Locked, stocked, and losing budget: AI vendor lock-in bites back
AI vendor lock-in is becoming a significant issue for enterprises as switching between AI models proves more difficult than anticipated. Many executives overestimate their ability to transition quickly between vendors, with a recent survey revealing that only 42% of organizations experienced a smooth migration. Additionally, rising costs from AI providers are reshaping the software economics, complicating the landscape further for businesses reliant on AI technologies.
- ▪A survey found that nearly 90 percent of executives believed they could switch AI vendors within four weeks.
- ▪Only 42 percent of organizations that attempted to migrate between AI platforms reported a smooth transition.
- ▪AI vendors are increasing prices, with OpenAI raising costs for its GPT-5.2 model significantly.
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