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.

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New McKinsey research reveals a significant AI adoption gap. While 88% of organizations use AI, nearly two-thirds haven't scaled it beyond pilots, meaning they are not behind their peers. This explains why only 39% report enterprise-level EBIT impact. True high-performers succeed by fundamentally redesigning workflows, not just experimenting.

Using AI to generate content without adding human context simply transfers the intellectual effort to the recipient. This creates rework, confusion, and can damage professional relationships, explaining the low ROI seen in many AI initiatives.

Companies feel immense pressure to integrate AI to stay competitive, leading to massive spending. However, this rush means they lack the infrastructure to measure ROI, creating a paradox of anxious investment without clear proof of value.

Many AI implementation projects are being paused or canceled due to a lack of immediate ROI. This reflects Amara's Law: we overestimate technology in the short term and underestimate it long term. Leaders must treat AI as a long-term strategic investment, not a short-term magic bullet.

An IBM study reveals a significant performance gap in AI adoption. The top 20% of companies achieve over 60% ROI from their product engineering efforts, while the median return for the rest is only 36%. This highlights the value of mastering key team behaviors.

C-suites are more motivated to adopt AI for revenue-generating "front office" activities (like investment analysis) than for cost-saving "back office" automation. The direct, tangible impact on making more money overcomes the organizational inertia that often stalls efficiency-focused technology deployments.

An "optimization-execution gap" reveals that while 96% of CMOs prioritize AI, only 65% make meaningful investments. This lack of commitment leaves teams stuck in an experimentation phase, preventing the deep workflow integration needed for significant productivity gains.

A large-scale Wharton study found 75% of business leaders see positive ROI from AI, directly contradicting a widely-cited but methodologically questionable MIT report claiming 95% of pilots fail. This confirms that despite the hype, businesses are successfully generating tangible value from their AI investments.

While AI investment has exploded, US productivity has barely risen. Valuations are priced as if a societal transformation is complete, yet 95% of GenAI pilots fail to positively impact company P&Ls. This gap between market expectation and real-world economic benefit creates systemic risk.

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.

IBM Study: 77% of Businesses See No Financial Benefit From Generative AI | RiffOn