Executive Summary
Executive Summary
Despite unprecedented investment in artificial intelligence, most organizations are failing to realize meaningful financial returns. Current research suggests that the vast majority of corporate AI initiatives have not yet produced measurable impact at the level of profit and loss.
The core issue is structural rather than technical. Enterprises have focused on implementation—acquiring tools and infrastructure—while neglecting the conditions required for adoption and integration. Evidence across major research institutions indicates that organizational culture, workforce literacy, and operational alignment—not technology itself—are now the primary determinants of AI returns.
The Enterprise AI Paradox
AI is spreading rapidly inside organizations, but often outside formal strategy. Executives report high adoption and success, while frontline employees report limited training, low support, and unclear value; most employees use AI regardless of policy, with a majority relying on unauthorized public tools (“shadow AI”)—creating simultaneous risk (data exposure, governance gaps) and opportunity (organic use cases, productivity gains).
In the same moment, a dangerous dynamic is emerging:
Emerging Strategic Risks
Organizations that treat AI as a technology initiative face four systemic threats:
Locked Value
Productive AI use exists but remains invisible and unmanaged.
Brand Drift
Unedited AI outputs gradually erode institutional voice and differentiation.
AI Washing
Capability claims exceed operational reality, creating regulatory and reputational exposure.
Market Correction
AI investment now shows classic bubble signs, echoing the dot-com era.
In short: investment is expanding faster than organizational capability.
What Drives Real Returns
Across reporting from MIT, McKinsey, BCG, Microsoft, and others, a consistent pattern is emerging. Organizations that capture AI value share five habits:
When literacy and alignment are achieved, the results compound:
The Critical First Step: Organizational Intelligence
Because shadow use, capability gaps, and cultural misalignment are typically invisible, the first requirement for ROI is forensic AI auditing: mapping real tool use across the organization, assessing skill levels, trust patterns, and risk behaviors, identifying high-value grassroots use cases, and establishing a realistic baseline for strategy. Organizations with a real internal view of their AI state progress faster while avoiding costly misallocation and staff friction.
The ASG Approach
ASG enables durable ROI through a three-part engagement model:
Research
Reporting
Advisory
The throughline is epistemic cohesion—a shared organizational understanding that allows AI to function as a cognitive amplifier rather than a source of fragmentation.
Bottom Line for Executives
AI value is currently constrained by human systems, not technological limits. Organizations that treat AI as a cultural and operational transformation have and will generate durable advantage. Those that pursue tools without organizational readiness risk wasted investment, internal discord, and fragility in a dynamic, powerfully evolving market.
Introduction
Introduction
Promises of the capability in artificial intelligence (AI) to transform the world of business and the world at large have grown increasingly popular across the past century. With onset of the generative AI (Gen AI) boom in 2022—pioneered by OpenAI’s ChatGPT and followed closely by "Magnificent Seven" tech leaders—the cognitive tech revolution appears closer than ever to genuine realization.
Anticipating this, global corporations have invested nearly $40 billion into AI implementation. Yet prominent research suggests that 95% of corporate AI investments have failed to bear fruit, to impact organizations at the level of profits and losses.1
Meanwhile, talk of an AI bubble—frequently compared to the turn-of-the-century’s paradigm-defining “dot-com boom”—has gained rapidly in pitch.
95% of corporate AI investments have failed to […] impact organizations at the level of profits and losses
This implementation disparity raises urgent questions for the modern enterprise:
- Why is there so little observable ROI for such an apparently gainful technology?
- Does enthusiastic AI investment represent a bubble parallel to that of the early internet?
- If a bubble is imminent, how do stakeholders stay ‘under the wind’ (i.e. resilient to market rationalization)?
- How can leaders bridge the divide between executive strategy and front-line execution?
- How do companies meaningfully profit from AI investment?
We at Ankora Strategy Group (ASG) propose that the challenges to commensurate returns in AI investment center mainly on a misapprehension of what is required to shift from the implementation of AI technologies to true adoption and integration. That is, there exists a strong distinction between acquiring AI products and leading organizations to utilize and create value with them.
To define these terms within the ASG framework:
- Implementation: A technical strategy for deploying AI tools.
- Adoption: Broad-based AI use across an enterprise, aligned with specific strategic directives.
- Integration: Synergistic AI deployment throughout an organization—underpinned by a unifying culture, including shared vision and literacy.
Cultural strategy is the primary requirement for success at this pivotal stage
While impressive technical strategies have often been initiated, the evidence suggests—and prestigious research teams recommend—that cultural strategy is the primary requirement for success at this pivotal stage.2–9 The irony beginning to surface is that, absent a human-centric approach, organizations are falling short of targets and demonstrating a widening divide across hierarchies and resources. Humans must be made central to AI processes.10–13
As MIT Sloan states it:
To realize the greatest gains from artificial intelligence, we must make the future of work more human, not less.14
AI is set to transform virtually all industries. And as this paper will show, employees are using public AI tools at work regardless of employers’ formal implementation plan—or lack thereof. While it is essential for firms to establish a foothold in this emerging landscape, many are overlooking how, without key organizational positioning, cognitive technologies predictably amplify cultural disunion. On this point, Writer shares that strikingly two-thirds of executives find AI is “tearing their company apart,”15 while many remain uncertain as to the full depth or cause of this internal friction.
Still, upon review of cutting-edge, authoritative reporting on AI business initiatives, both the causes and solutions are deceptively clear: the neglect of (as cause) and application of (as solution) organizational strategy to back technical initiatives. Where cultural environments are built or refined to support tech rollouts—bridging the needs of formal insight, synergy, and literacy—the evidence describes high likelihoods of AI success.
