Tech Selloff Continues as Investors Question AI ROI | Bloomberg Tech 8/20/2025

The tech sector has been facing a prolonged sell-off, as investors express concerns over the return on investment (ROI) from artificial intelligence (AI) initiatives. According to a report from MIT, most enterprises are not seeing any substantial returns from their AI investments. This has led to increased skepticism among investors, who are now questioning the viability of AI as a viable business strategy. Bank of America's new chief technology and information officer has also spoken about the bank's approach to AI, highlighting the need for a more measured and strategic deployment of the technology. Analysts have also commented on Meta's decision to restructure its AI team, suggesting that the company may be facing challenges in translating its AI capabilities into tangible business outcomes. The article paints a picture of a tech industry that is facing increasing pressure to demonstrate the real-world impact of its AI investments, as investors become more discerning about the value proposition of these technologies.