A new report from IBM has revealed a surprising truth behind the growing trend in artificial intelligence (AI) investments. Despite many companies not seeing strong returns, they keep spending more on AI. The reason? A strong fear of missing out—also known as FOMO.
Many CEOs Say AI Spending Is a Must
The IBM survey collected responses from over 2,000 CEOs across the globe. It found that only 25% of AI projects have brought in the returns that companies had hoped for. Even more surprising, only 16% of these projects have grown to reach the whole company. Still, many CEOs are choosing to invest more in AI tools.
According to the study, more than half—52%—of CEOs believe they are getting value from AI. But for many, that value is limited to saving money. Few have seen major benefits like higher sales or new ideas. In fact, many companies are still testing the waters and not sure what AI can really do for them.
So, why keep investing? One big reason is FOMO. Many leaders feel they must keep up with trends. They worry that if they don’t adopt AI now, their company will fall behind. This fear is driving decisions more than real results.
Big Tech Leads the Way—and Others Follow
Major tech companies are pouring money into AI. Meta, for example, has said it will spend up to $72 billion in 2025. This money will go toward building AI tools and the systems needed to run them. Google, Amazon, and Microsoft are also making large investments.
This sets a high bar for smaller companies. When large players spend big, others feel pressure to do the same. The fear is that falling behind in AI could mean losing customers or missing new markets.
Microsoft has also released a report that adds to the urgency. It describes a new kind of company called a “Frontier Firm.” These are companies that use both AI tools and human workers together. According to the report, this model is the future. Microsoft says businesses that adopt this setup now are more likely to thrive.
Is the Race to AI Worth It?
The push to use AI is not without problems. While many believe it is the future, the results so far have been mixed. Some companies find that AI tools help with simple tasks, like sorting data or writing reports. But others say the tools create more work than they save.
One study tested a team made up of only AI agents. The result was a complete failure. The agents could not work together well, and the whole project collapsed. In another study, human workers said AI tools made their jobs harder, not easier.
Still, AI use is growing fast. In 2024, only 34% of businesses had used AI. In 2025, that number has jumped to 85%, with only 15% saying they have never used AI before. This rise shows how quickly companies are moving to adopt the technology, even without a clear payoff.
A Careful Approach May Work Best
Experts suggest that rushing into AI just because others are doing it is not a smart move. Each business is different. What works for a tech company might not work for a small shop or a health clinic. Leaders should think about their goals and needs before spending big on AI.
For example, if a company wants to cut costs, simple AI tools for customer service might help. If the goal is to improve products or create new services, the company might need more advanced AI. But either way, it’s important to test the tools first and see what really works.
Also, training matters. Many AI tools need skilled people to set them up and keep them running. Without the right workers, even the best AI tools can fail. So, businesses should invest in training or hire new talent before rolling out AI on a big scale.
The Bottom Line
AI is not a magic fix. It has potential, but it also has risks. The current rush to adopt AI is being led by fear—fear of being left behind. But smart leaders know that copying others is not always the best plan.
If you run a business, ask yourself: What do I want AI to do for me? Do I have the people and tools to make it work? What are the real costs and benefits?
Taking time to answer these questions can save money and avoid mistakes. AI is here to stay, but that doesn’t mean you need to jump in headfirst. Go slow. Test often. And most of all, invest because it fits your plan—not just because everyone else is doing it.
