94% companies will keep spending on AI even when it fails
16 hours ago
- #Tech Spending
- #AI Governance
- #Corporate Boards
- Most S&P 500 board directors lack AI expertise despite recognizing it as a risk, leading to uninformed spending decisions.
- Billions are invested in AI, often funded by job and wage cuts, with high project failure rates and minimal proven returns.
- Consulting firms profit from boardroom AI panic, creating a cycle where investments continue even after initiatives fail.
- Boardrooms, dominated by older directors, are disconnected from operational realities, approving strategies without understanding impacts.
- AI-related layoffs are widespread, driven more by financial pressure than actual technological replacement, weakening labor markets.