McKinsey: Death by a Thousand Pilots

Failing Fast in the AI Era.

We had quite a few comments on our last post about an MIT-affiliated group claiming zero returns for 95% of enterprises engaged with AI. If you hadn't had a chance to read that post, the headline of the study may shock, but the details inform: Companies are caught in a 'pilot-to-production' stall. We've seen some of the same hesitations with our clients, which is why we think it is worth revisiting this topic briefly, but from a another point-of-view.

Earlier this year, McKinsey reported that 80% of companies now use AI, but only 1% are doing it well. With such remarkable upside through intelligent systems, it is a surprise that progress has not been more pronounced across all Industries. So here is how McKinsey explains the 'midair stall':

• Only 21% redesigned core workflows for GenAI.
• Just 28% have their CEO personally leading governance.
• Those who did are already reporting higher EBIT from GenAI.

Everyone else is still “experimenting.” Translation: burning budget on proofs of concept with no system design, no feedback loops, and no metrics. A POC is a smart place to start, but only with a plan to move forward once the case is made. Darkroom engineering sheds no light.

The lesson’s obvious: AI ROI doesn’t come from the model. It comes from the org that’s willing to break itself to use it.

The future isn’t AI-native companies. In the words of McKinsey, it’s AI-rewired ones.

Are you ready to cross the divide? Let's optimize your AI strategy - reach out today!