Title: AI failure to deliver ROI in 95% of pilots: a risk for healthcare, insurance, and financial services executives and decision-makers in Canada and the UK.
What is happening?
In regulated industries like healthcare, insurance, and financial services, as much as 95% of artificial intelligence (AI) pilot projects fail to generate measurable profit or revenue. This statistic has become an anchor point for many boards and senior executives, who quote it back when assessing AI investment decisions. The development highlights the significant risks associated with deploying AI solutions in these sectors.
Why it demands action now
The exposure is primarily driven by capability risk, as AI technology often fails to live up to its claims. This risk poses a serious threat to organisations that are investing heavily in AI pilots, as they may struggle to recoup their investment or justify the expenditure before stakeholders and regulators.
Action
To mitigate this risk, prudent organisations should take immediate action to examine AI solutions against real-world operations, people, governance obligations, and legal exposure. This should involve:
1. Conducting thorough due diligence on vendors claiming to deliver ROI from AI pilots.
2. Ensuring that internal teams are not too close to the decision-making process.
3. Developing a clear strategy for testing the claims of AI vendors.
How Straven & Co helps
Straven & Co, an independent AI validation firm, can help mitigate this risk by providing a plain verdict on whether AI solutions deliver measurable ROI or revenue. This is achieved through a rigorous assessment that examines the decision against the organisation’s operations, people, governance and legal exposure, and the vendor’s actual claims. Straven & Co’s independence is crucial in ensuring that their judgment is unbiased and can be trusted by executives and decision-makers.
Straven & Co examines AI decisions before they are acted on: stravenandco.com