Business AI

AI Project Failures Mount, New Reports Show High Failure Rates

An MIT report found 95% of GenAI projects see no measurable return, while another report detailed frequent deliverable failures.

Olivia Sharp 1 min read 657 views
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A report citing MIT data found 95% of corporate GenAI projects fail to produce measurable returns, highlighting a "GenAI Divide."

The 'GenAI Divide'

Despite massive investment in artificial intelligence, the vast majority of corporate projects are failing to deliver measurable value. A blog post analyzing an MIT Project NANDA report found that 95% of organizations see no measurable return from their generative AI projects.

The MIT report states that only 5% of integrated AI pilots ever reach production and have an impact on a company's profit and loss. This gap is referred to as the "GenAI Divide."

This data is consistent with other industry research. A blog post cited 2024 data from Gartner revealing that as many as 85%

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