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95% of Companies See ‘Zero Return’ on $30 Billion Generative AI Spend, MIT Report Finds

⁨1059⁩ ⁨likes⁩

Submitted ⁨⁨1⁩ ⁨day⁩ ago⁩ by ⁨kalkulat@lemmy.world⁩ to ⁨technology@lemmy.world⁩

https://thedailyadda.com/95-of-companies-see-zero-return-on-30-billion-generative-ai-spend-mit-report-finds/

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Comments

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  • surph_ninja@lemmy.world ⁨5⁩ ⁨hours⁩ ago

    Emerging technology always loses money in the first few years. Sometimes for a decade or so. This isn’t new.

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    • ilinamorato@lemmy.world ⁨3⁩ ⁨hours⁩ ago

      AI isn’t “emerging.” The industry is new, but we’ve had neural networks for decades. They’ve been regularly in use for things like autocorrect and image classification since before the iPhone. Google upgraded Google Translate to use a GPT in 2016 (9 years ago). What’s “emerging” now is just marketing and branding, and trying to shove it into form factors and workloads that it’s not well suited to. Maybe some slightly quicker iteration due to the unreasonable amount of money being thrown at it.

      It’s kind of like if a band made a huge deal out of their new album and the crazy new sound it had, but then you listened to it and it was just, like…disco? And disco is fine, but…by itself it’s definitely not anything to write home about in 2025. And then a whole bunch of other bands were like, “yeah, we do disco too!” And some of them were ok at it, and most were definitely not, but they were all trying to fit disco into songs that really shouldn’t have been disco. And every time someone was like, “I kinda don’t want to listen to disco right now,” a band manager said “shut up yes you do.”

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      • surph_ninja@lemmy.world ⁨2⁩ ⁨hours⁩ ago

        If you really want to be reductionist, it’s just electricity being fed through silicon. Everything is. Just 1’s and 0’s repackaged over & over!

        But it shows a significant lack of insight and understanding. Guess you can make a ton of money with puts on all these companies, with that kinda confidence.

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  • NatakuNox@lemmy.world ⁨22⁩ ⁨hours⁩ ago

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  • SeeMarkFly@lemmy.ml ⁨1⁩ ⁨day⁩ ago

    The first problem is the name. It’s NOT artificial intelligence, it’s artificial stupidity.

    People BOUGHT intelligence but GOT stupidity.

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    • krigo666@lemmy.world ⁨1⁩ ⁨day⁩ ago

      Artificial Imbecility

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    • dan1101@lemmy.world ⁨1⁩ ⁨day⁩ ago

      It’s a search engine with a natural language interface.

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      • A_Union_of_Kobolds@lemmy.world ⁨1⁩ ⁨day⁩ ago

        An unreliable search engine that lies

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    • Tollana1234567@lemmy.today ⁨14⁩ ⁨hours⁩ ago

      the ceo and csuites did, they hyped all up and was excited for its innovation.

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    • tburkhol@lemmy.world ⁨1⁩ ⁨day⁩ ago

      People will accept either intelligence or stupidity. They will pay for a flattering sycophant.

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    • ricecake@sh.itjust.works ⁨19⁩ ⁨hours⁩ ago

      It’s frustrating because they used the technical term in a knowingly misleading way.

      LLMs are artificial intelligence in the same way that a washing machines load and soil tuning systems are. Which is to say they are intelligent, but so are ants, earthworms, and slime molds. The detect stimuli, and react based on that stimuli.

      They market it as though “artificial intelligence” means “super human reasoning”, “very smart”, or “capable of thought” when it’s really a combination of “reacts to stimuli in a meaningful fashion” and “can appear intelligent”.

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  • SugarCatDestroyer@lemmy.world ⁨9⁩ ⁨hours⁩ ago

    Oh, that reminds me that we’ve always lived in false bubbles, and when they burst, crises and other things started, and eventually the biggest bubble that we call civilization and progress will burst, maybe in 2040-2050+.

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  • vk6flab@lemmy.radio ⁨21⁩ ⁨hours⁩ ago

    It’s also making people deskill.

    www.thelancet.com/journals/langas/…/abstract

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  • Venus_Ziegenfalle@feddit.org ⁨1⁩ ⁨day⁩ ago

    STOP CALCULATING KEEP SHOVELING
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  • snf@lemmy.world ⁨23⁩ ⁨hours⁩ ago

    Where is the MIT study in question? The link in the paper, apparently to a PDF, redirects elsewhere

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    • vegyk0z6@lemmy.ml ⁨23⁩ ⁨hours⁩ ago

      Seems to be behind a Google form?

      docs.google.com/forms/d/e/…/viewform

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    • MCasq_qsaCJ_234@lemmy.zip ⁨23⁩ ⁨hours⁩ ago

      Apparently you have to give your data to get the reports.

