Overview

• Only about 5% of generative‑AI pilots scale to production or show tangible gains, according to new MIT research.
• Failures stem from weak integration, brittle workflows, and tools that lack contextual learning rather than from model capability limits.
• Programs that buy mature third‑party solutions succeed at roughly 67%, far outpacing custom builds reported at about 33%.
• Shadow AI is widespread, with employees in over 90% of firms using personal tools even though only about 40% of companies fund official LLM access.
• McKinsey reports more than 80% of companies see no EBIT impact, as budgets skew to sales and marketing instead of high‑payoff back‑office automation.