What’s so hard about Enterprise AI

According to RAND, an estimated 80% of Enterprise AI projects fail—double the failure rate of information technology projects that do not involve AI.

The team responsible for implementing Enterprise AI within an organization walks a fine line between becoming the hero and facing job insecurity.

This challenge arises because building Enterprise AI is more akin to the hurdles faced by startups than traditional corporate IT projects.

CTOs, VPs of Engineering, and IT Managers may have a solid understanding of the systems that drive their companies, but they often lack the expertise to develop software on the cutting edge of technology.

Having built three AI companies, I can share insights on how to make Enterprise AI successful for any organization.

First and foremost, a significant issue with Enterprise AI initiatives is that they are often overlooked by the very departments they are designed to serve. This mirrors the startup challenge of understanding your users.

Secondly, data readiness is a critical concern for Enterprise AI projects. For instance, Gartner has found that over 85% of Enterprise AI projects fail due to poor-quality data.

Preparing data and anticipating major obstacles are skills typically associated with technology founders, not IT managers. However, for managers to successfully implement Enterprise AI, they must learn from the experiences of founders.

Third, many Enterprise AI projects are launched without a clear use case. This often happens when teams attempt to create value by addressing multiple issues simultaneously, leading to setbacks as stakeholders and users perceive the new technology as superficial.

Startup founders recognize that to launch successfully, they must solve one specific problem and communicate it effectively. This leads to the fourth issue: IT Managers generally lack training in effective communication.

Just as startup founders create PowerPoint decks, elevator pitches, and investor scripts, the IT manager overseeing Enterprise AI must learn to articulate the project's vision clearly.

The primary obstacle to the success of Enterprise AI is securing buy-in from staff.

If you find this information helpful, I’d be happy to send you a free copy of "The C-Suite Guide to Enterprise AI," which addresses these and many other important issues. Just reply to this email.