Here’s the real reason 75% of corporate AI initiatives fail
Business leaders are rushing to harness the quasi-magical powers of artificial intelligence (AI), with a projected annual spend of $60 billion on AI models by 2026. Yet, revenue from AI is only expected to reach about $20 billion per year by that point, flagging a substantial gap between investment and returns. In fact, recent studies show that roughly 75% of AI initiatives don’t succeed.
Since the launch of generative AI, we’ve been conducting extensive research involving CEO interviews and deep dives within leading companies. This work has provided inside knowledge about the success of AI initiatives and has culminated in the book The Humachine. Here are some of these insights.
AI is copyable—and one size doesn’t fit all. What’s not copyable is a unique business model, processes, and integration of humans with that technology.
Our research finds that the massive rush to apply AI technologies to existing business models and old processes will not lead to success.
