AI Projects: Why success hinges on implementation, not just innovation

AI presents significant opportunities for businesses, however, successful implementation is often challenging.  Many AI pilot projects fail to reach production or when they do, deliver any measurable value.  It is probably no shock that this occurs when initiatives lack clear, defined business objectives and change management.  This is no different to any other program implementing a technology new to an organisation.

At Next Phase we recognise that navigating AI effectively requires a strategic, holistic and ethically sound approach.  Our focus is on tangible business outcomes, moving beyond general discussions to deliver real-world impact.  In this blog we discuss what's good and bad and the risks around adopting AI.  TL;DR AI is not a magic bullet but can be a very powerful tool for your business if used in the right way.

The real ROI of AI: back-office vs. customer-facing

While executives might naturally gravitate towards customer-facing AI applications, the ironic truth is that the most significant returns currently reside in the less glamorous, yet critically impactful, back-office functions.  Think automation in procurement, finance and operations.  Companies that successfully scale AI in these areas are consistently achieving substantially higher revenue impacts and EBIT.  The current AI technology and expertise produce much higher success rates in driving organisational efficiencies compared to developing new services, products and business models.

Knowing When to Use AI

Not every business strategy or operational efficiency challenge requires an AI solution.  Sometimes simpler, more conventional approaches or process improvements are more appropriate and yield quicker, more cost-effective results.  Applying AI where it's not truly needed can be an expensive and unnecessary distraction.  Our role at Next Phase is to help you discern when AI is the right tool for the job and when a different approach will serve your objectives better.

Strategic imperatives for AI success: no more guesswork  

To unlock AI's transformative potential and move beyond disappointing pilot phases, a disciplined approach is essential.

1. Start with strategy, not hype: define clear business objectives and ROI

AI initiatives must be grounded in real business value.  This means setting Specific, Measurable, Achievable, Relevant, and Time-bound (SMART) objectives.  The focus should be on process transformation, not merely individual productivity gains.  We help our partners measure tangible outcomes like cost savings, time reductions and increased revenue, ensuring every AI project aligns with a clear ROI.

2. Build robust technical foundations: data is your fuel

Quality data and accessible data is the lifeblood of AI.  A robust data strategy that ensures data quality, relevance and seamless management from collection to integration, is paramount.  The strategy should work towards breaking down data silos, establishing Machine Learning Operations (MLOps) pipelines for rigorous model deployment and monitoring and, crucially, integrating AI deeply into existing core systems (ERP, CRM, supply chain). At Next Phase, we work with organisations to build these foundational capabilities, ensuring AI isn't just an add-on but an integrated capability. The ideal situation is that when new data is being produced or acquired within the organisation the goal of AI capability is at the forefront of the management of the data.

3. Embed ethics and governance: build trust from the outset

Ignoring ethical considerations can lead to legal issues, reputational damage and a loss of stakeholder trust.  Ethics must be integrated from the outset. This involves addressing bias in training data, striving for transparency and clarity, ensuring data privacy and regulatory adherence.  It's also important to define clear accountability for AI decisions and maintain vital human oversight for critical tasks.  We help our clients develop robust ethical frameworks that build trust and mitigate risk.

4. Cultivate an AI-ready workforce: empower your people

Scaling AI demands evolving skill sets.  It's about investing in upskilling employees, fostering buy-in by clearly communicating how AI will augment their roles and building cross-functional teams.  Strong executive sponsorship is vital to overcome organisational barriers and reconfigure workflows around AI. The outcome should be leadership and team buy-in. One without the other will almost certainly lead to issues.  Next Phase partners with leadership to cultivate an AI-ready culture, ensuring your team is empowered to thrive alongside new technologies.

5. Adopt an incremental and iterative approach: Learn, Adapt, Scale

The AI adoption journey is rarely a sprint; it's a marathon of Discover, Experiment, Optimise, Integrate and Innovate.  We recommend starting with well-defined pilots focused on testing scalability in real business operations. Continuous measurement of AI impact and optimisation are also key. We guide organisations through phased roll-outs, ensuring scalable infrastructure, robust MLOps and consistent feedback loops.

Risks of ignoring these principles

Skipping these disciplined principles isn't just about slower progress. It can lead to inaccurate predictions, ethical lapses, workforce displacement concerns, cybersecurity vulnerabilities and significant integration challenges. These are not minor hiccups; they are potential points of failure that can derail your entire AI strategy.

Next Phase: your partner in AI success

At Next Phase, we believe in moving beyond the "what if" to the "what now." We partner with business leaders to:

Strategise for impact - Grounding AI initiatives in clear, measurable business objectives.

Build strong foundations - Developing robust data strategies and technical architectures.

Navigate ethics - Embedding ethical frameworks and governance from day one.

Empower your team - Cultivating an AI-ready workforce through training and change management.

Deliver incrementally - Guiding phased, iterative roll-outs with continuous feedback.

Bridge the expertise gap - Leveraging our deep expertise to enhance your success rates.

By embracing these disciplined principles organisations can move beyond failed or under-achieving implementations to tangible business value. Let's talk about how Next Phase can help your organisation achieve sustained growth and competitive advantage by unlocking your true AI potential.