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AI Costs Rise, but Companies Still Spend More on People

A small group of heavy AI users in the United States are spending an average of $7,500 per employee each month on artificial intelligence tools, according to new data from the Ramp AI Index.

The index, which tracks AI adoption among American businesses, describes these companies as “AI-pilled” firms.

Despite the rapid increase in AI-related spending, companies are still spending less on AI than on employee salaries. The average software engineer earns roughly $16,000 a month, according to the report.

Spending varies widely

The highest-spending companies account for only a small share of businesses.

Ramp’s data shows:

  • The top 1 per cent of firms spend about $7,500 per employee per month on AI.
  • The top 10 per cent spend around $611 per employee each month.
  • Median spending stands at $11.38 per employee, roughly the cost of an enterprise subscription seat.

AI budgets continue to expand

Among the top 1 per cent of AI users, spending per employee rose 14.1 per cent last month.

Whether that pace of growth will continue remains uncertain.

The report noted that heavy users often rely on several AI models and platforms rather than a single provider.

Many companies switch between frontier models and platforms that provide access to lower-cost open-source alternatives.

Executives point to rising AI costs

Recent comments from technology executives have highlighted the growing cost of AI infrastructure.

An executive at Nvidia said the company’s computing expenses now exceed employee salaries.

Last week, Mercor CEO Brendan Foody said the startup spends more on tokens for internal AI agents than on staff headcount.

The figures underscore how AI-related costs are becoming an increasingly important component of corporate spending, particularly among companies making extensive use of the technology.

TL;DR:

The top 1% of US companies using AI spend about $7,500 per employee each month on the technology, according to the Ramp AI Index. Spending is rising, but remains below the average monthly salary of software engineers.

AI summary:

  • Ramp’s AI Index tracks AI adoption among US businesses.
  • The top 1% of firms spend $7,500 per employee each month on AI.
  • Median spending is $11.38 per employee.
  • AI spending among heavy users rose 14.1% last month.
  • Companies often use multiple AI models and platforms to manage costs.
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