Fortune<\/a> the problem isn\u2019t necessarily the AI models themselves, but that most companies don\u2019t know how to use them to their full potential.<\/p>\n\u201cSome large companies\u2019 pilots and younger startups are really excelling with generative AI,\u201d Challapally said. He highlighted startups run by 20-year-olds as good examples of how businesses should use AI. He said these startups \u201chave seen revenues jump from zero to $20 million in a year. It\u2019s because they pick one pain point, execute well, and partner smartly with companies who use their tools.\u201d<\/p>\n
Most companies, though, are misplacing their resources. More than half of generative AI budgets are funneled into sales and marketing tools, but MIT found that real returns come from boring back-office automation\u2014things like eliminating business process outsourcing and streamlining operations.<\/p>\n
Additionally, buying specialized tools or teaming up with outside vendors works about 67% of the time, while homegrown builds only succeed one-third as often. That\u2019s a big deal in industries like finance, where companies are pouring money into building their own proprietary systems. MIT\u2019s takeaway is that going solo carries more risk for failure.<\/p>\n
The report also dropped just days after OpenAI CEO Sam Altman warned that an AI bubble may be forming. <\/p>\n
\u201cI do think some investors are likely to lose a lot of money, and I don\u2019t want to minimize that\u2014that sucks,\u201d Altman said, according to the Financial Times. \u201cThere will be periods of irrational exuberance. But on the whole, the value for society will be huge.\u201d<\/p>\n
Meta shares also dipped after it announced a major shake-up in its AI division<\/a>, a move some are seeing as a bad sign for the company\u2019s AI ambitions that adds to the worries of an AI bubble.<\/p>\n","protected":false},"excerpt":{"rendered":"A new report from MIT is casting doubt on the hype around the financial value AI brings to…\n","protected":false},"author":2,"featured_media":84475,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[256,254,255,64,63,99,21122,105],"class_list":{"0":"post-84474","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-artificialintelligence","11":"tag-au","12":"tag-australia","13":"tag-business","14":"tag-mit","15":"tag-technology"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/84474","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=84474"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/84474\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/84475"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=84474"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=84474"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=84474"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}