Executive Summary
MIT research reveals only 5% of enterprise GenAI deployments are working, while Gartner predicts 40% of projects will be canceled by 2027. This massive gap between model performance improvements (40-60% over two years) and enterprise adoption represents the defining investment opportunity of the AI cycle. Matt Fitzpatrick, CEO of Invisible Technologies, argues that enterprises cannot adopt AI without forward-deployed engineers (FDEs) - a thesis that directly contradicts the prevailing 'out-of-the-box' SaaS paradigm. Having raised $130M and doubled down on FDE infrastructure across eight cities, Invisible validates this contrarian view with capital allocation. The core insight: enterprise AI adoption requires hyper-personalized software built through intensive human infrastructure, not generic SaaS products. This creates a structural advantage for companies like Palantir that recognized this reality a decade early. The enterprise AI market is moving from 'software as a service' to 'software as a custom deployment' - a fundamental shift that rewards companies with institutional memory in complex enterprise workflows. Fitzpatrick's prediction that enterprise adoption will take 5-10 years, not 1-2, suggests current market pricing dramatically undervalues the infrastructure players who can bridge this gap.
Key Insights
what Matt Fitzpatrick said“MIT just released this report that 5% of genAI deployments are working in any form. I think you've seen Gartner saying 40% of enterprise projects will likely be canceled by 2027.”
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