AI is a leadership problem, not a technology problem

"Most of the executive teams I work with have been investing in AI for a few years. The ones who are frustrated are not the skeptics. They are the believers whose programs have not connected to the P&L. They have the pilots, the internal momentum, the board slide showing everything in flight. What they do not have is a clear line between that activity and business performance, and at this point in the AI cycle, that gap is no longer acceptable."

"I spent several years running AI at scale inside Kroger and its data science subsidiary 84.51°, where we processed millions of predictions per second across thousands of store locations. We measured work in margin, basket size, and customer retention rather than how many models were in production, whether the pilots were impressive, or if the work moved the business. That experience shaped how I think about what AI requires from leadership, and what most leadership teams are still getting wrong."

"Most companies can tell you exactly how many AI models they have running. Very few can tell you what those models are worth to the business. AI can improve both sides of the income statement through better personalization and smarter pricing that support revenue. Automation and sharper forecasting cut costs and waste, but most companies are spreading investment across too many initiatives with too little connection to enterprise value. They are generating activity without changing their economics."

"The question worth asking is not where the company is using AI. It is where AI is changing the unit economics of the business. Most organizations cannot answer the second one. Almost every large organization"

Many executive teams have invested in AI for years, but frustration comes from believers whose pilots and internal momentum have not translated into business performance. The gap between AI activity and financial results is no longer acceptable. AI leadership requires measuring outcomes that affect margin, basket size, and customer retention rather than counting models or showcasing impressive pilots. Value must appear on the P&L through revenue improvements from personalization and smarter pricing, and through cost reductions from automation and forecasting. Investments must focus on initiatives that change unit economics instead of generating activity without economic impact. Velocity becomes a strategic advantage by enabling faster movement from pilots to measurable results.

Read at Fast Company