New Report Shows 95% of Companies Lack Return on AI Investments

While many companies are pouring money into corporate AI projects, a recent MIT report shows that 95% of these organizations are seeing zero return.

The recent MIT report, titled "The GenAI Divide: State of AI in Business 2025," reveals that while U.S. businesses have collectively invested between $35 billion and $40 billion in AI initiatives, almost all of them (95%) are seeing zero return on their investments or no measurable impact on profits. Only 5% report seeing any "value" from AI.

The research, which was based on 150 interviews with AI leaders, an examination of 300 AI applications, and a survey of 350 employees at various companies, found that most AI pilot programs fail to hit targets because of "brittle workflows, lack of contextual learning, and misalignment with day-to-day operations."

The report found that “many companies are implementing tools such as OpenAI’s ChatGPT and Microsoft Copilot, with over 80% having explored or piloted these technologies, and nearly 40% reporting their deployment. However, these tools primarily function to enhance individual productivity rather than contribute to overall company earnings.”

The 5% of programs that do succeed in deploying AI focus on one main issue. Aditya Challapally, the MIT researcher who led the study, told Fortune that some large companies and younger startups are "excelling" with AI because "they pick one pain point, execute well, and partner smartly with companies who use their tools."

Earlier this year another report echoed similar sentiments, just 25% of AI initiatives in recent years have lived up to ROI expectations, according to CEOs surveyed by the IBM Institute for Business Value.