Moody’s analyst urges disciplined approach to AI spending
The corporate trend of “tokenmaxxing” — maximizing the use of artificial intelligence to generate text, code, and other content — is losing steam as businesses discover that the costs of high-volume AI use can outpace any productivity gains, according to analysts and a new report.
“Tokenmaxxing” refers to the practice of maximizing usage of tokens, the fundamental units of generative AI that correspond to roughly three-quarters of a word each. The term emerged during a springtime wave of hype driven by tech industry enthusiasm for products such as OpenAI’s ChatGPT and Anthropic’s Claude.
But as summer began, the trend shifted toward a backlash. “It’s very easy to create something you don’t need with AI,” said Vincent Gusdorf, head of AI analytics at Moody’s Ratings, who authored a new report recommending a more disciplined approach to AI deployment.
Gusdorf said the realization began when companies started receiving bills for their AI usage. “As bills started to pile in, people realized that those new tools are quite expensive and you need to use them wisely,” he said.
The report from Moody’s Ratings advises companies to adopt a more strategic approach rather than maximizing token usage indiscriminately. The shift reflects a broader reassessment of AI investments as businesses weigh the costs of premium AI products that offer higher token caps against the actual value generated.