McKinsey Warns US Agencies of $90 Billion AI Spending Surge
McKinsey & Company warns US federal agencies of rising AI costs as subsidized introductory deals expire and usage of AI agents expands.
Management consulting firm McKinsey & Company warns that United States government agencies face a sharp increase in artificial intelligence spending as subsidized introductory deals expire through 2026 and 2027. While the cost to run fixed AI capabilities has declined significantly, overall bills are rising due to exploding usage and the adoption of AI agents, which consume substantially more tokens than simple chatbot queries.
US federal agencies reported 3,611 AI use cases in 2025, representing a 69 percent increase over the previous year. The potential value of federal AI contracts is estimated at $90 billion or more.
To prevent budget shortfalls and program disruptions, McKinsey recommends that agencies treat AI as a separate budget category, forecast costs at commercial rates, and implement strict cost controls.
