The Gap Between AI Spending and AI Value

The Gap Between AI Spending and AI Value

Author: Software Engineering Daily August 25, 2026 Duration: 54:42

It is widely reported that a gap has emerged between enterprise spending on AI and the durable value captured from that spend. Individual employees have enthusiastically adopted coding assistants and chatbots, yet those gains do not seem to be transforming businesses at an organizational level. One of the most important questions in the tech industry today is understanding why AI is not yet delivering returns that match the investment, and what separates the small number of enterprises succeeding from the many that are not.

Scale AI is known for supplying the human-labeled data behind many frontier models. It now also builds AI applications and agents for large enterprises. That combination of working alongside frontier labs and inside enterprise deployments gives the company a rare view of why enterprise AI may be stalling.

Emily Xue is the Head of Enterprise AI at Scale AI, and previously spent over a decade at Google. In this episode, Emily joins Kevin Ball to discuss the three layers where enterprise AI breaks down, why frontier model benchmarks miss what enterprises actually need, the data foundation problem, how the most successful companies combine internal domain expertise with outside AI specialists, and more.

Sponsorship inquiries:
sponsor@softwareengineeringdaily.com

The post The Gap Between AI Spending and AI Value appeared first on Software Engineering Daily.


Every day, the world of technology evolves, and Software Engineering Daily provides a crucial, in-depth look at how that happens. This podcast sits at the intersection of code, infrastructure, and the people who build it, offering long-form conversations that go far beyond surface-level news. Each episode features a detailed technical interview with engineers, founders, and researchers who are actively shaping the landscape. Listeners will hear concrete discussions about system design, programming languages, DevOps practices, and the architectural decisions behind major platforms. The focus is on the how and the why-the practical challenges and trade-offs faced by professionals in the field. It’s a resource for developers seeking to understand not just what tools to use, but the underlying principles that make them effective. By dedicating time to a single topic per episode, the podcast allows for a thorough exploration that is both educational and genuinely insightful. Tune in for a consistent and substantive dive into the mechanics of modern software, where every conversation is an opportunity to deepen your technical understanding and stay engaged with the pulse of the industry.
Author: Language: en-us Episodes: 50

Software Engineering Daily
Podcast Episodes
Scaling Agent Workloads at Vercel [not-audio_url] [/not-audio_url]

Duration: 51:25
Most AI agent setups today are built around a single session, where one user interacts with one agent at a time. However, that model breaks down when an agent has to serve a business, where thousands of requests can arri…
Inside Google’s Database Infrastructure for the AI Era [not-audio_url] [/not-audio_url]

Duration: 1:18:26
Historically, databases were responsible for storing data and returning exact results in response to queries. However, AI is now bending that contract in a new direction. Applications increasingly expect structured and u…
A Rust Framework to Simplify Distributed Systems [not-audio_url] [/not-audio_url]

Duration: 50:31
A Rust Framework to Simplify Distributed Systems Building software that runs across many machines is notoriously difficult. Developers have to grapple with problems such as race conditions, partial failures, and message…
Moving Beyond RAG with Precomputed Context [not-audio_url] [/not-audio_url]

Duration: 55:48
Retrieval has become one of the central problems in building useful AI systems. The standard approach to grounding a model in one’s own data has been retrieval augmented generation, or RAG, where an agent searches a vect…
The Death of Online Anonymity [not-audio_url] [/not-audio_url]

Duration: 52:42
Age verification is reshaping how people access the internet. An ever-growing patchwork of laws can now require government IDs, facial age estimation, or behavioral inference before you can enter digital spaces. Discord,…
TypeScript 7 and What Comes Next [not-audio_url] [/not-audio_url]

Duration: 57:15
TypeScript is a programming language that builds on JavaScript by adding a system of types. Those types let developers describe the shape of their data and catch mistakes before code ever runs, while also powering the au…
AI and the New Global Security Landscape [not-audio_url] [/not-audio_url]

Duration: 1:12:32
The conversation about AI often focuses on software, automation, and the race between attackers and defenders in code. However, some of the most consequential risks lie further afield, in domains where a mistake is measu…
How LLMs Are Reshaping Recommendation Systems [not-audio_url] [/not-audio_url]

Duration: 47:51
News feeds and recommendation systems have long relied on deep learning architectures that score each candidate item independently. As LLMs have matured, they have opened up a fundamentally different approach, where a sy…
Rebuilding the Cloud for AI Agent Code [not-audio_url] [/not-audio_url]

Duration: 49:57
For two decades, the cloud has been shaped by human developers writing code and managing its deployment. Now a growing share of production code is generated by LLMs with little human review. Because that code is not full…