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Why 95% of AI Projects Are Failing to Generate Returns

https://medium.com/@pcodesdev/the-ai-emperor-has-no-clothes-why-95-of-ai-projects-are-failing-and-costing-companies-millions-c31e92afbd1c
3•pcodesdev•1h ago

Comments

pcodesdev•1h ago
After dealing with yet another AI tool malfunction at work, I investigated why so many companies are quietly regretting their AI investments.

Key findings: - The "hallucination tax" - employees spending more time fixing AI errors than they saved - 55% of companies regret replacing humans with AI - Major providers spending $40B/year, generating $20B in revenue - Striking parallels to dot-com bubble economics

The core issue: current LLMs don't know what they don't know. They're prediction engines, not knowledge systems. This works great for creative tasks but fails in high-stakes, accuracy-dependent applications.

Happy to discuss the research and answer questions.

pcodesdev•1h ago
After dealing with yet another AI tool malfunction at work, I investigated why so many companies are quietly regretting their AI investments.

Key findings: - The "hallucination tax" phenomenon where employees spend more time fixing AI errors than they saved - 55% of companies regret replacing humans with AI - Major providers spending $40B/year, generating $20B - Striking parallels to dot-com bubble economics

The core issue is that current LLMs don't know what they don't know - they're prediction engines, not knowledge systems. This works great for creative tasks but fails catastrophically in high-stakes, accuracy-dependent applications.

Happy to discuss the research and answer questions about the economics, technical challenges, or potential solutions.

ParkMobile pays $1 each for 2021 data breach that hit 22M

https://www.bleepingcomputer.com/news/security/parkmobile-pays-1-each-for-2021-data-breach-that-h...
1•curtistyr•2m ago•0 comments

Build your own AI model inference engines

https://github.com/Lightning-AI/LitServe
1•wfalcon•4m ago•0 comments

Migrate to Jackson 3.x

https://github.com/FasterXML/jackson/blob/main/jackson3/MIGRATING_TO_JACKSON_3.md
1•pmg1991•7m ago•0 comments

Why Google will win the AI race

https://investinginai.substack.com/p/why-google-will-win-the-ai-race
1•gregorymichael•9m ago•0 comments

Tech and the Wealth of Nations – Paul Krugman

https://paulkrugman.substack.com/p/tech-and-the-wealth-of-nations
1•rbanffy•11m ago•2 comments

Zoscii – Quantum-proof comms without encryption

https://github.com/PrimalNinja/cyborgzoscii
2•zhulien•12m ago•1 comments

A Man Who Finds Melodies Inside Mushrooms

https://www.atlasobscura.com/articles/plant-music-synthesizer-tarun-nayar
1•Brajeshwar•12m ago•0 comments

Show HN: Is-Kit – Lightweight TypeScript Guard and Validator Toolkit

https://github.com/nyaomaru/is-kit
1•nyaomaru•13m ago•0 comments

Show HN: Simple Photo Gallery – CLI to turn folder of photos into static gallery

https://simple.photo
1•vladoh•13m ago•0 comments

A simple CLI tool to run network tests from locations

https://github.com/jsdelivr/globalping-cli
1•jimaek•19m ago•0 comments

'Most aesthetic line': Kilian Jornet climbed 73 highest US mountains in 31 days

https://www.theguardian.com/sport/2025/oct/04/kilian-jornet-states-of-elevation-us-fourteeners
1•bookofjoe•19m ago•0 comments

Qwen Travel Planner

https://qwen.ai/blog?id=6228c39fa97ce1a9e65f9e7ce98787a743007fe4&from=research.latest-advancement...
1•GTP•22m ago•0 comments

.ai TLD accounts for ~50% of Anguilla state revenue

https://marginalrevolution.com/marginalrevolution/2025/10/the-ai-boom.html
2•FergusArgyll•22m ago•0 comments

Nuclear Option

https://en.wikipedia.org/wiki/Nuclear_option
1•niklasbuschmann•22m ago•0 comments

Thoughts on Arattai – Messaging App by Zoho

https://foss.life/notes/2025/thoughts-on-arattai/
1•imbdb•24m ago•0 comments

Show HN: Caffeine Clock – A beautiful and accurate caffeine tracker app

https://www.caffeineclock.app
5•WingenderA•25m ago•0 comments

Show HN: Calcetra – an interactive geometry explorer for math visualization

https://calcetra.com/circle?lang=en
2•imbdb•26m ago•0 comments

Sonne 4.5 keeps blowing my mind

https://curzel.it/blog/2025_10_05_sonnet_4.5_blows_my_mind.html
2•Curzel•27m ago•0 comments

Show HN: Float – What if Slack worked like Claude Imagine? (dynamic inboxes)

https://website.float-chat.com/
2•FloatAIMsging•32m ago•0 comments

Don't Be a Sucker [video]

https://www.youtube.com/watch?v=vGAqYNFQdZ4
2•dragonbonheur•39m ago•0 comments

Ask HN: Agentic coding workflows for complex features and large codebases?

1•nkzd•41m ago•0 comments

Korean learning video chat platform

1•keun•41m ago•0 comments

Show HN: SVG but Dramatic

https://blog.viraptor.info/dramatic-svg/index.html
2•viraptor•42m ago•0 comments

How the German government is going all in on AI

https://www.dw.com/en/how-the-german-government-is-going-all-in-on-ai/a-74214400
2•rustoo•45m ago•0 comments

Release – Back in Time 1.5.6

https://github.com/bit-team/backintime/releases/tag/v1.5.6
1•buhtz•47m ago•0 comments

Bush Mechanics

https://en.wikipedia.org/wiki/Bush_Mechanics
3•defrost•50m ago•1 comments

Saint Guinefort

https://en.wikipedia.org/wiki/Saint_Guinefort
2•kamma4434•51m ago•0 comments

A real-time journey through the Apollo missions

https://apolloinrealtime.org/
3•FergusArgyll•53m ago•0 comments

Rural Californians Want to Secede

https://calmatters.org/politics/2025/09/redistricting-modoc-marin/
4•Physkal•59m ago•0 comments

Building Developer-First APIs

https://blog.pragmaticdx.com/p/building-developer-first-apis
1•neowise•59m ago•1 comments