Pilot-to-Production Gap: The Silent Killer of AI ROI in Regulated Industries
Many organisations are unaware that most value dies during the pilot-to-production gap when scaling artificial intelligence (AI) solutions. In regulated industries such as healthcare, insurance, and financial services, this development demands immediate attention from executives and decision-makers in Canada and the UK.
In plain language, organisations buy AI solutions without knowing whether they will work as promised, putting their governance and legal exposure at risk of unaccountability. AI technology does not always do what was claimed, leading to capability risk for organisations. This is compounded by the inability to defend AI decisions when boards or regulators ask questions, resulting in governance risk. Moreover, organisations are accountable for what their AI does and says, making them liable when errors occur.
This development sharpens capability risk, exposing organisations to inaccurate AI solutions that do not meet promised performance. A study conducted by Gartner found that 80% of AI projects fail due to poor data quality. Poorly trained AI models can lead to incorrect diagnoses in healthcare, incorrect policy issuance in insurance, and inaccurate financial predictions in finance.
To avoid this pitfall, a prudent organisation takes the following strategic steps:
1. Conduct independent testing of AI solutions against real-world operations before deployment.
2. Develop an internal team with expertise in AI and data science to evaluate claims made by vendors.
3. Establish clear governance guidelines for AI decision-making within the organisation.
However, organisations often struggle to do this well alone due to vendor information asymmetry and internal teams too close to the decision-making process. The lack of independent validation makes it difficult to determine whether an AI solution meets promised performance without incurring significant development costs.
This is where Straven & Co comes in – an independent AI validation firm that helps organisations like yours by testing AI solutions against real-world operations, governance obligations, and legal exposure before deployment. By examining the decision against your organisation’s specific needs, Straven delivers a plain verdict: proceed, proceed with conditions, or do not.
Straven & Co examines AI decisions independently to provide a trusted validation service – no product to sell and nothing earned by recommending more. This means that the verdict can be trusted, giving organisations peace of mind before committing resources to an AI solution.
For further information on how Straven & Co can help your organisation navigate the pilot-to-production gap, visit stravenandco.com.