Key Takeaways
- Many companies are struggling to see real financial benefits from artificial intelligence, despite significant investment.
- Experts suggest focusing less on complex AI models and more on changing how people work with the technology.
- A recommended approach is to allocate roughly 10% of AI efforts to algorithms, 20% to data and tech integration, and the remaining 70% to managing workforce changes.
- Companies should concentrate on a few high-impact AI projects rather than spreading resources thinly across many initiatives.
- Successfully implementing AI requires strong leadership and a commitment to managing the human side of technological transformation.
It seems some companies are finding their artificial intelligence journey more like an awkward first date than a successful partnership. They might be trying too hard, taking on too many projects, or missing the point that AI’s real value often comes from reshaping how people do their jobs, not just from fancy new tech, according to Sylvain Duranton, global leader of BCG X, the tech division of Boston Consulting Group.
These missteps can lead to significant frustration for business leaders. Duranton told Business Insider that while CEOs were asking about which AI model to use in 2024, their big question for 2025 is becoming “Where’s my money?”
Indeed, broadly implementing AI presents many challenges. “Scaling this thing from a tech standpoint — it is hard,” Duranton admitted. To help businesses get their AI efforts back on track, he shared his “golden rule.”
This rule suggests dedicating about 10% of AI resources to algorithms—building AI engines or training large-language models. Another 20% should go towards data and technology, essentially making the AI fit within a company’s existing tech setup.
The crucial part, however, is the remaining 70%. This substantial portion, Duranton explained, should be focused on changing how people work. “Assuming you have a technology that can scale, you need to bring that into the hands of the people. It’s a massive change effort,” he emphasized.
The frustration among companies is palpable. A Boston Consulting Group survey in late 2024, covering around 1,800 C-suite executives globally, found that while 75% ranked AI among their top three priorities, only a quarter reported seeing “significant value” from it.
To unlock more value, Duranton advises against trying to do everything at once. He believes the necessary scope of change can’t be achieved with numerous small projects. “That’s not the plan. The plan is to focus on a very few things, and the things that matter,” he stated.
Companies sometimes get sidetracked by “incremental initiatives,” which Duranton often sees as a mistake. Instead, they should zero in on a few “quintessential” areas. For a retailer, this could mean using AI to perfect the product mix in a physical store or developing an AI shopping assistant so effective customers won’t look elsewhere.
“With those two things, you have both a strategic agenda and an AI agenda,” Duranton said. The key is to maintain focus on these critical efforts. “Those quintessentials, that’s where you put all your money, all your energy.”
Scaling AI solutions also proves difficult because companies often face a “Bermuda Triangle,” as Duranton described it. They feel pressure to compromise on cost, the quality of results, or the speed of delivery. “You have to optimize,” he noted, explaining it’s easy to show off tech in a demo but much harder to handle millions of daily requests with timely, relevant results.
“It’s a different ballgame,” he added. Ultimately, succeeding with AI means bringing people along, not just implementing bots.
“Invest in change-management, not just technology, and have your fearless and strongest leaders be in charge,” Duranton advised. This approach is vital if companies hope to truly benefit from their AI investments.
