Why CEOs Keep Betting On The Wrong Innovations?

A young boy dressed in business suit shoots a bow and arrow at a target illustrating his aspirations ... [+] in business. However, he is missing.
Does chasing the next big trend feel like a gamble that rarely pays off? Maybe it’s time to stop chasing hype and start solving real problems. Innovation failure happens when leaders prioritize flashiness over substance. Businesses often pour billions into trendy experiments that lie outside their customers’ desires or operational pain points. When CEOs gamble on unproven technologies instead of tackling issues head-on, the results are often underwhelming.
We’ve seen this story play out repeatedly. Meta gambled on the metaverse, investing billions in a vision that only a niche audience asked for. Meanwhile, Apple retrofitted AI into its existing ecosystem instead of rethinking the value AI could bring to their product lineup. Contrast these approaches with companies like Amazon and JPMorgan, who are investing in AI-powered innovations to address critical, specific bottlenecks. The difference in success couldn’t be more dramatic.
Innovation Isn’t Hype
Meta’s pivot into the metaverse will probably be remembered as one of the biggest corporate missteps of the last decade. Consumers weren’t demanding it, yet the company doubled and tripled down on the gamble. Operating losses for the company's Reality Labs division reached $17.7 billion in 2024, bringing cumulative losses since 2019 to approximately $68.9 billion. Why? Because, I believe, Meta chased excitement.
Meanwhile, Apple hesitated to lean into the AI revolution. Instead of embedding AI into untapped opportunities, they attempted to retrofit it into existing ecosystems that didn't address any real pain points. Analysts downgraded Apple’s stock, citing weak AI integration as a major factor. The company's AI delays extend into 2026, forcing it to play catch-up in the tech race. Worse yet, sluggish innovation has impacted sales. iPhone revenue dipped 0.8% in Q1 2024, with lukewarm demand from China further highlighting their missteps.
Neither company asked the vital questions that drive impactful decision-making. Who is this for? What problem are we solving? Instead, it feels like they were asking, “What’s the trendiest thing right now, and how can we be part of it?”