The AI rush is on – but where is it taking us
Yes – the potential of AI is enormous.
As a consultant, I work with companies that are actively exploring AI, and I’ve seen firsthand how it can unlock productivity and reshape how organizations operate. But as enthusiasm grows, I can’t shake the feeling that I’ve seen this movie before.
It’s starting to feel like the dot-com bubble, version 2.0.
The hype is loud – but the numbers are sober
While headlines scream of innovation, the results tell a different story.
According to MIT’s report, 95% of AI projects never make it into production. These are not minor missteps – they signal a critical disconnect between ambition and execution.
Most AI projects fail because businesses forget a simple truth: technology is not a strategy.
AI can enhance your business – but only if it fits a real need, delivers measurable value, and solves an actual customer problem.
This is where many initiatives fall apart. Projects are launched without clarity on their purpose or return on investment. Teams lack the infrastructure, data, or skillsets to support implementation. And most dangerously, organizations forget to ask: who is this really for?
Strategy is about value – not just capability
Here’s a reminder worth repeating:
Business strategy is about using available resources to reach defined goals in the most effective way. AI is just another resource. Its usefulness is measured not by complexity, but by its ability to deliver value.
And value, in the end, is defined by customers.
No matter how elegant the algorithm, if your clients don’t feel the benefit – faster service, clearer answers, better outcomes – it’s not value. It’s noise.
I often ask my clients before any AI initiative:
- What specific customer problem are we solving?
- What metric of success will prove we’ve made it better?
- Are people (internal and external) ready to adopt the change?
If you can’t answer those, stop. Reframe the effort. Because AI doesn’t fix broken strategies – it only amplifies them.
AI won’t work without people
This is another uncomfortable truth:
The biggest barrier to successful AI adoption isn’t the tech. It’s the people.
You need people who:
- Understand the business problem and customer journey
- Can rethink and reshape internal processes
- Are motivated to use the tools in meaningful ways
Right now, too many organizations are building AI for users who aren’t ready – or worse, don’t see the point.
Adoption requires trust, relevance, training, and a sense of ownership. Without these, even the best system will gather digital dust.
The bubble will burst – and that’s not a bad thing
When hype outpaces value, correction is inevitable.
In the early 2000s, hundreds of dot-com startups vanished. But what survived – Amazon, Google, Salesforce – were businesses that understood their customer, solved real problems, and used technology as a tool, not a selling point.
I believe the same will happen with AI.
A shakeout is coming. Startups built on vague promises will fade. Corporate budgets will tighten. The “AI for AI’s sake” projects will disappear. What remains will be companies that:
- Focused on delivering measurable outcomes
- Put customer needs at the center
- Built adoption pathways from day one
And that’s how it should be.
Final thought: ask the right questions
If you’re considering investing in AI, don’t ask how advanced the tech is.
Ask:
- What specific value will it create – and for whom?
- How will we measure ROI – and how soon?
- Are our people equipped and ready to make it work?
Because without execution, there is no transformation. And without value, there is no strategy – only theatre.
The AI revolution is real.
But real change will come not from the most impressive demo –
– but from the most useful one.