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The Hindu·4 min read·hard

AI coding costs will surpass average developer’s salary by 2028 as token consumption surges: Gartner

AI coding costs will surpass average developer’s salary by 2028 as token consumption surges: Gartner
AI Summary

Gartner predicts that by 2028, the costs associated with AI token consumption in coding will exceed the average developer's salary. The shift toward consumption-based pricing models is creating financial unpredictability for organizations scaling AI agents.

Why it matters

Businesses must develop better governance and cost-tracking frameworks to prevent AI-driven budget overruns in software engineering.

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By 2028, AI coding costs will overtake the average developer’s salary due to rising large language model (LLM) token consumption and the shift to consumption-based licensing models, forecast Gartner, a Stanford-based business and technology insights company.

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