Obstacles to Successful AI Monetization

𝗜𝗳 𝘆𝗼𝘂 𝘄𝗮𝗻𝘁 𝘁𝗼 𝗯𝘂𝗶𝗹𝗱 𝗮𝗻 𝗔𝗜 𝘀𝘁𝗿𝗮𝘁𝗲𝗴𝘆 𝗳𝗼𝗿 𝘆𝗼𝘂𝗿 𝗰𝗼𝗺𝗽𝗮𝗻𝘆, 𝘆𝗼𝘂 𝗳𝗶𝗿𝘀𝘁 𝗻𝗲𝗲𝗱 𝘁𝗼 𝗯𝘂𝗶𝗹𝗱 𝗮 𝘀𝗼𝗹𝗶𝗱 𝗱𝗮𝘁𝗮 𝗶𝗻𝗳𝗿𝗮𝘀𝘁𝗿𝘂𝗰𝘁𝘂𝗿𝗲 𝗮𝗻𝗱 𝗲𝗻𝗳𝗼𝗿𝗰𝗲 𝘀𝘁𝗿𝗶𝗰𝘁 𝗱𝗮𝘁𝗮 𝗵𝘆𝗴𝗶𝗲𝗻𝗲. Getting your house in order is the foundation for delivering on any AI ambition. The MIT Technology Review — based on insights from 205 C-level executives and data leaders — lays it out clearly: 𝗠𝗼𝘀𝘁 𝗰𝗼𝗺𝗽𝗮𝗻𝗶𝗲𝘀 𝗱𝗼 𝗻𝗼𝘁 𝗳𝗮𝗰𝗲 𝗮𝗻 𝗔𝗜 𝗽𝗿𝗼𝗯𝗹𝗲𝗺. 𝗧𝗵𝗲𝘆 𝗳𝗮𝗰𝗲 𝗰𝗵𝗮𝗹𝗹𝗲𝗻𝗴𝗲𝘀 𝗶𝗻 𝗱𝗮𝘁𝗮 𝗾𝘂𝗮𝗹𝗶𝘁𝘆, 𝗶𝗻𝗳𝗿𝗮𝘀𝘁𝗿𝘂𝗰𝘁𝘂𝗿𝗲, 𝗮𝗻𝗱 𝗿𝗶𝘀𝗸 𝗺𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁. Therefore, many firms are still stuck in pilots, not production. Changing that requires strong data foundations, scalable architectures, trusted partners, and a shift in how companies think about creating real value with AI. Because pilots are easy, BUT scaling AI across the enterprise is hard. 𝗛𝗲𝗿𝗲 𝗮𝗿𝗲 𝘁𝗵𝗲 𝗸𝗲𝘆 𝘁𝗮𝗸𝗲𝗮𝘄𝗮𝘆𝘀: ⬇️ 1. 95% 𝗼𝗳 𝗰𝗼𝗺𝗽𝗮𝗻𝗶𝗲𝘀 𝗮𝗿𝗲 𝘂𝘀𝗶𝗻𝗴 𝗔𝗜 — 𝗯𝘂𝘁 76% 𝗮𝗿𝗲 𝘀𝘁𝘂𝗰𝗸 𝗮𝘁 𝗷𝘂𝘀𝘁 1–3 𝘂𝘀𝗲 𝗰𝗮𝘀𝗲𝘀:   ➜ The gap between ambition and execution is huge. Scaling AI across the full business will define competitive advantage over the next 24 months. 2. 