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95% of Companies See ‘Zero Return’ on $30 Billion Generative AI Spend, MIT Report Finds
(thedailyadda.com)
this post was submitted on 21 Aug 2025
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They'll happily burn mountains of profits on that stuff, but not on decent wages or health insurance.
Wages or health insurance are a very known cost, with a known return. At some point the curve flattens and the return gets less and less for the money you put in. That means there is a sweet spot, but most companies don't even want to invest that much to get to that point.
AI however, is the next new thing. It's gonna be big, huge! There's no telling how much profit there is to be made!
Because nobody has calculated any profits yet. Services seem to run at a loss so far.
However, everybody and their grandmother is into it, so lots of companies feel the pressure to do something with it. They fear they will no longer be relevant if they don't.
And since nobody knows how much money there is to be made, every company is betting that it will be a lot. Where wages and insurance are a known cost/investment with a known return, AI is not, but companies are betting the return will be much bigger.
I'm curious how it will go. Either the bubble bursts or companies slowly start to realise what is happening and shift their focus to the next thing. In the latter case, we may eventually see some AI develop that is useful.