The Hierarchy Gap
↑ topOne of the most marked trends in what’s being dubbed variously the “AI Divide” or the “AI Adoption Gap” is the friction between top-down implementation and roots-up adoption. There is a significant disparity in both the perception of and literacy in AI between executives and their larger workforce.
A 2025 Dayforce study finds that 87% of executives report using AI on the job, while only 27% of employees say the same.* This likely refers specifically to authorized AI tool use; as we will see in the next section, “shadow” or unsanctioned AI use boosts employee rates closer to 80%.16 Still, there exists clear divergence across hierarchies in perspective, confidence, and training.
While the vast majority of employees and executives believe that AI reskilling is pivotal, a contrast remains in terms of access. Dayforce finds that just 29% of workers have received AI training in the past year, compared with 81% of executives.17,18 The Writer survey—which determines that AI is ‘tearing companies apart’—notes an average 30% disparity between executives and staff. For example, only 33% of employees feel their organization is AI-literate, while C-suite leaders cite high literacy at 64%. In fact, the very definition of success appears to be in dispute, with 75% of C-suite leaders asserting that their AI strategy has been “very successful” compared to just 45% of employees.
Currently use AI on the job
Received AI training in the past year
Feel their organization is AI-literate
Call their AI strategy “very successful”
Source: Dayforce Pulse of Talent 2025; Writer 2025 AI Survey.
The Resistance Factor
These are among many findings to suggest that, while leadership observes impressive technical deployment and initial tools training, the teams assigned to use those tools find them disconnected from their iterated, daily workflows and established efficiency protocols.18,19 As Greg Shove of Section AI puts it, “Everyone has access [to AI], almost no one is generating value.”20
Findings from IBM Insights mirror this tension. Only 33% of employees report that their employers are fully realizing AI’s potential, and a jarring 30% of younger employees cite “leadership resistance” as the foremost barrier to full AI integration.16
Neither is this friction solely a matter of varying perspectives, as corporate AI implementation is being disrupted by staff themselves. Writer finds that:
41% of Millennial and Gen Z employees admit they’re sabotaging their company’s AI strategy, for example by refusing to use AI tools or outputs. The reasons for this range from fears about AI taking over their job to concerns about the quality of AI tools, pointing to the need for a better change management process.19
* That other, contemporary research suggests much higher employee usage is likely explained by specific description here of “authorized” AI tools, which is corroborated elsewhere at about ¼ adoption.
The Bottom Line
Ultimately, the current mode of AI implementation is not only failing to produce ROI, it is actively straining synergy and morale.
When AI is deployed from the top—however competently—without a corresponding cultural framework, it is experienced by the workforce not as a tool for empowerment, but as a source of organizational friction that both threatens to proceed without them and yet overlooks their road-tested, established practice.
The Shadow AI Paradox: Risk + RewardRisk Factor
↑ topIt appears that a primary driver of the disparity in AI perspectives is relatively straightforward—leaders and team members are employing different tools. While executives naturally utilize the platforms they’ve championed within organizations, 60% of employees rely on unauthorized, public AI platforms—such as Claude, Gemini, and ChatGPT—to complete their work.21
of employees rely on unauthorized, public AI platforms to complete their work
This phenomenon, termed “Shadow AI,” presents three main strategic challenges:
1. Data Exposure and Governance Risk
The hidden use of consumer-grade AI platforms, which lack contractual safeguards for proprietary data, creates immediate exposure to security threats and regulatory non-compliance. TELUS Digital Experience reveals that more than half of employees (57%) admit to inputting sensitive information into public generative AI assistants,22 suggesting that risk-blind behaviors and ambiguous corporate policies are currently status quo. Microsoft’s 2024 Work Trend Index notes: “This […] puts company data at risk in an environment where leaders’ #1 concern for the year ahead is cybersecurity and data privacy.”6
Such trends point to a novel risk profile in the current AI age, when only 36% of employees report that their employer has an AI policy, 78% aren’t being monitored in their AI usage, and more than a quarter don’t know who in their organization leads AI initiatives.23 A workforce at the intersection of low literacy and low accountability risks critical exposures, such as: violating legal frameworks, distributing proprietary data to competitors, and publishing “hallucinated” outputs that trigger crises in brand equity and customer trust.
2. Metacognitive Failure (Trust-Error Paradox)
There is a clear skills and learning gap in most companies seeking to integrate AI, which has led to a surprising and precarious dependence on artificial outputs. EisnerAmper reports a critical percentage of workers who regard AI outputs as “accurate and satisfactory” (with 55% somewhat confident and 28% very confident), yet two-thirds of the same group profess to noticing regular errors.21 While KPMG finds a lower AI trust-acceptance among Americans (41%) compared to the global average (72%), reliance on tools remains high: nearly 3 in 5 US employees admit to using AI without sufficiently evaluating output.24
This overreliance is predicted by a ‘perfect storm’ of cognitive heuristics, which are highlighted or amplified when human beings engage with artificial intelligence25–27—including (though not limited to):
- Authority bias: the evolved human tendency to conflate confidence with competence.
- Automation bias: the tendency to favor suggestions from automated systems.
- Cognitive ease bias: the tendency to find smooth wording more correct than dissonant, accurate data.
Furthermore, AI exploits the evolutionary tendency to maximize gains while minimizing efforts. The result is addressed somewhat famously by MIT’s “Your Brain on ChatGPT” report, which explains that while AI can augment human skill, the natural disposition toward passive use actually produces significant declines from baseline capacity.28
That staff trust AI as broadly authoritative, even while observing persistent mistakes, suggests that AI-generated errors are being ‘baked into’ corporate workflows. This underlines an urgent need for metacognitive skills in AI use: the ability to analyze one’s own state, assumptions, and bias in terms of how they influence automation-heavy outputs and outcomes—and to test or verify before signing off.
