It’s easy to get swept up in the AI gold rush, but that often means burning millions on shiny projects that go nowhere. For example, a recent report claimed 95% of generative AI pilots deliver no measurable ROI.
A report from Gartner echoes this bleak reality, warning that roughly 85% of AI initiatives never meet expectations. In practice, this adds up: analysts estimate companies poured anything from $30 to $40 billion into generative AI in a short time, with most experiments fizzling. Clearly, hype alone won’t pay dividends.
Cutting Through the Hype
So how do some firms avoid this fate? First, they focus on real business problems, not buzzwords. Don’t launch an AI project just because “everyone else is” – 77% of companies admit competitor pressure drives their AI efforts. Instead, start with a clear goal (e.g. reducing costs, improving customer service, boosting sales) and measuring progress. And remember the human side: Around 80% of AI failures stem from organizational or cultural issues, not the technology used. In other words, if your team isn’t on board, even the coolest AI won’t help.
Another reality check: data. Most flashy AI demos rely on pristine, curated data - which most businesses don’t have. In fact, 82% of firms say messy data is their #1 AI obstacle, and it’s common to spend the bulk of a project just cleaning data. The winning strategy is to pick projects that fit your current data setup or improve data first. For example, automate a routine report or customer-inquiry response (using data you already have) before chasing the latest trend.
Investing for Impact
Finally, run lean and test everything. Treat AI projects like experiments: start small, set clear KPIs, and scale only after you prove value. Don’t hesitate to pull the plug if a pilot misses the mark. Teams that do this spend their resources much smarter and often leap ahead. It’s like A/B testing your strategy: one approach is high-risk hype (big cost, little payback); the other is measuring growth in the long run.
How Emphasis Tech Can Help:
Emphasis Tech’s AI Ready service keeps you grounded in reality. We work with your leadership to identify AI use cases that align to your strategy and are feasible with your data and team. By defining success metrics and giving you a comprehensive assessment, we make sure your AI investments drive real value.
In short, we help you compete with AI - without wasting time or millions on dead ends. Learn more and sign up at AI Ready