Companies Test AI Cost Savings with Chatbots Like Anthropic's Claude

At the software company 8x8, employees are using Anthropic's Claude to draft emails, analyze customer feedback, and write code, but so far, their growing reliance on the artificial intelligence chatbot hasn't troubled the finance team. While other Silicon Valley companies, such as Meta, Uber, and Salesforce, have publicly expressed concerns about the growing cost of generative AI tools and have begun introducing usage caps in some cases, 8x8 says it finds itself in the black. Over the past 18 months, the company estimates it has saved about $5 million in annual costs by canceling subscriptions to dozens of software and educational tools it deemed unnecessary in part because Claude could provide similar capabilities.

So far, 8x8's annualized bill for Claude is "well below" that figure, says Joel Neeb, the company's chief transformation and business operations officer. Neeb expects the savings and costs to eventually even out as 8x8 encourages more employees to adopt AI and it incorporates the tech into more complicated work. But for now, there's still a huge gap, which "makes my chief financial officer happy," he tells WIRED.

He declined to share exact total spending on generative AI. As companies pour hundreds of millions of dollars collectively into AI tools for coding, marketing, and customer service, a new obsession has emerged in the tech industry: "tokenomics," or how to manage the soaring cost of AI usage. (Tokens represent the amount of content an AI model analyzes and generates.) Last month, Royal Bank of Canada's CEO disclosed that its token usage surged 500 percent over the past six months.

At Cisco, a third of employees are using an internal AI chatbot on a daily basis, so "the token usage is getting pretty, pretty crazy," CEO Chuck Robbins said on an earnings call. Some top engineers at analytics software developer Amplitude are "spending thousands of dollars a month or more on tokens," according to its CEO Spenser Skates. Aaron Levine, the CEO of Box, said, "The token budgeting conversation has absolutely taken over as one of the most important" and "heated" topics.

Roughly 300 companies addressed questions or concerns about AI tokens during their earnings calls or in public discussions with financial analysts in April or May, according to a WIRED review of transcripts from the data provider AlphaStreet. That's a small fraction of the thousands of calls held during the span, but just 93 companies mentioned "token" in April and May a year ago. Executives at several companies said they are developing or looking to buy systems to help monitor token usage and choose the lowest-priced model for a given prompt.