A recent MIT study, “The GenAI Divide: State of AI in Business 2025,” reveals that 95% of AI projects have failed to deliver returns on investment, with only 5% contributing to revenue growth. Despite rapid adoption of AI tools, challenges arise from integrating these technologies with existing workflows. The study involved 300 AI deployments and 350 employees, highlighting that successful AI initiatives typically focus on solving specific problems and executing effectively. Moreover, a notable “learning gap” among employees is impacting deployment success, although executives often attribute failures to the AI models themselves. Interestingly, while over half of GenAI budgets are allocated to sales and marketing, the highest returns stem from automating back-office processes, such as reducing external agency costs. The report also indicates that AI tools purchased from specialized vendors are more effective, with a 67% success rate compared to a mere one-third for internal tools.
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