Artificial intelligence has largely failed to generate returns for business despite mammoth spending, according to a new study that has rattled tech investors.
The MIT research found that, of more than 300 organizations analyzed, 95% saw zero financial returns for their AI efforts, and even those which were actively using the technology had not seen major changes.
The study comes with concerns growing among traders and investors of a bubble surrounding AI spending, with the MIT research in part helping drive tech stocks down this week. Yet some analysts remain bullish on the technology’s ultimate impact: Morgan Stanley recently estimated AI adoption could generate up to $16 trillion in long-term value creation for S&P 500 companies alone.