𝗗𝗮𝘁𝗮 𝗾𝘂𝗮𝗹𝗶𝘁𝘆 𝗮𝗻𝗱 𝗹𝗶𝗾𝘂𝗶𝗱𝗶𝘁𝘆 𝗮𝗿𝗲 𝘁𝗵𝗲 𝗿𝗲𝗮𝗹 𝗯𝗼𝘁𝘁𝗹𝗲𝗻𝗲𝗰𝗸𝘀: ➜ Without curated, accessible, and trusted data, no AI strategy can succeed — no matter how powerful the models are. 3. 𝗚𝗼𝘃𝗲𝗿𝗻𝗮𝗻𝗰𝗲, 𝘀𝗲𝗰𝘂𝗿𝗶𝘁𝘆, 𝗮𝗻𝗱 𝗽𝗿𝗶𝘃𝗮𝗰𝘆 𝗮𝗿𝗲 𝘀𝗹𝗼𝘄𝗶𝗻𝗴 𝗔𝗜 𝗱𝗲𝗽𝗹𝗼𝘆𝗺𝗲𝗻𝘁 — 𝗮𝗻𝗱 𝘁𝗵𝗮𝘁 𝗶𝘀 𝗮 𝗴𝗼𝗼𝗱 𝘁𝗵𝗶𝗻𝗴:   ➜ 98% of executives say they would rather be safe than first. Trust, not speed, will win in the next AI wave. 4. 𝗦𝗽𝗲𝗰𝗶𝗮𝗹𝗶𝘇𝗲𝗱, 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀-𝘀𝗽𝗲𝗰𝗶𝗳𝗶𝗰 𝗔𝗜 𝘂𝘀𝗲 𝗰𝗮𝘀𝗲𝘀 𝘄𝗶𝗹𝗹 𝗱𝗿𝗶𝘃𝗲 𝘁𝗵𝗲 𝗺𝗼𝘀𝘁 𝘃𝗮𝗹𝘂𝗲:  ➜ Generic generative AI (chatbots, text generation) is table stakes. True differentiation will come from custom, domain-specific applications. 5. 𝗟𝗲𝗴𝗮𝗰𝘆 𝘀𝘆𝘀𝘁𝗲𝗺𝘀 𝗮𝗿𝗲 𝗮 𝗺𝗮𝗷𝗼𝗿 𝗱𝗿𝗮𝗴 𝗼𝗻 𝗔𝗜 𝗮𝗺𝗯𝗶𝘁𝗶𝗼𝗻𝘀:  ➜ Firms sitting on fragmented, outdated infrastructure are finding that retrofitting AI into legacy systems is often more costly than building new foundations. 6. 𝗖𝗼𝘀𝘁 𝗿𝗲𝗮𝗹𝗶𝘁𝗶𝗲𝘀 𝗮𝗿𝗲 𝗵𝗶𝘁𝘁𝗶𝗻𝗴 𝗵𝗮𝗿𝗱: ➜ From GPUs to energy bills, AI is not cheap — and mid-sized companies face the biggest barriers. Smart firms are building realistic ROI models that go beyond hype. 𝗕𝘂𝗶𝗹𝗱𝗶𝗻𝗴 𝗮 𝗳𝘂𝘁𝘂𝗿𝗲-𝗿𝗲𝗮𝗱𝘆 𝗔𝗜 𝗲𝗻𝘁𝗲𝗿𝗽𝗿𝗶𝘀𝗲 𝗶𝘀𝗻’𝘁 𝗮𝗯𝗼𝘂𝘁 𝗰𝗵𝗮𝘀𝗶𝗻𝗴 𝘁𝗵𝗲 𝗻𝗲𝘅𝘁 𝗺𝗼𝗱𝗲𝗹 𝗿𝗲𝗹𝗲𝗮𝘀𝗲.   𝗜𝘁’𝘀 𝗮𝗯𝗼𝘂𝘁 𝘀𝗼𝗹𝘃𝗶𝗻𝗴 𝘁𝗵𝗲 𝗵𝗮𝗿𝗱 𝗽𝗿𝗼𝗯𝗹𝗲𝗺𝘀 — 𝗱𝗮𝘁𝗮, 𝗶𝗻𝗳𝗿𝗮𝘀𝘁𝗿𝘂𝗰𝘁𝘂𝗿𝗲, 𝗴𝗼𝘃𝗲𝗿𝗻𝗮𝗻𝗰𝗲, 𝗮𝗻𝗱 𝗥𝗢𝗜 — 𝘁𝗼𝗱𝗮𝘆.

