""They have to pay for AI somehow," said Rocki-Lee DeWitt, a management professor at the University of Vermont's Grossman School of Business. "It ain't cheap.""
"Research firm IDC says companies with more than 1,000 employees are expected to spend an average of $13.7 million on AI hardware, cloud infrastructure, software, and services this year, a 78% increase from 2025."
"Despite all that outlay, 95% of organizations reported no measurable ROI from AI in the first half of 2025, according to an MIT study based on reviews of publicly disclosed AI initiatives and executive interviews."
"In November, HP said in an earnings report that it planned to cut between 4,000 and 6,000 jobs by the end of 2028, saving the company roughly $1 billion."
Companies are significantly investing in AI technology, with expectations to spend an average of $13.7 million on AI-related expenses this year. Despite this investment, 95% of organizations reported no measurable ROI from AI initiatives in early 2025. As companies face high costs and economic pressures, they may resort to cutting workers' compensation or laying off employees to manage expenses. Notable companies like HP have announced job cuts to save costs, indicating a trend among businesses to offset AI investments through workforce reductions.
Read at www.businessinsider.com
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