How to Prevent AI Implementation From Failing Like Your Transformation Did

Don't let your AI implementation run into a brick wall pictured, like your digital transformation did. — Don’t let your AI implementation run into roadblocks.

Everyone seems to be clamoring to get started on AI implementation, from enterprises to small startups. AI is a disruptive force that goes beyond technology. It’s poised to affect nearly every aspect of business–changing not just how work gets done but also reshaping processes, operating models, and even business models. For many companies, AI will demand transformative change. And if history has shown us anything, most organizations struggle with transformations of this scale. We’ve seen this in the challenges faced during previous efforts like digital, agile, and lean transformations.

When The Agile Network asked for our thoughts on this topic, we were happy to put our minds together and unpack some common pitfalls organizations face when taking on a challenge of this scale.

Is the Shiny New Toy Syndrome Driving Your AI Implementation

AI is the shiny new toy everyone wants to play with. But just because it’s new and exciting doesn’t mean it’s going to solve your most important problems. In fact, jumping on the AI bandwagon without clearly understanding how it fits into your broader business strategy is a sure way to waste time and money.

We’ve seen organizations cutting back on improvement initiatives, often not that far along in the journey, instead funding significant AI budgets, the desired outcomes of which are ill-defined. We are seeing it happen now. Organizations invest millions in AI initiatives without a clear understanding of what they’re supposed to accomplish. They end up with a massive line item labeled “AI” in their budget but no strategic intent guiding it.

The one thing we all agree on is that AI will likely be very disruptive, but the same thing can be said of a stick of dynamite. If you buy a stick of dynamite because everybody’s excited that dynamite is disruptive and moves things around, you had better have clarity regarding what problem you’re solving with your dynamite. You don’t hear much about the fact that misdirected AI initiatives could produce unexpected outcomes that could be damaging to the organization. Poor implementation can lead to errors, liability, brand damage, and a range of other problems.

Misaligned Priorities Are a Recipe for Failure When Implementing AI

A lack of alignment between leaders, strategic objectives, and implementation has been a common reason transformations failed in the past. Too often, organizations dive headfirst into initiatives like AI without considering the implications for their operating model or culture.

Change isn’t just about adopting a new technology or process. It’s about fundamentally altering how your organization works, how decisions are made, and how people collaborate. It will be an uphill battle if your leadership team isn’t fully aligned on AI’s goals and benefits. And if different parts of the organization aren’t working toward the same objectives, you’re setting yourself up for failure.

We’ve seen it time and time again—transformations stall because middle management, key stakeholders, or the employees aren’t on the same page as leadership. Go ahead and test yourself. If you’re an executive and you think you’ve done a great job of setting priorities for the organization and communicating them, sit down with your employees and ask them what the top 5 priorities of the organization are. If they can’t repeat them, you’ve failed at deploying your strategy.

This is where change management becomes critical, but not in the traditional sense. It’s not just about rolling out training or updating processes. It’s about getting the entire organization to think and act differently. You need to shift the cultural norms, governance structures, and even the way you make decisions. Otherwise, the new technology or process will simply be layered on top of the old system, creating friction and ultimately stifling any potential benefits.

The Real Risk of FOMO-Driven Decisions

Fear of missing out (FOMO) drives many organizations to make hasty, ill-informed decisions when it comes to new technologies. Nobody wants to be left behind, especially when the next big thing, like AI, comes along. However, making strategic bets on AI without clarity on the outcomes and objectives of how the technology should impact your business is a recipe for disaster.

Organizations often get caught up in the hype. They see competitors making moves in AI and feel the pressure to do the same. But before you make that leap, take a step back. Ask yourself:

What problem am I trying to solve?
What do we need to do or improve to win?
How will AI help me solve it?
And what changes need to happen within my organization to make this work?

Without answering these questions, you’re just throwing money at a problem without knowing what you want in return. And worse, you’re setting yourself up for massive internal disruption.

Transformations Are About People, Not Just Technology

At the end of the day, transformations aren’t just about implementing new technology—they’re about people. You can have the best AI in the world, but if your people aren’t on board, it’s not going to work. Culture, governance, and organizational structure all play a huge role in whether a transformation succeeds or fails.

It’s not enough to simply install a new platform or adopt a new process. You need to transform the entire organization to support it. That means changing how decisions are made, teams are structured, and success is measured. Otherwise, you’re just installing a new platform without maximizing its value.

We’ve seen pockets of success in organizations where a visionary leader was able to create an ecosystem that embraced change. But if the rest of the organization isn’t aligned, those pockets of success won’t last. The old ways of doing things will eventually crush the new initiatives unless the entire organization evolves.

Digital Transformation and Innovation Ecosystems

While it may be painful for some leaders to hear, we would assert that if your organization has a budget line item for AI that is looking for a problem to solve, your organization failed in its digital transformation. Successful digital transformation produces the ability for the organization to incorporate technological innovation into the strategy versus the other way around. Digitally competent companies master experimenting, incorporating customer feedback, and figuring out how to integrate and exploit new technologies into their organizational systems. They don’t throw money at new tech and hope for miracles. They iterate, learn, and adapt, guided by strategic intent.

If you’re serious about AI—or any other new technology for that matter—you need to build an ecosystem within your organization that can scan changes in the market and technology landscape, experiment rapidly to find opportunities to solve problems, and advance strategic objectives. This means creating a space where new ideas and technologies can be tested, refined, and scaled. It also means having the right people in place to drive these initiatives forward.

Organizations with a dedicated innovation ecosystem tend to perform better than those without one, but having an innovation lab or an R&D department is not enough. The entire organization needs to be set up to adapt and evolve. That means having the right governance structures, decision-making processes, and cultural norms in place to allow for experimentation and learning.

The Bottom Line

Transformation is hard. It requires a fundamental shift in how your organization operates, how decisions are made, and how people collaborate. AI, in particular, has the potential to be hugely disruptive—but only if it’s done right. If you’re not fully aligned at the leadership level, if you don’t have a clear strategy, and if your organization isn’t ready to embrace the change, it’s going to be an uphill battle.

But here’s the good news: it doesn’t have to be that way. By aligning your leadership team, building an innovation ecosystem, and focusing on the people side of change, you can set yourself up for success.

At Adaptivity, we’ve been helping organizations navigate these challenges for years. We’ve seen what works and what doesn’t. And we’re here to help you succeed. Whether you’re just starting your transformation journey or you’ve been at it for a while, we can help you get to where you want to go.