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The evidence base

Research Behind AI Investment Waste

Recent studies show that many AI investments fail to deliver expected ROI because organizations move from ambition to implementation before the real problem, value proposition, business alignment, and roadmap are clear.

AI failure is rarely just a technology problem.

Across recent enterprise AI studies, a consistent pattern appears: organizations are investing faster than they are aligning AI with real business problems, measurable value, executive ownership, and implementation roadmaps.

This research base informs the MoreSight methodology.

Nine findings

What the studies show

01AI financial impact remains limited

Only 12% of CEOs say AI has delivered both cost and revenue benefits. Another 33% report either cost or revenue gains, while 56% say they have not yet seen significant financial benefit from AI.

Why it matters — AI investment is rising, but financial impact is not automatic. Companies need to identify which business problems are worth solving with AI before committing major budgets.

Source: PwC 2026 Global CEO Survey
02Half of GenAI projects abandoned after PoC

By the end of 2025, at least 50% of GenAI projects had been abandoned after proof of concept due to poor data quality, inadequate risk controls, escalating costs, or unclear business value — far above Gartner’s own 2024 prediction of 30%.

Why it matters — The PoC stage often exposes a deeper issue: the organization started with the technology before defining a clear business-value case and implementation pathway.

Source: Gartner — Why Half of GenAI Projects Fail, 2026
03ROI depends on cost visibility

Organizations with full visibility into AI operating costs are 5x more likely to report established ROI than those without — 15% vs. 3%. Overall, only 7% of leaders report established ROI at all, while 24% face investor pressure to prove AI value.

Why it matters — AI cannot be managed only as a technical experiment. It must be treated as an investment with cost visibility, ownership, governance, and measurable outcomes.

Source: KPMG Global AI Pulse Q2 2026
04Adoption is outpacing readiness

Only 7% have reached the AI-ready data capability required to scale advanced AI. 72% lack trusted, standardized data, and more than 80% delay or alter AI initiatives due to data-related risks.

Why it matters — Companies often adopt AI before the organization is ready to convert it into business value — an AI readiness and alignment gap, not only a technical data problem.

Source: Accenture — AI-Ready Data for Advanced AI
05Few achieve AI value at scale

Only 5% of more than 1,250 firms are achieving AI value at scale. 60% report minimal material value despite substantial investment, while 35% are beginning to scale.

Why it matters — AI value concentrates in organizations that go beyond scattered pilots and connect AI to core business processes, operating models, and measurable outcomes.

Source: BCG — The Widening AI Value Gap
06AI budgets are rising rapidly

Organizations expect to allocate 5% of annual business budgets to AI in 2026, up from 3% in 2025. Nearly two-thirds have started pausing lower-value AI projects to redirect effort toward high-impact areas.

Why it matters — As AI budgets grow, the cost of weak prioritization also grows. Companies need a disciplined pre-investment diagnostic before scaling AI spend.

Source: Capgemini — AI Perspectives 2026
07Productivity beats revenue gains

Revenue growth remains harder to achieve: only 20% of organizations report revenue growth from AI today, while 74% hope to generate it in the future. Only 25% have moved 40% or more of their AI experiments into production.

Why it matters — AI use cases must be prioritized according to real value mechanisms: cost, productivity, speed, customer experience, margin, risk, and revenue.

Source: Deloitte — State of AI in the Enterprise 2026
08Adoption is faster than the systems around it

Generative AI reached around 53% population-level adoption within three years — faster than the PC or internet adoption curves.

Why it matters — The pace of adoption is not the same as the ability to extract ROI. Companies need to slow the investment decision enough to clarify problem, value, and roadmap.

Source: Stanford HAI — 2026 AI Index Report
09Most pilots produce no measurable P&L impact

95% of GenAI pilots deliver no measurable P&L impact; only 5% of integrated pilots extract significant value. Adoption is high — over 80% of organizations have piloted tools — but transformation is low: of enterprise-grade systems evaluated, only 5% reached production.

Why it matters — The divide is not between good and bad technology. The 5% that succeed pick the right business problem, integrate AI into real workflows, and measure outcomes — exactly the alignment work that should happen before major investment.

Source: MIT NANDA — The GenAI Divide: State of AI in Business 2025
Reading the evidence

Four themes across the research

THEME 1 · ROI GAP

AI investment is growing, but measurable business value is uneven.

PwC · BCG · Deloitte · KPMG

THEME 2 · POC & SCALING FAILURE

Many AI initiatives fail not at the demo, but when they must scale into real workflows.

Gartner · MIT NANDA · BCG · Deloitte

THEME 3 · ALIGNMENT BEFORE IMPLEMENTATION

AI creates value when use cases align with real problems, executive priorities, and measurable outcomes.

BCG · McKinsey · Deloitte · Capgemini

THEME 4 · INVESTMENT DISCIPLINE

As AI budgets rise, organizations need clearer investment discipline before committing capital.

KPMG · Capgemini · PwC

Research takeaway

The evidence is consistent: AI value is real, but it is not automatic.

Organizations struggle when they start with tools, pilots, or vendor promises before clarifying the real business problem, value proposition, ownership model, and implementation roadmap.

MoreSight turns this research into a practical pre-investment diagnostic: find the value first, align it with AI opportunities, then invest with a clear roadmap.

Turn research into an AI investment roadmap.

Move from AI ambition to measurable impact.

Start Business Value & AI Alignment Explore Methodology