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The MIT NANDA Report Challenge: AI’s ROI Problems Call for a Revisit of Solow’s Productivity Paradox, The Serendipity Economy, and Finding Value Beyond Productivity

The MIT NANDA Report Challenge: AI’s ROI Problems Call for a Revisit of Solow’s Productivity Paradox, The Serendipity Economy, and Finding Value Beyond Productivity

By Daniel W. Rasmus

“Technological revolutions rarely arrive on schedule. They come with fanfare, bold promises, and heavy investment, but their impact often hides in the shadows before it bursts into the open. Artificial intelligence now finds itself in this awkward in-between space. Boardrooms are abuzz with talk of generative AI strategies; enterprises are pouring billions into pilots and partnerships; employees are experimenting with chatbots and copilots. Yet in measurable business terms, most of these efforts appear to fail to deliver returns on the investments.”

In a thought-provoking analysis of the latest MIT NANDA Report on AI in business, Daniel W. Rasmus challenges the narrative of generative AI's underwhelming ROI, drawing parallels to Solow’s Productivity Paradox and proposing a "Serendipity Economy" where value emerges through unexpected, networked innovations. Highlighting stark findings like only 5% of AI projects reaching production while 95% stall in pilots, Rasmus critiques the report's metrics and urges a long-term, imaginative approach to AI adoption beyond traditional productivity measures.

Dive deeper into this insightful piece on rethinking AI's true potential in enterprise settings.

About the Author:

Daniel W. Rasmus, the author of Listening to the Future, is a strategist and industry analyst who has helped clients put their future in context. Rasmus uses scenarios to analyze trends in society, technology, economics, the environment, and politics in order to discover implications used to develop and refine products, services, and experiences. He leverages this work and methodology for content development, workshops, and for professional development.

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