The Real Cost of AI: An InformationWeek Special ReportThe Real Cost of AI: An InformationWeek Special Report

It’s really getting a bit out of hand, isn’t it? Governments are vying for AI dominance with a desperation reminiscent of the nuclear arms race. The market is as moody as a teenager -- a rabid fan of AI one second, and totally over it the next. Major enterprises cut staff and elected officials bend land use rules all as part of exciting “strategic AI investments.”

American AI companies have invested hundreds of billions to build AI tools, while a Chinese AI startup claims to have whipped one up in a few million. While some media companies are meeting AI giants with multimillion-dollar lawsuits, others are meeting them with multimillion-dollar partnerships. The Screen Actors Guild is fighting to prevent studios from making AI-generated versions of movie stars while movie stars are starring in ads for AI companies during Monday Night Football. AI can solve the knottiest challenges of the climate crisis, some say, but running AI may worsen the climate crisis. There are oodles of new AI-enabled cybersecurity tools on the market, which you will need, to defend against new AI-enabled cyberattacks.

And despite this, despite all the bells and whistles, sturm und drang, many CIOs look at their own AI story and find it … a little boring.

A bit slow and tedious, maybe. The same basic story line: behind schedule, over budget. Even if they see a positive return on their investment, the project might be a letdown.

So, what is the real cost of AI? What’s the price tag CIOs have to pay in the short term and what’s the cost to their business -- and to society -- in the long-term?

That’s a long question. So in this special report that we’ll roll out across three weeks, InformationWeek will delve into direct and ancillary costs of investing in AI. What are the various costs of developing AI internally versus hiring third-party resources, the impact on community, the environment through the drain on power, and regulatory enforcement on the technology. What will it cost an enterprise in real and social currency to pursue AI? And can we afford what it will take to deliver on AI’s promise?

Week 1: The costs and the hidden costs.

Video: What Is the Cost of AI: Examining the Cost of AI-Enabled Apps

The path to realizing those AI expectations, however, comes with a variety of costs that are not all monetary -- and could have surprising impacts on the world.

Video: If Everyone Uses AI, How Can Organizations Differentiate?

As AI saturates the market, what becomes of its competitive advantages? Does it become a basic, digital commodity in the background?

Feature: AI’s Hidden Cost: Will Data Preparation Break Your Budget?

As enterprises race to implement AI strategies, the crucial step of preparing data could be creating a major hurdle.

Infographic: Shopping for an LLM? Here's What to Know About Pricing

CIOs and other smart shoppers who want to watch their AI spending should understand what goes into the bill they'll receive from their large language model providers. Here's what to know to start comparison shopping.

Feature: The Cost of AI Infrastructure: New Gear for AI Liftoff

An increasing number of companies are integrating AI technologies into their business models -- and even coming to depend on them. What equipment and capabilities do they need?

Feature: It Takes a Village: New Infrastructure Costs for AI -- Utility Bills

The ravenous need for energy and water to service data centers that power AI can also pass along costs to other businesses and consumers.

Feature: The Cost of AI Security

As enterprises race to adopt AI, security and budgeting questions loom large. What security costs does AI create?

Feature: The Cost of AI Talent: Who’s Hurting in the Search for AI Stars?

Some tech companies are slashing teams to fund pricey AI talent. Other organizations are getting a different kind of creative.

Feature: What Types of Legal Liabilities Are Emerging From AI?

Jorden Rutledge, an associate attorney at Chicago law firm Locke Lord, explains the uncertainties of AI litigation.

Week 2: The sudden demands for AI, particularly generative AI, have outpaced the world's ability to supply it.

Feature: The Cost of AI: Power Hunger -- Why the Grid Can’t Support AI

The voracious need for power to support AI may strain current energy sources. Where does that leave organizations that still want this technology?

Podcast: How Will International Politics Complicate US Access to AI?

Are trade wars, the hunger for chipmaking materials from overseas, and the emergence of DeepSeek shaking up AI availability?

Feature: Cooling AI: Keeping Temps Down

As artificial intelligence technology heats up, data center operators are struggling to keep facility temperatures down. It’s a battle with chilling consequences.

Feature: Is AI Driving Demand for Rare Earth Elements and Other Materials?

The semiconductors that drive AI development require a wide variety of elements, some of which are hard to come by. Is supply meeting demand in this novel technological landscape?

Feature: Will AI Chip Supply Dry Up and Turn Your Project Into a Costly Monster?

With enterprise AI demand surging, a shortage of powerful semiconductors needed to run AI tools may be on the horizon. How will that impact your organization’s budget?

Video: The Cost of AI: Navigating Demand vs Supply for AI Strategy

It is time to get real about scarcity of trained AI pros, priciness of technology and data, and the potential for plans to stall before grand AI strategies can launch.

Feature: Power Struggles in Data Center Alley: Balancing Growth, Sustainability, and Costs

Northern Virginia’s Data Center Alley is feeling the energy squeeze as data center growth explodes.

Feature: Iowa Grapples with Data Centers and Demand for Water

The rapid growth of data centers and ongoing drought are forcing Iowa to examine water consumption.

Feature: Santa Clara County Balances Progress and Sustainability

The heart of the Silicon Valley faces opportunities and challenges as it maps out the future of energy.

Feature: Fabrication Plants and Data Centers Tax Arizona Resources

Arizona faces a growing challenge of balancing data center growth with environmental limitations.

Coming Up Next:

Week 3: How can you use AI more efficiently and more effectively, to keep costs down and improve outcomes?