> Researchers at MIT published a report showing that 95% of the generative AI programs launched by companies failed to do the main thing they were intended for
I think everyone had a gut feel for something along those lines, but those numbers are even starker than I would've imagined. Granted, many (most?) people trying to vibe code full apps don't know much about building software, so they're bound to struggle to get it to do what they want. But this quote is about companies and code they've actually put into production. Don't get me wrong, I've vibe coded a bunch of utilities that I now use daily, but 95% is way higher than I would've expected.
> Some large companies’ pilots and younger startups are really excelling with generative AI,” … “It’s because they pick one pain point, execute well, and partner smartly with companies who use their tools,”
Everyone victory lapping this as a grand failure should pay attention to the above snippet.
I can’t help but feel like the hype generators don’t use the tech themselves. I can contrast this with crypto as a recent example. Sure there were some interesting tidbits there, but I just didn’t see the appeal.
With llms the changes are transformative. I’m trying to learn 3d modeling and chatgpt just gave me a passable sketch for what I had in my mind. So much better than googling for 2 hours. Is the cooling off because industry leadership promised agi last year and it’s not here yet?
>Researchers at MIT published a report showing that 95% of the generative AI programs launched by companies failed to do the main thing they were intended for — ginning up more revenue.
AI startups were meant to solve problems in novel ways not to amass revenue.
I find it increasingly annoying to watch how the AI bubble hasn't burst and is currently shifting the entire economic paradigm while we get a constant stream of articles about how "actually AI flopped and it's all over guys, the show is finished pack up". Jesus, it's like worse than if just one or the other was happening.
A few HN members did submit the MIT report [PDF]^1 but HN discussion has instead centered around articles written about the report and the market's apparent reaction to it
14 comments
[ 3.3 ms ] story [ 34.1 ms ] threadI think everyone had a gut feel for something along those lines, but those numbers are even starker than I would've imagined. Granted, many (most?) people trying to vibe code full apps don't know much about building software, so they're bound to struggle to get it to do what they want. But this quote is about companies and code they've actually put into production. Don't get me wrong, I've vibe coded a bunch of utilities that I now use daily, but 95% is way higher than I would've expected.
Everyone victory lapping this as a grand failure should pay attention to the above snippet.
With llms the changes are transformative. I’m trying to learn 3d modeling and chatgpt just gave me a passable sketch for what I had in my mind. So much better than googling for 2 hours. Is the cooling off because industry leadership promised agi last year and it’s not here yet?
Reading stuff like this makes me question the entirety of the article.
AI startups were meant to solve problems in novel ways not to amass revenue.
Meta just spent billions to get a B team of AI researchers. The cream of the crop couldn’t be persuaded with 8-10 figure comp packages.
This article is absolute garbage.
HN is full of articles about coding agents in a way it wasn't a few months ago.
What is overhyped is OpenAI. They don't have any moat. Why use an OpenAI model when you could use Claude or Qwen?
Some earlier discussions:
Say farewell to the AI bubble, and get ready for the crash
https://news.ycombinator.com/item?id=44964548
Tech, chip stock sell-off continues as AI bubble fears mount
https://news.ycombinator.com/item?id=44965187
Is the A.I. Sell-Off the Start of Something Bigger?
https://news.ycombinator.com/item?id=44963715
Edit: I mean the one discussed here, and in countless other recently submitted articles:
95% of Companies See 'Zero Return' on $30B Generative AI Spend - https://news.ycombinator.com/item?id=44974104 - Aug 2025 (413 comments)
95% of generative AI pilots at companies are failing – MIT report - https://news.ycombinator.com/item?id=44941118 - Aug 2025 (167 comments)
95 per cent of organisations are getting zero return from AI according to MIT - https://news.ycombinator.com/item?id=44956648 - Aug 2025 (14 comments)
https://mlq.ai/media/quarterly_decks/v0.1_State_of_AI_in_Bus...
A few HN members did submit the MIT report [PDF]^1 but HN discussion has instead centered around articles written about the report and the market's apparent reaction to it
1. For example,
https://news.ycombinator.com/item?id=44941374
https://news.ycombinator.com/item?id=44972204
https://news.ycombinator.com/item?id=44978557