Hyperliquid News Today: AI's Hype Trap: Why Focused Strategies, Not Broad Pushes, Deliver Value

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Friday, Oct 31, 2025 7:10 am ET2min read
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- MIT study reveals 95% of companies fail to gain measurable ROI from generative AI, highlighting a gap between ambition and execution.

- NTT Data’s CEO advises focusing on high-impact domains, as seen in FedEx’s targeted AI applications in operations and customer experience.

- C3.ai’s stock dropped 50% after founder’s exit and revenue decline, while BigBear.ai’s 160% rally contrasts with deteriorating fundamentals and revised forecasts.

- Healthcare AI faces hurdles like data silos and U.S. regulations, despite technological potential to combat chronic diseases.

- Strategic focus, not broad AI experimentation, is critical for turning innovation into profit, as highlighted by industry leaders and successful adopters.

Companies are overreaching in their pursuit of artificial intelligence, with many executives failing to extract tangible value from their AI investments, according to a recent MIT study and industry leaders. A July report from the Massachusetts Institute of Technology revealed that 95% of organizations are not achieving measurable returns on their generative AI expenditures, signaling a critical misalignment between ambition and execution. This challenge has prompted calls for a more focused approach, with Abhijit Dubey, CEO of NTT Data, advising executives to "pick one or two domains that are going to create disproportionate economic value for the company and go end to end" rather than attempting broad, unfocused AI integration, according to a Fortune report.

The MIT findings underscore a broader industry struggle to scale AI beyond pilot projects. For instance, FedExFDX-- has adopted a targeted strategy by concentrating AI efforts on three areas: internal operations, customer experience, and new value creation for clients, such as enhancing demand forecasting and reducing returns. Kami Viswanathan, FedEx's president for the Middle East, Indian Subcontinent, and Africa, emphasized that companies with clear AI strategies "have a much greater degree of success" compared to those without prioritization, the Fortune report noted. Similarly, Vortexa, a cargo tracking and energy analytics firm, has integrated AI into its chatbot-driven data queries but stresses the importance of human oversight to mitigate risks like AI-generated hallucinations. CEO Fabio Kuhn noted that "explainability" is increasingly critical to ensure decisions made by AI models are transparent and actionable.

However, not all AI-driven companies are managing the transition effectively. C3.ai, a firm that rebranded from an energy management focus to an AI solutions provider in 2019, has seen its stock plummet 50% in 2025 following the unexpected retirement of founder Thomas Siebel. The departure of Siebel, who was pivotal in securing major deals, coincided with a sharp revenue decline in the most recent quarter. While the company now offers over 130 AI applications to lower barriers for businesses, analysts remain skeptical about its near-term recovery, with a consensus price target suggesting caution, according to a Motley Fool article.

The disconnect between AI hype and reality is also evident in BigBear.ai's recent 160% stock rally despite deteriorating fundamentals. Despite a 22% downward revision to full-year revenue forecasts in Q2 2025 and a 18% year-over-year revenue drop, the firm's valuation has surged, raising concerns about a lack of topline growth and operational progress. Analysts previously warned against new investments in the stock, citing structural challenges and a failure to capitalize on its early-stage AI analytics niche, according to a Seeking Alpha article.

Healthcare presents another complex arena for AI scaling. January AI's Mirror tool, which analyzes patient data, maintains a hallucination rate under 1% by requiring human validation of results. CEO Noosheen Hashemi highlighted that while the technology exists to combat chronic diseases, data silos and regulatory hurdles in the U.S. hinder progress. "We have the technology today to eradicate lifestyle-based chronic diseases," Hashemi said, but added that "the question is, to what extent do we have the will to actually apply this technology?" the Fortune report added.

As companies grapple with AI's promise and pitfalls, the lessons from C3.ai, BigBear.ai, and industry leaders underscore the need for strategic focus. Dubey's advice to prioritize high-impact domains over broad experimentation aligns with the experiences of firms like FedEx, which have seen success by narrowing AI applications. For investors, the divergent trajectories of AI adopters like C3.ai and BigBear.ai highlight the risks of overhyping AI while underestimating the operational rigor required to turn innovation into profit.

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