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The AI allocation trap: Record spend, vanishing returns

ID: bd644304-27d4-5e22-a067-67b188b77ebe

STIX ID: report--bd644304-27d4-5e22-a067-67b188b77ebe

Feed Name: CIO Security

Date Published: 2026-07-21

Date Updated: 2026-07-21

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The article argues that massive enterprise AI spending and high-profile cost overruns hide a deeper problem: roughly 95% of generative AI pilots produce no measurable P&L impact, not because the technology fails but because organizations allocate capital and judge multi-year bets on too-short cycles; winners focus funding, execution and appropriate time horizons rather than forcing quick ROI.

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