While unauthorized use presents certain, mitigable risks, it also serves as a form of decentralized, ‘off-book R&D’
3. Locked Value
Perhaps the most overlooked aspect of shadow AI is where it represents locked value. While unauthorized use presents certain, mitigable risks, it also serves as a form of decentralized, ‘off-book R&D’—a store of key sites within a company where employees have organically and efficiently onboarded AI, likely well ahead of schedule.
By unearthing these practices, leadership can:
- i. Identify high-impact AI use cases that have already been ‘road-tested’ by the workforce.
- ii. Determine specific tool affordances that yield the highest company-specific ROI.
- iii. Invert downward morale trends by recognizing and formalizing the value of "Individual Contributors" who are currently driving adoption, out of sight.18
Strategic Outlook
The “GenAI Divide” is already being bridged by the workforce, but often without the transparency or clear regulation required to ensure enterprise safety. Still, this trend represents both significant risk and significant reward. As MIT posits in its GenAI Divide: State of AI in Business 2025:
This shadow economy demonstrates that individuals can successfully cross the GenAI Divide when given access to flexible, responsive tools. The organizations that recognize this pattern and build on it represent the future of enterprise AI adoption.1
The Literacy Gap
↑ topWhile organizations are allocating billions toward technical AI infrastructure, current data suggests that, beyond “day-one” proprietary training, staff are not being sufficiently introduced to AI as a broad technology or as a steady fixture of daily workflows. Section AI notes in its 2026 AI Proficiency Report, “Employees who have undergone AI training score, on average, 40/100 in AI proficiency”18—suggesting that training is insufficiently value-centric.
A 2025 Microsoft study corroborates this disconnect, finding that nearly two-thirds of leaders acknowledge a pervasive AI literacy-skill gap. Crucially, the same study reveals that 48% of employees rank sufficient training as the most important factor for embracing company-led adoption, and that employees who feel sufficiently trained are nearly twice as likely to report realizations of AI value. For organizations who move past pilot programs to enterprise-wide literacy, the results are quantifiable: “90% report faster decision-making, 81% report increased revenue, and 81% report better employee retention.”29
Structural Obstacles: Accessibility & Bandwidth
The core obstacles to necessary widespread literacy appear to be structural—specifically, accessibility and the “capacity to engage.”29
Current training programs frequently prioritize high-visibility teams or departments (e.g., sales and marketing), leaving many employees excluded from a shared strategic vision—with significant risks to morale and organizational mobility. Furthermore, employees already burnt out on existing workloads lack the cognitive surplus required to experiment with new tools, and where employees are prepared to engage, company-endorsed schedules for learning and experimentation are lacking.
We might be reminded of Google’s original 70-20-10 Rule, which effectively earmarks 10% of resources for experiment, producing outsized reward and market-leading innovation. The effective inverse of this rule, as research into AI adoption indicates,29 is that without dedicated time and resource-aware programming for exploration, competence and therefore market potential remain stagnant.
When comprehension is distributed throughout the enterprise, there are numerous benefits across hierarchies
Misalignment of Capital Allocation
Regarding accessibility, MIT research indicates a notable misallocation of resources: half of generative AI budgetary spending (and 70% of AI allocation overall) has been directed toward sales and marketing, despite evidence that ROI is significantly more impressive when expenditure focuses on back-office automation.1
of total AI budget allocation goes to Sales & Marketing—despite stronger reported ROI from back-office automation
Such disparities underscore the value of a diversified top-down AI strategy, and why enterprise-wide literacy programs are key drivers of profit. When comprehension is distributed throughout the enterprise, there are numerous benefits across hierarchies, including two primary among front-line staff:
- Deep integration: Workers can more capably identify high-value integration points for AI within their own, real workflows.
- Mitigated resistance: AI literate employees are less likely to fear being replaced by AI and automation30,31 and are, logically, less likely to sabotage implementation efforts.
These findings reflect core Ankora theses: that cultural strategy is integral to real adoption, and that epistemic cohesion—the alignment of perspectives and comprehensions of AI across a company—will determine leaders in this space.
Brand Drift: Colonization by DefaultRisk Factor
↑ topBeyond the risks and challenges reported by leading research organizations, Ankora identifies a critical yet largely unnamed risk in AI implementation: brand drift, or what we specifically term colonization by default.
When unrefined outputs become standard in corporate workflows, a company’s institutional voice begins to mimic the […] model which is most favored
Given the overlapping phenomena of shadow usage, low AI literacy, and high AI reliance, workforces are unlikely to challenge AI outputs consistently and with necessary rigor. As a foreseeable result, when unrefined outputs become standard in corporate workflows, a company’s institutional voice begins to mimic the cognitive-linguistic structure underlying that model which is most favored.
The ‘Colonization’ of Corporate Identity
As most AI use in corporate settings currently occurs via public platforms—with staff providing minimal intervention—brand equity is exposed to an effective ‘colonization’ by the unique tone, bias, and semantic preference of a third-party developer (e.g., OpenAI, Google, or Anthropic).
Without robust inoculative measures, a company whose signature communications have been established over years or decades may inadvertently begin to adopt the semantic profile of an outside interest—or, perhaps worse from a customer standpoint, of generic “AI slop.”
The Strategic Cost of Passive Production
Such stealthy erosion of asset value is a predictable consequence of AI frameworks that overlook human elements as central and alpha-generative. In this scenario, organizations risk settling for automated production in areas where professional, human-led intervention is essential to maintaining market distinction.
