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Why companies struggle with AI

The promise of AI for faster innovation, hyper-personalized customer experiences, and untapped efficiencies feels like a golden ticket. Yet, some companies find themselves tripping over it and fumble to implement it efficiently. Remember when boardrooms were buzzing with shallow debates about ChatGPT? Fast forward to today,  AI has evolved at lightning speed, and it is now integrated into complex business processes. So, why do a few companies struggle with AI? Let’s peel the layers of AI struggles and understand what’s actually stalling progress.

Maintaining data hygiene

Having clean, accurate, and organized data is the backbone of AI success, yet most companies treat it like an afterthought. Proprietary data, for instance, is a core driver of a company’s value and serves as a critical input for intelligent systems that set the business apart from competitors. But having unclean proprietary data undermines its potential. This is where the organizations fight their own DNA. 

Imagine teaching a world-class pilot to fly using a faulty flight. No matter their expertise, the outcomes will be disastrous. The same goes for AI. Even the smartest AI could be useless if the data isn’t good enough, resulting in flawed results. Many organizations pour resources into cutting-edge AI tools, hoping for transformative results, but overlook the unglamorous yet critical groundwork of maintaining data hygiene. Clean, consistent data isn’t just backend housekeeping, but it’s the prerequisite for reliable model performance and accurate insights.

Cost factors that play out

The cost of AI isn’t just about buying expensive software and the necessary infrastructure. While organizations focus on upfront expenses, the real budget-killers are the unglamorous after-costs associated with training the AI and scaling it to meet the desired outcomes. These accumulating costs that come with training the AI often disrupt AI initiatives before they start delivering meaningful ROI.

To solve this problem, companies should make meaningful and mindful investments. For instance, small language models offer targeted and budget-friendly AI solutions that drive real value and enable quick wins for specific use cases without overhauling workflows. The struggle isn’t just spending more, but spending smarter. Without focus, AI becomes a money pit, and not a multiplier.

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The AI hesitance and knowledge gap

You may wonder if cost is the only barrier to implementing AI. Well, it is not! More often than not, effective AI implementation needs more than just investment. It requires a leadership that understands the contextual implementation, limitations, and outcomes. A vague direction for GenAI adoption leads to seeing AI as a black box and establishes a reluctance. 

Hence, the implementation gap need not  merely be technical but can be cultural as well. Closing this gap requires demystifying AI and articulating why AI matters, where it fits, and how it drives measurable impact.

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AI adoption across teams

AI adoption often falls short of its potential when efforts operate in silos, ultimately diluting its impact. Different teams tend to speak different dialects of AI. Engineers focus on model accuracy, managers demand ROI, and frontline employees worry about increased complexity. To realize the true value of AI, organizations must treat it as a collaborative, cross-functional initiative rather than a standalone solution. Aligning use cases with business KPIs, promoting AI literacy in plain language, and co-designing solutions that address shared objectives are critical to breaking down these barriers.

AI thrives when it’s connected across the organization rather than being an isolated experiment within a department.  Nike, for example, integrated AI into design and manufacturing not just to automate but to reinvent the sneaker development cycle. True success lies in transforming isolated successes into enterprise-wide momentum.

What AI can (and cannot) own

The line between what can and cannot be automated is often blurred by hype, but clarity here is critical. You can automate a marketing email, but not the emotional intelligence to navigate a PR crisis. The danger lies in over-automating and forcing AI into tasks requiring intuition, nuance, or moral reasoning.

Finding the sweet spot between automation and human judgment is essential to maximizing impact without compromising empathy, ethics, or effectiveness. It is humans who bring meaning, purpose, and context. That’s where the real value lies.

The true value of AI lies in its ability to augment how we create and make decisions, not to substitute human intelligence. Let AI handle the “how,” freeing humans to own the “why.”

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