Enterprises are significantly increasing their investments in governance as the risks associated with artificial intelligence become more apparent. According to a September report by OneTrust, nearly all organizations surveyed—98 percent—plan to boost their governance budgets in the coming financial year, with an average expected increase of 24 percent. The survey, which included responses from 1,250 IT leaders, revealed that those with advanced AI adoption are spending approximately 37 percent more time managing risks. Traci Gusher, AI and data leader at Ernst & Young Americas, emphasizes the importance of a robust governance strategy, stating that organizations must establish multiple lines of defense to manage AI responsibly. As AI technologies continue to evolve, analysts indicate that refining governance will remain an ongoing process, particularly as organizations encounter problematic incidents that can lead to significant financial losses.
Public cloud spending is projected to increase fourfold over the next three years, primarily driven by rising generative artificial intelligence workloads, according to a recent survey by TD Cowen. The survey of 215 North American IT buyers revealed that 42% of firms expect to allocate more than 30% of their cloud budgets to generative AI, with nine out of ten leaders anticipating that such use cases will account for at least 10% of their cloud expenses. As enterprises rapidly adopt generative AI applications, IT leaders must brace for higher costs associated with advanced infrastructure. Hardeep Singh, a principal analyst at Gartner, emphasized that over 90% of large enterprises are expected to deploy generative AI by 2028, prompting a need for improved cloud cost management strategies, including negotiating vendor contracts and implementing cost tracking practices.
The Wall Street Journal discusses how rising levels of debt are now influencing the artificial intelligence boom, likening the situation to the dot-com bubble. Companies like OpenAI are entering into substantial contracts, such as a $300 billion deal with Oracle to build AI computing infrastructure. Analysts at KeyBanc Capital Markets estimate that Oracle may need to borrow $25 billion annually for the next four years to meet its obligations, raising concerns about the sustainability of these financial models as only 3% of consumers currently pay for AI services. Furthermore, Moody’s has issued a negative outlook on Oracle’s credit rating, citing significant risks associated with their high debt levels and reliance on a single customer, OpenAI, for much of their data center capacity.
Why do we care?
So, here’s the thing—everyone’s spending more money on AI governance. OneTrust says 98% of organizations are upping their governance budgets next year. Not AI budgets—governance. Why? Because they’re realizing this stuff isn’t plug-and-play. You have to manage the risk, the data, the models, and the people.
Meanwhile, cloud bills are exploding. TD Cowen says nearly half of IT leaders expect more than 30% of their cloud spend will go to AI workloads in just a few years. That’s not a small shift—that’s a budget crisis in the making.
And the kicker? The infrastructure behind all this is built on debt. Oracle’s reportedly borrowing $25 billion a year to build capacity for OpenAI. Moody’s doesn’t love that. Only three percent of consumers are paying for AI tools—so this bubble looks a lot like dot-com energy.
For MSPs, here’s where it gets real. Governance is a service. Cost control is a service. Risk management is a service. You don’t have to be an AI company—you just have to help your customers use AI safely and affordably. The big players are burning cash to build the future. You can make money helping people survive it.