Companies are pouring billions of dollars into corporate AI projects, but most have yet to see measurable returns.
A recent MIT report entitled “Genai Divide: State of AI in Business 2025” reveals that while US companies collectively invest between $35 billion and $40 billion in AI initiatives, almost all (95%) see zero returns on investments, or measurable profit impacts. Only 5% see “value” from AI.
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The study was based on 150 interviews with AI leaders, a survey of 300 AI applications, and a survey of 350 employees from various companies, and found that most AI pilot programs were not reaching targets due to “vulnerable workflows, lack of contextual learning, and inconsistency in day-to-day operations.” In other words, AI tools do not fit into accepted corporate workflows. Common tools such as ChatGpt's “stole” provide “providing little or no measurable impact” on profits and losses.
Another important issue is that companies were using AI for incorrect allocations. This study shows that AI works best with back-office tasks with high return on investment (ROI) like management and repetitive features that many companies outsource. However, more than half of the money spent on AI projects tried to use technology for sales and marketing. Researchers say that human involvement is still needed and the ROI is low.
Five percent of programs that have successfully deployed AI seem to focus on one issue. Aditya Challapally, the MIT researcher who led the research, luck Some large companies and young startups “are “good” with AI because they “select one point of pain, run well, and partner wisely with companies that use the tool.” The Young Founder-led startup has seen the blueprint followed by revenues that “jump from zero to $20 million a year,” Charapary said.
Furthermore, companies purchasing AI tools from third-party vendors such as OpenAI and Prperxity have an advantage over companies developing their in-house AI tools. MIT research states that two of the three AI tools from third-party vendors are successful.
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There are no AI-related layoffs yet when it comes to AI on job replacements, but it points out that companies cannot quickly replace staff leaving, particularly in their customer support and management roles. The study states that AI is likely to lead to unemployment in the coming years “until AI systems achieve contextual adaptation and autonomous operation.”
Other AI leaders have more disastrous predictions about AI causing unemployment. Humanity CEO Dario Amody predicted in May that AI could wipe out half of its entry-level white-collar positions within the next five years.
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