To reiterate a theme, artificial intelligence is, ironically, destructive to human processes where human elements are not engaged. Organizations need human-in-the-loop thinking at each scale to bridge the AI gap.
Hype + AI WashingRisk Factor
↑ topAn article in the Springer academic journal, AI and Ethics, describes the current era as a period of “unprecedented [...] AI hype”—a phase in a historical cycle that has been characterized by intense optimism followed typically by a “subsequent retreat” or “AI winter.”32 The researchers further assert that this exuberance—fueled by a systemic “Fear of Missing Out (FOMO)” and broad misuse of technical terminology—will have material consequences at the levels of corporate and geopolitical risk.
The Mechanics of AI Washing (AIW)
“Misappropriation” of the term, artificial intelligence, is known colloquially as “AI Washing (AIW).” The California Management Review defines this phenomenon as such:
AI washing occurs when companies inflate their AI capabilities to appear more innovative and technologically advanced than they truly are. The result? A credibility crisis that threatens to erode trust and stifle genuine innovation […] This isn’t just a marketing issue; AI washing is deeply rooted in the culture of many organizations…33
CMR identifies several trends that predict AI-washing behaviors: including low literacy among decision-makers, pressure to signal innovation, “short-termism” (the tendency to overlook long-term AI strategies and gains), and the aforementioned FOMO. Notably, it defines each of these explicitly as cultural challenges and names organizational strategy the called-for solution.
Regulatory and Reputational Consequences
An era of unchecked AI claims is rapidly closing. The Securities and Exchange Commission (SEC) issued its first fines for AIW in March 2024, levied at $400,000 for inaccurate disclosure.34 Beyond immediate financial risk, there is also marked potential for long-term damage, including risk to the following assets:
- Future Credibility: AI washing produces a skepticism tax on future claims, inviting higher scrutiny and lower valuations for future—even legitimate—innovations.
- Brand Equity: Market distinction is eroded when a brand’s narrative of innovation is exposed as superficial or misrepresentative.
- Customer Loyalty: Transparency failures lead to a “negative brand halo;”35 customers are less likely to return who feel misled by capability promises or encounter “AI slop.”
- Partner Trust: Misrepresenting efficacy threatens to drain partner budgets and depletes long-term strategic alignment.
The “Snake Oil” Problem
Repeated across reports on hype and AIW is a notion that the current pioneer status of AI technologies makes true expertise predictably rare and claims of expertise inversely heightened. As Bloomberg Law reports:
Because the latest AI capabilities are so new, consumers and investors may lack the experience and knowledge necessary to scrutinize the marketing and messaging around it, so inflated claims about a company’s capabilities or products often can go unchecked.34
Firms should appreciate that, just as in the dot-com bust, exaggerated claims will likely be revealed when broad tech knowledge inevitably catches up.
In one form, this lapse in confirmation capability expresses as public-facing AIW, yet within the same context, researchers caution that the rarity of true expertise has allowed for a proliferation of firm-targeting “snake oil.”36,32 From superficial “prompt libraries” to unverified “AI hacks,” organizations at each level are often vulnerable. Without a shared, grounded, and human-centered understanding of the technology’s transferable logic, firms cannot distinguish between transformative AI tools and costly distractions.
Is AI a Bubble?Risk Factor
↑ topTo first define an economic bubble, MIT Sloan37 writes:
Bubbles occur when the market value of assets decouple from their intrinsic value and expectations of rising valuations generate investor demand. In typical bubbles, both the volume and valuation of investments expand rapidly. […] We are seeing both trends in AI.33
Illustrative placement based on Ankora synthesis of Floridi (2024), Dimon (2025), and MIT Sloan (2019, 2025) commentary on the current AI investment cycle.
Historical Echoes: From .com to .ai
Many companies are rushing to incorporate AI into their products or operations […] reminiscent of companies adding ‘.com’ to their names during the Dot-Com Bubble…
Claims of an AI bubble existed, in tech adoption terms, well before 2022’s generative AI boom (the above is from a 2019 article, for example) and have grown substantially over the past year—becoming even more urgent in the weeks since entering 2026.
Authorities in the space make predictably varying arguments, but the consistent overlap of these viewpoints provides a valuable portrait of likely outcomes.
Founding Director of the Digital Ethics Center at Yale, Luciano Floridi, asserts in his peer-reviewed “Why the AI Hype is Another Tech Bubble”38 that the shape of economic phenomena such as the dot-com, telecom, and cryptocurrency booms is reflected in the present AI market. For example, “Many companies are rushing to incorporate AI into their products or operations, sometimes superficially, reminiscent of companies adding ‘.com’ to their names during the Dot-Com Bubble or ‘blockchain’ during the Cryptocurrency Boom.”
The Hybrid Perspective
After reviewing such historical reflections as ‘-washing,’ talent wars, media hype, overleveraged investment, and emerging validation paradigms,† Floridi makes his titular conclusion that we are, in fact, “in the midst of an AI bubble.” Yet, vitally, he insists that a burst does not mean the destruction of all long-term value. “This does not negate the profoundly transformative potential of AI technology, but it calls for caution and critical thinking.”
Jamie Dimon of JPMorgan Chase has made an overlapping, if nominally opposite claim: “You can’t look at AI as a bubble, though some of these things may be in a bubble.”39
Further reports suggest that a “hybrid view” is best—projecting abject collapse to be highly unlikely, while confidently expecting strong market corrections that “lead to consolidation and, eventually, enduring value.”40 As MIT Sloan paradoxically affirms: “Not all bubbles have negative consequences for the economy. An AI bubble is more likely to generate value than wreak havoc.”37
† Prioritizing value measures such as model parameters or talent acquisition above traditional metrics such as P/E and EBITDA.