The AI gaps aren’t obvious until you’ve built products with it. The big picture of monetization is blurry until you’ve seen AI products in the hands of internal users and paying customers. The National Bureau of Economic Research is the latest to confirm what many of us have learned through experience: Using AI everywhere reduces its impact and ROI to nearly 0. Not every use case SHOULD use AI. The hype doesn’t capture the unseen depth and nuance required for AI monetization. The study found that deploying AI successfully requires business transformation, not just technical implementations. Technology that impacts every part of the business can’t succeed without operational change. Transforming a business with AI involves modifying workflows, decision-making processes, and incentive structures. I have worked on 7 generative AI products and 2 agentic platforms for clients. V Squared is knee deep in building our second customer-facing AI agent. We are still learning and improving with each initiative and product delivery. This picture is about 80% complete, and we must be more transparent about the risks of moving forward with products that rely on emerging technologies. Learning and improvement cycles must be part of the AI strategy. Unexpected challenges will surface. Some will require significant cost and effort to resolve. If executive leaders know that going in, they are less likely to shelve AI initiatives at the first sign of trouble. PoCs focus on the tip of the iceberg. Products must incorporate what’s floating under the surface. We’re all piecing together the big picture, one successful product and unexpected issue at a time.

For many companies, proving the ROI of AI is hard enough. But in customer experience? It's often a struggle because the benefits can be complex and difficult to measure. While AI can clearly improve efficiency, its most significant impacts, like increasing customer lifetime value, are harder to connect directly to a financial return. This is especially true for customer-facing applications like chatbots or personalized recommendation engines. The problem typically starts with how companies define success. They often focus on what's easiest to measure rather than what's most valuable. For example, companies might measure a chatbot's resolution rate but not whether that resolution drove additional spending or reduced churn. The real ROI in CX isn't just about saving money on call center agents; it's about increasing customer lifetime value. Let's take AI-driven personalization as an example. It can make a customer feel understood and valued, but how do you put a dollar amount on that feeling? The benefits are often intangible, like a stronger brand reputation or higher loyalty, which are important for long-term growth but don't show up on a quarterly balance sheet. Many organizations deploy an AI chatbot or a new recommendation engine just because the technology is available, not because they've identified a specific customer pain point to solve. This leads to disconnected, siloed projects that don't align with a clear business strategy, making it impossible to calculate a meaningful return. And when the "AI Strategy" isn't integrated into the "Business Strategy," the negative impact is higher given the scale. But even with a clear vision, bringing an AI-powered CX solution to life is riddled with practical challenges. What are those, you might ask? For starters, AI models for CX, like chatbots or sentiment analysis tools, rely heavily on high-quality, clean data. If your customer interaction data is fragmented across different systems, incomplete, or biased, the AI will produce flawed results. The initial work of integrating, cleaning, and structuring this data is a massive, time-consuming effort that often gets underestimated. Integration with legacy systems, like your CRM or support systems, is not designed to seamlessly integrate with new AI technology. Connecting an AI engine to these older systems can be a complex and expensive technical nightmare that drains budgets and delays projects. Finally, we have employees. Customer service agents may resist using AI tools for fear of being replaced. Without a clear plan for change management and a focus on how AI can augment their abilities, like providing real-time information or summarizing a customer's history, adoption will be low and the project will fail to deliver value. Find a problem. Get your data ducks in a row. Connect systems. Solve the problem with AI. And help your people along the journey. #customerexperience #ai #technology #innovation #changemanagement

