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Why are most companies failing to benefit from AI? It's about the people not the tech
Successful uptake of new technology is a matter of emotions -- and with 4 in 5 companies saying they're failing to capitalise on its potential, managers need to know how to deal with them, say researchers from Aalto University. AI has the potential to enhance decision-making, spark innovation and
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Why are 80 percent of companies failing to benefit from AI? It's about the people not the tech, says new study | Newswise
Newswise -- AI has the potential to enhance decision-making, spark innovation and help leaders boost employees' productivity, according to recent research. Many large companies have invested accordingly, in the form of both funding and effort. Yet despite this, studies show that they are failing to
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AI integration is about people, not technology, says report
Introducing advanced AI into an organisation is never going to be a seamless transition, but companies can make it easier on themselves by focusing on the right aspects. Research suggests that around 266m organisations worldwide are either using or experimenting with AI, which is roughly 82pc of
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Employee trust in AI linked to performance and adoption rates
Many companies are making substantial investments in artificial intelligence (AI), which can enhance decision-making processes, foster innovation, increase productivity, and have other advantages. New research published in the Journal of Management Studies shows that company employees' perceptions
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A study reveals that employee trust in AI, both cognitive and emotional, significantly impacts its performance and adoption in companies. Despite heavy investments, 80% of firms fail to benefit from AI due to human factors rather than technological limitations.

Recent research has unveiled a critical factor in the successful implementation of Artificial Intelligence (AI) in companies: employee trust. Despite substantial investments in AI technology, a staggering 80% of companies report failing to reap the expected benefits
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. The study, led by Assistant Professor Natalia Vuori from Aalto University, suggests that the key to successful AI adoption lies not in the technology itself, but in understanding and managing employees' emotional and behavioral reactions to AI2
.Vuori's research team followed a consulting company of 600 employees for over a year as they attempted to implement a new AI tool. The tool was designed to map employees' skills and abilities by collecting their digital footprints, with the aim of streamlining team selection for consulting projects
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.However, the project failed after almost two years. Despite some staff believing in the tool's performance, many were uncomfortable with the AI monitoring their calendar notes, internal communications, and daily activities. This discomfort led to employees either withholding information or manipulating the system, resulting in increasingly inaccurate AI output
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.The research identified four distinct groups based on employees' reactions to the new technology:
Importantly, the study found that emotional trust played a crucial role in AI adoption, even when cognitive trust (belief in the technology's performance) was high
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.The less employees trusted the tool emotionally, the more they restricted, withdrew, or manipulated their digital footprint. This behavior led to biased and unbalanced data inputs, degrading AI performance and further eroding trust, creating a vicious cycle that stalled adoption
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.The findings have significant implications for the estimated 266 million organizations worldwide that are using or experimenting with AI, representing about 82% of companies globally
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Vuori emphasizes that successful AI adoption is not just a technological challenge but a leadership one. "Success hinges on understanding trust and addressing emotions, and making employees feel excited about using and experimenting with AI," she states
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.To capitalize on AI's potential, companies need to adopt a human-centered approach. This includes:
By focusing on these aspects, organizations can create an environment where employees feel comfortable and excited about AI integration, ultimately unlocking its full potential
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