The Understanding Gap: Why Smarter AI Still Struggles to Deliver Business Value

Enterprise AI does not have an intelligence problem. It has an understanding problem. Artificial intelligence is getting smarter at an astonishing pace. Every few months, we see more capable models, stronger reasoning, and increasingly autonomous AI agents. Companies are investing billions into AI infrastructure, models and data, with global corporate AI investment reaching $252.3 billion and showing no signs of slowing down. Yet despite this progress, enterprises are still struggling to turn…

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