Greetings,

AI cost overruns are becoming a big concern for companies following a surge in employee usage of advanced language models. Many executives are reporting overspending on AI, and firms are starting to cut back on usage. More on that below.

Also in this edition:

• PwC: AI skills more valuable than MBAs for finance execs
• CFOs express AI governance concerns amid rapid adoption
• Hackers exploit flaw in certain bitcoin wallets to steal millions
• Accounting talent shortage is easing, but persists in some areas

Companies are reining in artificial intelligence spending after a surge in usage led to high costs and inefficiencies, as seen with Gusto, Uber and Tesla. The initial "tokenmaxxing" trend saw employees using advanced AI models excessively, but now firms are setting spending limits and encouraging more targeted use.

Jersey Mike's and Reformation have encountered lukewarm responses from investors in their IPOs. Jersey Mike's shares fell 6% on the first day of trading, while Reformation's remained flat. Both companies plan to use proceeds to pay down debt, with Jersey Mike's aiming for long-term growth without needing additional capital and Reformation focusing on expanding internationally.

Federal Reserve officials Beth Hammack, Neel Kashkari and Lorie Logan have voiced concerns about persistent inflation after voting to raise interest rates in contrast to the majority's decision to hold steady. The Fed has kept its benchmark rate at 3.5% to 3.75% since December, but inflation has exceeded the 2% target, driven by factors including President Donald Trump's tariffs and rising oil prices.

CFOs express concerns about their ability to govern artificial intelligence effectively, according to Deloitte's Q2 CFO Signals survey. Most respondents say they are only somewhat confident in their AI governance framework, citing challenges such as lack of governance authority and balancing rapid AI deployment with risk management. External concerns include litigation, cybersecurity and regulatory uncertainty.

The accounting talent shortage appears to be easing, aided by artificial intelligence and outsourcing, although challenges persist, particularly for small and midsize firms. A poll by CFO Dive shows that 64% of respondents are still aware of a shortage in their industry.

A security flaw in Coldcard wallets, a type of cold Bitcoin wallet made by Coinkite, has led to the theft of more than $110 million worth of Bitcoin from 5,000 wallets. The flaw in the random-number generator made seed phrases predictable, allowing hackers to drain wallets systematically. Coinkite has released a fixed firmware to address the issue.

AI skills are more valuable than MBAs for new hires, according to 86% of financial services executives in a PricewaterhouseCoopers survey. Companies are increasing compensation for employees with AI skills, and some, such as IBM, Shopify and Cloudflare, are increasing entry-level hiring to leverage the abilities of recent graduates.