Enterprises Struggle to Measure AI's Real Value, Says NEA's Tiffany Luck

Companies are still figuring out how to get a real return on their AI investments. The initial excitement is giving way to tough budget decisions. Many are scaling back after early overspending.

NEA’s Tiffany Luck, a top venture capitalist, says enterprises are still figuring out their AI ROI. Earlier this year, companies like Uber pushed AI usage to the max, a trend called 'tokenmaxxing.' But now, the bills are coming due, and some firms are cutting back. Uber reportedly blew through its annual AI budget in a few months, some companies cut Claude licenses for parts of their org, and Meta killed its internal AI leaderboard.

The big question is: does AI actually pay off? For many companies, the answer is still unclear. Some teams see real benefits, while others find the costs outweigh the gains. It’s like buying a fancy gym membership—you might use it a lot at first, but keeping up the habit is harder than expected.