McKinsey finds over half the challenge in leveraging AI is organizational, not technical. To see enterprise-level value, companies must flatten hierarchies, break down departmental silos, and redesign workflows, a process that is proving harder and longer than leaders expect.
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.
Despite proven cost efficiencies from deploying fine-tuned AI models, companies report the primary barrier to adoption is human, not technical. The core challenge is overcoming employee inertia and successfully integrating new tools into existing workflows—a classic change management problem.
Companies that experiment endlessly with AI but fail to operationalize it face the biggest risk of falling behind. The danger lies not in ignoring AI, but in lacking the change management and workflow redesign needed to move from small-scale tests to full integration.
The conventional wisdom that enterprises are blocked by a lack of clean, accessible data is wrong. The true bottleneck is people and change management. Scrappy teams can derive significant value from existing, imperfect internal and public data; the real challenge is organizational inertia and process redesign.
The true challenge of AI for many businesses isn't mastering the technology. It's shifting the entire organization from a predictable "delivery" mindset to an "innovation" one that is capable of managing rapid experimentation and uncertainty—a muscle many established companies haven't yet built.
The biggest resistance to adopting AI coding tools in large companies isn't security or technical limitations, but the challenge of teaching teams new workflows. Success requires not just providing the tool, but actively training people to change their daily habits to leverage it effectively.
Notion's CEO compares current AI adoption to swapping a water wheel for a steam engine but keeping the factory layout the same. The real gains will come from fundamentally rethinking workflows, meetings, and hierarchies to leverage AI that works 24/7, rather than just layering it onto existing processes.
While AI models improved 40-60% and consumer use is high, only 5% of enterprise GenAI deployments are working. The bottleneck isn't the model's capability but the surrounding challenges of data infrastructure, workflow integration, and establishing trust and validation, a process that could take a decade.
The most significant hurdle for businesses adopting revenue-driving AI is often internal resistance from senior leaders. Their fear, lack of understanding, or refusal to experiment can hold the entire organization back from crucial innovation.
The key differentiator for companies succeeding with AI isn't technical prowess but mastery of core behaviors: flexibility, targeted incremental delivery, being data-led, and cross-functional teams. Strong fundamentals are the prerequisite for benefiting from advanced technology.