Artificial intelligence has been the subject of unprecedented levels of investment and enthusiasm over the past three years, driven by a tide of hype that promises revolutionary transformation across every business function. Yet the gap between this technology’s promise and the delivery of real business value remains stubbornly wide. A recent study by BCG found that while 98% of companies are exploring AI, only 26% have developed working products and a mere 4% have achieved significant returns on their investments. This striking implementation gap raises a critical question: Why do so many AI initiatives fail to deliver meaningful value? A big part of the answer lies in a fundamental disconnect at the leadership level: to put it bluntly, many senior executives just don’t understand how AI works.
