According to a recent MIT report titled “The GenAI Divide: State of AI in Business 2025”, around 95% of generative AI business initiatives are failing to deliver measurable impact, with just roughly 5% achieving rapid revenue acceleration.

Despite billions of dollars poured into AI technology - estimated at US$30-40 billion by mid-2025 - most corporate pilots remain stuck in experimentation or were shelved altogether.The study points to the root causes of under-performance: misalignment with core business workflows, over-ambitious general use-cases (particularly in sales and marketing), and under-investment in integration and validation.

 For markets, this data has triggered serious concerns. Analysts warn that AI valuations may be decoupled from fundamentals, raising the spectre of a tech-bubble reminiscent of the dot-com era. The message is clear: AI buzz alone is no guarantee of commercial success, and investors and firms alike must pivot from hype to disciplined execution.