Edition #7 · Why 95% of Generative AI Pilots “Fail” (And Why That’s Misleading)
🧠 CURATED AI
I Read 50 AI Articles So You Don’t Have To — Here’s the One That Matters
This week, Fortune highlighted an MIT report with a shocking headline: “95% of generative AI pilots at companies are failing to show ROI.”
Sounds dire, right? But let’s unpack what this really means.
🔍 This Week’s Curated Insight
📰 Must-Read: MIT Report – 95% of Generative AI Pilots Failing to Show ROI (Fortune)
💡 Why It Matters
I’ve written before that about 80% of AI pilots never make it into production. But here’s the nuance: that doesn’t mean they “fail” technically.
Most AI pilots work. What stalls them is everything around the model:
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❌ Weak governance and compliance frameworks
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❌ Data that’s siloed, inconsistent, or not production-ready
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❌ Lack of business alignment from the start
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❌ No clear owner beyond the tech team
When those issues aren’t addressed up front, you don’t get measurable ROI—even if the model itself is fine.
So, saying “95% of pilots fail” is misleading. The reality is: pilots without a pathway to production and ROI modeling are never meant to succeed.
⚠️ Common Misconception
“If we run a pilot and it looks promising, ROI will follow.”
🚫 False.
A demo is not a business case. Without a clear plan for integration, user adoption, and governance, ROI is impossible to measure.
✅ Leadership Takeaway
What should executives do differently? Start with Discovery.
Before greenlighting a Proof of Concept (PoC), run structured workshops to:
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Identify AI use cases aligned to your strategy and KPIs
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Assess data readiness and system integration points
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Define governance and compliance needs
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Map user workflows and trust requirements
That’s exactly what we do in AI Discovery Workshops at SalesfyConsulting.com, helping leadership teams avoid the trap of pilots that look great in isolation but never deliver value.
✨ Final Thought
Don’t be alarmed by “95% failure” headlines. The real takeaway is this:
AI doesn’t fail. Business planning fails.
If you want your pilots to escape Demo Purgatory and drive ROI, invest in AI literacy, structured discovery, and production-readiness from day one.
Until next time,
Jose Luis Fernandez
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