95% organisations get zero return from using AI tools, MIT study reveals
Cambridge: Despite global companies rushing to integrate artificial intelligence (AI) systems to cut costs and drive profits, a recent study from the Massachusetts Institute of Technology (MIT) has revealed that most of these initiatives have failed to deliver measurable results.
The report, titled The GenAI Divide: State of AI in Business 2025 , cited by NDTV on Monday, found that 95% of organisations that implemented AI systems have seen no return on their investments. Despite an estimated $30-40 billion in enterprise investment into generative AI (GenAI), the study uncovered that the vast majority of AI projects have had little to no impact on profit and loss (P&L) performance.
The research surveyed 300 AI deployments and gathered insights from approximately 350 employees. Among the most commonly adopted AI tools were ChatGPT and Copilot, but only 5% of AI pilots have managed to extract substantial value, while most others have stagnated without any measurable financial impact.
"Over 80 percent of organisations have explored or piloted them, and nearly 40 percent report deployment. But these tools primarily enhance individual productivity, not P&L performance. Meanwhile, enterprise-grade systems, custom or vendor-sold, are being quietly rejected," the report stated.
The study also pointed out that the failures were not necessarily due to AI models not functioning efficiently. Rather, the challenges arose from difficulties in integrating these systems with existing company workflows. Furthermore, many companies face a "learning gap" within their workforce, complicating the adoption of new AI tools. Company executives, however, have reportedly blamed AI models' performance as the root cause of the lack of returns.
In a related example, Dane Mathews, Chief Digital and Technology Officer at Taco Bell, explained that the fast-food chain has slowed down its AI rollout at drive-through restaurants. Despite expectations, AI technology proved counterintuitive, with Mathews acknowledging that human workers were often better suited to take orders, particularly during busy periods.
This echoes findings from a June study by Apple, which cast doubt on the capabilities of current AI models. In its report titled The Illusion of Thinking: Understanding the Strengths and Limitations of Reasoning Models via the Lens of Problem Complexity , Apple argued that AI systems like Claude, DeepSeek-R1, and o3-mini do not actually reason as humans do. According to Apple, these models excel at pattern recognition but struggle when confronted with complex or altered questions, often falling apart when patterns become too complicated.
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Bengaluru: Four arrested for housebreaking, threats, extortion; fake PSI among accused
Bengaluru: Vidyaranyapura police have arrested four persons, including a man posing as a Police Sub-Inspector (PSI), for allegedly breaking into a house, threatening the occupants, and extorting money while wearing police uniforms.
The arrested accused have been identified as Mallikarjuna, Pramod, Vinay, and Hrithik.
Police said the accused had hatched a plan to pose as police personnel, conduct fake raids, and extort money from residents by intimidation.
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According to the police, Mallikarjuna had failed the PSI examination twice and later falsely projected himself as a PSI. He allegedly conducted photo shoots in his hometown, Siraguppa, wearing a police uniform, baton, cap, and shoes, claiming to be serving as a PSI in Bengaluru.
On December 7, the four accused allegedly went to the house of Naveen in the Vidyaranyapura limits, threatened him with a stick and an iron rod, and claimed they had information that he was selling ganja. Under the pretext of searching, they allegedly extorted ₹87,000 through bank transfer, ₹53,000 in cash kept in the house, and ₹2,000 from his wallet.
Following Naveen’s complaint, Vidyaranyapura police registered a case and launched an operation, leading to the arrest of all four accused. Police have seized ₹45,000 in cash and the car used to commit the crime.
Further investigation is underway.
