Surprisingly Useful AI Article Enhancements
AI is no longer an optional investment. By 2026, global spend on AI infrastructure is projected to reach US$571 billion. However, research has raised concerns that over half of business leaders lack the data to effectively evaluate the returns on their technology spend.
For Australian SMBs, AI presents a relatively untapped opportunity to boost productivity and support decision-making – but it also presents a challenge where Australian-owned businesses risk being left behind. While less than half of local SMBs have adopted the technology, investment at a local, state and federal level is taking a targeted approach to support implementation in small businesses, helping them to remain competitive in a market dominated by AI-operative global businesses.
Yet, as Australian businesses scale their investment into AI and supporting infrastructure to accommodate the needs of complex business networks, they risk creating inefficiencies with functional overlap. Investment in effective management forms a critical part of the preparation process for small business operators as they look to build successful enterprises.
The infrastructure gap: Where AI becomes an issue
While business leaders recognise the potential benefit of implementing AI into their operations, cost challenges often feel prohibitive for SMBs. Whether due to a lack of technical expertise or concerns around hidden costs, it can be difficult to justify the financial investment without a strong understanding of return.
Unpredictable costs contribute significantly to the uncertainty for business leaders considering AI adoption, with generative AI requiring significant computer power and storage. Compounding this, business leaders often face a knowledge gap, lacking the expertise to track cloud spending or forecast future costs effectively. The cost of engaging an expert to consult on cloud optimisation can be similarly prohibitive and prevent business leaders from investing in AI technology.
Cloud control: Re-investing to cut costs on cloud spend and avoid AI sprawl
AI is pushing the limits on cloud infrastructure and challenging the ability of business leaders to make informed and effective decisions on their technology spend. The AI era is one of information and data overload. The first step to harnessing AI and avoiding sprawl – when a new technology is introduced and spirals out of control, leading to budget overruns and governance issues – is greater visibility.
Sprawl is not a new phenomenon, we witnessed it in the early days of cloud adoption and we’re starting to see it repeat itself as more AI tools are being adopted and implemented without a clear strategy. Without strategy or cost visibility, AI deployment leads to untracked spending, inefficient usage and budget blind spots. The rapid advancement of AI and unpredictable consumption-based cost models has the potential to result in larger sprawl touching more of the business than cloud.
Adopting FinOps practices and investing tools that help businesses assess, understand and address inefficient spend on cloud and AI technologies is essential to avoid budget blowouts. Tools like Apptio’s recently launched Kubecost 3.0 and Cloudability Governance, offer leaders better visibility over resource utilisation and cost inefficiencies, enabling them to make informed decisions around infrastructure decisions and provides real time-costs insights to help businesses assess the value of their technology investment.
Businesses of all sizes need to be aware of how unchecked tech spending can quickly spiral into inefficiency and financial risk. The key to avoiding budget black holes is visibility, understanding where costs occur and aligning investments with business outcomes. By embracing FinOps practices and prioritising cost governance, organisations can turn innovation into a strategic advantage instead of a financial liability.
Matt Pinter is APAC Field CTO at Apptio, an IBM Company
Last Updated on February 10, 2026 by Matt Pinter
