McKinsey wonders how to sell AI with no measurable benefits
www.theregister.com
: Consultant says software vendors risk hiking prices without cutting costs or boosting productivity
  • railway692@piefed.zipEnglish
    37·
    18 hours ago

    The problem with that, of course, is that one MIT study found that many enterprise organizations have so far seen zero return from their AI efforts.

    Buyers are also changing, McKinsey believes. It says purchasing decisions are shifting from the IT department to line-of-business units. These leaders are increasingly making budget trade-offs between head count investment and AI deployment, and expect vendors to engage them on value and outcomes, not just features.

    That could be a tricky sell, when trials of AI tools such as Microsoft’s Copilot by a UK government department reveal no discernible boost in productivity. Still, the AI firms have to recoup all those billions they’ve already invested somehow, don’t they?

    They don’t. They don’t have to recoup those billions.

    They can go bankrupt like businesses that create no value are supposed to.

    • gravitas_deficiency@sh.itjust.worksEnglish
      17·
      18 hours ago

      Yeah - not recouping the sunk costs would just be the bubble popping. And the fact that they’re still pumping the bubble when it’s comically fucking obvious to anyone with more than a handful of brain cells that it’s all just snake oil bullshit is truly incredible, and more than a bit baffling, considering how much money is going to go up in smoke as a result.