Many businesses are investing in artificial intelligence (AI) not because it’s paying off, but because they are afraid of falling behind. A new IBM report shows that while returns on AI spending are low, the fear of missing out (FOMO) is pushing companies to spend even more. With tech giants pouring billions into AI, smaller firms feel they must follow—even if they are unsure of the value.
FOMO, Not ROI, Is Leading the Charge
According to IBM’s latest survey of 2,000 CEOs, only 25% of AI projects have delivered the expected return on investment (ROI). Even fewer—just 16%—have been scaled across the entire company. Yet despite these disappointing results, interest in AI is growing faster than ever.
IBM found that more than 60% of executives say their companies are already using AI agents. Many expect AI investments to more than double over the next two years. But why the rush if the payoff is so small?
The answer is simple: fear. IBM says 64% of CEOs admit they are investing in new technology—including AI—because they don’t want to fall behind. They are worried that if they wait too long, they may miss the next big shift in the business world.
Big Tech Is Setting the Pace
Part of this fear comes from watching what tech giants are doing. Companies like Amazon, Google, Microsoft, and Meta are investing billions in AI each year. That kind of spending sends a message: if you’re not in the AI game, you’re out of the game entirely.
For example, Meta recently announced it would raise its capital spending for 2025 to between $64 billion and $72 billion. Much of this money will go into building AI tools and the hardware needed to support them.
Microsoft is also encouraging other companies to adopt AI. In a recent report, it said that firms combining human workers with AI agents—called “Frontier Firms”—are more likely to succeed. These businesses are growing faster, adapting quicker, and staying ahead of the curve.
The Pressure to Keep Up
With large companies leading the way, smaller firms often feel forced to act. Even if they don’t fully understand AI or have the tools to use it well, they still jump in. The thinking is: “If we don’t use AI now, our competitors will, and we’ll be left behind.”
But rushing into AI comes with risks. IBM’s report shows that more than half of CEOs say their AI efforts haven’t delivered much value beyond cutting costs. That means many companies are still trying to figure out how to use AI in ways that go beyond saving money.
At the same time, some worry that AI might actually create more work. One study showed that while AI was meant to make tasks easier, it sometimes made them more complex. Another test, using only AI agents on a team, ended in failure. These results suggest that using AI isn’t always as simple—or useful—as it sounds.
The Gap Between Hype and Reality
There is a growing gap between what people expect from AI and what it can actually do. Many see AI as the future. But that doesn’t mean it’s ready to solve every problem right now. In fact, some businesses are finding that AI adds new challenges instead of fixing old ones.
Still, the idea that AI is the next big thing remains strong. In IBM’s report, 52% of CEOs said their companies are getting value from AI. But most of that value is linked to reducing costs. Far fewer are using AI to grow revenue or innovate in meaningful ways.
The truth is, many companies are experimenting. They’re trying to find out where AI fits, how it works, and whether it’s worth the cost. That process takes time. It also takes careful planning—something that fear-driven decisions often skip.
More Businesses Are Giving AI a Try
One thing is clear: AI is not going away. The number of companies using it is growing fast. In 2024, only 34% of firms had used AI. In 2025, that number dropped to just 15% who had never tried it. That means the majority are now exploring AI, even if they are unsure of the results.
Some are starting small. They use AI to help with tasks like writing emails, answering customer questions, or sorting data. Others are going bigger—using AI to shape strategy, make hiring decisions, or design products.
How fast a company should adopt AI depends on its size, goals, and ability to manage change. There is no one-size-fits-all answer. But what’s clear is that jumping in just because others are doing it is not a smart move.
Caution May Be the Smartest Move
AI is powerful, but it’s not magic. While FOMO is driving many businesses to invest, not all are ready. Without clear goals and plans, they may waste money or make things worse.
The smarter path may be to start small, test what works, and grow from there. AI can be a useful tool, but only when it’s used wisely. As the IBM report shows, fear should not be the reason to act. Understanding, planning, and learning will always lead to better results.
