I'm shocked that companies would chase the latest fad without regard for if it makes sense. Sorry, but the ROI on enterprise AI is abysmal
According to Appen, the mean percent of AI projects that get deployed has fallen from 55.5 percent in 2021 to 47.4 percent in 2024, a decline of 8 percentage points. And the mean percent of deployed AI projects that have shown significant ROI has slipped from 56.7 percent to 47.3 percent.
There are several statements about the Return on Investment of AI projects, and links to the base data. This is perhaps the clearest such statement.
Financial firm Goldman Sachs also raised the issue in June when it noted in a report [PDF] that despite estimated $1 trillion in pending capital expenditure commitments, AI hasn't demonstrated its value to businesses.
That is Trillion with a "T" in the dollars. I had to look twice to be sure I read that correctly.
If you're spending a trillion dollars on something, you should be damn sure about what you are getting in return.
This is just another case of executives chasing the next thing that will let them get rid of people they don't like. What they don't understand is that if AI ever gets here, the people we won't need the most are going to be executives, and especially we won't need executives who spend money without regard to ROI.
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