'95% of generative AI projects don't make real money,' says Forrester analyst
Generative AI might be the buzz right now, but most projects aren't actually paying off.
J.P. Gownder from Forrester points to an MIT study showing that 95% of these AI efforts don't deliver any real profit or return on investment.
As he puts it, "A lot of generative AI stuff isn't really working."
He also notes that past tech booms—like the rise of personal computers—didn't always boost productivity as much as people hoped.
Who is J.P. Gownder?
Gownder is a leading voice on AI and automation at Forrester.
He predicts that by 2030, about 6% of US jobs could be replaced by AI and automation.
Layoffs blamed on AI often get reversed
Forrester's latest report finds that more than half the layoffs companies blame on AI end up being rolled back later, often because businesses aren't actually ready for full-on automation yet.
Some firms even use "AI" as an excuse for budget cuts when their tech isn't there yet.