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95% of business applications of AI have failed. Here's why

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ZDNET's key takeaways:

Just 5% of enterprise customers are profiting from generative AI.

A bottom-up versus top-down approach can improve implementation success.

AI companies are making big promises in a bubble, most of which are unfulfilled.

Investment in generative AI may be booming, but most individual businesses using it have yet to see the payoff. In fact, a new MIT study found that 95% of enterprises attempting to harness the technology aren't seeing measurable results in revenue or growth.

Also: Gen AI disillusionment looms, according to Gartner's 2025 Hype Cycle report

The study, conducted by MIT's Networked Agents and Decentralized AI (NANDA) project, was based on interviews with over 150 business leaders and an analysis of 300 business deployments of generative AI.

"Just 5% of integrated AI pilots are extracting millions in value, while the vast majority remain stuck with no measurable P&L impact," the authors write in the report.

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