US EditionMIT Report Finds 95% of Generative AI Pilots Fail to Deliver Measurable Business Impact
MIT's NANDA initiative attributes 95% failure in AI pilots to organizational integration issues and learning gaps, despite $35 billion invested in generative AI by US companies.
- MIT’s 2025 report, The GenAI Divide: State of AI in Business, highlights that nearly all generative AI initiatives worldwide fail to generate significant business value or measurable financial returns.
- The failures mainly arise from organizational issues such as poor integration, lack of learning, and mismatch with workflows, not flawed AI models.
- The study, based on 150 interviews, 300 AI deployments, and 350 employee surveys, shows only 5% of AI pilots achieve scale or rapid revenue growth.
- U.S. companies have invested $35–40 billion in generative AI, yet 95% report zero return, while some startups have grown revenues from zero to $20 million by focusing on targeted AI use cases.
- The report suggests executives must prioritize partnerships, deep customization, and ROI accountability to overcome the GenAI divide and realize AI's business potential.
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37 Articles
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