AI's Shaky Ground: A Reality Check for Tech Giants

The biggest AI developments, decoded. 27 May 2026. | Business News

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Critics are calling out AI companies for their overpromises and underperformance. A recent incident at Starbucks, where AI-powered inventory management failed to deliver, is just one example. The company has axed the technology due to frequent miscounting and mislabeling of items.

Meanwhile, a report by HCLTech notes that 43% of major AI initiatives by enterprises are likely to fail due to hidden constraints and inadequate cross-functional coordination. The report highlights the need for organisations to adapt their structures and decision-making processes to keep pace with AI.

Google's recent changes to its AI Pro subscription plan, including compute-based usage limits, have also sparked controversy. The company is pushing users to buy more credits, with prices ranging from ₹2,450 to ₹19,500 for a year's validity.

As AI's limitations become increasingly clear, it's time for tech giants to take a step back and reassess their approach. Can they learn to read the room and deliver on their promises, or will AI's shaky ground continue to undermine their efforts?