An MIT Media Lab/Project NANDA report found 95% of generative AI investments produced zero returns. That finding has intensified skepticism about generative AI’s ability to deliver results at scale. The underwhelming launch of OpenAI’s GPT-5 has reinforced perceptions that AI progress is slowing. Gartner has characterized generative AI as entering a 'trough of disillusionment,' identified as the third stage in its five-phase hype cycle for technology adoption. The combination of poor investment returns, high-profile product disappointment, and Gartner’s classification has contributed to growing doubts about near-term commercial impact.
Earlier this month, the MIT Media Lab/Project NANDA released a new report that found that 95% of investments in gen AI have produced zero returns.
The underwhelming launch of OpenAI's GPT-5 has provided fodder to the view that AI's progress is slowing.
Gartner has suggested that generative AI is entering its " trough of disillusionment" era-the third step in the firm's five-phase hype cycle framework for technological adoption.
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