Big Wall Street banks scramble as AI costs outpace expectations

Business Oct 22, 2026

Big banks on Wall Street jumped into artificial intelligence (AI) with huge budgets, but now they're realizing the costs are piling up way faster than expected.

Because these advanced AI systems sort of run themselves, it's tough to predict expenses or keep things under control.

Executives are scrambling to cut back and figure out if all this spending is actually worth it.

Banks shift to cheaper AI options

To rein in costs, banks like Deutsche Bank and Santander are switching expensive AI tasks to cheaper options after initial tests.

Canadian Imperial Bank of Commerce is limiting who can use the priciest models.

There's even growing interest in more affordable Chinese AI tools, though regulatory, security, and governance concerns make that tricky for now.