After the Metaverse concept failed in 2022, AI took over the spot to become the ‘next big thing’…

After the Metaverse concept failed in 2022, AI took over the spot to become the ‘next big thing’ in technology. Multinational corporations spent billions to build the Metaverse, only to see their projects fail remarkably. Mark Zuckerberg had to fire 11,000 employees after spending more than $10 billion on the failed Metaverse project. Now Artificial Intelligence (AI) is following a similar path, as only 25% of all AI initiatives have generated profits, while 75% of all projects have delivered losses on investments.

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The latest report from IBM highlights that just 25% of all AI initiatives have delivered profits as return on investment (ROI). In the report, IBM surveyed around 2,000 CEOs during the first quarter of 2025. According to the majority of the CEOs, the return on investment in AI technology has been disappointing. Billions of dollars are being spent to develop the technology with little to no profits for the work put in.

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Will AI Technology Become the Next ‘Failed’ Metaverse?

Despite AI initiatives giving less than impressive returns, CEOs are confident that the technology will find a breakthrough. The report shows that 85% of the CEOs in the survey say they are confident that “AI is the future”. They expect some positive return on investment from 2027 as the technology might take time to sustainably scale up.

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In addition, 77% of the CEOs want to expand AI innovation and emphasize growth, and anticipate a positive ROI. Whether the AI technology will thrive or remain limited to what it is today, the next two years will decide. Even the Metaverse was touted to be the future, with tech giants jumping to take the steering wheel, but all failed.

“As AI adoption accelerates, creating greater efficiency and productivity gains, the ultimate pay-off will only come to CEOs with the courage to embrace risk as opportunity,” said IBM vice chairman Gary Cohn.