Greetings,

Data tollgating is emerging as a major concern for companies, as software vendors increasingly monetize access to enterprise data. A recent Deloitte report highlights how this is leading to unexpected costs, particularly for companies expanding their artificial intelligence projects. (So, everyone.) More on that below.

Also in this edition:

• AI capital spending by tech giants surged 74% to $168B in Q2
• Investor groups prefer quarterly reports over proposed SEC rule
• Employers face rising costs from GLP-1 drug coverage
• Cursor creates CFO council to address AI investment ROI

Organizations are facing unexpected IT costs due to data access fees, a practice known as "tollgating," as software vendors monetize enterprise data. Deloitte's recent report highlights that this trend is particularly impacting companies scaling artificial intelligence initiatives, leading to financial risks that were not anticipated in tech budgets. "Organizations thought they owned their data. What tollgating has done is tell them they don't really, because it's being fenced or metered or sold back to them," says China Widener, vice chair and US technology, media and telecommunications leader at Deloitte.

Tech giants including Google, Microsoft, Amazon and Meta Platforms are expected to report a 74% year-over-year surge in capital spending to $168 billion for the second quarter, driven by investments in artificial intelligence. While this spending boosts the tech hardware market, it also pressures free cash flow and stock prices. Meta's potential move into cloud computing using its AI infrastructure signals a possible shift in spending strategy, raising questions about the sustainability of such high levels of investment.

Investor groups have urged the Securities and Exchange Commission to maintain quarterly reporting requirements for public companies, opposing a proposal to allow semiannual reporting. Investors argue that quarterly reports are crucial for making informed decisions, while companies such as JPMorgan Chase and Nasdaq support the proposal, saying it could reduce compliance costs and encourage long-term planning.

A Business Group on Health survey reveals that nearly 77% of employers are experiencing increased health care costs due to the popularity of GLP-1 drugs, especially for weight management. The survey shows that 67% of companies cover GLP-1s for weight management, but only 72% plan to continue this in 2027. Employers are concerned about the financial viability of continuing coverage, with some implementing strategies to ensure appropriate use.

Cursor has created a chief financial officer council to address challenges related to the return on investment of artificial intelligence. The council aims to develop benchmarks and frameworks for measuring AI productivity and managing costs. The first meeting is set for August, and Asana CFO Aziz Megji and SentinelOne CFO Sonalee Parekh are among the initial participants.

CFOs should treat banking relationships as strategic assets rather than transactional obligations, Ahola CFO Michael Paull writes. Proactive communication, consistent financial reporting and forecasting covenant compliance are essential to building trust with lenders, Paull writes.