WorkThe story, in brief

Locked, stocked, and losing budget: AI vendor lock-in bites back

NOBODY TALKING: Everyone chases the latest model. Nobody is talking about the $millions trapped in vendor lock-in contracts.

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People, judgement and the changing nature of work.AI illustration by KeyNews
The KeyNews take

Why it matters

As enterprises scale AI deployments, switching costs and contractual lock-in are becoming a hidden tax on AI budgets—forcing C-suite teams to justify sunk costs and rethink model selection strategy.

The key facts

4 to know
  1. C-suite expectations: model swaps possible in ~1 week (reality: significantly longer)

  2. Vendor lock-in emerging as material budget risk for enterprise AI programs

  3. Switching costs and contractual constraints limiting model portability

  4. Published Apr 28 2026 — suggests real enterprise pain point at scale

Go to the source

The Register AI/MLtheregister.com

Publisher excerpt: Execs in the C-suite thought they could swap models in a week. They were hallucinating
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