If applying GenAI to a process doesn't improve key metrics like revenue or cost, it's a sign that the original human task was likely low-value or "BS work." The AI exposes work that doesn't contribute to business outcomes, prompting re-evaluation of its necessity.
Related Insights
Most companies are not Vanguard tech firms. Rather than pursuing speculative, high-failure-rate AI projects, small and medium-sized businesses will see a faster and more reliable ROI by using existing AI tools to automate tedious, routine internal processes.
Focusing on AI for cost savings yields incremental gains. The transformative value comes from rethinking entire workflows to drive top-line growth. This is achieved by either delivering a service much faster or by expanding a high-touch service to a vastly larger audience ("do more").
The most significant gains from AI will not come from automating existing human tasks. Instead, value is unlocked by allowing AI agents to develop entirely new, non-human processes to achieve goals. This requires a shift from process mapping to goal-oriented process invention.
Don't get distracted by flashy AI demonstrations. The highest immediate ROI from AI comes from automating mundane, repetitive, and essential business functions. Focus on tasks like custom report generation and handling common customer service inquiries, as these deliver consistent, measurable value.
Leadership often imposes AI automation on processes without understanding the nuances. The employees executing daily tasks are best positioned to identify high-impact opportunities. A bottom-up approach ensures AI solves real problems and delivers meaningful impact, avoiding top-down miscalculations.
The most significant value from AI is not in automating existing tasks, but in performing work that was previously too costly or complex for an organization to attempt. This creates entirely new capabilities, like analyzing every single purchase order for hidden patterns, thereby unlocking new enterprise value.
Instead of guessing where AI can help, use AI itself as a consultant. Detail your daily workflows, tasks, and existing tools in a prompt, and ask it to generate an "opportunity map." This meta-approach lets AI identify the highest-impact areas for its own implementation.
Teams that become over-reliant on generative AI as a silver bullet are destined to fail. True success comes from teams that remain "maniacally focused" on user and business value, using AI with intent to serve that purpose, not as the purpose itself.
Instead of being swayed by new AI tools, business owners should first analyze their own processes to find inefficiencies. This allows them to select a specific tool that solves a real problem, thereby avoiding added complexity and ensuring a genuine return on investment.
Despite widespread AI adoption, an IBM study of 1,000 businesses reveals a massive execution gap. The vast majority are not seeing tangible returns, with 73% reporting no functional benefits and 77% reporting no financial benefits from their investment.