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Title: MIT Report: 95% of Generative AI Pilots at Companies Are Failing

Link: https://slashdot.org/story/25/08/19/146205/mi...

The GenAI Divide: State of AI in Business 2025, a new report published by
MIT's NANDA initiative, reveals that while generative AI holds promise for
enterprises, most initiatives to drive rapid revenue growth are falling flat.
Fortune: Despite the rush to integrate powerful new models, about 5% of AI
pilot programs achieve rapid revenue acceleration; the vast majority stall,
delivering little to no measurable impact on P&L. The research -- based
on 150 interviews with leaders, a survey of 350 employees, and an analysis of
300 public AI deployments -- paints a clear divide between success stories
and stalled projects. To unpack these findings, I spoke with Aditya
Challapally, the lead author of the report, and a research contributor to
project NANDA at MIT. "Some large companies' pilots and younger startups are
really excelling with generative AI," Challapally said. Startups led by 19-
or 20-year-olds, for example, "have seen revenues jump from zero to $20
million in a year," he said. "It's because they pick one pain point, execute
well, and partner smartly with companies who use their tools," he added. But
for 95% of companies in the dataset, generative AI implementation is falling
short. The core issue? Not the quality of the AI models, but the "learning
gap" for both tools and organizations. While executives often blame
regulation or model performance, MIT's research points to flawed enterprise
integration. Generic tools like ChatGPT excel for individuals because of
their flexibility, but they stall in enterprise use since they don't learn
from or adapt to workflows, Challapally explained.

Read more of this story at Slashdot.

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