"But once people started reemerging into the world to once again hit the gym and ride their bikes outdoors, the company began to struggle, a tailspin that has been ongoing ever since. The company's stock dropped by almost 30 percent in 2025 alone, while over 100,000 subscribers decided to part ways. In an unsurprising move, Peloton announced a flashy pivot to AI last year to drum up some much-needed enthusiasm amid the slump."
"While many companies have argued that AI can do the jobs of those who've been caught up in layoffs, we have yet to see any compelling evidence for that conclusion, suggesting it's more an excuse for implementing austerity measures than true AI automation. Case in point, a study published by researchers at MIT last year found that a staggering 95 percent of attempts to incorporate generative AI into business so far are failing to generate "rapid revenue acceleration.""
Peloton surged during the COVID-19 pandemic by enabling at-home fitness, but demand collapsed as customers returned to gyms and outdoor cycling. The company's stock fell nearly 30 percent in 2025 and more than 100,000 subscribers canceled. Peloton pivoted to AI and raised subscription prices while releasing higher-priced equipment with cameras that track users, but sales remained weak. The company cut 11 percent of its workforce to save $100 million and said it would optimize spending by reshaping teams and locations. Broader corporate AI investments frequently fail to produce rapid revenue gains, with one MIT study finding 95 percent of attempts ineffective.
Read at Futurism
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