Business & Technology
Flexera warns AI cloud costs strain technology budgets
SOFIAH NICHOLE SALIVIO
News Editor
Flexera has published research showing that every organisation surveyed uses generative AI public cloud services. It also found that 85% now see managing cloud costs as their main cloud challenge.
The findings point to growing pressure on technology budgets as companies juggle hybrid cloud estates, AI spending and limited visibility over usage. Some 17% of organisations exceeded their public cloud budgets in the past year, while estimated wasted cloud spend rose to 29%, reversing a five-year decline.
Hybrid cloud has become the dominant operating model in the survey. Flexera found that 69% of organisations now use a hybrid cloud approach, rising to 78% among those with more than 5,000 employees.
Spending patterns also point to larger, more complex estates. Among organisations spending more than USD $500,000 a month on cloud, 79% operate hybrid environments.
The report suggests AI is adding a new source of cost volatility. While all respondents said they use generative AI public cloud services in some form, 45% described that use as extensive and 30% said cost unpredictability was one of the biggest challenges in scaling AI workloads.
Chris Andersen, Chief Financial Officer at Flexera, linked those pressures to broader changes in how finance teams track technology spending.
“The conversation around cloud costs has shifted significantly. It has moved from spending more on technology to solve problems to managing increasingly complex environments that have often evolved organically over time.
“Many organisations have not intentionally designed hybrid or multi-cloud strategies. Instead, these environments emerge through acquisitions, new business requirements or teams independently adopting different platforms. As a result, finance leaders are being asked to manage technology estates that are much harder to monitor and optimise.
“The challenge is that complexity itself creates inefficiencies. The more environments organisations operate across, the harder it becomes to maintain visibility into what resources are being used, whether they are delivering value and where opportunities exist to reduce unnecessary spend,” Andersen said.
The survey also points to a more formal approach to cloud oversight. Flexera found that 71% of organisations now have a Cloud Centre of Excellence, while 63% have established dedicated FinOps teams.
Governance spread
Responsibility for cloud governance is also moving beyond specialist infrastructure teams. According to the research, business units and software asset management teams are taking a larger role in overseeing cloud usage and costs.
Managed service providers are adjusting their offerings in response to AI-related demand. Nearly half plan to offer AI consulting and SaaS management services, while two-thirds are adopting AI for cybersecurity use cases.
The data also shows a divide between larger and smaller organisations in the use of outside providers. Enterprise use of managed service providers rose by three percentage points from a year earlier, while use among small and medium-sized businesses fell from 48% to 39%.
Andersen said the shift in AI spending could change the balance of costs on company profit and loss statements.
“There is enormous pressure on organisations to invest in AI quickly enough to remain competitive, but AI costs behave very differently from traditional technology spending. Usage can scale rapidly across cloud environments, making costs far harder to predict and control.
“People costs have traditionally been the largest line item on the profit and loss statement for technology companies. If AI develops as many expect, technology spend could eventually overtake that. Yet most organisations are nowhere near as disciplined in managing technology costs as they are people costs.
“Companies know exactly who works for them and what those people cost. Far fewer can say the same about every cloud workload, SaaS agreement or AI tool operating across the business. That becomes a serious financial challenge once AI usage starts scaling.
“The organisations best positioned to succeed will be those that simplify where they can, improve visibility across increasingly hybrid environments and establish clear accountability for technology spending. Without that discipline, complexity itself becomes a driver of unnecessary cost,” Andersen said.
The research was based on a survey of 753 technical professionals and executive leaders worldwide, including cloud decision-makers and users across industries, organisation sizes and functional roles.
Duke Property Ltd, which runs the Duke of Cambridge bar on Little Clarendon Street, entered Creditors Voluntary Liquidation on July 28.
This is a a liquidation procedure that enables a company to be wound up by resolution of the members of the company instead of by a court order.
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A statement said: “Notice is given that at a General Meeting of the Company, duly convened and held at the place and on the date given above, a special resolution was passed that the company be wound up voluntarily; and an ordinary resolution was passed appointing the Liquidator for the purposes of the winding-up.”
The liquidators appointed were from Fortis Insolvency, with Daniel Taylor of the firm stating that the economic climate over the last few years has provided “major challenges”.
He said: “It is always difficult when an individual or company faces insolvency, as one failure often impacts on others around them either directly or indirectly. From suppliers to employees to finance providers to HMRC, there is always a wider consequence.
“The economic climate over the last few years has provided several major challenges to businesses, and the fall-out continues to be encountered.
“We know that this business is not alone in what it has faced over recent trading periods, and suspect that there are more economic consequences yet to be felt.”
The Duke of Cambridge has also been approached for comment.
The company’s latest accounts, to May 31, 2025, show creditors falling within a year worth over £58,000 and an average of three employees, less than half the number from the year before.
READ MORE: Oxfordshire construction firm being wound up with £75K debts
On its website, the Duke of Cambridge describes itself as “Oxford’s leading cocktail bar” and says its has been open since 1981.
It adds: “Located in the bohemian district of Jericho, the bar is always bursting with atmosphere at the weekends with a more chilled vibe during the week.
“Fresh ingredients, cool interiors and friendly staff give The Duke genuine character and style.”
In addition it said that it is “currently closed for a refurbishment following a break in”, with Google also reporting the cocktail bar as closed.
It added that it would be “reopening soon”.
