"Why do so many AI projects flop? After years of hearing how AI will revolutionize business, recent studies have shown that companies are still consistently struggling to wring value from their investments in AI. MIT's NANDA initiative, for one, estimated that 95% of AI initiatives fail to deliver their intended value. A global survey from Boston Consulting Group found that only 26% of companies have seen tangible ROI from AI. Now, leaders are asking: What's going wrong?"
"Jack J. McGuire Jack McGuire is an Assistant Professor of Organizational Behavior and Human Resources at the Lee Kong Chian School of Business, Singapore Management University. He received his Phd in Management and Organization from the National University of Singapore Business School. His research primarily focuses on technology, leadership, and emotions."
AI adoption often fails to produce expected business value. Reported failure rates are high: MIT's NANDA estimated 95% of AI initiatives fail to deliver intended value, and Boston Consulting Group found only 26% of companies have seen tangible ROI. Common causes include poor alignment with business objectives, low data quality, lack of skilled talent, inadequate change management, difficulty integrating AI with legacy systems, and unrealistic expectations. Solutions include clear outcome metrics, cross-functional teams combining domain and technical expertise, iterative deployment with monitoring, governance and ethics frameworks, leadership commitment, and workforce upskilling to capture AI value.
Read at Harvard Business Review
Unable to calculate read time
Collection
[
|
...
]