GenAI Enterprise Failure Rate Hits 95%, Oracle & Google Partner on Gemini | AI News August 19, 2025
MIT Report: 95% of Enterprise GenAI Projects Fail to Deliver ROI A new report from MIT’s NANDA initiative reveals that a staggering 95% of enterprise generative AI pilot programs are failing to produce a significant return on investment. Despite investments totaling between $35 and $40 billion in the US, only 5% of organizations have successfully deployed AI tools into production at scale. The report, titled “The GenAI Divide: State of AI in Business 2025,” is based on interviews with enterprise leaders, analysis of public AI initiatives, and a survey of business professionals. The primary reasons for failure are not a lack of infrastructure or talent, but rather the inability of AI systems to retain data, adapt, and learn over time. The study also found that purchasing AI tools from vendors and forming partnerships has a significantly higher success rate than in-house development. ...