Why 95% AI Projects Fail & Next.js 15.5

Hello!

There’s no better teacher than failure.

With that in mind, what can we learn from 95% of generative AI pilots failing? That AI itself won’t deliver value. Duolingo CEO found out the hard way after users protested his AI memo a few months back, and now he’s back with an explanation. 

Maybe the backlash doesn’t come from the right people? While the consumers weren’t enthused about the GPT-5 release, companies like Vercel and Cursor are thrilled. Does this mean a shift towards enterprise in AI?

This week, we’re also looking into the reality of AI-assisted productivity, lessons learned from Netflix’s discovery algorithm, and why communication, not code, is still the biggest factor in hitting delivery dates.

Grab your coffee and enjoy this issue of Frictionless.

In the Queue

• Sam Altman: 'Someone Is Going to Lose a Phenomenal Amount of Money'

• Next.js Migration Leading to 24% Revenue Increase

• The Real Costs of Slow Feedback Loops

• What’s New in Next.js 15.5?

• Syncing Budget with Strategy

• Best Headless CMS of 2025

• Server and Client Component Composition in React

Reduce Friction

The Hidden Cost of Slow Feedback Loops

Every 10-minute delay in verifying code adds up until you’re effectively short one engineer. If your team’s shipping speed is slowing, check the feedback loop first.

The Most Underestimated Factor in Estimation

After 200+ software builds, Pawel Brodzinski says the biggest factor in delivery speed isn’t dev speed, but communication. Fast code won’t save your release if misalignment and rework keep getting in the way.

How a Next.js Migration Grew Revenue 24% for an e-Learning Platform

Learn Squared was stuck with a slow Drupal site that frustrated users. After migrating to Next.js, their load times improved, content management became simpler, and users happier, increasing revenue by 24%.

How to Sync Your Budget with a Strategic Plan

Strategic plans talk vision, budgets talk numbers, and they rarely talk to each other. If you're planning for next year, ground both in stakeholder priorities to turn strategy into action.

Deepen Your Expertise

Inside Netflix’s $1 Billion Algorithm

Discover the matrix math behind Netflix’s recommendation engine, how real-time learning and A/B testing help with product discovery. 

5 Best Headless CMS Platforms in 2025

Picking the best headless CMS can feel like a maze, so we’ve prepared a review of 5 best CMS solutions in 2025. Find out where Sanity, Strapi, Storyblok, Prismic, and Contentful shine, and when you’re better off with another option.

Next.js 15.5

We might be waiting a bit longer for Next.js 16, but 15.5 is already paving the way with smarter TypeScript, stable middleware, and production turbopack builds. Best start prepping now before the deprecations hit.

Server and Client Component Composition in Practice

Working with RSCs in Next.js? Learn how to properly compose client and server components to avoid unnecessary re-renders, and reduce bundle size, to keep your app performant.

AI Corner

MIT Report: 95% of Generative AI Pilots at Companies Are Failing

Despite all the hype, only 5% of generative AI pilots are delivering real business value. The rest are stuck because of vague goals and over-investment in the wrong areas.

Sam Altman Says ‘Yes,’ AI Is in a Bubble

Even OpenAI’s CEO is cautioning that today’s AI boom echoes the dot-com bubble. Who will be left standing once it bursts - and who will disappear with it?

The CEO of Duolingo Wants to Have a Conversation About AI

What happens when the world’s most beloved language app says it's going all-in on AI? The CEO is back in the spotlight, trying to prove there's still room for humans at Duolingo.

The Reality of AI-Assisted Software Engineering Productivity

Addy Osmani digs into what the data says about AI coding tools in 2025. While most devs see modest 20–30% gains on greenfield work, debugging and reviewing “almost right” code slows the teams down.

GPT-5’s Rollout Fell Flat for Consumers, but the AI Model Is Gaining Where It Matters Most

Regular users might be unhappy with GPT-5, but that’s not who it was built for. Vercel, JetBrains, and Cursor are already making it their default for coding and automation, drawn by better problem-solving and lower costs than Claude. Looks like enterprise, not consumers, is where AI will focus.

Just Cool

Ocean Photographer of the Year 2025 Finalists

Take a breather and dive into the Ocean Photographer of the Year 2025 gallery. From breaching orcas in Puget Sound to a sneezing marine iguana in the Galápagos, see the marine wildlife and its most surprising.

Let’s Stay in Touch! 📨 

Do you have any comments about this newsletter issue or questions you want to ask? Drop me a message or book a meeting.