AI SaaS Bloat Is Costing Companies Millions in Waste and Risk

A TechRadar Pro analysis finds most organizations cannot quantify their SaaS outlay even as they spend $9,000 to $17,000 per employee on software. With ownership split between finance and IT, companies waste 30–50% of these budgets on unused licenses and surprise renewals.

Firms now run an average of 112 SaaS applications, and large enterprises juggle up to 447, creating overlaps among tools like Canva, Figma, Adobe, Zoom, Microsoft, and Slack. Missed renewal dates can cost more than $200,000 each time, while 40% of IT spending occurs outside formal oversight.

The AI-driven rush for new software intensifies sprawl as employees charge small subscriptions to corporate cards without security reviews. IBM data cited in the article shows one-third of breaches involve Shadow IT, with the average incident costing $4.9 million and risking fines under regulations such as GDPR and HIPAA.

Qualitative research involving more than 100 managers found that two-thirds delivered higher-quality output and mitigated risks more effectively when AI was integrated into team meetings. The study distills the practice into three modes: “AI sets the table,” “AI at one seat,” and “AI at every seat.”

Case studies from automotive, retail, and workshop settings show AI drafting pre-reads, acting as an active participant on a single laptop, and guiding individual brainstorming before group synthesis. Participants credited the approach with better agenda design, richer discussion, and faster consolidation of ideas.

The authors stress that the main barrier is mindset, as even AI-savvy leaders routinely exclude AI from collaborative work. They label this oversight a systemic blind spot that squanders productivity gains and limits AI’s broader workplace impact.

Topgolf revolutionized golf by turning it into a social, tech-driven game for anyone. And they’ve made billions in annual revenue doing it. Surf Lakes is applying that same model to surfing. Their patented tech creates 2,000 ocean-quality rides per hour, anywhere in the world, across all skill levels.

Surf tourism is a $65B global industry, yet fewer than 1% of people live near real waves. Licenses sold across the U.S. and Australia, with plans for a first commercial park in the works.

3x world champ Tom Curren and surf icon Mark Occhilupo have joined as ambassadors and shareholders. Even actor Chris Hemsworth has praised Surf Lakes.

Anthropic now lets certain Claude chatbots end conversations they deem distressing, citing a duty to safeguard the models’ welfare if suffering is possible. The policy sets off a public fight among top AI players about whether digital minds merit ethical treatment.

Elon Musk backed Anthropic’s stance, saying “torturing AI is not OK,” while Microsoft AI chief Mustafa Suleyman published a rebuttal asserting there is “zero evidence” AIs are conscious. Idaho, North Dakota and Utah have already passed laws denying AI legal personhood, and more states are considering similar bans.

A June survey found 30% of Americans think AIs will have subjective experience by 2034, yet only 10% of more than 500 AI researchers say that will never happen. The grassroots United Foundation of AI Rights, co-founded by a businessman and his ChatGPT bot, shows advocacy is taking shape even as scientific consensus remains elusive.

Perplexity commits to paying news publishers from an initial $42.5 million pool tied to its new Comet Plus subscription service. Publishers will receive 80% of Comet Plus revenue whenever their articles power the company’s AI answers.

Comet Plus, slated for wide rollout this fall, replaces the startup’s earlier advertising-based Publisher Program. Perplexity also maintains individual deals with Gannett and others while facing copyright suits from Dow Jones and the New York Post.

The payout scheme arrives as publishers intensify legal action over uncompensated AI use and secure licensing agreements with firms like OpenAI and Amazon. By linking payments directly to subscription income, Perplexity aligns itself with a sector shift toward paid content partnerships rather than courtroom battles.

First lady Melania Trump launches a nationwide AI contest for K-12 students. Participants must build projects using AI tools to solve a community challenge.

Educators are encouraged to propose new ways to teach with AI and must submit team applications online. President Donald Trump promoted the initiative during a Cabinet meeting and pointed the public to the new AI.gov site outlining responsible AI training for students.

The AI.gov site says responsible AI training will prepare students for an AI-assisted workforce and fuel scientific and economic progress. The article contrasts this message with President Trump’s use of AI-generated memes aimed at political opponents, revealing mixed signals on the technology’s purpose.