Search

Why AI pilots stall before they scale

 

Webcast: Readiness failures limit growth from AI adoption

 

AI deployments at many organizations are overpromising and underachieving, and Grant Thornton AI and Data Partner Sumeet Mahajan says a key blind spot is to blame.

 

During a Grant Thornton webcast, which is available on demand, Mahajan said many companies fail to consider a key element required to turn their AI pilots into scaled initiatives.

 

They think about the value they can create.

 

They understand how much it will cost.

 

But they neglect the critical issue of readiness, and then they place full funding behind projects that don’t meet expectations.

 

“Businesses need to think about, from a perspective of people readiness, audit readiness and data readiness perspective, do I even have the basic building blocks to get off the ground?” Mahajan said.

 

In the webcast, Grant Thornton leaders explained the results of the firm’s AI Impact Survey of 950 business leaders, which showed that:

  • 78% of organizations lack strong confidence that they could pass an independent AI governance audit within 90 days
  • 46% see governance and compliance failures as a leading cause of AI underperformance
  • Just 14% say they have fully integrated AI into operations, with most in either the piloting (34%) or scaling (49%) phase of adoption.

Sumeet explained that the problems start with strategy. In the survey, just 22% of operations respondents said their organization has a fully developed and implemented enterprise AI strategy.

 

“The biggest missing piece is that they haven’t yet linked the AI strategy, the data strategy and the people strategy to the business strategy,” he said.

 

Governance accelerates AI adoption

 

Strong AI governance accelerates performance rather than slowing it. Organizations that treat governance as a continuous operating discipline create clearer benchmarks for pilots, tighter criteria for scaling, and cleaner exits from initiatives that do not perform.

 

That discipline prevents funding of projects that lack readiness, drift from business goals, or fail to articulate measurable value.

 

“You need rules around how you will scale, how you will measure and how you exit projects that aren’t working,” said Grant Thornton Chief Growth Officer Paul Melville.

 

Focus on security, the workforce, and leadership alignment

 

The webcast also explored three readiness gaps that are not creating exposure for organizations:

  • Incident response plans are dangerously thin: Just 20% of organizations in the survey have an AI-specific incident response plan that’s been fully tested and implemented, with 74% at least in the piloting phase for agentic AI. Frontier models understand technology architecture contexts and can write exploits to gain access to key systems within minutes, and traditional incident response plans are not designed to address the risks when breaches occur on a compressed timeline.
    This is a critical vulnerability, as AI-enabled cyberattacks can now cause serious damage within minutes. “It’s time to rethink how incident response programs are structured, assess your dependencies on supply chain risks and even reconsider incident disclosure obligations,” said Grant Thornton Cyber & Risk Advisory Managing Director Vikrant Rai. “…You need to think about compressed timelines for responding to cybersecurity incidents.”
  • Workforce readiness lags technology investment: With 12% of organizations saying their people are fully ready to implement AI, a lack of readiness activities sinks many otherwise promising AI initiatives. “Organizations are pouring money into the technology, but they’re starving the people side,” said Grant Thornton Transformation Partner Jennifer Morelli. “It’s like buying a plane but not training the pilots how to fly it.” She said organizations can address this issue by focusing AI on the highest-value workflows, creating role-specific AI implementation playbooks and supporting middle managers as they coach their teams through job changes.
  • C-suite misalignment causes strategic confusion: While 54% of COOs are concerned about regulatory and compliance uncertainty related to agentic AI, just 20% of CIOs/CTOs share those concerns. This misalignment creates a serious governance gap. “When the CIO, COO and CFO walk into the boardroom together, make sure you have a shared definition of what AI is and what success looks like in your organization,” Melville said. “Otherwise the board meeting is going to be quite tense.”

Organizations that are building detailed AI strategies along with strong governance and controls are experiencing gains in revenue and efficiency. To learn more about how you can turn practical AI into measurable performance, listen to our full webcast on demand or read our complete survey report

 
 

Contacts:

 

Chicago, Illinois

Industries

  • Construction & Real Estate
  • Healthcare
  • Manufacturing
  • Retail & Consumer Brands

Service Experience

  • Advisory Services
 

Chicago, Illinois

Industries

  • Manufacturing, Transportation & Distribution
  • Retail & Consumer Brands

Service Experience

  • Artificial intelligence
  • Business Consulting
  • Technology Modernization
 

Philadelphia, Pennsylvania

Industries

  • Healthcare
  • Manufacturing

Service Experience

  • Advisory Services
  • Business Consulting
 

Edison, New Jersey

Industries

  • Banking
  • Healthcare
  • Life Sciences
  • Manufacturing
  • Private Equity
  • Technology
  • Transportation & Distribution
 
 

Content disclaimer

This Grant Thornton Advisors LLC content provides information and comments on current issues and developments. It is not a comprehensive analysis of the subject matter covered. It is not, and should not be construed as, accounting, legal, tax, or professional advice provided by Grant Thornton Advisors LLC. All relevant facts and circumstances, including the pertinent authoritative literature, need to be considered to arrive at conclusions that comply with matters addressed in this content.

Grant Thornton Advisors LLC and its subsidiary entities are not licensed CPA firms.

For additional information on topics covered in this content, contact a Grant Thornton Advisors LLC professional.

 

Trending topics