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      • snf@lemmy.world ⁨5⁩ ⁨hours⁩ ago

        Well fuck that

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  • fubarx@lemmy.world ⁨1⁩ ⁨day⁩ ago

    Wonder if the 5% that actually made money included companies that sell enterprise AI services, like AWS, Microsoft, and Google?

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    • Atherel@lemmy.dbzer0.com ⁨23⁩ ⁨hours⁩ ago

      Nvidia?

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  • BillDaCatt@lemmy.world ⁨1⁩ ⁨day⁩ ago

    I have no proof, but I feel like the AI push and Turnip getting re-elected and his regression of the EPA rules sounds like this whole thing was an excuse to burn more fossil fuels.

    If I was invested in AI, and considering AI’s thirst for electricity, I would absolutely make a similar investment in energy. That way, as the AI server farms suck up the electricity I would get at least some of that money back from the energy market.

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  • JATtho@lemmy.world ⁨9⁩ ⁨hours⁩ ago

    Every technology invented is a dual edge sword. Other edge propulses deluge of misinformation, llm hallucinations, brain washing of the masses, and exploit exploit for profit. The better side advances progress in science, well being, availbility of useful knowledge. Like the nuclerbomb, LLM “ai” is currenty in its infancy and is used as a weapon, there is a literal race to who makes the “biggest best” fkn “AI” to dominate the world. Eventually, the over optimistic buble bursts and reality of the flaws and risks will kick in. (Hopefully…)

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  • RUN_DMG@sh.itjust.works ⁨21⁩ ⁨hours⁩ ago

    But surely the next 30 billion they are going to burn will get it right!

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  • BrianTheeBiscuiteer@lemmy.world ⁨1⁩ ⁨day⁩ ago

    I think there are real productivity gains to be had but the vast majority are probably leaning into the idea of replacing people too much. It helps me do my job but I’m still the decision maker and I need to review the outputs. I’m still accountable for what AI gives me so I’m not willing to blindly pass that stuff forward.

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    • null_dot@lemmy.dbzer0.com ⁨21⁩ ⁨hours⁩ ago

      Yeah. The dunning kruger effect is a real problem here.

      I saw a meme saying something like, gen AI is a real expert in everything but completely clueless about my area of specialisation.

      As in… it generates plausible answers that seem great but they’re just terrible answers.

      I’m a consultant I’m in a legal adjacent field. 20 years deep. I’ve been using a model from hugging face over the last few months.

      It can save me time by generating a lot of boiler plate with references et cetera. However it very regularly overlooks critically important components. If I didnt know about these things then I wouldn’t know it was missing from the answer.

      So really, it cant help you be more knowledgeable, it can only support you at your existing level.

      Additionally, for complex / very specific questions, it’s just a confidently incorrect failure. It sucks that it cant tell you how confident it is with a given answer.

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  • Bebopalouie@lemmy.ca ⁨1⁩ ⁨day⁩ ago

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  • goatinspace@feddit.org ⁨1⁩ ⁨day⁩ ago

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  • vane@lemmy.world ⁨19⁩ ⁨hours⁩ ago

    It’s not about return it’s about addiction.

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  • someguy3@lemmy.world ⁨1⁩ ⁨day⁩ ago

    We’re now at the “if you don’t, your competitor will”. So you really have no choice. There are people that don’t use Google anymore and just use chatgpt for all questions.

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  • arin@lemmy.world ⁨1⁩ ⁨day⁩ ago

    Losing money is a called going into debt, not just zero returns.

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  • absquatulate@lemmy.world ⁨1⁩ ⁨day⁩ ago

    Does abybody have the original study? I tried to find it but the link is dead ( looks like NANDA pulled it )

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  • andrewrgross@slrpnk.net ⁨22⁩ ⁨hours⁩ ago

    Return? /s

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  • doingthestuff@lemy.lol ⁨1⁩ ⁨day⁩ ago

    Douse it with gasoline. Burn it with fire.

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  • corsicanguppy@lemmy.ca ⁨23⁩ ⁨hours⁩ ago

    AI Spend,

    It’s okay to say [spending] when the OOP forgets how to English, right?

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