Investors are worried about an AI “compute” bubble, as productivity gains from the technology remain elusive.
according to a Recent survey by professional services network PwCMore than half of the 4,454 CEO respondents said “their companies are not yet seeing financial returns from investments in AI.”
Only 30 percent reported revenue growth from AI in the last 12 months. However, a far more significant 56 percent said AI has failed to either increase revenues or reduce costs. Only 12 percent of CEOs reported that it had met both goals.
The findings once again highlight outstanding questions about the effectiveness of the technique. This is despite AI companies spending tens of billions of dollars in data center buildouts and related infrastructure.
However, rather than exploring other avenues for growth, PwC found that executives are worried about falling behind by not pivoting to AI. Sufficient.
“A small group of companies are already turning AI into measurable financial returns, while many others are still struggling to move beyond pilots,” Mohammed Kande, global chairman of PwC, said in a statement. statement. “This gap is beginning to show in confidence and competitiveness, and it will grow exponentially for those who do not act.”
PwC also reported that most companies lacked “AI foundations, such as clearly defined road maps and adequate levels of investment” to achieve returns.
But whether pouring even more money into AI will suddenly turn the technology into a money-making company – and with no major expense on the balance sheet – remains a hotly debated topic.
At the moment, the prognosis still looks somewhat grim. Last year, an oft-cited mit report found that a A staggering 95 percent Efforts so far to incorporate generic AI into business have failed to lead to “rapid revenue acceleration”.
The effectiveness of the technology has also been repeatedly questioned, ranging from frequent hallucinations and inability to complete real-world office tasks. Ongoing concerns over data security.
The subject of solid returns on investment from AI is sure to be a major focus this year As executives wonder how to translate that hype into real-world implementation — and whether it will actually help their bottom lines in the long run.
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