The ROI of Organizational AI Training

Let’s examine the common reasons for neglecting comprehensive employee training on Enterprise AI. 

• These reasons are not simply isolated mistakes; they are symptoms of deeper, systemic issues.

The big picture: Our analysis indicates that skipping AI training is not a prudent approach to cost savings; rather, it is a significant strategic error. 

• This mistake exposes the organization to unacceptable levels of financial, operational, legal, and reputational risk while simultaneously hindering the ROI that AI is designed to deliver.

• Periodically, the resulting disasters make the news.

Why it matters: The consequences of this neglect are severe and varied.

• They include multi-million-dollar project write-offs, as demonstrated by the well-documented failures of IBM Watson Health and Zillow.

• There are cascading operational inefficiencies and quality control issues, increased legal risks from biased or inaccurate AI outputs—such as those seen with Air Canada's chatbot.

• Critical security vulnerabilities due to the emergence of shadow AI, and a decline in human capital characterized by higher employee turnover and the erosion of essential critical thinking skills.

The ROI trap: The most often mentioned barrier to implementing comprehensive AI training is the financial aspect. 

• Leaders, facing tight budgets and pressure to deliver quick returns, frequently view workforce training as a discretionary expense rather than an essential investment. 

• This viewpoint stems from a misguided assumption that prioritizes immediate, visible costs while neglecting the significantly larger and often hidden long-term consequences of having an unprepared workforce.

By the numbers: The decision to forgo AI training often arises from two interconnected financial concerns: the perceived high costs of training programs and the challenge of seeing an immediate return on that investment.

• Firstly, the direct costs associated with AI training are concrete and can seem quite significant. 

• For organizations operating on tight budgets, these expenses can be intimidating when viewed in isolation on a balance sheet. 

• This concern is reflected in survey data, which shows that 41% of IT decision-makers and 26% of IT leaders identify limited budgets and high costs as the primary obstacles to AI adoption and training.

An insurance policy: Leaders often struggle to connect the initial investment in AI training to a direct and immediate return on investment (ROI).

• Enterprise-wide AI initiatives have demonstrated only a modest initial ROI, reported to be around 5.9% in some studies.

• However, the smaller, definite cost of a training program acts as an insurance policy against the larger, more likely costs associated with project failure.

• A significant underestimation of the human aspect in AI adoption often accompanies a lack of strategic direction.

The human perspective: AI literacy is a critical skill that empowers the entire workforce to engage with AI concepts effectively, ethically, and safely. 

• It has become as essential as basic computer skills. 

• An AI-literate employee understands AI's capabilities and limitations, knows how to interpret AI outputs critically, and is aware of potential biases and inaccuracies. 

• By investing in broad AI literacy programs, organizations can help employees move from being passive, vulnerable users to becoming critical thinkers and empowered collaborators.

Change management: Currently, 45% of CEOs report that their employees resist or even actively oppose the introduction of AI.

• Ignoring employee resistance does not make it go away; in fact, it often allows it to persist and even grow. 

• When there is a lack of clear communication and training, employees' fears—such as concerns about job replacement, increased surveillance, and skills becoming obsolete—are validated and intensified. 

• This situation fosters a toxic culture of fear and mistrust, resulting in low adoption of new tools, passive-aggressive resistance, and even open hostility towards AI initiatives. 

Go deeper: Download a free copy of Human Strategies for Enterprise AI