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.
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.
The democratization of product development via AI will lead to a flood of new products—an estimated 600 to 800 million by the end of 2026. However, the prediction is that a staggering 90-95% of these will fail, highlighting the intense competition and need for disciplined execution.
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.
IBM uses a visual artifact called the "Golden Thread"—a living document showing product vision, value, and a feedback loop. This low-cost tool aligns diverse stakeholders, from the boardroom to developers, around outcomes instead of features, thereby de-risking innovation.
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.
Large enterprises navigate a critical paradox with new technology like AI. Moving too slowly cedes the market and leads to irrelevance. However, moving too quickly without clear direction or a focus on feasibility results in wasting millions of dollars on failed initiatives.