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Gen AI and AI are the craze these days. Some companies are now mandating the use of AI to increase productivity. Meanwhile, AI is causing thousands of people to be laid off. That begs the question: Is integrating AI in the workplace effective?
A surprising finding
According to the report GenAI Distribution: The State of AI in Business 2025, produced by the Massachusetts Institute of Technology’s NANDA (Networked Agents and Decentralised AI) group, generative AI integration fails in 95% of workplaces to increase company revenue.
For your information, the conclusion was reached after interviewing 150 executives, polling 350 employees, and reviewing 300 publicly announced AI deployments.
As a result, AI has only had a positive impact on startups, with younger employees seeing exponential growth in profits.
That is because they are aware of the issues, execute their plans well, and collaborate with AI companies to overcome the problems efficiently.
In other companies, there is a gap in knowledge of using AI and the organisation, which makes it ineffective.
Did AI actually fail?
For instance, ChatGPT is an excellent AI assistance tool for individuals, but it is not flexible enough for enterprises because it cannot be adapted to the company's workflow.
As a result, the report concludes that the failure is not because AI is not capable, but rather that the workforce is still inefficient in fully integrating AI into the organisation.
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