Mavvrik Report: 85% of Companies Miss AI Cost Forecasts
According to a recent report by Mavvrik, 85% of companies are unable to accurately forecast their AI infrastructure costs, missing their predictions by more than 10%. The 2025 State of AI Cost Management report highlights that 80% of enterprises miss their AI infrastructure forecasts by over 25%, leading to significant gross margin erosion.
The report, published in partnership with Benchmarkit, underscores the challenges enterprises face in managing AI costs, particularly with large language models (LLMs), GPU-based compute, and AI-native services. It reveals that 84% of companies experience a gross margin erosion of over 6% due to AI infrastructure costs, with 26% reporting an impact of 16% or higher.
Additionally, the report notes that 67% of companies are planning to repatriate AI workloads, with 61% already operating hybrid AI infrastructures. The lack of visibility and mature cost management practices are cited as major hurdles, with only 34% of companies having mature cost management systems in place.
We hope you enjoyed this article.
Consider subscribing to one of our newsletters like Enterprise AI Brief or Daily AI Brief.
Also, consider following us on social media:
More from: Enterprise
Subscribe to Enterprise AI Brief
Weekly report on AI business applications, enterprise software releases, automation tools, and industry implementations.
Market report
AI’s Time-to-Market Quagmire: Why Enterprises Struggle to Scale AI Innovation
The 2025 AI Governance Benchmark Report by ModelOp provides insights from 100 senior AI and data leaders across various industries, highlighting the challenges enterprises face in scaling AI initiatives. The report emphasizes the importance of AI governance and automation in overcoming fragmented systems and inconsistent practices, showcasing how early adoption correlates with faster deployment and stronger ROI.
Read more