95% AI Pilots Fail?, Process Is The Real AI Killer, Buying Wins 2x Over Building, Enter The Forward Deployed Engineer Generation AI podcast

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95% AI pilots fail?, Process is the real AI killer, Buying wins 2x over building, Enter the forward deployed engineer

4d ago 48:13

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In this episode of Generation AI, hosts Ardis Kadiu and JC Bonilla examine the widely misinterpreted MIT report claiming "95% of GenAI pilots fail," exploring why this headline misses the real story. While individual employees are finding significant value with AI tools (90% use personal AI regularly), organizations struggle to capture this value at the enterprise level—not because the technology doesn't work, but due to change management, leadership alignment, and implementation challenges. Through Element451's own QBR automation struggles, the hosts illustrate how the gap between impressive demos and measurable business impact stems from organizational readiness, not technological limitations. They discuss why vendor solutions succeed at twice the rate of internal builds (67% vs 33%), introduce Forward Deployed Engineers as the bridge between technology and business context, and explain why back office automation delivers higher ROI than marketing despite budget allocation. This conversation provides practical guidance for higher education leaders on moving from shadow AI productivity gains to true enterprise transformation, emphasizing that the challenge isn't whether AI works—it's how organizations need to evolve to capture its value.

AI Deployment Reality Check: The 95% Failure Rate (00:01:35)

MIT report reveals 95% of GenAI pilots fail to deliver P&L impact
Only 5% achieve rapid revenue growth
Discussion of how this mirrors Element451's internal experiences
The difference between pilots, POCs, and actual products

The Shadow AI Phenomenon (00:02:43)

90% of employees using personal AI tools vs enterprise subscriptions
Bottom-up adoption through consumer tools like ChatGPT
Why organizations can't measure or control individual productivity gains
The challenge of enterprise AI adoption vs consumer AI

Building vs Buying: The Success Rate Gap (00:03:34)

Internal build success rate: 33%
Vendor purchase success rate: 67%
Why vertical solutions outperform generic tools
The importance of domain expertise in AI deployment

Element's QBR Case Study: When AI Projects Struggle (00:14:18)

Quarterly Business Review automation challenges
The gap between data analytics and expert interpretation
Why AI needs embedded best practices and rubrics
The difference between finding patterns and implementing expertise

Marketing vs Back Office: Where Real ROI Lives (00:24:10)

Over 50% of AI budgets go to sales and marketing
Why back office automation delivers higher returns
The binary nature of workflow automation success
Examples: fraud detection, application review, transcript analysis

The Forward Deployed Engineer Model (00:35:56)

Origin from Palantir's government contracts
How OpenAI uses FDEs for enterprise clients
The hybrid role: technical expertise + business understanding
Why traditional consultants can't fill this gap

The Unicorn Problem: Finding AI Operations Specialists (00:41:24)

Scarcity of people who understand both workflows and AI technology
Why agencies need to evolve their business models
The opportunity for innovative consultancies
Element's challenge in scaling deployment expertise

Key Recommendations for Institution Leaders (00:45:18)

Move from bottom-up to top-down AI strategy
Properly resource AI initiatives (not just IT side projects)
Buy rather than build for 2x success rate
Look for vertical solutions with deep domain knowledge
Include internal champions in deployment projects

Final Thoughts: Moving Beyond Productivity to Transformation (00:49:31)

The shift from individual productivity to enterprise ROI
Why POC success doesn't equal business impact
The importance of AI workflow coverage
Accepting that most organizations aren't behind—everyone is struggling

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Connect With Our Co-Hosts:
Ardis Kadiu
https://www.linkedin.com/in/ardis/
https://twitter.com/ardis

Dr. JC Bonilla
https://www.linkedin.com/in/jcbonilla/
https://twitter.com/jbonillx

About The Enrollify Podcast Network:
Generation AI is a part of the Enrollify Podcast Network. If you like this podcast, chances are you’ll like other Enrollify shows too!

Enrollify is made possible by Element451 — The AI Workforce Platform for Higher Ed. Learn more at element451.com.

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