From tech giants to startups, companies are pouring billions of dollars into artificial intelligence, but many are discovering the technology does not deliver the quick returns they expect.
This month, Amazon CEO Andy Jassy released a letter sent to shareholders defending $200 billion in planned spending, with the majority going toward AI development.
"AI is a once-in-a-lifetime opportunity where the current growth is unprecedented and the future growth even bigger," Jassy wrote.
Investors have questioned Amazon's aggressive AI spending plans.
Investing in 'AI theater'
Across the business world, much of the reported AI use remains stalled in experimental or piloting phases.
In a 2025 survey from consulting firm McKinsey, almost every respondent said their organization is using AI, but most are still in the early stages. As McKinsey reports, "nearly two-thirds of respondents say their organizations have not yet begun scaling AI across the enterprise."
New AI research from the firm Solvd found 90% of businesses expect to invest even more in new AI initiatives this year, but 72% also expect underperforming AI projects to be shut down.
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"What AI is doing is it’s not only amplifying success if you do it right, but it’s also amplifying failures," said Arizona State University professor Hitendra Chaturvedi.
AI transformation executive Mamatha Chamarthi said too many businesses pour money into what she refers to as "AI theater," or experimentation with limited results.
"It gets a lot of applause, it makes you feel good, but doesn't result in a real scalable top-line growth or scalable efficiency," Chamarthi said.
Technology is not the problem, but rather how it is deployed.
"I also see companies that are looking at an AI investment as one more tool that somehow magically is going to help them meet their strategy. But a tool will not automate your strategy. You need to start with your strategy first," Chamarthi said.
Does AI improve productivity?
Right now, workers appear split on whether AI actually saves time. In a survey conducted by Resume Now, 46% of workers said they are not confident that AI improves productivity.
"The benefits largely depend on how effectively tools are implemented and used," said Resume Now career expert Keith Spencer. "From leadership, there needs to be clear expectations for AI usage, as well as training and support."
Chamarthi has a clear message for CEOs when it comes to rolling out AI.
"Do not delegate AI strategy to your leaders. You have to take control of it. You need to be responsible for driving the strategy, because AI strategy is your business strategy," Chamarthi said.
According to Resume Now, four in 10 survey respondents said AI is already replacing, devaluing, or overlapping with parts of their job.
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Spencer said organizations seeing a return on their AI investments are those integrating AI tools into specific, well-defined workflows.
"They're also providing training and clear-use cases for their employees that are aligned with measurable business outcomes," Spencer explained.
"If you aren't doing those things and you're just kind of telling your workforce, 'We expect you to use AI,' you risk more friction than you do efficiency."
