Tag: enterprise AI

Major technology companies have announced over $300 billion in combined AI infrastructure investments, yet McKinsey reports that 80% of organizations see limited material impact from their AI initiatives. Why this disconnect?
The answer lies not in the technology itself, but in where we are on the adoption curve. Like previous transformative technologies, AI is following a predictable S-curve pattern. Most organizations are still in the early stages, learning to navigate challenges around explainability, regulatory compliance, and organizational readiness.
The good news? The 20% seeing meaningful results—and the 4% creating substantial value—are showing us the path forward. Success requires understanding that AI explainability exists on a spectrum, with different approaches suited to different use cases. High-stakes decisions in healthcare or finance may require interpretable models, while content generation can leverage more complex systems.
As both technology and regulation continue to evolve, organizations that take a balanced approach—investing in people and processes alongside technology—are beginning to close the gap between AI investment and value creation.