Why #AI is not scaling in Enterprises? Do you agree ? AI is struggling to scale primarily due to diminishing returns from ever-larger models, data quality bottlenecks, infrastructural complexity, skills shortages, and organizational challenges such as lack of leadership alignment and change management. While early pilots often succeed, turning these into sustainable, enterprise-wide AI deployment faces significant systemic hurdles. The Core Reasons AI Is Not Scaling : 1. The Parameter Plateau and Diminishing Returns Modern AI has benefited from rapid scale, moving to models with billions (or trillions) of parameters. However, each successive jump delivers smaller improvements at exponentially higher costs, both computationally and environmentally. The shift now is toward smaller, smarter models using cleaner, highly curated data rather than just bigger architectures. 2. Data Quality, Pipelines, and Integration Poorly structured or inconsistent data, fragile data pipelines, and lack of data governance significantly impede the scaling of AI beyond proof-of-concept. Clean, well-labeled, domain-specific data is far more effective for training robust enterprise AI than massive volumes of uncurated information. Legacy application modernisation is essential. 3. Human Capital and Organizational Resistance There is a global scarcity of skilled AI talent able to build, deploy, and maintain large-scale AI systems. Additionally, resistance to change from within organizations—even at the leadership level—hampers efforts to operationalize AI, especially if the business value is not clearly demonstrated. 4. Operational and Technological major hurdles include: - High computational and storage costs as workloads expand - Model drift, requiring constant retraining and updates - Fragmented tech stacks leading to integration challenges - Compliance and security risks, especially with sensitive data. 5. Lack of Alignment with #Business Objectives Many AI projects fail to scale because they’re not tightly aligned with measurable business goals. This makes it difficult to demonstrate ROI or drive organizational buy-in, which is essential for enterprise-wide adoption. Keys to overcoming the "Scaling Barrier" -Focus on data quality and domain curation, not just #model size. -Build robust, standardized data pipelines and governance to avoid bottlenecks -Develop AI centers of excellence and invest in talent, fostering AI literacy organization-wide - Align AI initiatives with clear #business value, objectives, and ongoing executive sponsorship. - Invest in adaptable infrastructure and continuous model improvement processes to manage drift, compliance, and cost. Scaling AI is as much an organizational transformation as a technological one, requiring coordinated investment in people, processes, and data—not just algorithms and and compute power. It the same cycle we will need to adopt like the #Digital #Transformation

One of the least-discussed challenges in AI adoption today is pricing. Everyone talks about model performance, benchmarks, or features. But for enterprises, the real sticking point often shows up when the bill discussion starts. The problem: current pricing models don’t align with how enterprises budget and buy. Usage-based pricing makes perfect sense for vendors, but it feels like a blank cheque for buyers. If adoption succeeds, the bill grows in unpredictable ways. No CFO wants to be surprised by a doubling in costs because usage spiked. Flat subscriptions feel safer for buyers, but they put vendors at risk. The underlying compute costs fluctuate, and a heavy customer can easily push margins underwater. Hybrid models try to balance the two, to put in predictability for buyers’ forecast, and vendors try to to defend and improve profitability. This mismatch slows progress. Solution: a new generation of pricing models. Simple enough to understand, predictable enough to budget for, but still sustainable for vendors. It could also mean having periodic reviews instead of fixed term pricing for multi year deals. That could mean outcome-based contracts, tiered usage bands with hard caps, or bundled services that absorb variability in spikes. Until AI economics are solved, adoption will remain slower than the technology itself.

