WorkLore

By now, most everyone has seen the GenAI Divide report, or at least someone’s summary

95% of AI projects fail

Two key takeaways: 

1. This is not an indictment of AI – Generative AI is used in 80% of organizations with 40% officially adopting it. But Generative AI only boosts individual productivity
2. The problem is that AI adoption is primarily in highly visible areas of the business like marketing and sales, but it has mixed results at best in these areas. 

As the report notes: 

“This investment bias perpetuates the GenAI Divide by directing resources toward visible but often less transformative use cases, while the highest-ROI opportunities in back-office functions remain underfunded”

In case you didn’t catch it: Back office operations are where AI is most effective.

This is why it is critical to conduct both risk and ROI assessments of any AI adoption. The 5% of projects that make a difference in P&L are the ones that get it right.