Enterprise AI Projects Struggle to Meet ROI Expectations
Only 28% of enterprise AI projects meet return on investment (ROI) expectations, with most failing to make it into production. This is often due to businesses not changing their systems to accommodate AI tools. The European Parliament warns that underuse of AI could cost the EU its competitive edge.
Key points
- Only 28% of enterprise AI projects meet ROI expectations, with 90% of pilots never making it into production, according to Nearform CEO.
- Businesses often fail to change their systems to accommodate AI tools, leading to isolated productivity wins and no enterprise-level impact.
- The European Parliament warns that underuse of AI could cost the EU its competitive edge and stall economic growth.
- Businesses lose up to 30% of revenue annually due to inefficiencies that AI is designed to eliminate.
The tech industry has been abuzz with AI innovation, but the reality is that most enterprise AI projects fail to deliver a return on investment (ROI). According to Nearform CEO, only 28% of AI projects meet ROI expectations, with a staggering 90% of pilots never making it into production.
The main reason for this failure is that businesses often fail to change their systems to accommodate AI tools. Instead of upskilling teams to effectively use AI, organizations deploy smart tools without modifying their processes. This leads to isolated productivity wins, but no enterprise-level impact.
The European Parliament has sounded the alarm, warning that underuse of AI could cost the EU its competitive edge and stall economic growth. Businesses, on the other hand, lose up to 30% of revenue annually due to inefficiencies that AI is designed to eliminate.
Rather than abandoning AI, businesses need to rethink their approach and invest in changing their systems to work effectively with AI tools. By doing so, they can unlock the full potential of AI and drive real business value.
Sources
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