Beware the AI Experimentation Trap

HBR
HBR
4M ago
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A recent report from MIT Media Lab indicates that 95% of investments in generative AI have yielded no returns, raising skepticism about AI's scalability. The disappointing launch of OpenAI's GPT-5 has contributed to concerns over slowing progress in AI. Gartner suggests that generative AI may be entering the 'trough of disillusionment' phase in its hype cycle.
Beware the AI Experimentation Trap
A What happened
A recent report from MIT Media Lab indicates that 95% of investments in generative AI have yielded no returns, raising skepticism about AI's scalability. The disappointing launch of OpenAI's GPT-5 has contributed to concerns over slowing progress in AI. Gartner suggests that generative AI may be entering the 'trough of disillusionment' phase in its hype cycle.
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Key insights

  • 1

    High Investment, Low Returns: 95% of generative AI investments have not produced returns.

  • 2

    Skepticism on AI Scalability: Concerns are growing about the ability of AI to deliver results at scale.

  • 3

    GPT-5 Launch Disappointment: The underwhelming launch of GPT-5 has fueled doubts about AI progress.

  • 4

    Hype Cycle Phase: Gartner indicates generative AI is in the 'trough of disillusionment'.

Takeaways

The current landscape suggests a critical reassessment of generative AI's potential and investment strategies.

Topics

Technology & Innovation Artificial Intelligence Big Tech

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