Embedded AI - Intelligence at the Deep Edge

Why 95% of AI Deployments Fail

David Such Season 5 Episode 28

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0:00 | 22:56

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MIT's August 2025 study of 300 enterprise generative AI deployments found that 95% produced no measurable P&L impact. Gartner forecasts that more than 40% of agentic AI projects will be cancelled by 2027. McKinsey's State of AI 2025 identifies workflow redesign as the single strongest correlate with EBIT impact, yet only 21% of organisations have redesigned any workflows. The data converges on a structural conclusion: enterprise AI is failing because the operational substrate is inadequate, not because the models are. This episode examines the process-readiness gap, the misallocation pattern that concentrates investment in low-ROI front-office applications, and what the 5% of high performers do differently. It is an architectural argument, not a change-management one: AI is a linear amplifier acting on a pre-existing process, and the sign of the output depends on the sign of the input.

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