected.<\/p>\n

The smarter guys are stepping in and saying: \u2018Here is the path of how we will get you there in the next three or four years.\u2019 They\u2019re putting a bridge model in the middle: a combination or a hybrid with a clear understanding that essentially gives the customer the time to adapt. Because the one thing is I may come and be ready with the model, but the customer also needs to be ready.<\/p>\n

I don\u2019t think people are looking to just switch vendors overnight because of pricing. But here is the thing: We have very astute CFOs who understand how P&Ls work. At the end of the day, there is something bigger than vendors of AI: your stock, shareholders and investors. You are now seeing the customers coming back and saying to the vendors, \u2018We love your product, but here\u2019s the truth of life: This is what my shareholders [and board] are asking. This is what my competitors are doing, and I cannot operate at this constructure. I have to be competitive. I have to have the right growth stock price. I have to deliver for my organization. So either you show me the path, or let\u2019s work in a way that we can migrate out because you\u2019re not willing to walk the future road with me.\u2019<\/p>\n

What advice would you give for CFOs who are trying to make all parties happy with AI investment costs?<\/p>\n

Organizations that are willing to move to outcome-based models will very quickly create high-value use cases. Bet on those companies which are willing to sit down with you and transform their pricing models to adapt to that, because those are the ones which will solve your most complex problems and give you the biggest genuine return.Buying point solutions is dead. It cannot be the wild, wild west, where you\u2019re buying one AI tool for finance, one for HR. Those days are gone because then you cannot have harmony. You need a central nervous system to govern these decisions with intelligence. Make sure there\u2019s good governance, otherwise the whole thing will just collapse.COMINGS + GOINGSWater heating and treatment provider A.O. Smith selected Carrie L. Anderson to be its next executive vice president and chief financial officer, effective July 1<\/a>. Anderson joins the firm from The Campbell\u2019s Company, where she worked in the same role. She will succeed Charles T. Lauber, who is retiring.Footwear brand portfolio Caleres appointed Dan Karpel as its new senior vice president and chief financial officer, effective May 20. Karpel steps into the role permanently after working as the company\u2019s interim chief financial officer and chief accounting officer.Data center construction and operations firm T5 Services tapped Mason Thornburg as chief financial officer. Thornburg joins the company<\/a> from Vision Hospitality Group, where he worked in the same role.STRATEGIES + ADVICE<\/p>\n

NASA Johnson Space Center Director Vanessa Wyche shared an unconventional secret to her success: Failure. It\u2019s not something to be ashamed of, but a chance to gather intelligence<\/a> and continue to move forward.<\/p>\n

AI isn\u2019t just another piece of software, and rolling it out is a true strategic leadership challenge. Truly adopting AI in the workplace isn\u2019t just about replacing lower-value human work with technology, but about<\/a> changing relationships with employees, strategy and technology itself. <\/p>\n

QUIZ<\/p>\n

In an interview last week, which tech billionaire said he didn\u2019t think the bottom 50% of earners in the U.S. should pay income taxes?<\/p>\n

A. Sam Altman<\/p>\n

B. Mark Zuckerberg<\/p>\n

C. Sergey Brin<\/p>\n

D. Jeff Bezos<\/p>\n

See if you got the right answer here<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"There\u2019s no question that every company needs to include AI in its tech budget. But as costs climb,…\n","protected":false},"author":2,"featured_media":666410,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[182,291177,4,450,34124,291176,451,9007,6199,3,291175,291178,1513,452,453],"class_list":["post-666409","post","type-post","status-publish","format-standard","has-post-thumbnail","category-breaking-news","tag-ai","tag-ai-pricing","tag-breaking-news","tag-breakingnews","tag-cfo","tag-evoluteiq","tag-headlines","tag-interest-rates","tag-ipo","tag-news","tag-sameet-gupta","tag-sba-loan","tag-spacex","tag-top-stories","tag-topstories"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/666409","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=666409"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/666409\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/666410"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=666409"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=666409"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=666409"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}