🌅 95% of Companies Are Failing with AI

SOURCE

MIT Project NANDA

WHAT TO KNOW

• A new report by researchers at MIT found just 5% of companies that integrate AI into their business operations succeed at “rapid revenue acceleration,” while the other 95% see “little to no measurable impact” on profit. The report found the vast majority of companies fail to integrate AI into their enterprise operations and, when they succeed, most put the tech to use in the wrong places, resulting in little operational impact.

WHY IT MATTERS

• AI was expected to contribute trillions to the global economy by the end of this decade, which now seems nearly impossible (for perspective, Meta, Amazon, Microsoft, Google and Tesla are expected to make $35 billion from their AI tech this year). Investors also poured $49.2 billion into AI tech in the first half of 2025, already beating the $44.2 billion invested in all of 2024 and more than doubling the $21.3 billion invested in 2023. Given the investment into AI, an analysis by Sequoia Capital found the industry needs to make $600 billion just to break even on the initial investment.

CONNECT THE DOTS

• One company that’s moved slower when it comes to AI investments in recent years is Apple, whose spending on AI pales in comparison to its mega-cap peers. While the company plans to increase spending on AI in the coming years, it may have good reason for the slowplay: a new study by Apple uncovered “fundamental limitations” in current AI models, finding the models lack reasoning beyond a certain level of complexity and appear to be much less “generalizable” than AI companies have suggested.