Source URL: https://www.theregister.com/2025/08/18/generative_ai_zero_return_95_percent/
Source: The Register
Title: GenAI FOMO has spurred businesses to light nearly $40 billion on fire
Feedly Summary: MIT NANDA study finds only 5 percent of organizations using AI tools in production at scale
US companies have invested between $35 and $40 billion in Generative AI initiatives and, so far, have almost nothing to show for it.…
AI Summary and Description: Yes
Summary: The text highlights a concerning trend in the adoption of AI tools by organizations, indicating that only 5 percent utilize these tools at scale. It also notes the significant financial investment US companies have made in Generative AI initiatives, which has yet to yield substantial results. This information is relevant for professionals in AI security, cloud computing, and overall information security as it underscores the gap between investment and practical implementation.
Detailed Description:
The text presents findings from a MIT NANDA study that explores the state of AI tool usage among organizations along with financial insights regarding Generative AI investment in the US.
– Only 5% of organizations are utilizing AI tools in production at a significant scale.
– US companies have made considerable financial investments ranging from $35 to $40 billion in Generative AI initiatives.
– Despite these investments, there has been little to no visible return or outcomes from these efforts, suggesting challenges in effectively implementing and harnessing AI technologies.
Implications for Security and Compliance Professionals:
– The low adoption rate of AI tools raises questions about the security, operational, and compliance readiness of organizations. Professionals must consider factors such as:
– Are adequate security measures in place to protect data utilized in AI processes?
– How do regulations impact the deployment of these technologies?
– What compliance frameworks are relevant when pursuing AI integration?
– The significant financial investment without corresponding results creates concerns about resource management and strategic planning. Key considerations include:
– Evaluating if investments in Generative AI align with organizational goals and security strategies.
– Ensuring that AI technologies used by organizations adhere to security best practices and regulations.
Overall, this text serves as a critical reminder for practitioners in security and compliance to closely monitor AI tool implementations, assess their effectiveness, and ensure they align with broader security objectives.