tgroenwals shared this post · 3h ago
Carolyn Healey

Most AI programs still aren’t hitting the P&L.

The ones that are all made the same early decision.

They stopped treating AI as a board-level response and started treating it as an operating model redesign.

88% of enterprises now use AI in at least one function. Yet only 39% report EBIT impact (McKinsey, 2025).

This isn’t an AI problem. It’s a rollout problem.

Here’s what’s actually happening inside most enterprises:

The Broken Playbook: How Most Enterprises Roll Out AI

1/ The Board Mandates It

→ Competitive pressure hits the boardroom
→ “We need an AI strategy” lands with the CEO
→ No outcome defined. No clear owner

Reality: A mandate without a measurable business objective is just noise with a budget.

2/ The CEO Responds

→ Task force assembled
→ Chief AI Officer appointed
→ Vendors engaged quickly

Reality: Appointing leadership doesn’t create value; it creates a reporting structure.

3/ The Pilot Gets Built

→ Low-risk use case selected
→ Sandbox environment created
→ Early demos impress stakeholders

Reality: Only ~48% of AI projects reach production, and those that do take months to get there (Gartner, 2026).

4/ The Pilot Stalls

→ Integration complexity emerges
→ Change management lags
→ Business case never operationalized

Reality: Nearly half of AI proof-of-concepts are abandoned before production (S&P Global, 2025).

5/ Value Never Materializes

→ Budgets get consumed
→ Momentum fades
→ Leadership asks what went wrong

Reality: 60% of enterprises see no material value from AI investments (BCG, 2025).

The Winning Playbook: What Actually Works

6/ Start With the Business Outcome

→ Not “we need AI”
→ But “we need to move a specific metric”
→ KPIs defined before vendors are engaged

Reality: Clear, pre-defined KPIs are the highest predictor of AI success (McKinsey, 2025).

7/ Redesign the Workflow

→ AI is embedded into a reworked process
→ Not layered onto an existing one
→ Roles and decision rights are updated alongside the workflow

Reality: If your workflow wasn’t designed for AI, you’re automating dysfunction.

8/ The CEO Owns It

→ Not delegated to IT or innovation teams
→ Leadership models usage and commits long-term
→ Cross-functional alignment is enforced from the top

Reality: In high-performing firms, senior leadership engagement is 3x more visible (McKinsey, 2025).

9/ Build for Scale From Day 1

→ Architecture decisions made early
→ Systems designed for integration and governance
→ Data readiness and access are treated as core infrastructure

Reality: Organizations that design for scale early move faster and see higher success rates than those retrofitting pilots (MIT, 2025).

The board mandate isn’t the problem. The response to it is.

AI fails in the enterprise when it hits vague goals, weak data, and organizational inertia.

The companies pulling ahead aren’t running more pilots.

They’re running harder business cases, redesigned workflows, and CEOs who treat AI as an operating decision, not a side initiative.

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Bhavik Shah The point about redesigning workflows really stands out. We've seen that AI delivers value when it's built around a business outcome, not when it's added as another tool. Technology is only one part of the equation. Execution is what ultimately shows up in the P&L. 4h ago
Jessica Williams The biggest takeaway is that AI rarely fails because of the model- it fails because the workflow never changes. Technology amplifies processes; it doesn't fix broken ones. 6h ago