Enterprises are still grappling with measuring concrete returns from AI investments despite earlier hypeExecutive summary: NEA partner Tiffany Luck said enterprises are still figuring out how to measure ROI from AI, citing early over‑hype like tokenmaxxing and budget overruns at companies such as Uber. Mis‑aligned expectations could lead to wasted spending, pressure on AI vendors, and potential regulatory scrutiny of AI investment disclosures. NEA’s Tiffany Luck; enterprise CIOs and AI vendors; companies including Uber that exhausted AI budgets. Enterprises are likely to pause large AI spend until robust ROI frameworks emerge, while regulators may increase oversight of AI budgeting practices.Firms launched aggressive AI pilots in 2024, encouraging widespread usage, but early results show limited measurable profit gains. Recent statements from venture investors indicate budgets are being exhausted faster than anticipated, prompting tighter scrutiny. Analysts expect capital allocation to shift toward ROI‑focused projects before further spending resumes.Connected developmentsFed's Warsh signals cautious monetary stanceWorld leaders want American AI but fear lock‑outAnthropic joins carbon removal coalitionOpen the full case file on Beyond →
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