The GenAI Divide: Unpacking AI in Business 2025
In July 2023, MIT NANDA released its report, “The GenAI Divide,” sparking debates around AI’s effectiveness in enterprises. Key takeaway? A staggering 95% of organizations report zero return from AI projects. While this statistic raises eyebrows, it may not tell the full story.
Highlights:
- Context of AI Projects: High failure rates aren’t unique to AI. Traditional IT projects have similarly disappointing success rates:
- 84% failure rate (Forbes)
- 61% failure rate (CHAOS report)
- Defining Success: Success metrics vary. NANDA’s rigorous definition may stack AI projects against overly strict standards.
- Emerging Technology: AI is a nascent field with evolving methodologies, making the journey more complex.
Conclusion: The narrative isn’t just doom and gloom; AI’s journey reflects common enterprise challenges and potential.
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