Poor ROI for GenAI
61% in a recent survey report no ROI or disappointing ROI.
NVidia is down significantly more this year (23.4%) than the S&P (11.5%). Tariffs have driven down the market as a whole, but NVidia’s sharp decline is notable. One reason may be that it is starting to become clear that GenAI is not delivering the ROI (return on investment) people expected. In his newsletter, The Information’s Jon Victor just reported a new Salesforce survey worth noting:
With “GPT-5” level models remaining elusive, this picture may not change enormously in the near-term. GenAI is pitched as (near) AGI, but reliability problems persist, limiting how well it can be used in practice.
I suspect that even of that 1/5 that are getting "good" results, they are unlikely objectively good. So many are impressed by LLMs eloquently crafted wording that they completely miss the nonsense it is spewing.
The only people that might be getting really good results are those who have jobs making spam content all over the web. It is decently good at that.
I do wonder what the is the aftermath of the reseaech when the genai bubble bursts. and what will the new hyped reseaech direction be and how long will something with a comparable glamour to llms take to emerge.