The Ready reposted this
Roughly 5% of integrated AI pilots generate measurable ROI. I see that number cited everywhere, usually to support some version of "AI is overhyped." But that's the wrong read. The question isn't whether AI generates value. It's whether your organization knows how to act on what it learns. Most don't. And they didn't before AI showed up either. Johnson & Johnson ran nearly 900 generative AI pilots. Their CIO looked at the data: 10-15% of use cases were driving about 80% of the value. So they killed most of the pilots, dissolved the central governance board, and concentrated resources on a handful of bets that actually worked. Moderna built their own internal AI tool, ran a direct comparison against ChatGPT Enterprise, found they'd been outperformed, and shut their own product down. PepsiCo ran broad pilots, named four or five big bets, and stopped resourcing everything else. These aren't stories about lucky technology choices. They're stories about organizations willing to use what they learned. Each one required someone to look at evidence and then kill something that had real organizational weight behind it. Most organizations struggled with this long before generative AI arrived. Sunk-cost thinking, risk-averse leadership, no real mechanism for cutting what isn't working. The pilot runs for six months and the data comes back thin. Instead of stopping, someone extends the timeline, adjusts the success criteria or quietly moves the goalpost. The evidence is clear but killing it means admitting the bet didn’t pay off, and most organizations don’t have the muscle for that. AI didn't create that pattern. It inherited it and makes it more expensive. Stanford's Digital Economy Lab published a study last month looking at 51 successful AI deployments across 41 organizations. 61% of successful projects were preceded by at least one failed attempt. They named "proof-of-concept factories" as the dominant failure mode: organizations where experimentation never converts to value because no one does anything with what they learned. Experimentation is how you find out where to focus and invest. The companies getting traction aren't better at running pilots. They're better at using what the pilots reveal, including when that means stopping.