Reported by Steve Lohr

(Excerpt shared below. To read full report, go to: https://www.nytimes.com/2025/08/13/business/ai-business-payoff-lags.html)

Nearly four decades ago, when the personal computer boom was in full swing, a phenomenon known as the “productivity paradox” emerged.

It was a reference to how, despite companies’ huge investments in new technology, there was scant evidence of a corresponding gain in workers’ efficiency.

Today, the same paradox is appearing, but with generative artificial intelligence. According to recent research from McKinsey & Company, nearly eight in 10 companies have reported using generative A.I., but just as many have reported “no significant bottom-line impact.”

A.I. technology has been racing ahead with chatbots like ChatGPT, fueled by a high-stakes arms race among tech giants and superrich start-ups and prompting an expectation that everything from back-office accounting to customer service will be revolutionized. But the payoff for businesses outside the tech sector is lagging behind, plagued by issues including an irritating tendency by chatbots to make stuff up.