Recoupling Value & Generating Alpha
The clear answer? Yes, we are likely in an AI bubble. But just as in the dot-com era, there is potential for corporations to seize outsized, long-lasting value, even as competitors fall to the physics of correction.
In the face of potential tectonic market shifts, the path forward requires a transition from the superficial toward the foundational. Companies must now choose: will they remain ‘AI-washers,’ holding hype-distorted assets that erode under the pressure of correction? Or will they determine themselves to be alpha-generators, leveraging AI to create intrinsic, enduring assets that preserve brand equity and drive long-term profit?
As we have seen, the challenges to bridging the AI gap are several, but each are distributed significantly along the axes of cultural-organizational needs and intrinsic capability. In some sense, organizations that invest in the domain need to go “All in on AI”—as the now-popular phrase suggests—meaning less that greater financial support need be proffered and more that utilitarian, human-level initiatives need be employed to match and foster expenditures.
Companies will need to reach deeper to discover and reposition their AI profile, ensure staff are literate and strategies practical, and deploy value from previously hidden productivity through a baseline of shared cross-company perspectives.
Forests of the real are environments of genuine capability and comprehension
To adapt a term from contemporary philosophy (and popular science fiction), what organizations now require are forests of the real. Overstatements of AI capacity, blind trust of AI products and output, and disconnects from daily front-line practices are fueling exuberance, organizational rupture, and investment decoupled from return. Meanwhile, experts consistently indicate that firms bucking these phenomena utilize several keys to creating environments where profitable AI is firmly rooted and made to thrive. To reiterate, these keys include acquiring:
- Clear awareness of internal AI trends
- Foundational, shared understanding of AI technology
- Practical and organization-specific deployments of AI tools—i.e. real value in real workflows
Forests of the real are environments of genuine capability and comprehension—across organizational networks—that can meet and overcome the unique challenges of human systems onboarding artificial cognition. In the tradition of contrarian investment, those leading AI gains realize that what’s missing for most is a cultivation of the organic aspects—the human, spontaneous, and lived components—of strategic technology initiatives and change management.
Organizational Culture
↑ topMost firms struggle to capture real value from AI not because the technology fails—but because their people, processes, and politics do.
Feng Zhu, Harvard Business Review9
It is clear—when regarding the slim minority of corporations enjoying meaningful returns on AI investment—that technical implementation alone is not enough to achieve success. As challenges to integration consistently center on such themes as perception across hierarchy, disparities in trust and skill, and varying awareness (and existence) of governing protocols—in effect, culture—it is evident that organizational and cultural strategy is the chief missing component in most AI rollouts.
Organizations ideally should allocate 70% of their AI-initiative resources to supporting people and adapting human-centered business processes
This is endorsed by the findings of leading authorities who emphasize human-centered requisites for AI transformation. Boston Consulting Group (BCG) has notably applied Google’s 10-20-70 Rule to AI roadmaps. They conclude that in order to capture maximum value, organizations ideally should allocate 70% of their AI-initiative resources to supporting people and adapting human-centered business processes.41
Typical Budget
Tools & Technology
10-20-70 Rule
Recommended
People & Process
Source: Boston Consulting Group, “Where’s the Value in AI?” 2024.
Gallup recently underscored this in a report titled, rather frankly, “Your AI Strategy Will Fail Without a Culture That Supports It.” They argue that successful leaders must take the following human-centered actions:
- Diagnose Cultural Readiness: Utilize qualitative and quantitative assessments to inform the firm’s strategic roadmap.
- Align Investment with Purpose: Ensure AI deployment reinforces the organization’s "why" and core competitive differentiators.
- Communicate a Clear AI Narrative: Create an engaging "rational and emotional case" for employees. Gallup finds that when this plan is communicated clearly, employees are 2.9x more likely to feel prepared and 4.7x more likely to feel comfortable using AI in their roles.
- Sustain Adoption through Habit: Intentionally foster and replicate the cultural behaviors and success stories that turn initial enthusiasm into daily operational habits.
McKinsey likewise identifies cultural readiness as the primary indicator of cognitive-technology success, subtitling their own leading report, “Empowering People to Unlock AI’s Full Potential.” They remind readers that “3x more employees are using gen AI […] than leaders imagine” and yet that nearly half feel they are insufficiently supported for adoption. McKinsey’s conclusion, like many in the space, is that “this is the moment for leaders to set bold AI commitments and to meet employee needs with on-the-job training and human-centric development,” to co-create AI implementation strategy with employees “from the bottom up,” and to rewire a “culture of autonomy,” collaborative learning, and transparency within their organization.13
Culture is not just a prerequisite for AI success, but a core beneficiary of it
This sentiment is multidisciplinary and found at each scale of AI research. At the individual level, both neuropsychologist Stephen Kosslyn and the MIT Media Lab confidently declare that AI is problematic at best when used to replace human capacities, leading to consistent underperformance at “neural, linguistic, and behavioral levels.”28
However, where AI tools are managed to augment such capacities, unprecedented achievement may follow. As Kosslyn puts it, AI is most successful as a “cognitive amplifier:” an enhancement rather than a replacement of human problem-solving.42 Whether discussed as a business tool or a personal implement, “human-in-the-loop” planning appears to be the emerging wisdom.
Crucially, AI success and cultural stability exist in a virtuous cycle. A joint MIT Sloan-BCG study found that, among organizations with successful AI implementations, more than 75% saw improvements in team morale, collaboration, and collective learning.43 This reinforces that culture is not just a prerequisite for AI success, but a core beneficiary of it—representing overall a feedback loop of qualitative and quantitative gains.
