Many firms are stuck in "pilot purgatory," launching numerous small, siloed AI tests. While individually successful, these experiments fail to integrate into the broader business system, creating an illusion of progress without delivering strategic, enterprise-level value.

Early-stage startups should resist applying AI everywhere. Instead, they should focus on one high-impact area where processes already work. AI is most effective as an amplifier for a solid foundation, not as a shortcut or a fix for fundamental strategic problems. Start small with integrated tools.

Standardized benchmarks for AI models are largely irrelevant for business applications. Companies need to create their own evaluation systems tailored to their specific industry, workflows, and use cases to accurately assess which new model provides a tangible benefit and ROI.

Many firms engage in "innovation theatre," building a portfolio of impressive but isolated AI pilots. Without a unifying strategic architecture connecting them to core growth objectives, these initiatives remain islands that fail to scale, compound, or move overall enterprise performance.

Successful AI strategy development begins by asking executives about their primary business challenges, such as R&D costs or time-to-market. Only after identifying these core problems should AI solutions be mapped to them. This ensures AI initiatives are directly tied to tangible value creation.

The true enterprise value of AI lies not in consuming third-party models, but in building internal capabilities to diffuse intelligence throughout the organization. This means creating proprietary "AI factories" rather than just using external tools and admiring others' success.

Simply using AI provides no competitive advantage, as it's a widely available tool. A true, defensible moat is created by combining AI's capabilities with your unique domain expertise, proprietary processes, and established relationships. AI should augment your existing strengths, not replace them.

Many AI projects become expensive experiments because companies treat AI as a trendy add-on to existing systems rather than fundamentally re-evaluating the underlying business processes and organizational readiness. This leads to issues like hallucinations and incomplete tasks, turning potential assets into costly failures.

Pharma companies engaging in 'pilotitis'—running random, unscalable AI projects—are destined to fall behind. Sustainable competitive advantage comes from integrating AI across the entire value chain and connecting it to core business outcomes, not from isolated experiments.