US Census data reveals 2% drop in enterprise AI adoption

US Census Bureau data reveals AI usage among large companies dropped from nearly 14 percent in mid-June to under 12 percent in August—the largest decline since tracking began in November 2023. This represents a concerning trend for tech investors who have poured billions into AI development, expecting enterprise adoption to drive sustainable returns on their massive investments.

What you should know: The decline affects companies across different sizes, with the steepest drop occurring among enterprises with over 250 employees.

• Data from over 1.2 million US firms shows AI usage fell most dramatically in large corporations, while very small businesses with fewer than four workers saw slight increases.
• Mid-sized companies with 19-250 employees experienced either flat or declining AI adoption rates during the same period.

The big picture: Enterprise AI has failed to deliver promised revenue despite massive corporate investment and industry hype.

• A staggering 95 percent of US companies that adopted AI report the software has generated zero new revenue.
• Tech investors and CEOs have positioned enterprise AI as crucial for building sustainable business models, with their spending literally propping up the US economy.

Why this matters: The data contradicts bullish predictions from industry leaders about AI’s transformative potential for businesses.

• SAP CEO Christian Klein, who leads the German software giant, claimed in 2024 that enterprise AI “will indeed revolutionize how companies will run.”
• UBS, the Swiss wealth management firm, stated as recently as June that “a peak in overall AI adoption is still a long way off, and accelerating AI use is set to drive further monetization across industries.”

Signs of broader AI disappointment: Several high-profile setbacks have dampened AI enthusiasm throughout the summer.

• OpenAI’s long-awaited GPT-5 model performed worse on benchmark tests than its peers, falling short of expectations for human-level artificial intelligence.
• Companies that previously laid off human workers to implement AI solutions are now scrambling to rehire employees, recognizing the technology’s limitations.

Market concerns: Financial experts warn that the tech industry may never recover its AI investments as innovation appears to plateau.

• Tech stocks continue breaking records based on AI hype, creating a disconnect between market valuations and actual performance.
• Some analysts suggest companies are hitting a wall with AI capabilities, unable to deliver the productivity gains that justified initial investments.