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Majority of CEOs report zero payoff from AI splurge

https://www.theregister.com/2026/01/20/pwc_ai_ceo_survey/
54•dijksterhuis•1h ago

Comments

verdverm•1h ago
I heard it posited that the Ai stuff is uncovering corporate dysfunction better than any tool in history, i.e. garbage in garbage out, because their processes are so broken

I must admit the idea has a lot of appeal, because there are people seeing good ROIs, so it does not seem to be the tool as much as the tool user

bediger4000•1h ago
That's an interesting take, but doesn't it work backwards from the desired result ("AI" performs near miracles) to processes are so broken? That seems counter to all the enthusiastic application of LLMs to everything. People want "AI" to solve problems, and seem to be doing everything they can to put it everywhere and try everything.
jbs789•1h ago
Yeah, I think the moral of the story is if your company is not good at technology AI does not magically make you good at technology.

The company needs to have the right culture and ability to integrate leading technology, whatever it is.

thewebguyd•1h ago
> garbage in garbage out, because their processes are so broken

That's, I'd argue, the majority of companies though, which still spells a problem for the AI bubble.

I've been a part of enough failed ERP implementation projects to know that there's actually very few enterprises out there that collectively have their shit together and are good at implementing technology.

If AI also can't solve that problem for them, it'll just join the long list of already existing boring enterprise tech that some successful companies use to great effect, and others ignore or fail to adopt, which isn't exactly a multi-trillion dollar industry to live up to the current hype.

svilen_dobrev•18m ago
> uncovering corporate dysfunction better than any tool in history, i.e. garbage in garbage out

in the times when Agile was still just a way of work (not a mantra), adopting it showed exactly the glaring troubles in the overall (human) pipeline. But it needed quite some time - like months of work - to really show.

This seems same thing, only much faster..

Actually making some parallels might be interesting.. agile was/is also touted as "the silver bullet"..

justapassenger•13m ago
It's part dysfunction for sure, but it's mostly just reality being messy. Anyone who worked on a bigger engineering problem, solving real business problem, learns very quickly that reality is messy and doesn't conform to rules. And that's usually main challenge of building any project.

And it's problem specific to software engineering. Any engineering deals with it - when you manufacture physical things, for example, tolerances, safety factors, etc, are all tools to deal with reality being messy.

xvxvx•1h ago
‘Only 12% reported both lower costs and higher revenue, while 56% saw neither benefit. 26% saw reduced costs, but nearly as many experienced cost increases.’

Stock up on dry beans and rice. See if your parents have a spare room. Don’t buy anything expensive. This bubble is gonna hurt.

imiric•47m ago
Why the doom and gloom? It's going to hurt those who jumped on the bandwagon hoping to cash out. I couldn't care less about them, but I would like for computer hardware to be affordable again, and for the tech job market to go back to normal.

Though I'm more concerned about the effects of the current political climate, than the "AI" bubble popping. In the scenario of that going south, nothing will be normal for a long time.

lp0_on_fire•16m ago
The C-levels who jumped on the bandwagon are definitely not going to fall on their swords should it go south. They’ll blame the tech, fire some subordinates, suggest their customers for “not understanding it”, and their shareholders will eat it up as long as they get a pound of flesh.
techblueberry•1h ago
I'm observing a process to purchase an AI Coding assistant right now, and it made me wonder, when the rubber hits the road, how much would I actually spend on the assistant?

I don't know if I'd call myself a booster or skeptic. I'm loosely speaking all in in the office, but what would I actually spend?

On the one hand, my - I dunno, thought leader-y hat would say, why wouldn't I spend 10k/head on them. These tools are amazing, they could double someone's output.

But they also are these like infinite toys that can do anything, and you can spend a lot of money trying all the things. And does that actually provide value. Actually provide like rubber hits the road monetary value on a per-head basis. If you're really focused and good, probably? But if you're not disciplined. You can spend a bunch of money on tokens, then spend a bunch of money on the new features / services in production, and spend a lot of your colleagues time cleaning up that mess.

And this is all human stuff. This is all assuming the LLM works relatively perfectly at interpreting what you're trying to do and doing it.

So like. Does it actually provide the benefit of X dollars per engineer per year? Because it wouldn't have to, it could in fact go the opposite.

njhnjh•23m ago
If I was working for you and I heard that you spent 10k on a bullshit LLM subscription instead of paying me 10k to work harder I would look for a new job immediately.
sevenzero•9m ago
Yup, while I like being invested in at work (sending me to learn new shit at conferences or stuff like that) I'd never agree with spending 10k on some tool where even the tool vendors say "use with caution, dont use this in production, bla bla bla".

If it really augments my output, sure, currently I just watch my tokens drop to 0 within 3-4 days of using it and then having to wait a month for them to reset because I wont pay for more parrot tokens. The output speeds up some small things but to my overall speeds its not noticeable a ton.

jajuuka•1h ago
This is a really backwards reading of the data. It's like reading signups for internet service in the early years and going "more than half of households have not signed up for internet, looks like this internet thing is a flop." Of course you're not going to see overnight transformation. It's a snowball effect that eventually builds bigger and bigger.
imiric•1h ago
Umm no, your example is a backwards reading of the data.

From the PwC survey:

> More than half (56%) say their company has seen neither higher revenues nor lower costs from AI, while only one in eight (12%) report both of these positive impacts.

So The Register article title is correct.

> It's a snowball effect that eventually builds bigger and bigger.

That's just wishful thinking based on zero evidence.

imiric•1h ago
Considering that "AI" providers are now adopting advertising, I wonder how many of them are actually seeing lower costs and higher revenue from dogfooding.

The hype train must go on, and I'm sure all employees are under strict NDAs, so we may never know.

lp0_on_fire•7m ago
Adopting advertising in almost an inevitably in any tech at this point. I wouldn’t necessarily attribute it to anything they’re seeing in usage - IMO its just the standard “we’re leaving money on the table by not” that we’ve seen time and time again.
chis•49m ago
What would the average software engineer pay for a AI coding subscription, as compared to not having any at all? Running a survey on that question would give some interesting results.
labrador•23m ago
I particpated in the personal computer boom of the 1980's and remember mainframe guys who were the establishment saying the same thing about personal computers.
FeteCommuniste•11m ago
What are MS, Google, and today's other massive LLM-boosters if not "the establishment?"
hackable_sand•6m ago
That's because they were scammed.

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