Rather unsurprisingly, an MIT study has shown that the use of LLM "Artificial Intelligence" do not generate any cost savings or productivity improvements in the vast majority of cases.
What, you mean the guys who gave us Razorfish, Pets.com, Netscape, AskJeeves.com, Lucent, etc. are selling us more money losing products where they make it up in volume.
With AI software increasingly hogging the enterprise spotlight, companies and investors are spending like never before. In the first half of 2025, AI startups raised over $44 billion, more than all of 2024 combined. By the end of this year, a Goldman Sachs analysis estimates that total investments in AI will soar to almost $200 billion.
But all that money is, to put it gently, a reckless gamble. In the US at least, investors have essentially bet the farm on the idea that AI will soon lead to gains in labor productivity — the amount of goods and services workers are able to produce in a given time — that have never been seen in the history of humankind.
Despite the hype and bluster, that isn't happening. A new report by researchers at MIT, first covered by Fortune, found that a staggering 95 percent of attempts to incorporate generative AI into business so far are failing.
According to the report, titled "The GenAI Divide: State of AI in Business 2025," the MIT researchers found that only around 5 percent of businesses succeed at "rapid revenue acceleration," with the vast majority falling flat.
I am completely unsurprised.
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