AI Economics: Hidden Costs of AI Implementation — The Expenses Organizations Discover Too Late

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Authors: Oleh Ivchenko
Cited by: 0

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