AI experiments within companies are moving quickly, but not always going smoothly. The share of companies that have scrapped most of their AI initiatives jumped from 17% in 2024 to 42% this year, according to an analysis by S&P Global Market Intelligence, based on a survey of over 1,000 respondents. Overall, the average company abandoned 46% of its AI proof-of-concept, according to data.
With over two years of rapid AI development and the pressures that come with it, some corporate leaders facing repeated AI obstacles are beginning to tire. Employees feel that too. According to a quantum workplace survey, employees who frequently use AI users frequently reported burnout levels (45%) compared to those who do not use AI at work (35%).
Of course, failure is a natural part of R&D and technology adoption, but many leaders feel that they have increased the sense of pressure surrounding AI compared to other technology changes. At the same time, as AI takes the central stage everywhere from school to geopolitics, heavy conversations about AI unfold far beyond the workplace.
“anytime [that] “We're excited to see the latest trends in AI and emerging technologies at consulting firm West Monroe,” said Eric Brown, AI and emerging technologies leader.
Failure and pressure-driven “AI fatigue”
In his job of supporting clients in exploring AI implementation, Brown observed an important trend that clients feel “AI fatigued” and become increasingly irritated by AI conceptual projects that cannot provide concrete results. He attributes many mistakes to exploring the wrong use cases and misinterpreting the various subsets of work-related AI. For example, jump to a large language model (LLM) to solve the problem as machine learning or another approach is actually appropriate. The field itself also evolves very quickly and is extremely complex, creating a ripe environment of fatigue.
In other cases, even the pressure and excitement of possibilities can allow businesses to shake up big without thinking completely. Brown explains how one of his clients, a large, global organization, has enclosed dozens of its top data scientists into a new “innovation group,” responsible for figuring out ways to use AI to drive product innovation. He said they built a lot of very cool AI-driven technology, but it didn't actually solve the problems with the core business, which made it difficult to adopt it, causing a lot of frustration with wasted effort, time and resources.
“I think it's very easy to lead Tech first with new technologies, especially those that are attracting attention from AI,” Brown said. “I think it's coming from a lot of this fatigue and early failure.”
Eoin Hinchy, co-founder and CEO of workflow automation firm Tines, said his team had 70 failures in the AI initiative they had been working on for a year before they finally managed to iterate. The main technical challenge was to ensure that they ensure the environment they are building for their company clients to deploy LLMS, and they had to be absolutely right, as they were safe and private enough.
“There was certainly a moment when we felt we had broken it, and yes, this is it, this is the feature we need, this is going to be a big step change.
Aside from the team that actually developed technical solutions, Hinchy said the rest of the organization was tired of the ups and downs as well. In particular, the market-going teams were looking to work in a competitive sales environment where other vendors were releasing similar products, but the pace at which they reached the final product was unmanageable. Coordinating the product and sales team proved to be the biggest challenge from an organizational standpoint, Hinchy said.
“I had to have a lot of Pep talks, dialogue and security with the engineers, the product team and salespeople who said they were crying before with all this blood, sweat and this fascinating job,” he said.
A functional team will take charge
At cybersecurity company Netskope, James Robinson, Chief Information Security Officer of James Robinson, feels a considerable part of the disappointment, explaining his sense of overwhelmed by agents who failed to provide various technical tasks and other investments that were not offered after he gained his hopes. But he and his engineers are primarily motivated by their own inner desire to build and experiment, but the company's governance team is truly exhausted. Their to-do list reads like a work that has already been completed, as they have to compete to approve new efforts.
In this case, the solution was all in the process. The company removes some of the burden by asking certain business units to handle initial governance procedures and setting clear expectations about what they need to do before approaching the AI Governance Committee.
“One of the things we really push and explore is how we put this into our business unit,” Robinson said. “For example, using a marketing or engineering productivity team, let them do the first round of reviews. They're more interested and more motivated about it. Let's be honest, let them do that review. And once they reach the governance team, they can ask certain deep questions and make sure the documentation is complete.”
This approach mirrored what West Monroe's Brown said, and ultimately helped his client recover from the failed “Innovation Lab” efforts. His team proposed to go back to the business unit to identify some key challenges and see what works best for your AI solution. They then plunged into a small team that contained inputs from relevant business units throughout the process, allowing them to experiment and build prototypes that proved that AI could help solve one of those problems within a month. Another half month later, the first release of that solution was rolled out.
Overall, his advice to prevent and overcome AI fatigue is to start small.
“There are two things you can do counterproductively. The first is to succumb to fear and do nothing, and your competitors will ultimately overtake you. [with] Embed AI in different parts of your business, that can be overwhelming too,” he said.
After all, the point of AI is to help you get smarter and do the job rather than difficult.
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