A new MIT study has found that 95% of corporate AI projects fail to deliver returns, mainly due to difficulties integrating them with existing workflows.

The report, 'The GenAI Divide: State of AI in Business 2025', examined 300 deployments and interviewed 350 employees. Only 5% of projects generated value, typically when focused on solving a single, clearly defined problem.

Executives often blamed model performance, but researchers pointed to a workforce 'learning gap' as the bigger barrier. Many projects faltered because staff were unprepared to adapt processes effectively.

More than half of GenAI budgets were allocated to sales and marketing, yet the most substantial returns came from automating back-office tasks, such as reducing agency costs and streamlining roles.

The study also found that tools purchased from specialised vendors were nearly twice as successful as in-house systems, with success rates of 67% compared to 33%.