Business

Artificial intelligence (AI), once hailed as capitalism’s new golden goose, is increasingly showing signs of being more hype than substance. Generative AI was expected to revolutionize industries—writing emails, reinventing customer service, and even reshaping entire economies. But as 2026 approaches, the much-vaunted promise appears to be faltering.

A new study from the Massachusetts Institute of Technology (MIT) has revealed that 95% of enterprise AI pilot projects fail to deliver meaningful revenue impact. Despite the frenzy around adoption, only about 5% of corporate AI initiatives have shown measurable improvements to company earnings.

Analysts point out that Silicon Valley’s hype cycle moves faster than genuine product-market fit. Tech giants such as OpenAI, Google, and Anthropic release new models at breakneck speed, prompting companies to scramble for integration. Roadmaps are rewritten, budgets are shifted, and executives announce ambitious “AI pivots.” Yet in most cases, the results are underwhelming—busy dashboards with little effect on the bottom line.

Interestingly, firms that purchase specialized AI tools are finding greater success. According to the study, they are twice as likely to achieve positive results compared to businesses attempting to build their own systems. However, many CEOs remain committed to in-house development, leading to costly projects stuck in endless beta phases. By the time a system is functional, newer models from providers like ChatGPT have already rendered them outdated.

Another concern is how AI budgets are being spent. Instead of prioritizing areas with strong return on investment, such as back-office automation and operational streamlining, many companies are directing funds toward sales and marketing gimmicks—AI-written emails, pitch decks, and lead generators. While these may appear innovative, they often fail to generate significant financial returns.

The situation has revived a recurring question: is artificial intelligence a bubble? OpenAI CEO Sam Altman recently acknowledged that it is—but with a twist. He described it as “a bubble built around a kernel of truth.” This echoes the dot-com boom of the late 1990s and early 2000s, when billions were invested in internet startups. While many collapsed, the survivors—Amazon, Google, and eBay—emerged as global giants.

Today’s AI cycle bears striking similarities. Trillions of dollars are being poured into data centers and startups, and nearly every corporate strategy now touts AI integration. Yet, the gap between investor expectations and real-world adoption is widening, fueling the bubble dynamic.

OpenAI itself illustrates the challenge. Despite leading the AI revolution, the company is not yet profitable. Experts argue this is a warning sign that the industry, while transformative, is still struggling to find sustainable business models.

For now, the AI bubble has not burst. But as history has shown, stretched bubbles rarely deflate politely. The coming years will reveal whether AI can move beyond the hype to deliver on its revolutionary promise.

Dr. Sidi Ould Tah was on Monday sworn in as the ninth President of the African Development Bank (AfDB) Group during a ceremony held at the Sofitel Abidjan Hôtel Ivoire in Abidjan, Côte d’Ivoire.

The inauguration marks a new leadership era for the Bank, as Dr. Tah assumes office following the end of Dr. Akinwumi Adesina’s tenure.

According to the AfDB, the ceremony was attended by several dignitaries, including Côte d’Ivoire’s President, Alassane Ouattara; Mauritanian President, Mohamed Ould Ghazouani; Congo’s Minister of Economy, Planning and Regional Integration and Chair of the AfDB Board of Governors, Ludovic Ngatsé; outgoing AfDB President, Dr. Adesina; representatives of international organizations, development partners, diplomats, the private sector, civil society, members of the Board of Directors, and AfDB staff.

Dr. Tah formally took the oath of office at 12:05 GMT before the Bank’s Governors, comprising Finance Ministers and Central Bank Governors of member countries.

Access Holdings Plc has announced the appointment of Mr. Innocent Ike as its substantive Group Managing Director/Chief Executive Officer, effective August 29, 2025, following regulatory approval.

The appointment was disclosed in a statement issued on Wednesday by the Company Secretary, Sunday Ekwochi. It comes shortly after Roosevelt Ogbonna resigned from the board in line with new corporate governance guidelines introduced by the Central Bank of Nigeria (CBN).

Ike succeeds Ms. Bolaji Agbede, who has led the company in an acting capacity for the past 18 months, following the death of former Group CEO, Herbert Wigwe, in 2024.

Reacting to his appointment, Ike expressed gratitude and pledged to build on the foundation laid by his predecessors.

“I am honoured to take on the role of Group Managing Director/Chief Executive Officer and excited to work alongside the talented team at Access Holdings.

I look forward to building on the strong legacy established by Herbert Wigwe and Bolaji Agbede, and driving our vision forward, ensuring we continue to deliver exceptional value to our shareholders and stakeholders,” he said.

A distinguished banker, Ike graduated as the Best Student in Accounting from the University of Lagos in 1988. He is a Fellow of both the Chartered Institute of Bankers of Nigeria (CIBN) and the Institute of Chartered Accountants of Nigeria (ICAN).

Dangote Petroleum Refinery and Petrochemicals has withdrawn its legal action against the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Nigerian National Petroleum Company Limited (NNPCL), and five other petroleum companies.

The suit, which was filed at the Federal High Court in Abuja, was formally discontinued by the company’s legal team through a notice of discontinuance submitted to the court.

Other defendants in the case included AYM Shafa Limited, A.A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited.

No official reason was provided for the withdrawal, and details surrounding the lawsuit, including the reliefs sought and whether an out-of-court settlement was reached, remain undisclosed.

President of the Dangote Group, Aliko Dangote, has called on federal and state governments to prioritise support for local investors as a key strategy for driving economic development and attracting foreign investment.

Dangote made the call during the Taraba International Investment Summit held in Jalingo, which drew participants from across Nigeria and beyond.

The business magnate, who is Africa’s richest man, emphasised that thriving domestic investment is a prerequisite for foreign investor confidence.

“I want to give a word of advice, Your Excellency, the only way for you to attract foreign investments or investors is by having local investors. Domestic investors are the ones who actually attract foreign investors,” he said.

Dangote explained that foreign investors are drawn to environments where local businesses are already succeeding, noting that investment prospects and economic activity naturally attract external interest.

“If you don’t invite local investors to come and invest, no foreigner will come and invest. Foreigners are attracted only when they see prospects for investment. Once they see that, yes, things are flowing, you don’t have to invite them, they will come,” he added.