AI Disappointment: 75% of Companies Fail to Meet Expected ROI

Has artificial intelligence been overrated? That’s what a recent IBM study suggests, having surveyed 2,000 executives from 33 countries and 24 industries about their initial experiences with AI and its anticipated development in the coming years. Here’s an overview.

Executives Weigh Short-Term ROI Against Long-Term Development

The IBM study indicates that only 25% of AI-related projects have achieved the expected ROI in recent years. Even more striking, only 16% (and 18% in France) of the projects implemented have been scaled up across the entire enterprise. In their rush to quickly develop AI-based solutions, companies have entered into somewhat of a blind race, lacking a full understanding of the potential implications of such projects.

The main reason behind this rush is the fear of falling behind competitors. 64% of the executives admitted that this risk “drives them to invest in certain technologies even before they have a clear understanding of what they bring to the business.” Yet, only 37% of them believe that it is better to be fast and take risks than to be cautious and take their time.

This lackluster ROI might have deterred companies from investing in AI-related projects, but that is not the case for the majority of them. 61% of the executives confirm that they are planning to develop large-scale AI agents within the next two years. However, this ambition is tempered by the short-term performance of AI: 65% of the executives state that they closely monitor the ROI before deciding to continue or increase their investments. Their cautiousness seems somewhat contradictory to their expressed intent to deploy AI on a large scale.

A Workforce Undergoing Professional Transition

If you’re worried that your job might be replaced by AI, take comfort: according to IBM, the human element remains crucial. Among the executives surveyed, 69% believe that the success of their companies lies in their ability to master complex strategies to make critical decisions, something that AI cannot currently achieve.

However, a third of them acknowledge that the workforce will need to either reskill or upskill within the next three years to meet the challenges posed by AI. In a rapidly changing job market, companies that can adapt quickly will have a competitive edge. Today, 54% of organizations (and 74% in France) are hiring for AI-related positions that did not exist last year, clearly illustrating the accelerated transformation of the professional world.

How do we prepare our employees for the future? We believe it’s by giving them the confidence to use AI in various situations as part of their own development, says Tamara Vrooman, CEO of Vancouver Airport Authority.