AI isn’t failing. Businesses are failing to incorporate AI into operations.
- Manelik Sfez
- Aug 22
- 3 min read
Updated: Sep 1
When MIT publishes a study saying only 5% of companies succeed with AI, the headlines scream: “AI is failing.” That’s not the truth. AI isn’t failing. Businesses are. The problem isn’t the technology. It’s how companies try, and fail, to incorporate AI into operations.
The myth of AI as a silver bullet
In its 2025 report The GenAI Divide: State of AI in Business, MIT found that 95% of companies adopting AI fail to see measurable impact on revenue. That’s a staggering gap. In the same period, AI startups raised over $44 billion. Yet the vast majority of enterprise AI projects go nowhere.
The reason? Business leaders still think AI is a silver bullet. Plug it in, and it’ll boost productivity. Replace people. Do the work for you. But reality is harsher. AI doesn’t fix broken systems. It magnifies them.
Why companies fail at incorporating AI into operations
The MIT report points to a “learning gap”: companies aren’t ready to adapt systems, processes, or culture around AI. That gap shows up everywhere:
Flawed integration – Most AI initiatives are bolted on as pilots, not woven into workflows. No wonder they underperform.
Lack of readiness – Fewer than a third of companies even have an AI strategy or guidelines, according to IEEE-USA.
Weak data foundations – Nearly half of enterprises say data silos and lack of real-time access undermine their AI projects (Fivetran).
Leadership immaturity – Only 1% of businesses consider themselves “AI mature.” Leadership, not employees, is the main barrier (McKinsey).
Skill gaps – Just 11% of companies report successful AI outcomes. Most lack the internal expertise to make AI stick (Qlik survey via TechRadar).
The pattern is clear: it’s not AI that’s falling short. It’s organizational unpreparedness.
Why automation is still the smarter bet in 2025
Automation is what delivers real ROI today. It reduces manual work. It ensures consistency. It accelerates workflows. And unlike AI, it doesn’t demand cultural revolutions or experimental pilots.
AI becomes powerful only once a business already runs on a modern, integrated infrastructure, with clean data, connected systems, and automated processes. Without that foundation, AI just exposes inefficiencies faster.
At Ultrabrand, this is why we focus on automation first. We build the digital backbone: CRM, workflows, structured data, integrations. It’s what makes businesses AI-ready. But more importantly, it drives growth immediately.
How leaders can future-proof for AI success
If you want AI to work in your business tomorrow, here’s what to do today:
Treat AI as an add-on to a working engine, not the engine itself.
Build readiness: fix data quality, connect your systems, automate workflows.
Educate your teams and set realistic expectations.
Invest in an automation-first strategy that can scale into AI when the time is right.
This is how companies move from failed pilots to actual business impact.
Bottom line
AI isn’t failing. Companies are failing to incorporate AI into operations effectively. The MIT study just confirmed what many business leaders already experience: hype without readiness leads nowhere. The winners will be the ones who stop chasing shortcuts and focus on building the backbone: automation, integration, and systems that actually work.
About the author
Manelik Sfez, founder of the Swiss brand consultancy Ultrabrand, brings 25 years of international business, marketing, and brand strategy experience to the table. He has worked with some of the world’s most iconic brands throughout his career. From luxury goods to global retail, financial services and technological and industry giants, he has guided companies through brand-led transformations that have enabled significant business growth.
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