Enterprise AI adoption low due to high token usage, low RoI: Cognizant CEO - Business Standard

2026-06-07 · Source: artifical intelligence via Google News · Field: Business & Management — Corporate Strategy & Leadership, Operations & Process Management · Depth: Fundamental Awareness, quick

Summary

Cognizant CEO Ravi Kumar reports low enterprise AI adoption despite major investments. Frontier model companies, including Nvidia, Meta, Google, and Amazon, have announced nearly \$700 billion in AI spending this year. Kumar attributes the adoption gap to high token consumption without clear links to return on investment (ROI) or tangible business outcomes. He notes a "fear of missing out" (FOMO) drives this relentless token usage. Currently, enterprise AI applications primarily focus on productivity and efficiency gains, rather than broader value creation. The opportunity lies in bridging this gap by demonstrating clear production value.

Key takeaway

For AI/ML Directors evaluating new investments, prioritize projects with clear, measurable return on investment (ROI) and tangible business outcomes. Avoid token consumption driven by "fear of missing out" (FOMO) that lacks direct linkage to production value. Shift your strategy from pursuing mere AI capabilities to demonstrating concrete value. This ensures significant spending translates into real enterprise benefits, avoiding wasted resources.

Key insights

Enterprise AI adoption lags due to excessive token consumption lacking clear ROI and production value.

Principles

• Link AI spending to business outcomes.
• Prioritize production value over capability.
• Avoid "FOMO" driven token consumption.

In practice

• Evaluate AI projects by ROI.
• Shift focus to production value.
• Implement outcome-driven AI strategies.

Topics

• Enterprise AI Adoption
• Return on Investment
• Large Language Models
• Token Consumption
• AI Strategy
• Business Value

Best for: CTO, AI Product Manager, Product Manager, Director of AI/ML, VP of Engineering/Data, Executive

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Editorial summary, takeaway, and curation by AIssential. Original article published by artifical intelligence via Google News.