Monday, November 3, 2025

Should We Be Concerned About the 95% Failure Rate of AI Enterprise Projects?

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.

🔗 Join the conversation! Share your thoughts on the AI landscape, and let’s redefine success together!

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