A recent survey by tech giant IBM came to a conclusion that could send shockwaves through Wall Street and the tech sector writ large. The survey asked whether or not company leaders were reporting that their AI initiatives delivered the expected return on investment.
A shockingly small proportion of the surveyed CEOs reported that the tech was delivering on its promises, with only a quarter of the 2,000 respondents answering in the affirmative, while only 16 percent scaled AI across the entire enterprise.
A mere half of the CEO respondents indicated they were realizing value from generative AI investments, indicating the tech may be falling far short of some sky-high expectations and billions of dollars spent.
Tech leaders have long rung the alarm bells about the dangers of fueling an AI bubble, investing in an unproven tech that's still suffering from widespread hallucinations and a propensity to leak potentially sensitive data. As AI models become more powerful, they're also becoming more prone to hallucinating, not less, highlighting that the industry is heading in the wrong direction.
However, company executives are seemingly unperturbed. A whopping 85 percent of the CEOs IBM surveyed expected their investments in AI efficiency and cost savings to return a positive ROI by 2027.
The general fear of being left behind by missing the boat on AI is still rampant.
"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 wrote in the report. "As AI adoption accelerates, creating greater efficiency, and productivity gains, the ultimate pay-off will only come to CEOs with the courage to embrace risk as opportunity."
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