From Hype to Hard Truth: Srini Kakkera Reacts to MIT's 95% AI Failure Rate in Enterprises

San Francisco, CA - September 17, 2025 - Srini Kakkera, a recognized thought leader in AI-driven enterprise transformation, issues a crucial response to the recent MIT report The GenAI Divide: State of AI in Business 2025, which reveals that 95% of generative AI pilots in enterprises fail to generate measurable business value.

Despite massive U.S. enterprise investments estimated between $30 and $40 billion in generative AI tools, only 5% of pilots successfully scale to deliver tangible profit or productivity gains, exposing a significant divide between AI adoption enthusiasm and real-world transformation.

"The MIT findings expose that the struggle isn't due to AI technology capabilities but an organizational learning gap," states Kakkera. "Most companies launch pilots expecting quick wins, but without integrating AI deeply into workflows or aligning initiatives with business KPIs, projects stall as isolated experiments rather than drivers of value."

Key insights from the MIT report include:

A majority of AI investment disproportionately targets sales and marketing efforts, while back-office automation yields the highest ROI by cutting outsourcing, reducing agency costs, and streamlining operations.

Companies partnering with external AI vendors experience twice the success rates compared to those building proprietary solutions in-house, particularly in regulated sectors.

The rise of "shadow AI"-unmanaged, unsanctioned use of AI tools such as ChatGPT-poses compliance and productivity risks.

Workforce shifts are actively underway in customer support and admin roles, primarily through attrition rather than layoffs, underscoring the need for adaptive reskilling.

Srini Kakkera urges enterprise decision-makers to bridge the "learning gap" by:

Anchoring AI pilots to measurable business outcomes from day one.

Choosing solutions that adapt and learn from user feedback.

Empowering operational teams to lead adoption beyond central AI labs.

"The future of enterprise AI depends on transforming pilots into production and hype into hard business results," Kakkera concludes.

Redwoods AI Inc
405 Boulder Court, Suite 800
Pleasanton, CA 94566

Srini Kakkera is a seasoned enterprise AI and cloud technology leader with over 25 years of experience driving innovation and transformation in AI-powered software and SaaS platforms. As Chief of AI Products & Technology at Redwoods AI, he specializes in AI/ML architecture, generative AI services, and scalable cloud solutions. Srini has a proven track record leading product engineering for large AI deployments, including conversational AI at Adobe, and has been instrumental in the successful growth, acquisition, and IPO of multiple tech companies. Known for his deep expertise in AI integration, enterprise security, and cross-functional leadership, Srini is a recognized voice in bridging AI pilots to measurable business outcomes through practical strategy and innovation.

This release was published on openPR.