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Businesses Face Rising Remediation Costs After AI Deployments Fall Short

Recent research shows ungoverned generative AI delivers marginal time savings, prompting companies to hire humans for expensive error remediation

Overview

  • Many companies that replaced staff with generative AI tools like ChatGPT and Google Gemini now incur unexpected costs by rehiring writers and engineers to correct flawed outputs.
  • A BBC report highlights freelancers such as Sarah Skidd spending 20 hours rewriting bland AI-generated copy at $100 an hour, costing clients thousands of dollars per assignment.
  • AI-generated code errors have led to website crashes and downtime, with repair fees reaching several hundred pounds or dollars, according to Create Designs co-owner Sophie Warner.
  • A study by Anders Humlum and Emilie Vestergaard finds AI chatbots deliver real-world productivity gains of just 2.8% of work hours, rising slightly to 3.6% when businesses provide dedicated AI training and guidelines.
  • Experts warn that without human oversight and transparent AI use, companies risk reputational damage, operational liabilities and higher remediation expenses when diagnosing errors.