This trend is repeatedly noted by a growing variety of trusted institutions—such as IBM, Deloitte, Gartner, and Harvard Business School—who each declare in so many words a growing consensus: where organizations introduce enterprise-wide AI literacy and cultural programs, otherwise stray returns may be captured.12,44–46
Culture, it may evidently be said, is the soil in which AI strategies perish or thrive.
Forensic AI Auditing
↑ topNaturally, the first step to integration and ROI is to determine the true uses, perspectives, and literacies currently available within an organization. Where global hype, false expertise, and majority opaque AI usage present massive distortions to the field (deserts of the real)—and where even companies without formal AI strategies are being transformed by shadow AI use—it is vital that firms establish a clear AI profile.
As Bloomberg Law proposes:
Taking adequate time and resources to properly evaluate can help protect businesses from financial losses and other risks.34
The statistics identified in our ‘Challenges’ section, for example, suggest that idealism regarding AI strategy is a core driver of failing adoption. Or as BCG straightforwardly notes, “Teams with a more realistic view of the road ahead tend to make faster progress.”47
Yet leaders may be induced by media hype and proponent claims to view investments through rose-colored glasses. Meanwhile, front-line workers are experiencing morale declines as they encounter day-to-day realities that highlight clear gaps between implementation theory and practice.19,10
Companies […] must first gain clear-eyed, unbiased intelligence on how AI is genuinely perceived, understood, and applied throughout their organization
Forensic Discovery Levers
To avoid an AI ‘emperor-wears-no-clothes’ scenario, companies preparing implementations or seeking returns on established investments must first gain clear-eyed, unbiased intelligence on how AI is genuinely perceived, understood, and applied throughout their organization. Primary levers for this discovery include:
- Skills Assessments & Surveys: Identify the delta between presumed and proven perceptions, comprehensions, and applications.
- One-on-One Interviews: Capture the nuance of organizational culture—including granular detail on evolving trends, morale, and internal use cases—while identifying the underlying shifts required for strategic alignment.
- Statistical & Qualitative Analysis: Rigorously synthesize the survey and interview data, transforming raw feedback into thematic organizational facts.
- Actionable Reporting: Create a roadmap from the data to key decisions, leveraging existing organizational momentum to determine evidence-based paths to profitable integration—including competencies, governance, and key narratives.
With this diagnostic clarity, firms can move beyond generic implementation strategies to integrate high-precision AI frameworks that leverage the unique strengths of internal talent and existing operational logic—thereby securing a clear path to measurable returns and long-term brand equity.
Explicable AI
↑ topForensic AI discovery is not only a tool for determining how a company is uniquely positioned to profit from AI; it is also a vital defense against AI washing. Organizations lacking a full understanding of their AI profile are prone to overpromise capabilities under the intense pressure of a global innovation atmosphere.
As we have established, such reality-skewing effects can expose firms to a variety of damaging scenarios, including higher vulnerability to market corrections, loss of stakeholder trust, and high-priced regulatory fallout.
XAI & Forests of the Real
Time and again, researchers and advisors commend that the solution to any number of underlying causes of the AI Gap is to ground in genuine capacity and performance
There are, on the upside, a number of methods by which organizations can prevent or reverse AI washing trends. A primary means of capturing gains and developing the AI-washing inverse, explicable or “explainable AI (XAI),”48 is to lead through what we have termed forests of the real. Time and again, researchers and advisors commend that the solution to any number of underlying causes of the AI Gap is to ground in genuine capacity and performance.
To invert patterns of AI washing and secure a position of market leadership, organizations must move beyond superficial signaling. The following compact framework—distilled from insights by California Management Review and Bloomberg Law—provides a roadmap for authentic, value-driven AI adoption:
- Audit-Backed Transparency: Demand "verifiable proof for AI claims” and deploy "rigorous internal audits"—giving particular attention to accurate language in public disclosures to ensure claims match reality.
- Value-Driven Policy: Shift from nominal short-term gains to genuine long-term value by establishing enforceable governance protocols and AI-specific KPIs that measure real outcomes (e.g. “ROI from AI initiatives or improvements in efficiency”).
- Literacy & Skeptical Innovation: Build organizational literacy and a culture of skeptical innovation, where leaders and employees are free to experiment and simultaneously to challenge project efficacy or demand proof.
- Prudent Leadership: Leaders can “reject the allure of inflated AI claims” and act as culture-strategy role models: exercising prudence with industry buzzwords, challenging or even walking back AI output, and engaging verified experts to ensure AI initiatives are accountable and defensible.33,34
In sum, corporate leaders and their staff can generate durable value and avoid the risks of AI washing by establishing evidence-based insight, clear protocols, and grounded measurable implements.
“Be real” may be the simple if ironic mantra that precedes enviable success in the artificial-intelligence age.
Shadow AI
↑ topA critical outcome of forensic AI auditing is the discovery of shadow AI—the reality of how an organization is utilizing unauthorized tools. Some 60% of employees use free external tools, a quarter pay out-of-pocket for off-premises subscriptions, and 28% admit that they would continue even if such tools were “outlawed” by management.21
Organizations must learn to illuminate shadow AI as a standard hygiene practice, identify and mitigate its risks, and merge it with top-down AI programs
As public AI tools continue to grow in marvel, efficiency, and human likeness—fostering parasocial bonding and enhanced loyalty49–51,32—the disinclination to abandon off-prem tools will only accelerate. Organizations must learn to illuminate shadow AI as a standard hygiene practice, identify and mitigate its risks, and merge it with top-down AI programs. After all, where opaque public tool use is obviously risky, its risks are manageable with clear safety protocols and consequences, and its potential rewards are robust.