JOSEPH GABRIEL LAGONSIN
News Editor
Nearly half of UK adults have used artificial intelligence tools during their online shopping journey, according to a survey of 2,000 people commissioned by price comparison group Idealo.
The research found that 46% of UK shoppers had used AI tools while shopping online, and 19% said they consulted AI every day. It also suggested that 75% believe AI will significantly change how people shop in future.
Consumers appear most comfortable using AI at the research stage rather than letting it handle a full transaction. While 74% of AI users said the technology provides useful recommendations, only 41% said they would trust it to complete an entire shopping journey from product discovery to purchase.
The figures point to a gap between interest in AI shopping tools and confidence in them. Nearly a third of respondents, 29%, said AI helps them save time when shopping online, while 33% said they use it to summarise product features.
More than half, 54%, said AI can help them make better purchasing decisions overall. Yet a sizeable minority still prefer established habits, with 35% saying they would rather compare prices using traditional methods.
Trust issues
Concerns over privacy and reliability were central to the findings. Data privacy was the biggest worry overall, cited by 53% of consumers using AI-powered platforms.
At the same time, 42% said they were concerned AI tools could surface unreliable offers or direct them to fake retailers. Another 34% worried about inaccurate recommendations, while 19% viewed AI as a broader risk to society.
The results suggest shoppers are willing to use chatbots and other AI tools as a starting point for research, recommendations and price checks, but many remain cautious about the quality of the information they receive. That could matter for retailers and technology groups trying to make AI a bigger part of eCommerce.
The survey was commissioned after Idealo launched a ChatGPT app aimed at helping consumers with shopping-related searches. The findings suggest AI is becoming embedded in how many people look for products and deals, even as trust remains unsettled.
Nike Herzog-Osikominu, UK country manager at Idealo, commented on the shift in behaviour and the limits of consumer confidence.
“AI is rapidly becoming part of how people shop, particularly when it comes to researching products, comparing prices and finding the best deals. Consumers clearly see the value in having an assistant that can help them save time and make more informed purchasing decisions.
“At the same time, our research shows that trust remains the biggest barrier to wider adoption. While shoppers are increasingly turning to AI for recommendations, many still want reassurance that the prices, products and retailers being presented are accurate and reliable.
“As AI becomes a more common starting point for online shopping, consumers will expect greater transparency around where recommendations come from and whether offers can be trusted. The platforms that succeed will be the ones that combine convenience with credibility,” Herzog-Osikominu said.
The findings add to the wider debate about how quickly consumers will accept AI-led services in day-to-day purchasing. Although many respondents said the technology is useful, the lower level of trust in handing over the full buying process suggests adoption may depend as much on confidence and verification as on convenience.
Price comparison emerged as one of the clearest areas where respondents see value in AI tools. Even so, concerns that automated systems could point shoppers towards fake retailers or misleading offers highlight the commercial risk for platforms that fail to establish reliability.
Herzog-Osikominu also linked that issue to Idealo’s role in the market.
“This is exactly where Idealo adds value – by combining the convenience of AI-powered shopping with trusted price comparison, transparent retailer information and reliable product data, helping consumers make more confident purchasing decisions,” Herzog-Osikominu said.
The Lord Kitchener in Bampton Road, Curbridge closed down in August 2022, but was relaunched last month to the public.
Paul and Lianne Newton purchased the property from Greene King in 2024, free of lease, and set about organising an extensive refurbishment.
Mr Newton said: “We’ve been blown away by the support we’ve received so far.
READ MORE: Historic £1.8 million Blenheim hotel in Cotswolds town under offer
“We’ve already taken bookings for a wedding reception, and we’re receiving enquiries for events and private parties right through into 2027.
“It’s been an incredible start.”
The roadside oak-beamed pub dates from the early 18th century when it was known as the Herd of Swine.
The village social club was based there, and it supported local charities.
Military veteran Mr Newton now wants to turn it into a welcoming hub at the heart of the community.
It reopened on Wednesday July 15, but the couple say there are still some final touches to be done.
Mr Newton explained: “We knew there would always be more to do, but we wanted to get open, welcome people in and build a fantastic team.”
Included in that team is head chef James Brooks, who brings more than 30 years experience as a professional cook to the Lord Kitchener.
The menu is inspired by the vibrant flavours of the Mediterranean, showcasing fresh ingredients and complemented by carefully selected drink pairings.
Food includes Pamboli sandwiches, tapas, burgers, fish and chips and Argentinian grill steak.
“We’re learning every day,” said Mr Newton, “adapting and continually improving as we bring our vision to life”.
He added: “Our goal is to create a place where everyone feels welcome and enjoys spending time.
“We’re incredibly grateful for everyone’s support, patience and encouragement as we continue to grow.
“We’re excited about the future of The Lord Kitchener and look forward to creating something truly special that the whole Curbridge community can be proud of.”
READ MORE: UK greyhound racing business with £4 million debts in liquidation
Local councillor Liam Mackenzie said after it opened: “Great to see the Lord Kitchener reopen in Curbridge a couple of weeks ago, bringing the number of pubs in the Ducklington Ward from 1 to 2!
“The only question now – where else needs a new pub?!”
Curbridge and Lew Parish Council owns a one-acre field alongside the pub called the Lord Kitchener Field.
In the early 2000s the pub was owned by Oxford-based brewery Morrells, which Greene King bought.
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