Gates warns AI hype could lead to financial disaster

Technology Nov 01, 2025

Bill Gates is sounding the alarm on AI hype, saying a lot of money pouring into artificial intelligence might go nowhere.
Comparing today's excitement to past bubbles like "tulip mania" and the dot-com crash, he called AI "the biggest technical thing ever," but warned that rushing in could mean expensive mistakes for companies.

MIT study shows AI investment not paying off

Backing up Gates's concerns, an MIT study found that 95% of businesses haven't actually profited from their big AI spending—despite dropping $30-40 billion.
While tools like ChatGPT and Copilot are everywhere and help with daily tasks, only 5% of projects really deliver value.
The main problem? Companies are struggling to fit AI smoothly into their workflows, so the payoff just isn't there yet.