Originally published on AI Tech Connect.
What the failure data actually tells you Start with the uncomfortable part. As of September 2026, the best-known numbers on enterprise AI outcomes are not close calls. MIT's NANDA initiative, in its report on the state of enterprise generative AI published in late 2025, found that 95% of generative AI pilots delivered no measurable impact on profit and loss. The RAND Corporation has reported that more than 80% of AI projects fail — roughly twice the failure rate of conventional IT projects. And a 2025 study from MIT Sloan found that 61% of enterprise AI projects were approved on projected return on investment that was never measured after launch. Read those three together and a specific conclusion falls out, and it is not the one most engineers reach. The obvious reading is that…
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