Companies have invested billions into AI, 95 percent getting zero return

Although there has been between $30 and $40 billion in enterprise investment into generative AI, a recent MIT report shows that 95 percent of organizations are seeing zero return.

Just 5 percent of integrated artificial intelligence pilots "are extracting millions in value," while the majority contribute no measurable impact to profits, the report found.

Many companies are implementing tools like OpenAI's ChatGPT and Microsoft Copilot, with over 80 percent having explored or piloted these technologies, and nearly 40 percent reporting their deployment. However, these tools primarily function to enhance individual productivity rather than contribute to overall company earnings.

Most times, AI integration fails to contribute to profits "due to brittle workflows, lack of contextual learning, and misalignment with day-to-day operations," the MIT report reads.

The AI systems are unable to learn and think in ways humans can, as "most GenAI systems do not retain feedback, adapt to context, or improve over time," it continued.

The research also suggests that generative AI implementation is unlikely to result in widespread job loss, at least for the next few years.

"Until AI systems achieve contextual adaptation and autonomous operation, organizational impact will manifest through external cost optimization rather than internal restructuring," the report concluded.