95% AI pilots fail?, Process is the real AI killer, Buying wins 2x over building, Enter the forward deployed engineer cover art

95% AI pilots fail?, Process is the real AI killer, Buying wins 2x over building, Enter the forward deployed engineer

95% AI pilots fail?, Process is the real AI killer, Buying wins 2x over building, Enter the forward deployed engineer

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 In this episode of Generation AI, hosts Ardis Kadiu and JC Bonilla examine the widely misinterpreted MIT report claiming "95% of GenAI pilots fail," exploring why this headline misses the real story. While individual employees are finding significant value with AI tools (90% use personal AI regularly), organizations struggle to capture this value at the enterprise level—not because the technology doesn't work, but due to change management, leadership alignment, and implementation challenges. Through Element451's own QBR automation struggles, the hosts illustrate how the gap between impressive demos and measurable business impact stems from organizational readiness, not technological limitations. They discuss why vendor solutions succeed at twice the rate of internal builds (67% vs 33%), introduce Forward Deployed Engineers as the bridge between technology and business context, and explain why back office automation delivers higher ROI than marketing despite budget allocation. This conversation provides practical guidance for higher education leaders on moving from shadow AI productivity gains to true enterprise transformation, emphasizing that the challenge isn't whether AI works—it's how organizations need to evolve to capture its value.AI Deployment Reality Check: The 95% Failure Rate (00:01:35)MIT report reveals 95% of GenAI pilots fail to deliver P&L impactOnly 5% achieve rapid revenue growthDiscussion of how this mirrors Element451's internal experiencesThe difference between pilots, POCs, and actual productsThe Shadow AI Phenomenon (00:02:43)90% of employees using personal AI tools vs enterprise subscriptionsBottom-up adoption through consumer tools like ChatGPTWhy organizations can't measure or control individual productivity gainsThe challenge of enterprise AI adoption vs consumer AIBuilding vs Buying: The Success Rate Gap (00:03:34)Internal build success rate: 33%Vendor purchase success rate: 67%Why vertical solutions outperform generic toolsThe importance of domain expertise in AI deploymentElement's QBR Case Study: When AI Projects Struggle (00:14:18)Quarterly Business Review automation challengesThe gap between data analytics and expert interpretationWhy AI needs embedded best practices and rubricsThe difference between finding patterns and implementing expertiseMarketing vs Back Office: Where Real ROI Lives (00:24:10)Over 50% of AI budgets go to sales and marketingWhy back office automation delivers higher returnsThe binary nature of workflow automation successExamples: fraud detection, application review, transcript analysisThe Forward Deployed Engineer Model (00:35:56)Origin from Palantir's government contractsHow OpenAI uses FDEs for enterprise clientsThe hybrid role: technical expertise + business understandingWhy traditional consultants can't fill this gapThe Unicorn Problem: Finding AI Operations Specialists (00:41:24)Scarcity of people who understand both workflows and AI technologyWhy agencies need to evolve their business modelsThe opportunity for innovative consultanciesElement's challenge in scaling deployment expertiseKey Recommendations for Institution Leaders (00:45:18)Move from bottom-up to top-down AI strategyProperly resource AI initiatives (not just IT side projects)Buy rather than build for 2x success rateLook for vertical solutions with deep domain knowledgeInclude internal champions in deployment projectsFinal Thoughts: Moving Beyond Productivity to Transformation (00:49:31)The shift from individual productivity to enterprise ROIWhy POC success doesn't equal business impactThe importance of AI workflow coverageAccepting that most organizations aren't behind—everyone is struggling - - - -Connect With Our Co-Hosts:Ardis Kadiuhttps://www.linkedin.com/in/ardis/https://twitter.com/ardisDr. JC Bonillahttps://www.linkedin.com/in/jcbonilla/https://twitter.com/jbonillxAbout The Enrollify Podcast Network:Generation AI is a part of the Enrollify Podcast Network. If you like this podcast, chances are you’ll like other Enrollify shows too! Enrollify is made possible by Element451 — The AI Workforce Platform for Higher Ed. Learn more at element451.com.
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