Key Takeaways
- A striking IBM survey reveals only 25% of CEOs believe their AI investments are hitting expected returns.
- Generative AI’s value is currently recognized by just half of surveyed company leaders.
- Despite current doubts, 85% of CEOs anticipate AI will deliver positive ROI by 2027.
- A significant gap exists in employee preparedness and understanding of corporate AI strategies.
A recent survey by tech giant IBM has sent ripples through the business world, suggesting that the much-hyped AI revolution might not be delivering returns as quickly as hoped. According to Futurism, the findings could raise eyebrows on Wall Street and across the tech sector.
The survey of 2,000 company leaders found that a surprisingly small number, just a quarter, reported their AI initiatives were delivering the expected return on investment. Even fewer, only 16 percent, had managed to scale AI across their entire enterprise.
When it comes to generative AI, the technology behind tools like ChatGPT, only half of the CEOs surveyed indicated they were realizing value from their investments. This suggests the tech might be falling short of the sky-high expectations fueled by billions of dollars in spending.
Tech leaders have voiced concerns about a potential AI bubble, warning against heavy investment in unproven technology. AI models, while becoming more powerful, are paradoxically becoming more prone to “hallucinations” or errors, and can still leak sensitive data.
Despite these challenges, company executives seem largely undeterred. A significant 85 percent of CEOs in the IBM survey expect their investments in AI for efficiency and cost savings to show a positive return by 2027.
The fear of being left behind appears to be a major driving force. “At this point, leaders who aren’t leveraging AI and their own data to move forward are making a conscious business decision not to compete,” IBM vice chairman Gary Cohn noted in the report.
However, figuring out how to use AI effectively—and clearly explaining that plan to employees—is proving to be a tough nut to crack. Many companies are struggling to translate AI potential into tangible business strategies.
This difficulty is reflected in employee sentiment. A 2024 Gallup poll revealed that only 15 percent of US employees felt their organization had communicated a clear AI strategy. Furthermore, just 11 percent said they felt “very prepared” to work with AI, a dip from the previous year.
Companies are pouring tens of billions into AI and the necessary infrastructure, yet profits from these ventures seem to be years away, if they materialize at all. “Are we using GenAI to solve real problems, or just optimizing slide decks?” Stephen Klein, CEO of Curioser.AI, rhetorically asked Forbes.
Adding to the hype, a Microsoft-commissioned study last year claimed that for every dollar invested in generative AI, companies could expect an average return of $3.70. However, these impressive figures were never independently verified.
With such vast sums being spent, the question remains: how long will investors be willing to support these ambitious, and currently costly, AI endeavors before demanding concrete results?
