Four in Five Companies Fail to Leverage AI Due to Human Factors

People, not tech, are the reason most companies fail to benefit from AI. Despite its potential to drive data-driven decisions, spark creativity, and boost productivity, research from Aalto University reveals that only 1 in 5 companies see the benefits they expect from AI after implementing it. The main reason isn’t the AI itself, but the people using it.

Emotions play a significant role in adopting new technology. Dr. Natalia Vuori, Assistant Professor at Aalto University, notes that we often blame the complexity of AI systems or the accuracy of their data. However, research shows that the key to successful AI adoption lies in how employees feel about using it. If employees are uncomfortable with AI, it doesn’t matter how efficient it is – they just won’t use it.

A study of a global consulting firm with over 600 employees is a prime example. The company planned to use AI to analyze “digital footprints” and create a capability map to match teams with projects more accurately. However, after nearly two years, the project was scrapped. The reason? Employees were uneasy about AI accessing their work records, calendars, emails, and team communications. Some stopped providing data or gave incomplete information, which skewed the AI model’s accuracy. As a result, some employees lost trust in the AI and chose not to use it.

There are two types of trust when it comes to AI: cognitive trust (believing AI works) and emotional trust (feeling comfortable using it). Combining these two types creates four user categories:

– Full trust: High cognitive and emotional trust, using AI extensively and allowing it to access data.
– Full distrust: Low cognitive and emotional trust, rejecting or avoiding AI.
– Uncomfortable trust: High cognitive trust but low emotional trust, providing limited or altered data.
– Blind trust: Low cognitive trust but high emotional trust, using AI without understanding its outcomes.

The study found that even if employees trust AI’s capabilities, they might still be uncomfortable using it. This discomfort can lead to limited data access or manipulation, undermining the AI’s potential.

The key to successful AI adoption may lie in strategy rather than technology. Dr. Vuori concludes that introducing AI is not just about implementing technology, but about creating a sense of safety and comfort among employees. Without addressing these feelings, even the most advanced AI can’t reach its full potential.

To overcome this, the research suggests identifying employee types and communicating effectively, creating transparency to build trust, and testing AI in small, low-stakes projects. This approach can help unlock the true potential of both employees and AI.

Source:

Sign of Change – Aalto University

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