95% of Companies Are Failing at AI

Understanding the Obstacles: It’s Not Just the Algorithm

The common causes of failure are glaring, predictable, and entirely avoidable. MIT research identified a host of organizational roadblocks, including poor change management, weak leadership support, and tools that aren’t designed for end-users.

Most initiatives collapse under the same pressure points: misaligned leadership, unclear ROI metrics, and messy, uncurated data. Before investing in the next tool, organizations need to strengthen their foundation, which includes vision, data, and people.

Our research with mid-cap companies ($300M–$5B revenue) reinforces this uncomfortable truth: organizations are making the same fundamental mistakes.

• The Tool-First Approach: Jumping to adopt tools (like ChatGPT) before defining clear business goals or measuring success with KPIs.

• The Data Gap: Lacking the clean, organized data foundation necessary to power any meaningful AI application.

• The User Gap: Telling teams to use AI without providing the resources, training, or—most importantly—the “why.”

At the heart of these challenges is a common theme: Companies focus on technology adoption before building a strong foundation. AI Readiness matters more than simply using AI tools.

Moving from Guesswork to Confidence

To join the 5% of enterprises that successfully leverage AI, you need to stop guessing and start measuring. Success comes from a deliberate, research-backed foundation.

At Apply Digital, we’ve built a framework that defines AI success. True AI Readiness spans five interdependent pillars—neglecting any one can slow progress and limit long-term impact.

1. Strategic Readiness: Clarity Over Ambition
   
   Most companies aren’t short on ambition—they lack clarity. Skipping problem definition, ROI expectations, or measurable KPIs can slow progress. High strategic readiness means AI is a core differentiator, guided by a clear roadmap and measurable goals.
   
   Without this clarity, even the best investments may fall short.
   
   

2. Operational Readiness: From Planning to Scalable Impact
   
   A great strategy only works if it can be executed. High operational readiness ensures AI solutions are integrated into workflows, supported by budgets, trained teams, and governance.
   
   Without it, pilots may take longer to scale or achieve measurable impact.
   
   

3. Technological Readiness: Your Foundation, Not a Barrier
   
   Technology powers AI, but many businesses face hurdles with their tech stack. 44% of leaders report their customer data platforms are only “somewhat robust,” limiting their ability to deliver AI-driven experiences.
   
   Strong tech readiness means modern data architectures, clean and accessible data, and a flexible stack to adapt as needs evolve.
   
   Without this foundation, even the smartest strategy is harder to implement.
   
   

4. Organizational Readiness: People Make the Difference
   
   Systems matter, but people drive success. Siloed teams, limited leadership support, and resistance to change can slow adoption. High readiness means aligned leadership, a culture open to change, and expertise across business units.
   
   Without it, initiatives may lose momentum.
   
   

5. Experience Readiness: Seamless Value, Not Just Tools
   
   Even the most intelligent AI can fall short if it’s hard to use. High experience readiness means AI simplifies work, automates repetitive tasks, and enhances the human experience.
   
   Without this, adoption and value realization may lag.

Proof in Action

Kraft Heinz’s TasteMaker platform shows what happens when AI readiness meets vision. By combining proprietary data, GenAI, and clear governance, Kraft Heinz cut product launch time from eight weeks to eight hours and achieved a 70% internal adoption rate—while maintaining brand consistency and data security.

Stop Guessing. Start Measuring.

If AI is still treated like an experiment, your organization may struggle to unlock its full potential. The key differentiator is moving from blind deployment to thoughtful, measured readiness.

Where does your organization stand? Are you a fully optimized AI Leader, a Strategic AI Planner rich in strategy but light on execution, or an Emerging AI Adopter still building momentum?

Ready to find out? Take the AI Readiness Diagnostic Tool to see your scores and next steps.