Business leaders are souring on AI and this is why

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After years of soaring expectations, the AI industry is approaching a moment of reckoning. Despite record investment, executives, corporate boards, and investors are growing increasingly skeptical that artificial intelligence will deliver significant productivity gains anytime soon.

This AI skepticism is driven by several factors. For starters, the cost of using large language models continues to climb, often with few measurable benefits. According to the Silicon Data LLM Token Expenditure Index, LLM spending has doubled since 2025, even though the cost per token (the basic unit of text processed by the models) has fallen by more than 90 percent over the past three years.