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New Studies Lay Bare GenAI’s Enterprise Stumble, Entry-Level Job Shock

New MIT and Stanford findings point to poor integration driving weak enterprise returns, with adoption correlating to steep entry‑level job losses.

Salesforce headquarters in San Francisco, California.
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Shares of software giant Salesforce are down 26% this year, making it the second-worst performing stock in the Dow.

Overview

  • MIT’s Project NANDA reports roughly 95% of corporate generative‑AI pilots fail to deliver rapid revenue gains, citing poor enterprise integration and misaligned incentives rather than model quality.
  • Stanford researchers analyzing ADP payrolls find employment for 22‑ to 25‑year‑olds fell by about 16% in AI‑exposed roles such as customer service and software development, while more experienced workers saw stable or slightly rising employment.
  • Analysts note software valuations are under pressure as investors question seat‑based SaaS economics in an agentic‑AI era, with Salesforce down 26% year‑to‑date, Adobe down 19% and Atlassian down 30%, though some argue fears are overblown.
  • MIT and commentators highlight a measurement gap from widespread ‘shadow AI’ use that can lift productivity outside formal pilots, complicating assessments of AI’s true business impact.
  • Experts emphasize that scaling value will require governance, workflow redesign, cross‑functional KPIs, data integration and reskilling, not just short‑term automation wins in sales and marketing.