Lightcone Podcast Inside The MIT AI Study Everyone Misunderstood (And What It Means For Startups)
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Oct 30, 2025 The MIT report went viral, claiming 95% of enterprise AI projects fail, but the team uncovers the real issue: big companies struggle to implement AI effectively. They delve into why skepticism among engineers stalls progress and how startups rise to the occasion by integrating seamlessly into business processes. The discussion highlights the importance of product-minded engineers and the human element in successful AI tools. With major opportunities arising from enterprise inertia, it's a prime time for startups to thrive. Tune in for insights into the evolving AI landscape!
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Cultural Skepticism Breaks AI Projects
- Enterprises often fail at AI because internal teams don't believe in or use modern AI tools.
- That cultural skepticism prevents companies from building products that actually work.
Why Enterprise AI Efforts Stall
- Enterprise projects often fail due to bad internal IT, siloed legacy systems, and weak consultant engineering.
- Combining consultancy coordination with deep engineering is required but rare inside big firms.
Tactile Beating Banks' Multi-Year Builds
- Tactile built a decision engine for banks faster and far cheaper than big banks' internal projects.
- Their REST API plugs in models and serves real-time decisions at scale, replacing multi-year bank efforts.