Digital Transformation: Taking It One Step at a Time

The standard approach that often gets executives into trouble is launching a massive, monolithic AI initiative—a "moonshot" project designed to transform the company all at once.

• However, this approach frequently leads to budget overruns, projects that fail to deliver intended results, and a workforce that feels more fearful than empowered.

Why it matters: According to sources like Gartner and RAND, approximately 75% of enterprise AI projects fail to achieve their objectives, which is twice the failure rate of information technology projects that do not involve AI.

• The primary reason for this high failure rate is more closely tied to people than to technology.

• Key issues include a lack of executive support, inadequate AI governance, a skills gap among employees, and data quality issues.

Zoom in: Providing AI literacy training is a proven way to help mitigate these challenges and achieve a quicker return on investment (ROI) from AI strategies.

• Before writing code or training the first model, your entire organization needs to communicate using a common language.

• You cannot build a data-driven culture on a foundation of mystery and apprehension.

• The first and most crucial investment should be in AI literacy training for everyone, from the executive team to front-line staff.

Catch up quick: Moreover, the best way to advance beyond training is by adopting an incremental approach.

• This strategy views the journey to enterprise AI as a series of calculated steps rather than one high-stakes leap.

• It fosters a culture where small failures are valued as essential learning opportunities.

• By strategically sequencing your efforts, you can leverage the lessons learned from each stage to reduce risk and inform the following steps, creating a feedback loop that nearly guarantees long-term success.

State of play: With a newly literate workforce eager for change, it is essential to establish a central body that provides governance, strategy, and direction.

• This is the role of the AI Steering Committee.

• A cross-functional team of leaders views the AI initiative from several critical angles, including IT, operations, finance, legal, HR, and business unit leaders.

• The Steering Committee's mandate is to translate the broad corporate vision into a tangible AI roadmap.

• They will define the company's ethical AI principles, set criteria for project selection, allocate resources, and serve as a repository for lessons learned from every project, whether successful or not.

Between the lines: Instead of imposing AI projects from the top down, the Steering Committee should seek insights from the most valuable source of information: the employees who perform the work daily.

• Your newly AI-literate staff are well-positioned to identify friction points, tedious tasks, and operational bottlenecks that are ideal candidates for AI-powered solutions.

• Engaging staff can be accomplished through structured workshops, internal surveys, or "AI Idea-thons."

• The Steering Committee can then evaluate these ideas against a clear set of criteria for selecting an ideal initial project.

Yes, but: The core philosophy behind this incremental model is that there are no failed pilot projects—only projects rich with lessons.

• A pilot that does not meet its initial goals can be more valuable than an easy win.

• These insights are fed back to the AI Steering Committee, creating a powerful iterative cycle: Identify → Pilot → Measure → Learn → Iterate.

• Lessons learned from Pilot A directly inform the strategies for Pilots B and C.

• Knowledge about data quality, process complexity, and user adoption becomes part of the organization's DNA.

The big picture: As you progress from small-scale pilots to more ambitious, enterprise-wide initiatives, you move beyond guessing.

• You operate from a playbook that has been tested, refined, and proven within the unique context of your company, ensuring the success of larger investments.

• By beginning with people, establishing governance, and embracing small, calculated experiments, you transform the quest for Enterprise AI into a successful journey.

Go deeper: Reach out to Todd Moses & Co and request a free book on this subject, ask for a review of your plan, or schedule AI Literacy training for your team.