The Register: When it comes to AI ROI, IT decision-makers not convinced

Source URL: https://www.theregister.com/2025/02/06/lenovo_ai_report/
Source: The Register
Title: When it comes to AI ROI, IT decision-makers not convinced

Feedly Summary: Proof of concept projects stuck in pilot phase as investors get itchy feet
Many business leaders remain unconvinced that AI is worth the expense despite continued hype from an industry that has bet billions on developing the tech and desperately needs to recoup that spending.…

AI Summary and Description: Yes

Summary: The text discusses the skepticism among business leaders regarding the return on investment (ROI) for AI, despite significant financial commitments from tech giants like Microsoft and Google towards AI initiatives. A report by Lenovo reveals that while early use cases of AI tick many boxes, a low percentage of organizations have fully adopted AI, with concerns about proving its financial value remaining a major hurdle.

Detailed Description: The analysis sheds light on the ongoing challenges associated with AI adoption in various industries, emphasizing the gap between substantial investments in AI technologies and the cautious attitudes of decision-makers. Key points include:

– **Investment versus Skepticism**: Despite major investments from leading companies, there remains hesitance among business leaders, with 37% expressing reservations about AI.

– **Lenovo’s Research Findings**:
– The report indicates that about 5% of organizations have fully adopted AI, while 25% are in pilot phases, and 21% are still in early stages.
– Nearly half of the surveyed entities have yet to leverage AI, showing a challenging path to broad adoption.

– **Successful Use Cases**:
– Adoption has had positive results in IT operations, software development, and marketing, with 68% of implementers meeting their expectations.
– Despite early successes, organizations are struggling to transition proof-of-concept (POC) projects into scalable production applications.

– **Future Expenditure Projections**:
– Spending on AI initiatives is expected to “nearly triple” over the coming year, with AI projected to comprise nearly 20% of technology budgets by 2025.

– **Diverse AI Categories**: Different categories of AI are seeing varied levels of adoption, with interpretive AI being more prominent in healthcare, finance, and legal sectors, while predictive AI is favored in IT operations.

– **Concerns of Disillusionment**: The text references Gartner’s report indicating growing disillusionment with AI among corporate executives, as expectations for generative AI capabilities are dwindling.

– **Intense Competition and Pressure for ROI**: As significant investments are made by companies like Microsoft and Meta, a pressing need arises for these vendors to demonstrate tangible value to justify their expenditures.

In conclusion, while there is an underlying trend of increasing investment in AI technologies, the hesitance among executives to adopt and trust these systems remains a crucial factor that security and compliance professionals should monitor, particularly regarding governance and risk management in AI deployments.