However, Altman has already drawn parallels between today's AI hype and the dotcom bubble of the 1990s, when the valuations of internet companies rose dramatically before collapsing. The latest report from MIT, after surveying 150 business leaders and 350 employees, states that only 5% tech companies who invested in AI chat bots are profiting. Rest 95% are either making no profit or loss.
The stock market reacted to the report and shares of tech giants like SoftBank, NVIDIA fell up-to 7 percent in a single trading session on Tuesday.
MIT report under initiative Nanda authored by Aditya Challapally, reveals that while generative AI holds promise for enterprises, most initiatives to drive rapid revenue growth are falling flat. Mr Aditya Challapally says that the core issue is not the quality of the AI models, but the “learning gap” for both tools and organizations.
To go through whole report you need to download it from google drive that requires a sign up form. Here I have listed some of the core findings of Nanda Project.
The stock market reacted to the report and shares of tech giants like SoftBank, NVIDIA fell up-to 7 percent in a single trading session on Tuesday.
MIT report under initiative Nanda authored by Aditya Challapally, reveals that while generative AI holds promise for enterprises, most initiatives to drive rapid revenue growth are falling flat. Mr Aditya Challapally says that the core issue is not the quality of the AI models, but the “learning gap” for both tools and organizations.
To go through whole report you need to download it from google drive that requires a sign up form. Here I have listed some of the core findings of Nanda Project.
- Report is prepared after 150 interviews with leaders, a survey of 350 employees, and an analysis of 300 public AI deployments.
- More than half of AI budgets by tech companies are spent on sales and marketing tools rather than back-office automation eliminating business process outsourcing, reducing external agency costs.
- Startups led by 19- or 20-year-olds have seen revenues jump from zero to $20 million in a year. It’s because they pick one pain point, execute well, and partner smartly with companies who use their tools.
- AI is causing disruption in the workforce, especially in customer support and administrative roles. Instead of laying off employees, companies are not hiring for new positions.
- The report notes the widespread use of "shadow AI"—illicit AI tools that employees are using to write and chat that are not checked by the company's IT department. This could pose a security risk to the company.