95% of AI Pilots Fail, Says MIT Report

A new MIT report, covered by Fortune, reveals that while companies are rushing into generative AI, most pilots flop instead of delivering value.

Big Ideas

  • 95% of pilots fail – Only about 5% of pilots generate tangible profit or loss impact.

  • Integration is the problem – These pilots fail because AI tools are static (“science projects”), don’t adapt, and don’t align with day-to-day workflows.

  • Back-office wins – Big investments go into visible stuff like sales & marketing. But the biggest returns are coming from automating administrative, finance, risk & procurement functions.

  • External partners succeed – In-house builds lag far behind specialised vendor solutions.

AI success isn’t about launching pilots. It’s about solving one clear problem, embedding it deeply, and aligning it with how people actually work. Where would you start?