Archive · 26 Dec 2025
AI Adoption Unaffected by Potential Bubble Burst
There is a concern about a bubble in AI, especially with the big investments in large language models.
However, the chief AI officer at Cognizant believes that even if this bubble bursts, it won't stop companies from using AI.
He says that companies need to figure out how to best use AI in their operations, like coding, human resources, and marketing.
Right now, many companies are using AI, but only a small number have fully scaled it up.
This shows that there's a gap between the excitement about AI and its actual impact.
The officer also emphasizes that using AI effectively requires careful planning and customization, and it's not as simple as just adding AI tools to an organization.
There is a potential AI bubble with big investments in large language models, but enterprise adoption is expected to remain unaffected even if it bursts.
Companies are figuring out their AI strategy, investment, and returns, with only 7% of enterprises fully scaling up AI use cases.
Despite a $30 billion to $40 billion investment in generative AI, less than 5% of organizations are seeing returns.
AI enablement requires engineering, design, and customization, and cannot be achieved by simply adding AI tools to an organization.
Enterprises are expected to increasingly adopt multi-agentic systems in areas such as coding, human resources, marketing, and supply chain.
- Who
- Cognizant's chief AI officer, Babak Hodjat
- What
- Potential AI bubble and its impact on enterprise adoption
- When
- Next 2 years
- Where
- Global enterprises
- Why
- To understand the impact of a potential AI bubble on enterprise adoption and the current state of AI enablement
- AI Bubble
- Potential burst in next 2 years
- Enterprise AI Adoption
- Unlikely to be affected by bubble
- AI Strategy
- Organizations figuring out strategy, investment, and returns
- Global AI Usage
- Nearly 90% of enterprises use AI
- Fully Scaled AI Use Cases
- Only 7% of enterprises
- Enterprise Investment in Generative AI
- $30 billion to $40 billion
- Organizations Seeing Returns
- Less than 5%
- AI Enablement
- Requires engineering, design, and customization