The era of ‘good enough’ AI has arrived

As frontier AI models get pricier, cheaper and locally hosted alternatives are becoming powerful enough for most users.

Google CEO Sundar Pichai addresses the crowd during Google’s annual I/O developers conference in Mountain View, California on May 20, 2025. [Photo:CAMILLE COHEN/AFP via Getty Images]

BY Chris Stokel-Walker

The release of Google’s latest AI models this week at Google I/O was yet another example of the direction of travel for the generative AI revolution. Facing a user base that is increasingly burning more tokens under basic subscriptions or API access, AI companies are starting to hike prices and throttle usage.

In response to those cost pressures, consumers are beginning to cut their cloth accordingly. And while frontier AI providers are releasing ever more powerful models into the world, smaller companies are advancing,........

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