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Speed trap: Why firms jumping blindly on the AI bandwagon may hit a wall
Seduced by the hype, many enterprises have deployed AI prematurely and got it wrong.
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Despite being all the rage in boardrooms across the world, artificial intelligence is not delivering the value for which it is being hyped.
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There’s a startling disconnect in the world of artificial intelligence (AI). Tech giants such as Amazon, Google, Meta and Microsoft have invested more than US$300 billion (S$385 billion) over the last two years on building the infrastructure to power AI, such as high-end chips, data centres, cooling systems and fibre networks. For this, they – together with chip designers such as Nvidia and AMD – have been handsomely rewarded by investors.
Amid this frenzy, companies have spent more than US$30 billion on enterprise systems that offer generative AI. But a recent MIT study has found that 95 per cent of these end users have earned zero return on their investments. There are lots of pilot projects but most are not leading to deployments.
