Artificial intelligence is a hot topic right now. Driven by a fear of losing out, companies in many industries have announced AI-focused initiatives. Unfortunately, most of these efforts will fail. They will fail not because AI is all hype, but because companies are approaching AI-driven innovation incorrectly. And this isn’t the first time companies have made this kind of mistake.
The First Wave of Corporate AI Is Doomed to Fail
Driven by a fear of losing out, many companies have announced AI-focused initiatives. Unfortunately, most of these efforts will fail. This isn’t the first time companies have made this mistake. Back in the late 90s, the big buzz was around the internet. Most companies started online divisions. But there were very few early wins. Then, the dot-com bust happened. A few years later, they were caught napping when online upstarts completely disrupted industries like music, travel, news and video while transforming scores of others. The authors argue that a similar story of early failures leading to irrational retreats will play out with AI. How does a manager justify continuing to invest in AI if the first few initiatives don’t produce results? The authors suggest taking a portfolio approach to AI projects – a mix of projects that might generate quick wins and long-term projects focused on transforming end to end workflow.