47% of Tech Firms Report Low AI ROI in New Study
Introduction
Artificial Intelligence (AI) has been the buzzword in the tech industry for years, with companies worldwide investing heavily in its development and integration. However, a recent report highlights that only 47% of tech firms are seeing strong returns on investment (ROI) from these AI initiatives. This raises several questions: What are the challenges faced by companies in achieving a strong ROI from AI? How do these challenges compare to the expectations of AI agents and generative AI (GenAI)? And what does the future hold for AI investments?
Background and Current Developments
AI has been around for decades, but recent advancements have propelled it into the mainstream. Today, AI is not just a tool for automation but a strategic component in many industries, from healthcare to finance. The democratization of knowledge via the internet has made AI accessible to a broader audience, with numerous online courses and tutorials available[5]. Despite this, achieving a strong ROI from AI investments remains a challenge for many companies.
AI Adoption and ROI Expectations
The 2025 AI Index Report indicates that AI business usage is accelerating, with 78% of organizations using AI in 2024, up from 55% the previous year[3]. However, only 47% of tech firms are seeing strong ROI, suggesting that while adoption is increasing, the financial benefits are not universal. In contrast, companies are very optimistic about their investments in AI agents, with more than three-fifths expecting over 100% ROI, and an average expected return of 171%[4].
Challenges in Achieving Strong ROI
Several factors contribute to the difficulty in achieving strong ROI from AI investments:
- Complexity and Integration: AI solutions often require significant integration with existing systems, which can be complex and costly.
- Data Quality: AI models are only as good as the data they are trained on. Poor data quality can lead to suboptimal performance and lower ROI.
- Talent and Skills: The demand for AI talent far exceeds supply, making it difficult for companies to find and retain skilled professionals.
Examples and Real-World Applications
Companies like Google and Microsoft are leading the way in AI adoption, with applications ranging from natural language processing to predictive analytics. For instance, Google's AI-powered search engine improvements have significantly enhanced user experience and search efficiency. However, even these giants face challenges in ensuring that all AI projects yield strong returns.
Generative AI and Agentic AI
Generative AI (GenAI) has proven profitable for many companies, with an average return of 152%[4]. Agentic AI, which involves more autonomous decision-making, is also gaining traction. While 44% of companies expect agentic AI to have a bigger impact than GenAI, 40% believe GenAI will remain more influential[4]. The transition to agentic AI is expected to be smoother due to the learning curve established by GenAI, with 94% of companies believing they will adopt agentic AI more quickly[4].
Future Implications and Potential Outcomes
As AI continues to evolve, companies will need to focus on strategic integration, data quality, and talent acquisition to maximize ROI. The future of AI investments looks promising, with tech leaders expecting to increase AI spending significantly[1]. However, managing ROI pressure will be crucial, especially as more companies adopt AI agents and agentic AI.
Comparison of AI Models and ROI Expectations
| AI Type | Adoption Rate | ROI Expectations | Challenges |
|---|---|---|---|
| GenAI | High | Average return of 152% | Complexity, Talent |
| Agentic AI | Increasing | Average expected return of 171% | Integration, Data Quality |
| General AI Investments | 78% of organizations | Only 47% see strong ROI | Complexity, Talent, Integration |
Conclusion
The journey to achieving strong ROI from AI investments is complex and challenging. While many companies are optimistic about AI agents and agentic AI, the reality is that only a portion of tech firms are seeing substantial returns. As AI continues to advance and become more integrated into businesses, companies will need to address the challenges of complexity, talent acquisition, and data quality to unlock the full potential of AI.
Preview Excerpt
"Only 47% of tech firms see strong ROI from AI investments, despite rising adoption and high expectations for AI agents and agentic AI."
TAGS: artificial-intelligence, machine-learning, ai-investments, agentic-ai, genai
CATEGORY: Core Tech: artificial-intelligence