Gen AI Project Are Failing at High Rates. But Why? cover art

Gen AI Project Are Failing at High Rates. But Why?

Gen AI Project Are Failing at High Rates. But Why?

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The conversation begins with a sobering statistic from an MIT report: 95% of generative AI pilots fail to deliver measurable impact on P&L. But as Stuart points out, that doesn’t mean they’re worthless. Many projects drive internal process improvements, enhance compliance, and streamline operations—benefits that don’t always show up on a balance sheet but are critical to business success.

This discussion highlights a recurring theme: back-office automation consistently delivers higher ROI than customer-facing AI. Internal processes are well-documented and easier to optimize, while public-facing AI carries reputational risks. Stuart shares examples of chatbots behaving badly on social media, underscoring the importance of starting with internal use cases.
Key Takeaways:

  • Most AI pilots fail to impact P&L—but still deliver internal value.
  • Data readiness is essential; clean, structured data is the foundation.
  • Back-office automation offers higher ROI and lower risk than customer-facing AI.
  • Targeted, repeatable solutions outperform one-off proofs of concept.
  • Avoid vendor lock-in by deploying in customer tenants and delivering code.
  • Success lies in purposeful design, tailored agents, and a steady approach to innovation.

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