𝟰𝟯% 𝗼𝗳 𝗔𝗜 𝗽𝗿𝗼𝗷𝗲𝗰𝘁𝘀 𝗳𝗮𝗶𝗹 𝗯𝗲𝗰𝗮𝘂𝘀𝗲 𝗼𝗳 𝗱𝗮𝘁𝗮 𝗾𝘂𝗮𝗹𝗶𝘁𝘆 Yet most organizations spend 80% on models and 20% on data. Your AI is only as smart as your data is clean. The pattern repeats across industries 👇 📊 𝗧𝗵𝗲 𝗗𝗮𝘁𝗮 𝗤𝘂𝗮𝗹𝗶𝘁𝘆 𝗖𝗿𝗶𝘀𝗶𝘀 Informatica's 2025 CDO survey found: ➜ 43% cite data quality as #1 obstacle to AI success ➜ 57% report data is NOT AI-ready ➜ Only 5% of organizations have comprehensive data governance 📉 𝗪𝗵𝗮𝘁 𝗕𝗮𝗱 𝗗𝗮𝘁𝗮 𝗟𝗼𝗼𝗸𝘀 𝗟𝗶𝗸𝗲 The data exists but: → Lives in 47 different systems with no integration → Uses inconsistent formats and definitions → Contains unknown biases that propagate through AI → Lacks lineage—nobody knows where it came from → Has quality issues discovered only after deployment Gartner predicts 30% of GenAI projects abandoned by end of 2025 due to poor data quality. 𝗧𝗵𝗲 𝗗𝗮𝘁𝗮 𝗘𝘅𝗰𝗲𝗹𝗹𝗲𝗻𝗰𝗲 𝗙𝗿𝗮𝗺𝗲𝘄𝗼𝗿𝗸 Organizations achieving production AI allocate 50-70% of timeline and budget to data readiness. Here's what they build: 1. 𝗖𝗼𝗺𝗽𝗿𝗲𝗵𝗲𝗻𝘀𝗶𝘃𝗲 𝗔𝘀𝘀𝗲𝘀𝘀𝗺𝗲𝗻𝘁 Completeness: Do you have sufficient volume? Accuracy: Is the data correct? Consistency: Do definitions match across systems? Timeliness: Is data current enough for decisions? Validity: Does data conform to business rules? 2. 𝗟𝗶𝗻𝗲𝗮𝗴𝗲 & 𝗣𝗿𝗼𝘃𝗲𝗻𝗮𝗻𝗰𝗲 For every data point: Where did it originate? How was it transformed? What systems touched it? When was it last validated? You can't trust AI you can't trace. 3. 𝗕𝗶𝗮𝘀 𝗗𝗲𝘁𝗲𝗰𝘁𝗶𝗼𝗻 & 𝗠𝗶𝘁𝗶𝗴𝗮𝘁𝗶𝗼𝗻 identify: Sample bias (unrepresentative training data) Historical bias (past discrimination baked in) Measurement bias (flawed data collection) Aggregation bias (combining incompatible data) Then engineer mitigation before deployment. 4. 𝗔𝗜 𝗚𝗼𝘃𝗲𝗿𝗻𝗮𝗻𝗰𝗲 requires: Model-specific data requirements documentation Continuous data quality monitoring Automated drift detection Regular revalidation cycles 5. 𝗗𝗮𝘁𝗮 𝗣𝗿𝗲𝗽𝗮𝗿𝗮𝘁𝗶𝗼𝗻 𝗜𝗻𝗳𝗿𝗮𝘀𝘁𝗿𝘂𝗰𝘁𝘂𝗿𝗲 Build platforms that enable: Extraction from source systems Normalization and transformation Quality dashboards with real-time monitoring Retention controls meeting compliance requirements API access for AI consumption Data readiness is NEVER "complete." It's continuous discipline requiring dedicated ownership. The Data Excellence Test: Ask yourself these questions: ✓ Can you trace any data point from source to consumption? ✓ Can you explain its quality metrics and bias profile? ✓ Do you have automated systems detecting data drift? ✓ Can you demonstrate data governance to regulators? ✓ Do you spend more on data infrastructure than AI models? If you answered "no" to any of these, you're building on quicksand. ♻️ Repost if you've seen AI fail due to data problems ➕ Follow for Pillar 4 tomorrow: Governance & Risk 💭 What percentage of your AI budget goes to data readiness?