Companies Waste Half a Trillion Reais Annually on AI Projects
A report from Hitachi reveals that companies are wasting $108 billion (R$ 563 billion) annually on AI projects, largely due to inadequate data infrastructure.
A recent survey by Hitachi, a Japanese multinational in information technology services, has found that businesses worldwide are wasting approximately $108 billion (R$ 563 billion) annually on artificial intelligence (AI) projects. The study surveyed 1,200 IT executives and emphasizes that 95% of companies have yet to achieve any return on their investments in generative AI, which are expected to total between $30 billion (R$ 156 billion) and $40 billion (R$ 208 billion) by the end of 2025. This indicates a significant disconnect between investment and actual results, with many firms struggling to realize the promised benefits of AI technology.
The report highlights that the core issue is not due to failures in AI models themselves, but rather the low maturity of data infrastructure within these companies. Many organizations are not prepared to handle the substantial data loads and processing requirements associated with advanced AI applications. The survey found that 55% of companies acknowledge the complexity of their digital environments as a barrier to effectively spotting faults and security incidents, while 57% express that losing data inputted into AI systems would be critical.
Particularly concerning is the broader implication of such waste not just on individual companies but also on the technology sector as a whole, which is increasingly reliant on AI for efficiency and innovation. The findings point out the urgent need for businesses to upgrade their data infrastructures and improve their AI project methodologies in order to harness the true potential of AI technologies. Without addressing these foundational issues, companies risk continued financial losses and failure to capitalize on significant advancements in AI.