Investors continue to fret over an AI bubble “reckoning,” as gains in productivity from the tech remain elusive.
According to a recent survey by professional services network PwC, more than half of the 4,454 CEO respondents said “their companies aren’t yet seeing a financial return from investments in AI.”
Only 30 percent reported increased revenue from AI in the last 12 months. However, a far more significant 56 percent said AI has failed to either boost revenue or lower costs. A mere 12 percent of CEOs reported that it’d accomplished both goals.
The findings once again underline lingering questions about the effectiveness of the tech. That’s despite AI companies pouring tens of billions into data center buildouts and related infrastructure.
Instead of looking for other avenues for growth, though, PwC found that executives are worried about falling behind by not leaning into AI enough.
“A small group of companies are already turning AI into measurable financial returns, whilst many others are still struggling to move beyond pilots,” said PwC global chairman Mohamed Kande in a statement. “That gap is starting to show up in confidence and competitiveness, and it will widen quickly for those that don’t act.”
PwC also pointed out that most companies were lacking the “AI foundations, such as clearly defined road maps and sufficient levels of investment” to realize a return.
But whether pouring even more money into AI will suddenly turn the tech into a money maker — and not a major expense on the balance sheet — remains the subject of a heated debate.
For now, the prognosis is still looking somewhat grim. Last year, a frequently-cited MIT report found that a staggering 95 percent of attempts to incorporate generative AI into business so far are failing to lead to “rapid revenue acceleration.”
The effectiveness of the tech itself has also repeatedly been called into question, from frequent hallucinations and an inability to complete real-world office tasks to ongoing concerns over data security.
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