Why most AI projects don’t deliver ROI and how to fix it (www.techradar.com)

A new report highlights that a mere 28% of enterprise AI projects meet ROI expectations, with over 90% of pilot initiatives failing to transition into production. This chronic underperformance is often blamed on the technology itself. However, the article argues that the real issue lies in organizations' reluctance to adapt their operational frameworks. Many enterprises deploy AI tools without integrating systemic changes, leading to isolated productivity improvements rather than enterprise-wide impact. The failure to fully commit to AI initiatives can delay substantial benefits, as companies risk losing up to 30% of their annual revenue due to inefficiencies that AI could address. To improve ROI from AI projects, businesses need to treat AI as a core component of their operational model rather than a mere tool. This includes revising decision-making processes to align with AI’s speed and capabilities, standardizing ROI evaluation across initiatives, and fostering a culture that embraces change. The article emphasizes that true value from AI emerges when organizations dismantle legacy structures that hinder effective integration. By focusing on comprehensive support for AI initiatives, including clear governance and a long-term investment perspective, companies can harness AI’s potential, resulting in significant economic benefits and maintaining competitive advantages in an increasingly digital landscape.