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Why Microsoft is cracking down on ‘tokenmaxxing’ despite strong earnings
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The Indian Express
However, the price for using AI tools has increased substantially in the last few months while not always delivering commensurate productivity gains.
Several medium and large organisations that incorporated AI tools into their workflows to boost productivity began to question whether using AI tools translates to creating real value.
Based on Parikh’s email, the change in Microsoft’s policy on AI spend is aimed at curbing wasteful AI usage.
Microsoft is far from the first major tech company to move to curb AI token spend.
Companies such as Amazon, Adobe, Atlassian, and Citi have also looked to rein in employees’ AI usage.