Why Many Firms Are Losing Money on AI Investments

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An AI sign is displayed during the MWC (Mobile World Congress), the world’s biggest mobile fair, in Barcelona on March 3, 2025. Manaure Quintero/AFP via Getty ImagesFor many companies, artificial intelligence (AI) systems are supposed to streamline operations, cut costs, and unlock new revenue streams.However, the corporate AI gold rush is proving expensive, and the returns on investment aren’t evenly distributed. Investors, business leaders, and analysts say the difference between making money from AI purchases and ending up in the red boils down to having a solid strategy and knowing where the technology creates actual value.

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