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This scenario has prompted speculation whether companies are misallocating resources in pursuit of inflated valuations, without seeing immediate returns.
MIT’s Shocking Report: 95% of AI Investments Are Failing
Adding fuel to the fire, a recent MIT report titled the "Gen AI Divide" exposes the grim reality: 95% of organizations investing in generative AI pilots are seeing zero ROI, and some are even incurring negative returns.
The report analyzed 300 public AI deployments, spoke with 150 industry leaders, and surveyed 350 employees. The findings are astonishing—many companies laying off thousands of workers proclaim that AI is enabling this restructuring, although often these claims mask underlying financial struggles.