AI Economics: Hidden Costs of AI Implementation — The Expenses Organizations Discover Too Late
Abstract
Enterprise AI implementations routinely exceed initial budgets by 40-75%, a pattern observed repeatedly across software engineering and AI systems deployments. This research article provides a comprehensive taxonomy of hidden AI costs, identifying seven primary categories: data preparation and quality remediation (25-40% of total project cost), integration debt with legacy systems (15-30%), organizational change management (10-20%), compliance and governance overhead (8-15%), model maintenance and drift correction (ongoing 20-35% annually), opportunity costs of failed experiments, and shadow IT proliferation (5-12%).
Fields of Study & Subjects
Artificial Intelligence Applications
Impact of AI and Big Data on Business and Society
Information Technology Governance and Strategy
Publication details
- Journal / source
- Zenodo (CERN European Organization for Nuclear Research)
- Publication date
- 12 February 2026
- Language
- EN
- Document type
- Preprint