AI's promised savings aren't materializing: Just 3% of companies beat cost-cutting targets, but 85% plan to spend more
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Facepalm: Ever since it started making its way into the workplace, we've been told that AI will skyrocket productivity and cut costs – promises that have also been used to justify layoffs. So, how many organizations are actually exceeding their cost-saving targets through productivity gains? According to Gartner, a massive 3%.
The figure comes from Gartner's HR Symposium in Orlando. In a finding that perfectly sums up the blind faith so many executives have in AI, 77% of board members expect the technology will deliver value in the form of productivity and cost savings. This is despite 97% of organizations being unable to achieve cost savings through productivity alone.
CV Viverito, senior director analyst for Gartner's HR practice, said that organizations will not generate cost savings from AI at this point. "The greater...
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