
95% of Businesses Report Zero Returns on In-House AI, MIT Study Shows

U.S. companies have funneled an estimated $35 to $40 billion into internal AI projects. Yet according to a new report from MIT, nearly 95% of those businesses have failed to generate profit or measurable impact from those efforts. Only 5% report any real value.
The findings came from The GenAI Divide: State of AI in Business 2025, a study that looked at 300 AI apps, conducted 150 interviews with industry experts, and surveyed 350 employees.
The report paints a clear picture: most AI pilots fail because they don’t fit into existing workflows. Researchers found that generic tools, such as widely used chatbots, often stall out because they struggle to adapt to company-specific operations.
Why AI Misses the Mark

Freepik | Businesses often expect AI to succeed in areas where it adds little real value.
One of the biggest issues lies in how businesses apply AI. The MIT study noted that while AI works well for back-office functions like administrative and repetitive tasks, companies keep pouring money into sales and marketing automation, which often deliver weaker returns and still depend heavily on human input.
The report also highlighted common barriers, including:
1. Rigid workflows that don’t allow AI tools to adapt
2. Limited contextual learning, leaving tools unable to adjust to unique challenges
3. Mismatch with daily operations, preventing meaningful impact
In short, companies often expect AI to transform areas where it adds little value.
The 5% That Succeed
While most firms miss out, a small group thrives. These successful adopters tend to focus their AI projects on solving one specific problem.
MIT researcher Aditya Challapally, who led the study, explained that standout companies and startups often choose a single pain point and execute well, sometimes partnering with external providers who specialize in AI tools. He noted that in certain cases, young startups boosted revenue “from zero to $20 million within a year” by following this targeted approach.
This success rate contrasts with the struggles of companies developing their own systems. According to the report, two out of three third-party AI solutions produce favorable results, compared to one out of every three in-house efforts.
Will AI Replace Jobs?

Freepik | Widespread job disruption is unlikely as long as AI lacks the ability to make its own complex decisions.
The MIT report also addressed growing concerns about automation and layoffs. While researchers found no widespread job loss so far, they did observe that some companies have slowed down hiring replacements, especially in customer support and administrative roles.
The study concluded that significant job disruption is unlikely until AI systems achieve advanced contextual adaptation and autonomous decision-making. However, industry leaders hold different views. Earlier this year, Anthropic CEO Dario Amodei predicted that AI could potentially replace half of all entry-level white-collar jobs within five years.
What Businesses Can Learn
The takeaway is clear: AI isn’t a guaranteed shortcut to growth. Companies that expect sweeping change often walk away disappointed. The ones that succeed take a narrower, more strategic approach—focusing on high-impact tasks, integrating tools that fit seamlessly into operations, and relying on proven third-party solutions instead of building everything internally.
With AI investment showing no signs of slowing down, the difference between wasted spending and measurable success will come down to alignment, focus, and execution.
More in Investments
-
`
New U.S. Tariff Rules Raise Online Shopping Costs for Americans
The price tags on your favorite budget-friendly finds from Shein, Temu, or AliExpress may suddenly seem a lot less appealing—and it’s...
May 15, 2025 -
`
15 Rich Celebs Who Choose Practical Choices Over Lavish Spending
Celebrities often live in a world where lavish spending is the norm. Expensive cars, private jets, and luxury shopping sprees are...
May 9, 2025 -
`
3 Smart Strategies to Build a Million-Dollar Investment Portfolio
Building wealth doesn’t require hitting the lottery or having a six-figure salary. Sometimes, it starts with discipline, clear planning, and a...
May 1, 2025 -
`
U.S. Stocks and Dollar Drop as Trump’s Tariff Moves Shake Wall Street
The U.S. stock market took a sharp hit Thursday after fresh updates from Washington sent traders into risk-off mode. With a...
April 25, 2025 -
`
China Hits Back with 34% Tariffs on U.S. Imports, Escalating Trade War
On April 10, China will implement a sweeping 34% tariff on all goods imported from the United States. This is a...
April 18, 2025 -
`
10 Famous Stars Who Spoke Against Hollywood’s Wealth Obsession
When it comes to wealth, many celebrities can seem out of touch. Yet, some have been outspoken about the excesses in...
April 11, 2025 -
`
Warren Buffett’s Best Financial Advice for Millennials
Warren Buffett, one of the most successful investors of all time, has built his fortune through disciplined investing, strategic decision-making, and...
April 4, 2025 -
`
3 Ways to Safeguard Your Money During Stock Market Instability
Financial markets often experience fluctuations, making it essential to protect savings and investments. While no financial strategy is entirely risk-free, there...
March 26, 2025 -
`
Gene Hackman and Betsy Arakawa Found Dead – Investigation Underway
On February 26, the news of Gene Hackman’s sudden passing shocked the world. The Oscar-winning actor, who was 95, was found...
March 14, 2025
You must be logged in to post a comment Login