AI and machine learning
by David De Cremer, Shane Schweitzer, Jack J. McGuire and Devesh Narayanan
November 19, 2025
HBR Staff/Maskot/Getty Images
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Summary.
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Why do so many AI projects flop? After years of hearing how AI will revolutionize business, recent studies have shown that companies are still consistently struggling to wring value from their investments in AI. MIT’s NANDA initiative, for one, estimated that 95% of AI initiatives fail to deliver their intended value. A global survey from Boston Consulting Group found that only 26% of companies have seen tangible ROI from AI. Now, leaders are asking: What’s going wrong?
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