The Risk Profile
Once discovered, the risks of shadow AI use can be remedied by means tailored to company profiles. In general, policy must clarify which AI practices are of undue risk and establish well-communicated consequences for violations—as it is apparent that most shadow AI risks are the result of low literacy and unclear governance.52,53 This applies to concerns including, chiefly:
- Data Integrity: Preventing breaches, safety risks, and sensitive disclosures to public platforms.
- Operational Oversight: Mitigating overreliance on AI tools and responses. This is addressed with human-in-the-loop strategy, a practice that is both protective and rewarding.53
The Strategic Archive
The considerable potentials of shadow AI use may also be activated once diligently unearthed. It must be understood that, by and large, staff utilize shadow AI not to shirk responsibility or needlessly defy protocol, but as a means to improve productivity.16,21
This presents an opportunity to unite theories of implementation with established practice. Organizations can:
- Condense rollout times by subsuming previously undiscovered progress.
- Recognize once-hidden innovation in workers who have already planned or iterated AI solutions.
- Upraise morale, staff loyalty, and internal synergy by welcoming staff contributions as emergent best-practice.
Ultimately, shadow AI is an archive of untapped talent, passion, and efficient application
Often, top-down AI programs are rejected by employees simply because they fail to account for the level of practical efficiency already employed in daily shadow workflows.54,55 Ultimately, shadow AI is an archive of untapped talent, passion, and efficient application that can be de-risked and combined with formal initiatives.
These practices effectively indicate where AI adoption has naturally occurred—representing a locked value in terms of organic, company-specific R&D as well as a pivot point for organizational morale.
Enabling front-line staff to feel ‘seen,’ valued, and included in policy development is its own well-established gain.55–58 Such cultural development simultaneously overlaps with leadership needs for deep insight and swift integration—a win-win scenario that provides increased protection and profit in the face of dynamic market trends. It also speaks to a further solution to AI implementation challenges.
Epistemic Cohesion
↑ topDeep auditing and strategic merging with shadow AI are foundational to what we at Ankora describe as epistemic cohesion: the degree to which stakeholders across an organization demonstrate a shared vision, competency, and rule of law.
Successful companies, particularly under technological change, require a significant degree of unified perspective. While this may at times appear self-evident, researchers in a variety of fields have taken to illustrating the point. Peter Senge’s foundational work in organizational theory, The Fifth Discipline, names “shared vision” as a pillar of organizational success.59 Researchers publishing in the Journal of Applied Psychology find that “shared mental models” significantly improve team performance,60 while a 2022, peer-reviewed article in Empirical Software Engineering finds that “Coordinating mechanisms are needed to facilitate [teamwork effectiveness],” including “shared mental models, communication, and mutual trust.”61
To effectively root AI strategy within daily organizational culture, there must be a shared baseline for thinking about the technology
This requirement for epistemic cohesion is echoed across research into AI success specifically: from the National Academies’ evidence that "shared mental models" are the chief way for humans to effectively partner in AI,62 to McKinsey’s observation that “Employees tend to rally behind a shared vision of [AI] opportunity.”63 The Defense Business Board’s 2024 report on Department of Defense efficiencies further grounds this sentiment, stating that: “Establishing a baseline for a common digital language, with clear expectations and data requirements, is a critical first step.”64
To effectively root AI strategy within daily organizational culture, there must be a shared baseline for thinking about the technology. Naturally, individual stakeholders may likely and often should have differing opinions—as diversity of approach is a well-recognized key to success65,66—yet ideas and pursuits must overlap at a common site.
Members of a world-class orchestra, for example, may expectedly differ in musical preference or default interpretations of a piece, yet harmonious performance can be achieved by, essentially, shared training (rehearsal), leadership (conducting), and point of reference (sheet music).
In the realm of corporate and organizational AI, epistemic cohesion requires that stakeholders:
- Align on Objectives: Reach a broad agreement on the ultimate goal of any given AI initiative.
- Establish Baseline Competency: Share a fundamental understanding of AI capabilities and limitations—with a unified sense of where internal expertise resides.
- Define Clear Protocols: Maintain a cohesive grasp of the rules and governance regarding AI.
Where all three overlap, stakeholders share not just information but a common frame for interpreting it.
Together, these elements transform a fragmented digital landscape into a singular, resilient operating environment. Such an environment requires that every member of the organization possesses the fluency necessary to interpret and execute its proposed shared vision.
Achieving this level of systemic alignment necessitates a move beyond initial technology exposure and toward a rigorous standard of AI literacy—as a necessary foundation on which institutional competency and trust may be constructed.
AI Literacy
↑ topOnce AI profiles are sufficiently mapped and assessed, a primary means of gaining epistemic coherence is to program literacy development. ‘Literacy’ is overlapping but distinct from ‘training’ in that the latter tends to imply a narrow focus on technical skills, while literacy describes a “holistic proficiency.”67
As we at Ankora define it, literacy in AI is comprised of three vital components:
Foundational Comprehension
How is AI built? Why does it fail? What are key, instructive terms (e.g. tokens, plausibility, gradient descent)?
Metacognitive Skills
Double-loop learning: what biases, states, or prior assumptions are affecting results? How are outputs properly interrogated and externally verified?
Ethics & Governance
Which data can be shared with which AI tools? What documentation is required to signal AI use or clear sensitive data processing in advance?
