Click here: to donate by Credit Card
Or here: to donate by PayPal
Or by mail to: Free Republic, LLC - PO Box 9771 - Fresno, CA 93794
Thank you very much and God bless you.
Posted on 08/21/2025 9:31:54 PM PDT by SeekAndFind
Companies are betting on AI—yet nearly all enterprise pilots are stuck at the starting line.
The GenAI Divide: State of AI in Business 2025, a new report published by MIT’s NANDA initiative, reveals that while generative AI holds promise for enterprises, most initiatives to drive rapid revenue growth are falling flat.
Despite the rush to integrate powerful new models, about 5% of AI pilot programs achieve rapid revenue acceleration; the vast majority stall, delivering little to no measurable impact on P&L. The research—based on 150 interviews with leaders, a survey of 350 employees, and an analysis of 300 public AI deployments—paints a clear divide between success stories and stalled projects.
To unpack these findings, I spoke with Aditya Challapally, the lead author of the report, and a research contributor to project NANDA at MIT.
“Some large companies’ pilots and younger startups are really excelling with generative AI,” Challapally said. Startups led by 19- or 20-year-olds, for example, “have seen revenues jump from zero to $20 million in a year,” he said. “It’s because they pick one pain point, execute well, and partner smartly with companies who use their tools,” he added.
But for 95% of companies in the dataset, generative AI implementation is falling short. The core issue? Not the quality of the AI models, but the “learning gap” for both tools and organizations.
While executives often blame regulation or model performance, MIT’s research points to flawed enterprise integration. Generic tools like ChatGPT excel for individuals because of their flexibility, but they stall in enterprise use since they don’t learn from or adapt to workflows, Challapally explained.
The data also reveals a misalignment in resource allocation. More than half of generative AI budgets are devoted to sales and marketing tools, yet MIT found the biggest ROI in back-office automation—eliminating business process outsourcing, cutting external agency costs, and streamlining operations.
How companies adopt AI is crucial. Purchasing AI tools from specialized vendors and building partnerships succeed about 67% of the time, while internal builds succeed only one-third as often.
This finding is particularly relevant in financial services and other highly regulated sectors, where many firms are building their own proprietary generative AI systems in 2025. Yet, MIT’s research suggests companies see far more failures when going solo.
Companies surveyed were often hesitant to share failure rates, Challapally noted. “Almost everywhere we went, enterprises were trying to build their own tool,” he said, but the data showed purchased solutions delivered more reliable results.
Other key factors for success include empowering line managers—not just central AI labs—to drive adoption, and selecting tools that can integrate deeply and adapt over time.
Workforce disruption is already underway, especially in customer support and administrative roles. Rather than mass layoffs, companies are increasingly not backfilling positions as they become vacant. Most changes are concentrated in jobs previously outsourced due to their perceived low value.
The report also highlights the widespread use of “shadow AI”—unsanctioned tools like ChatGPT—and the ongoing challenge of measuring AI’s impact on productivity and profit.
Looking ahead, the most advanced organizations are already experimenting with agentic AI systems that can learn, remember, and act independently within set boundaries—offering a glimpse at how the next phase of enterprise AI might unfold.
|
|
Click here: to donate by Credit Card Or here: to donate by PayPal Or by mail to: Free Republic, LLC - PO Box 9771 - Fresno, CA 93794 Thank you very much and God bless you. |
Companies seem to think AI will magically do a lot for them and eliminate staff.
Companies are run by stupid people.
The problem is, if AI does a good job 99% of the time, what about that 1% when it messes up? And who will know how to fix it?
I just asked Perplexity.ai which NFC division the AFC West will play in 2026. It actually claimed that the AFC West played the NFC West in 2024, when it played the NFC South. That was a VERY straightforward question to botch.
LLMs by themselves can’t answer many of those questions, they have to have data fed into it, either by getting information from the web, or from a vector store database, or a tool.
BTTT
As far as the 95%/5% rule. Remember the dozens of PC-clone start-ups in the 80s? Only one stuck around to the present day . . . Dell (formerly PCs Limited). A few were in the game long enough to be considered a success. (e.g. Gateway, AST), and some of the well-funded startups were eventually bought out, which isn’t the same as failing (e.g. Compaq). This tendency spread down to components. There used to be a dozen serious hard drive companies, now there are effectively two and one-half (Seagate, WD, Toshiba). Gone or bought out are (Core, Priam, Rodime, Quantum, IBM/Hitachi, CMI [good riddance], Maxtor, Micropolis, MiniScribe, Samsung, Tandon)
The same applies to web services/vendors (Amazon beat the pants off of BN.com), Cryptocurrancy, social media,
I can confirm. I work for a global company with over 50,000 employees. Our company’s AI tool was introduced with great fanfare. More than a year has passed and so far its greatest use seems to be writing emails for employees that couldn’t compose a coherent email without it. I’m not sure how they managed before. It was supposed to help deliver information to customers but we’ve been told do NOT use it for provding information to customers because the information may very well be false, inaccurate, or incomplete.
Ai can be useful. I use it but I have a critical mind and intelligence that balances what I see. In my opinion Ai is a racket. It’s simply a tube that sucks information into a tidy place. I see where the new young tech startups have harnessd to a genius level. The reality for everyone else it’s regurgitated stream of garbage in and garbage out and corporations sell it as the end all being a fad that’s sold as something we can’t live without. It doesn’t replace anything that our mind is already capable of. We will lose great minds. We will lose independent thinking.
“ It’s simply a tube that sucks information into a tidy place”
I see AI as a powerful place for the propaganda media to get their lies out to the public. So often leftists lie about a situation for one to three days, knowing that their lie will be on the Internet forever. Whenever a search of that topic is done, their dishonest statements will surface, muddying the truth.
I did think AI would be a good place for factual data, but even that seems to be a problem.
One thing I notice is how many YT videos lately have clearly been generated without reviewing them first.
Strunk and White writing principles are desperately needed to be inculcated into these programs. Would cut 50% of the video time/reading time. Way too much replication/repeat use of information.
Watch for English majors to be in high demand soon. In the early days of computer design, philosophy majors were sought out. Very few remember that.
Watch for English majors to be in high demand soon. In the early days of computer design, philosophy majors were sought out. Very few remember that
........
There are very few English majors that hone the craft of writing. Most are leftist adical feminist relativistic ideologs.
Not a coherent sentence among them!
I'm guessing your company's not alone...
They should expect to have issues arising during pilot programs. After all, that’s what pilot programs are for.
Look for the return of spaghetti code.
Watch for English majors to be in high demand soon. In the early days of computer design, philosophy majors were sought out. Very few remember that
........
There are very few English majors that hone the craft of writing. Most are leftist adical feminist relativistic ideologs.
Not a coherent sentence among them!
Good... It needs to fail...
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.