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TechRadar
TechRadar
David Villalón

Why scaling AI requires a new economic strategy

A female worker using a VR headset in an office in front of a futuristic display.

The current narrative around enterprise AI is rapidly shifting from the excitement of the pilot phase to the sobering reality of production. As organizations race to integrate generative AI into their workflows, they are hitting a wall that has less to do with technology capability and everything to do with how those models are deployed.

Increasingly, companies are discovering that the problem isn't AI itself, but the assumption that every task requires the most powerful model available. This has led to widespread "tokenmaxxing" - the tendency to default to the largest and most expensive models even when a smaller, cheaper alternative could complete a task.

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