Majority of Enterprise Gen AI Investments Yield No Returns; ‘Gen AI Divide’ Identified in MIT Study
Global investment in Generative Artificial Intelligence (Gen AI) stands at approximately $30 billion to $40 billion, yet 95% of organizations report no return on their initiatives.
A new study conducted by MIT, titled ‘The Gen AI Divide State of AI in Business 2025,’ delves into 300 public implementations and highlights a significant disparity – the ‘Gen AI Divide’ – between a select few realizing substantial value and the majority stuck in unsuccessful pilot programs.
The study reveals that only 5% of integrated AI pilots demonstrate tangible impacts on profit and loss, with this divide stemming primarily from implementation strategies rather than model quality or regulations.
On the other hand, general tools like ChatGPT and Microsoft’s Copilot are experiencing widespread adoption, with over 80% of organizations exploring them and nearly 40% deploying them. However, these tools mainly boost individual productivity instead of improving overall organizational performance.
Enterprise-level systems tell a different tale. While 60% of organizations consider custom or vendor-supplied tools, only 20% progress to pilot phases, and merely 5% achieve full production deployment. Most failures are attributed to fragile workflows and misalignment with daily operations.
The research also sheds light on a flourishing ‘shadow AI economy,’ where employees utilize personal subscriptions for work-related tasks without formal approval.
