AI Hype Hits a Wall: 95% of Generative Projects Falter as Tablet Boom Rallies Innovation

Introduction

Today, stories of hype and surprise are colliding: A Guardian feature highlights growing skepticism in AI’s return on investment, with an MIT study showing 95% of generative AI projects deliver no revenue impact. At the same time, tech momentum surged at IFA 2025, where AI-powered smart glasses, laptops, and next-gen handheld devices stole the show. Clearly, while AI projects are stalling, immersive innovation continues to promise disruption. Tom’s Guide

Why it matters now

  • ROI Reality Check: Businesses pouring resources into AI now face mounting pressure to show meaningful value.
  • Innovation Pivot: Consumers may look beyond chatbots toward tangible hardware, where AI enhances experience, not just performs tasks.
  • Narrative Reset: As the hype deflates, successful technologies may be those embedded in real-world use, not flashy demos.

Call‑out

When 95% of AI projects underperform, innovation finds its footing not in code, but in the devices we wear and hold.

Business implications

  • Executives need to reassess AI budgets, prioritize pilot projects that directly improve workflows or outcomes.
  • Device manufacturers gain an opening, embedding AI into laptops, earbuds, and glasses may resonate more than standalone models.
  • AI teams and vendors must pivot from generative hype to capability-driven tools that deliver quantifiable impact.

Looking ahead

IFA’s highlights, like AI smart glasses and enhanced smart home appliances, signal disruption migrating to physical UX layers. Analysts expect adoption of AI-enabled hardware to accelerate in 2026 as models stagnate. The future of disruption may look less like GPT and more like Gen-IoT, smart, connected devices that surface value, not just scripts.

The upshot: AI disruption is evolving. When generative projects underdeliver, real transformation happens where intelligence meets tangible interaction. To stay ahead, businesses must rethink what “AI readiness” means in the post-hype era.

Sources:
The Guardian: “Is the AI boom finally starting to slow down?”, Aug 26 2025.Tom’s GuideThe Guardian
Tom’s Guide: “IFA 2025: AI In Everything…”, ahead of the innovation wave.arxiv.org+4Tom’s Guide+4

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