As the year closes, some signals deserve a second look

A more reflective edition of Above Trends, Beyond Insights

As the year draws to a close, we are slightly shifting the editorial lens of Above Trends, Beyond Insights. Instead of chasing the latest headlines, this end-of-year edition takes a step back, offering space for reflection on the dynamics that quietly shaped technology decisions over the past months. It is a moment to look beyond immediacy, to revisit overlooked signals, and to consider what truly mattered as organizations prepare to turn the page and define priorities for the year ahead.

AI deployment: emerging costs and the reality beyond the hype

In 2025, many organizations and technology leaders confirmed a trend that remains largely invisible in mainstream headlines: investment in artificial intelligence continues to grow, but achieving tangible economic returns and a robust operational impact is proving more difficult than expected.

A recent Reuters article points out that, although AI is considered strategic by almost all companies, actual returns on investment are not materializing as quickly or as broadly as expected, and many businesses are recalibrating their strategies to manage costs and real value generated.

At the same time, some large technology companies are facing AI-related restructuring and spending cuts that are not always explained with grandiose announcements: Microsoft has paused or slowed down billion-dollar AI data center projects, signaling the need to realign infrastructure capacity and current demand.

Similarly, investors are looking with increasing caution at Oracle's AI spending, which, with disappointing quarterly results, has seen its market value plummet and fueled debates about the sustainability of investments in the sector.

This trend reflects a crucial transition in the technology market: AI is a complex investment that requires stronger governance, precise value metrics, and a realistic reading of expected returns.

TREND TRACKER

The cost reality of scaling AI

As generative AI moves from experimentation to production, a quieter but decisive trend is taking shape: organizations are shifting their focus from adoption to sustainability. The challenge is no longer whether AI works in theory, but whether it can be scaled responsibly, economically and over time.

Across industries, leaders are grappling with rising infrastructure costs, unpredictable usage patterns and the difficulty of tying AI initiatives to measurable business outcomes. This is pushing companies to rethink governance models, investment horizons and success metrics, especially when AI workloads move beyond pilots and into core operations.

The result is a more selective, disciplined approach to AI, where fewer initiatives move forward, but those that do are expected to demonstrate long-term value, operational resilience and cost transparency. This recalibration is shaping how AI strategies will evolve well beyond the current cycle of hype.

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How to read and manage AI costs now

The above phenomenon translates into a fundamental question for those who drive technology and innovation: how do you correctly evaluate an AI project before scaling it up?

Here are some immediate and practical actions:

  • Define value metrics beyond costs: identify KPIs that go beyond cost vs. expense and include impact on processes, productivity, and customer experience.

  • Segment costs and benefits by phase: separate investments in prototypes from those in production, with different budgets and evaluation criteria.

  • Strengthen internal governance: create an interdisciplinary committee (IT, finance, business) to monitor and approve project milestones.

  • Simulate scale costs: before extending an initiative, calculate infrastructure, maintenance, and personnel costs for three scenarios (best case, realistic, worst case).

WHO IS BABINI MAZZARI

Our Value Proposition

Babini Mazzari is the strategic IT partner for European companies looking to navigate digital transformation in a structured, pragmatic, and sustainable way.
We don’t just deliver technical solutions - we work as an extension of your internal team, helping you integrate systems, optimize processes, and lead change with clarity and competence.

Our approach is built on listening, transparency, and a strong results-driven culture. Whether you're scaling, modernizing, or rethinking your operating model, we support every client with the right tools, clear methodology, and long-term vision.
Above Technology. Beyond Solutions.