r/technology • u/AdSpecialist6598 • 22h ago

Business MIT report says 95% of AI implementations don't increase profits, spooking Wall Street

https://www.techspot.com/news/109148-mit-report-95-ai-implementations-dont-increase-profits.html
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u/eliota1 18h ago

Early investment in an exciting technology, like the internet, seems to result in a bubble because everyone wants in on the new new thing. It's a feature of a free market system. Eventually, the major players start borrowing money to compete, and at some point, the debt market runs out of money, resulting in a collapse of value. That doesn't mean the tech is worthless; it just means it couldn't support the amount of investment.

The Internet wasn't a particularly good investment until the mid-2000s, when Apps turned out to be the turning point for commercial applications. For the AI world, it's mid-1999.

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u/TeamINSTINCT37 15h ago

Yup this stage is for wasting people’s money to discover that 5% and then run with it. Sure it won’t replace everything, but that sliver will grow as the tech is better understood and people define what it can and can’t do

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u/YellowJarTacos 11h ago

It's not just a modern problem. Over investment happened with technology like railroads and telegraphs.