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Indian IT firms are rethinking AI costs
The challenge is already visible among Indian technology services providers. A September report by Mint said Coforge was helping clients manage token consumption through model selection and architecture, while Hexaware was adding token-based pricing options to new client proposals.
Coforge has argued that businesses should focus on the cost per unit of work delivered, rather than simply measuring token consumption. Hexaware, meanwhile, has indicated that clients could account for token costs separately in commercial proposals.
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These approaches highlight how AI expenses could become another budget item alongside employee costs, software licences and cloud infrastructure. However, they do not show that Indian IT companies are introducing employee-level spending caps like Accenture’s reported arrangement.
Why AI usage can become expensive
Tokens are the units of data AI models process to understand prompts and generate responses. Intensive coding tasks and multi-step AI agents can consume far more computing resources than routine chatbot queries.
The Financial Times reported on October 15 that companies are exploring measures such as using smaller models for simpler tasks, routing requests to more cost-effective models and tracking AI spending against productivity gains.
For IT services firms, the commercial question is whether the time saved through AI justifies its usage costs. Companies may absorb the expense, allocate it to client projects or incorporate it into pricing arrangements.
As enterprise AI adoption expands, access to powerful tools alone may no longer be enough. Businesses will also need to determine whether AI-generated work delivers enough value to justify the bill.