All employees are currently exposed to—and in positions to deploy—artificial intelligence
AI literacy programs need be modular, regular, “measured by impact not attendance,” and addressing of typical use cases within a given organization or firm.7,68
While more than half of employees believe that upskilling is a pivotal need for successful AI adoption,17 many firms make the strategic errors of either treating AI learning as an exclusive privilege for technical or ‘AI-interfacing’ teams, or failing to provide support for staff to experiment with new technologies.
In reality, all employees are currently exposed to—and in positions to deploy—artificial intelligence, and thus benefit from the opportunity to gain in baseline competence through formal literacy programming and established time and resources to experiment. Meeting this broad need is a strong step toward simultaneously mitigating risk-governance concerns while fueling innovation and value capture.
To summarize, the strategic value of AI literacy is to be found in these key areas:
- Catalyzing Epistemic Cohesion: Literacy ensures that cross-department, technical and non-technical staff speak a common language, raising teamwork capacities and preventing silos that can lead to project failure.
- Building Market Resilience: A literate workforce acts as a filter against "snake oil" and AI washing. By recognizing the difference between stochastic parrotry and deep reasoning, nominal claims and real capabilities, a firm can merge grounded tools with agile practices to grow through market correction.
- Elevating Morale and Retention: Upskilling leads to greater organizational trust and confidence, reducing tech anxiety and initiative sabotage while raising felt sense of belonging and appreciation by employers.
- Enabling Decentralized Innovation: Literacy distributes innovation. When it is widespread, "AI champions" emerge from front lines, discovering high-value use cases that might otherwise remain invisible to leadership from the top down.
Companies that seek profitability in AI—and heed the persistent advice regarding human-centered integration—will gain much by establishing literacy programming as an essential process. If culture is the soil in which AI thrives or dies, literacy is a vital seed for a crop that will survive winter.
Leveraging the Bubble
↑ topIn the probable scenario that the market will see significant corrections regarding AI investment, those companies that manage to remain ‘under the wind’ will be those that invariably sidestep the large-scale seductions of AI washing and the various products and ideas on offer that may soon prove to be so much snake oil.
Technology adoption for its own sake has never created value
The Survival Traits of High-Value AI Business Models
The era of cognitive technologies demands foundational comprehension, shared organization-wide understanding, and implements rooted in daily workflows. Based on lessons of the dot-com boom, numerous experts suggest that companies succeeding in AI must, ironically, be real. To survive and gain from a likely natural selection event, business models will need these durable strategies and attributes:
Pragmatic Utility
Prioritize functional solutions that solve concrete operational bottlenecks and support human needs and capacities.
Embedded Integration
Shift from "bolt-on" experiments to tools woven directly into daily workflows until they become a seamless part of the standard operating procedure.
Cognitive Stewardship
Establish human oversight and verification processes led by a literate workforce to ensure outputs remain accurate, innovative, and ethically grounded.
Adaptive Cultural Alignment
Address employee “mindsets and behaviors” by role modeling, fostering conviction, building capabilities, and reinforcing new ways of working.
McKinsey reminds corporations that “Technology adoption for its own sake has never created value.”10 If an AI bubble bursts, it will likely reflect the dot-com era form of trough, revival, and natural selection.70 As Khurram Akhtar, writing for Forbes Business Council suggests: “Much like the tech giants that emerged stronger after the dot-com crash, the AI business models that survive will shape the next decade of digital transformation.”
The core characteristics experts cite as essential for survival—and for realizing the potential of subsequent outsized influence—are those anchored in genuine value. This means prioritizing pragmatic, in-workflow solutions that generate immediate utility for customers while operating within organizational strategies designed for grounded adaptability.
Ultimately, the strategic consensus is clear: When the wind blows, companies must have tended their roots.
ASG provides evidence-based solutions to the most persistent challenges of AI initiatives. Our core thesis is that technical implementation, however ingenious, requires research and insight-driven organizational transformation to succeed.
We enable real returns on AI investment and resilience to market corrections by:
Forensic Research
Surveys, interviews, statistical & qualitative analysis
Intelligence Reporting
Morale, competency, brand-voice, and hidden-value insight
Strategic Advisory
Risk mitigation, literacy programming, integration narratives
1. Conducting forensic research via:
- Surveys and skills assessments
- One-on-one interviews
- Statistical and qualitative analysis of findings
2. Furnishing in-depth intelligence reports that provide insight into:
- Organizational morale, competency, and perception
- Brand-voice, governance, and safety risks
- ‘Hidden genius’ or locked value in shadow AI
3. Transforming data into decisions by provisioning strategic advisory for:
- Risk mitigation and value-extraction
- Media literacy programming
- Bespoke, compelling integration narratives
- Epistemic cohesion initiatives
We emphasize actionable intelligence to develop a culture most profitable for AI integration. By aligning organizational strategy with technical capacity, this approach enables companies to proceed successfully and enduringly through coming changes in this dynamic technological frontier.
Summation
↑ topIt is projected that companies will spend more than $3 trillion on AI infrastructure by 2028,72 yet the vast majority of returns have yet to be realized. AI will inevitably transform the world of business and the world at large—though which of its many promises are fulfilled remain to be seen.
Just as entities grounded in the real logics of digital networks experienced outsized reward following the dot-com bubble, the winners of this era will be corporations that proceed from genuine, unbiased insight into their own AI profile. Organizations that cultivate such insight and deploy it through a fundamental, transferable comprehension of the technology—with applications specific to their business—will thrive where superficial ventures fail.
AI success begins by identifying the cultural disparities and locked values that currently obscure bottom-line risks and opportunities. By performing this essential stock-taking, leaders can build adaptive implementation programs that drive true integration and secure ahead-of-the-curve, lasting return on investment.
ASG is a strategic advisory firm identifying human-centered solutions for the cognitive technologies of the future
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