Aug 25, 11:13 PM

MIT Report Finds 95% of Generative AI Pilots Fail Despite $30–40 Billion Investment; Salesforce and UK Banks Respond

A recent MIT report titled "State of AI in Business 2025" reveals that 95% of generative AI pilots at companies fail to deliver measurable returns on investment, despite enterprise spending estimated between $30 billion and $40 billion. The study, based on interviews with 150 executives and audits of 300 projects, attributes the high failure rate not to the technology's capabilities but to flawed integration, including poor workflow design and employee adoption. This phenomenon has been termed the "GenAI Divide," with only 5% of companies generating substantial profits from their AI initiatives. Contrastingly, the AI-native startup ecosystem reportedly achieves over $18.5 billion in annualized revenue, indicating a divergent performance landscape. Additionally, UK banks are projected to invest over £1.8 billion in generative AI by 2030 to enhance productivity and customer experience. In response to these challenges, companies like Salesforce are developing tools such as AI "flight simulators" to improve pilot success rates and transition AI agents into production environments more effectively.

#MIT #GenAI Divide #UK #Salesforce

Written with ChatGPT (GPT-4).