$61.9 billion. That’s how much companies are spending on generative AI in 2025. IDC says investment jumped 94% this year. https://www.business-standard.com/technology/tech-news/genai-paradox-companies-pouring-billions-into-ai-it-has-yet-to-pay-off-125081302003_1.html
The payoff? Still nowhere to be seen. McKinsey finds nearly 80% of firms use generative AI—but the same number say it hasn’t boosted the bottom line. https://www.thestar.com.my/tech/tech-news/2025/08/14/companies-are-pouring-billions-into-ai-it-has-yet-to-pay-off
Pilot projects are collapsing fast. S&P Global reports 42% were abandoned by the end of 2024, up from 17% the year before. https://www.business-standard.com/technology/tech-news/genai-paradox-companies-pouring-billions-into-ai-it-has-yet-to-pay-off-125081302003_1.html
The bottleneck isn’t just technology. “Human factors” like resistance and lack of skills are derailing rollouts. https://www.thestar.com.my/tech/tech-news/2025/08/14/companies-are-pouring-billions-into-ai-it-has-yet-to-pay-off
Gartner warns AI is sliding into the “trough of disillusionment.” That’s the polite version. Most companies haven’t even reached the on-ramp. The only clear winners? Microsoft, Amazon, Google, Nvidia—they sell the shovels. Everyone else is digging dry holes. https://www.business-standard.com/technology/tech-news/genai-paradox-companies-pouring-billions-into-ai-it-has-yet-to-pay-off-125081302003_1.html
No one is asking why failure rates are accelerating despite record spending. “Pouring billions” already signals waste. Adoption is up, impact is flat, abandonment is rising. Timeline projections like Gartner’s low-point forecast are already outdated. 2025 is a year of big bets and bigger disillusionment.