"An MIT study published last week, which estimated that 95% of organizations that tried to implement generative AI into their workflows found zero return on their investment, sent AI-related stocks tumbling. Small businesses, including agencies of every stripe, are most at risk from the negatives of AI adoption, from rogue use of tools ( a recent IBM study found only 37% of organizations are tracking employee use of AI) to the consequences for their business models."
"In this candid conversation, an indie agency exec talks us through the collapse of their agency, which slid into administration in July after its founder and creative figurehead became convinced that generative AI tools would provide a silver bullet solution for existential business threats. The agency - a small production shop specializing in animated filmmaking, was the kind of firm found in every ad market on the planet, and there's lessons in its cautionary tale for the entire ad industry."
Generative AI adoption is facing growing skepticism after reports of low returns, including an MIT study estimating 95% of organizations saw zero ROI and related stock declines. Small businesses and agencies face particular risk from rogue tool use and untracked employee AI usage, with an IBM study finding only 37% monitor AI use. Client pressure for more work at lower cost pushes agencies toward tech solutions, but imperfect tools like ChatGPT leave staff to patch deficiencies. An independent animated production agency slid into administration when leadership treated generative AI as a silver-bullet fix, resulting in collapse and staff dispersal.
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