The stock markets tech sector faced a large-scale sell-off on August 21, 2025, triggered by the publication of a sobering report from the Massachusetts Institute of Technology (MIT). According to the Financial Times, the MIT study revealed that up to 95% of companies that have invested in generative AI pilot projects are not yet seeing a positive return on investment (ROI). The report identifies key barriers: high implementation costs, a shortage of skilled talent, difficulties in integrating AI into existing business processes, and challenges with scalability. These findings served as a reality check for investors who had previously bought up stocks on the wave of AI hype. The report intensified fears of a "bubble" in the industry and forced the market to reassess the short-term prospects of monetizing the technology, leading to a sharp correction in the stock prices of many tech giants.
Tech Sector Sell-Off: MIT Report Casts Doubt on Generative AI ROI
