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ByAnna Tong,
Forbes Staff.
The AI spending spree continues apace with no end in sight. In earnings calls Wednesday, Meta, Google and Microsoft all said they would continue to hike their capital expenditures to build out AI data centers, on top of the $400 billion that major tech companies are on track to spend on AI infrastructure this year, according to Morgan Stanley estimates.
But so far, return on investment for AI use cases has been weak. A recent MIT study found that 95% of generative AI pilots at companies have failed to develop beyond the proof-of-concept stage. Leading AI labs like OpenAI are still having trouble with getting their AI to do ‘grunt work’ tasks of entry-level investment bankers. Generative AI seems to be heading towards its “trough of disillusionment” moment.
