Oh my, oh my, oh my. What is the actual state of artificial intelligence? Otherwise known as “AI.” Everywhere you look you see it talked about. It is in the news. It is in the cyber security realm. It is being touted and flaunted about as the next big thing. But what is the real story behind the scenes? Well, MIT just issued a report that seeks to shine a big bright light on the current state of AI.
Now, MIT is a reputable establishment, with credentials that most organizations just dream about. And despite this, there are some who are already casting aspersions on this report and others that are grasping it as a drowning man does a life preserver. So, I thought to myself, why not take a look and see what is happening out there?
One of the very first quotes in the executive summary runs thusly, “A surprising result in that 95% of organizations are getting ZERO returns.” Wait, what? Despite a $30-40 billion investment cycle, these organizations are seeing ZERO financial returns on that investment!?!? How could this be real?
Well, thankfully, the report doesn’t just stop at reporting on the financial side of the house, they delve into some of the causes as well. They named it the “GenAI Divide.” A nifty term that adequately describes the problem. Despite jumping on the AI bandwagon many companies are struggling with just how to really utilize AI in a proper and financially viable manner. Not too dissimilar to other new technologies that arose in the past, think cloud computing as an example!
“The core barrier to scaling is not infrastructure, regulation, or talent. It is learning. Most GenAI systems do not retain feedback, adapt to context, or improve over time.” Stop and read that sentence again. Then stop and read it again. Yes, you read it right. AI is being pushed so hard, so fast, that the learning gap is massive! And on top of that learning gap, AI isn’t really artificial intelligence at all. It doesn’t learn. It doesn’t adapt to context, and it certainly does not improve over time! So, one has to stop and ask just where is the intelligence in these touted systems?
The fact of the matter is that most tech users and nearly the entire executive level or management level of businesses hear AI pushed, and then decide they, too, must jump upon the ship (lest it sink without them!). They know nothing about AI, they don’t know how to use it, to scale it or even what its real capabilities are. All they know are talking points, sales slogans and what they hear on whatever media source they get their knowledge from. Sad, really!
Even in my field, AI is being pushed into security operation centers. It is being pushed into digital forensics and incident response. It is being touted as a “time saver!” A cure to the performance curve when responding to overwhelming alerts. Oh, and let us not forget the constant refrain of hackers are using it!!!! Oh, no, lions and tigers and bears, oh my! Hackers are using AI and modifying their attack methodology to utilize it, thus hastening destruction and theft of data! No one stops to see that in reality nothing has changed, it is just more, granted better, but just more automation and not really AI.
The report goes on to talk about the “Pilot-to Production Chasm.” Another phrase that will probably (or at least should) be adopted and used when dealing with AI. The implementation of AI products is where the issue lies. This is not just a “chat-bot” we are talking about. It is deep, inclusive usage of AI within an organization.
Fig. 1 GenAI Investment Distribution by Function
As you can see above, AI is being used in many ways, to a variety of different successes and failures. Of note is that AI is being used around 50% by sales and marketing, not the more intensive areas, where one would think that AI abounds.
As you can imagine sales are hot and moving fast for AI! There are hundreds of start-ups and other companies selling “the best GenAI solution!” They are calling, they have demos and they are moving the market, but to what end? If companies are investing billions, yet seeing no financial benefit, then what purpose is being served? Are companies truly seeing returns for such a vast investment, apparently not. This is something that executives and boards need to keep in mind when considering AI.
So, what do we do with this knowledge? Well the report goes into a section titled “The Winning Playbook for Crossing the Divide.” This section of the report sets forth the needs and actions necessary to utilize AI in a meaningful and impactful manner. One that can be monitored and quantified, not just assumed to be working to their advantage. I am not going to delve into that section in this post, but it is there and if you read the report, definitely spend some time there.
So, do not let yourself get caught up in the AI craze. Consider the possibilities. Consider the needs of your organization. Do not give undo heed to sales pitches. Most importantly, if you are going to use AI, use it wisely and well.
Carpe Diem!
Source: https://mlq.ai/media/quarterly_decks/v0.1_State_of_AI_in_Business_2025_Report.pdf
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