back to article FYI: Most AI spending driven by FOMO, not ROI, CEOs tell IBM, LOL

Only a quarter of AI initiatives have delivered the expected return on investment, according to an IBM survey of 2,000 CEOs. The study's findings, published amid Big Blue's annual Think conference on Tuesday, show that despite the hype around generative AI, enterprises are struggling to get real value from the token-spewing …

  1. Tron Silver badge

    This is presumably how the South Sea Bubble progressed.

    You would have to be running your business very badly, with terrible staff, for AI to be better. But hey, flush away your cash and put off customers with AI 'customer service' if you want to. We'll just sit back, eat the popcorn and be amused by it. AI has already 'helped' Microsoft to ruin Windows further and faster than they already were doing. Eventually 'AI' will just undermine trust in tech generally.

    The data centres are money pits from day 1. The built in obsolescence of the tech against the build time, the lack of a business case and the insane cost (increased by taxiffs) to produce something that nobody wants to pay extra for. The only value they have is to express fealty to King Donald so he doesn't trash your sector the way he is all the others.

    There will be some niche cases where what is called AI has some value (as a computer/human interface), but nobody will pay extra for it. This is not the next big thing. It isn't what it says on the tin. It's not really artificial intelligence. You've all been conned.

    We need to focus instead on using less, simpler tech, in a hybrid with physical/real world stuff that cannot be hacked. On disconnecting internal and infrastructural systems from the public internet/cloud. We need to treat data as a risk rather than an asset. And switch to distributed systems that have fewer data honeypots. So stop being led by GAFA to your local cashpoint, audit your systems and rebuild them using less, simpler, cheaper, but more resilient tech/hybrid models.

    1. ecofeco Silver badge

      Re: This is presumably how the South Sea Bubble progressed.

      It's how ALL bubbles progress.

      As I've said many, many time, we've this movie before. Many times.

      And your advice about simplifying systems is spot on.

    2. Anonymous Coward
      Anonymous Coward

      Re: This is presumably how the South Sea Bubble progressed.

      I vaguely recall reading in the Isaac Newton lost a bundle in that crash.

      One might safely assume he was a fairly clever bugger and certainly holding a few more cards than the deficient decks with which the the C-Suite typically play. Presumably it is greed that gazumps intelligence and just about anything else.

      1. David Hicklin Silver badge

        Re: This is presumably how the South Sea Bubble progressed.

        > I vaguely recall reading in the Isaac Newton lost a bundle in that crash

        Maybe he failed to see the gravity of the situation.

        1. ecofeco Silver badge

          Re: This is presumably how the South Sea Bubble progressed.

          He should have taken a little while to cool off. He definitely miscalculated. I hope he reflected on his error. But alas, the cat was out the door by then.

    3. LybsterRoy Silver badge

      Re: This is presumably how the South Sea Bubble progressed.

      The main niche will be to replace the holders of "bullshit jobs"!

    4. BenDwire Silver badge
      Pint

      Re: This is presumably how the South Sea Bubble progressed.

      "Taxiffs" - that's a good one I've not heard before!

  2. IGotOut Silver badge

    1 in 4

    That high?

    Or are 1 in 4 lying to save face?

    1. RM Myers
      FAIL

      Re: 1 in 4

      My guess is 1 in 8 were lying, and another 1 in 8 were being lied to by their subordinates. Remember, the primary role of middle management is to keep senior management in the dark about any problems. Nobody wants to be the messenger who gets shot!

    2. Anonymous Coward
      Anonymous Coward

      Re: 1 in 4

      Or the 1 in 4 that are making money off AI are the ones selling it to other companies. You can make money off anything, if you're the seller and you convince people to buy - even if it's worthless.

  3. LybsterRoy Silver badge

    As with Tulip mania there will be some who make a fortune from it so FOMO definitely.

  4. Caver_Dave Silver badge
    WTF?

    Explain

    The article says "IBM says half (50 percent) of respondents", stating the obvious to the readership.

    But then lazily does not explain FOMO. (Fear of Missing Out - I looked it up!)

    Please be consistent.

  5. Anonymous Coward
    Anonymous Coward

    It's really early here…

    … and I misread ROI as ROFL. Not far though?

  6. Random as if !

    Hey my job means I control 4 AI bots and Inference calculators

    Care to explain how they work?, oh you pay for them, P45

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