The costs of operating artificial intelligence technologies are behind the high prices of digital services

Information technology expert and artificial intelligence project consultant, Engineer Ahmed Bahjat, stated that the rise in prices for digital services is largely related to the costs of operating Generative AI technologies, which require huge infrastructure, high processing capabilities, and continuous investments in protection, storage, and development, and therefore part of the price increase is economically justified.

He added: “Globally stringent privacy laws, such as the European Data Protection Regulation, have contributed to changing the advertising-based business model, as the focus has moved from collecting the largest amount of user data to reducing data and relying on clear consents and contextual advertising, with the rising cost of legal compliance.”

He continued: “The real challenge remains to achieve a fair balance between the profitability of digital companies and ensuring users’ access to safe and reliable basic services without creating a new digital divide. A healthy relationship in the digital economy is not a relationship (master and user), but rather a partnership relationship based on mutual benefit, where the user pays a fair price in exchange for real value, and companies achieve sustainable profits without compromising their ethical responsibility.

He pointed out that the world is witnessing a radical transformation in the nature of the digital economy, as the way software and applications are sold and used has changed in an unprecedented manner. The user no longer buys and owns the program as was the case previously, but rather relies on the monthly or annual subscription model, a model adopted by major companies, such as Microsoft and others, in search of financial sustainability and ensuring a continuous cash flow.

This transformation can be considered a natural development in light of the complexity of modern technology and the high operating costs, but at the same time it imposes accumulated financial burdens on individuals and companies, as the user today pays for the “right to access” the service, not for owning it, which reflects a profound change in the concept of digital ownership.