Valuations

October 17, 2025

AI hype vs. productivity: a familiar story?

A human fist in a blue shirt connects with a robotic fist, symbolizing human-robot collaboration. The mood is cooperative and futuristic.

A recent MIT study tracked 300 publicly disclosed AI initiatives and found that 95 percent failed to boost profits. Similarly, a March report from McKinsey showed that while 71 percent of companies are now using generative AI, more than 80 percent saw no tangible impact on earnings.

Strikingly, researchers measured actual work output and found developers using AI completed tasks 20 percent slower than those working without it. Yet, as MIT economist Daron Acemoglu notes, pressure from boards and executives means managers are often told they must adopt AI, regardless of results.

It’s a cycle that feels familiar. In the 1980s, computers, email, and online calendars promised huge productivity gains. Instead, many companies cut support staff, and knowledge workers found themselves spending hours on emails, notes, and scheduling, often at the expense of their core work. The result? More time spent on tasks that didn’t move the business forward.

The takeaway: tools alone don’t guarantee productivity. Their value depends on how well (and why) they’re used. Just as email can be either a productivity booster or a time sink, AI’s impact will depend on whether companies adopt it thoughtfully, not just because it’s the trend of the moment.

At Apprise, we see the same principle play out every day. Tools and data can be powerful, but their value comes from pairing them with the right expertise and judgment. That’s what ultimately drives better decisions and meaningful results.

Unlock a smarter appraisal process with Apprise.

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