US agencies face AI cost surge as subsidies expire: McKinsey

McKinsey warns US government agencies could face sharp AI spending rises as subsidised access expires in 2026-27 and commercial pricing kicks in. Federal agencies logged 3,611 AI use cases in 2025, up 69% year-on-year. A McKinsey survey found 93% of 120 companies exceeded AI budgets. Federal AI contracts could exceed $90 billion.