A recent study from MIT reveals a concerning trend in the generative AI landscape. Despite significant investments and hype, 95% of generative AI projects are reportedly failing. The report, titled “The GenAI Divide: State of AI in Business 2025,” highlights that companies are struggling to see a return on their AI investments.
The study points to several factors contributing to these failures, including poor integration, subpar performance, and adoption challenges. This raises questions about the future of the AI industry and whether it’s facing a similar situation to a market bubble. The report further indicates that while AI was expected to reduce costs and improve productivity across various sectors, the reality is different, with advanced AI only handling 30% of office tasks.