McKinsey warns US federal agencies face sharply higher AI bills as subsidised access expires through 2026 and 2027, pushing them toward commercial pricing. Although AI capability costs fell roughly 1,000-fold in three years, usage is exploding, with agent workflows consuming far more tokens. Federal AI use cases rose 69% to 3,611 in 2025.
McKinsey Warns US Agencies of AI Spending Surge
Source: Zee News English