A new study from the Massachusetts Institute of Technology (MIT) reveals that artificial intelligence is rapidly draining business budgets without delivering promised results.
According to the report, 95% of companies have failed to profit from their AI investments.
U.S. businesses have invested approximately $35-40 billion in AI projects over the past year, but the only visible outcome so far has been an alarming depletion of resources.
The main issue is that most businesses jumped on the AI bandwagon without a clear roadmap.
The study found that the majority of companies wasted time and money applying AI to sales and marketing, hoping for instant wins.
In reality, these areas still require human interaction and aren’t well-suited for automation.
The true potential of AI lies in back-office and repetitive administrative tasks that are less glamorous but more appropriate for automation.
Nevertheless, a small number of companies have found the path to success.
The study highlights young startups and agile teams that took a different approach: targeting a specific business pain point, solving it with precision, and partnering with third-party vendors who thoroughly understand the tools.
For them, the results have been promising, with some increasing their revenue from zero to $20 million in just one year.
In terms of employment, AI-related layoffs haven’t occurred yet, but companies are filling fewer support and administrative roles.
