The Confusing AI Rollout: How Firms' Rushed Adoption Hurts Business and Baffles Staff

When AI engineer Malcolm worked at a data analysis firm, executives were eager to use generative AI to categorize the customer database into various personas. However, Malcolm argued that a traditional machine learning model would have been more suitable, producing consistent and repeatable results at a lower cost. Despite his objections, the company proceeded with generative AI, allowing them to claim they were embracing AI, but ultimately resulting in a less accurate and more expensive process.

Malcolm's experience is not unique. Many companies are rushing to adopt AI, often without a clear understanding of its benefits or a well-planned strategy. In February, global consultancy Accenture reportedly informed staff that promotions to top roles would require the regular adoption of AI tools, and would track their usage of the AI platform it developed.

Similarly, rival firm KPMG announced a dashboard to monitor whether its US employees met a 75% usage target for its AI tools. Governments are also betting on AI to boost efficiency. The UK government aims to use AI to "rewire" the state and improve productivity across Whitehall.

However, research by the civil servant union, the FDA, reveals that while civil servants are open to using AI to improve productivity, there is skepticism about management's ability to handle the transformation. Less than a third of civil servants were consulted on the rollout of AI, leading to concerns that "change is being done to workers, not with them". The lack of clear strategy and communication can lead to confusion and a failure to deliver on expectations.

According to Dan Boyles, CEO of consultancy Hello AI Collective, companies often adopt AI without a clear understanding of why they're doing so or how they expect to benefit. This can result in wasted investments and a failure to engage staff. "I was with an oil and gas company, and I sat with the C-suite, and I just went 'what's the reason for using AI?' And none of them could agree," Boyles said.

To succeed with AI, companies need to consider the people side of the equation and have a clear strategy in place. This includes providing training and support, as well as understanding the cultural and generational differences that can impact adoption. Caroline Rawlinson, CEO of Culture Amp, notes that "if you're putting AI technology on top of a fragmented culture or a fear-based culture, it is not going to succeed." By taking a thoughtful and informed approach to AI adoption, companies can unlock its full potential and achieve their goals.