When AI Investments Fail: Why Work Redesign, Not Technology Deployment, Unlocks ROI, by Jonathan H. Westover PhD
Description
Abstract: Despite widespread adoption of artificial intelligence tools at the individual level, organizational returns remain disappointing. Recent industry research indicates that only a small fraction of companies achieve significant value from AI investments, with satisfaction rates similarly low. This gap between individual experimentation and enterprise-scale value realization stems not from technological limitations but from a fundamental mismatch: organizations layer AI onto legacy processes rather than redesigning work systems to exploit AI's capabilities. This article synthesizes evidence from management consulting, organizational design, and human-computer interaction research to demonstrate that sustainable AI value requires systematic work redesign. Organizations must analyze and reconstruct roles, cultivate hybrid digital-domain expertise, and realign skill requirements to match augmented workflows. Without intentional redesign of work architectures, AI initiatives remain trapped in pilot purgatory, generating demonstrations rather than transformative business outcomes. Evidence-based interventions spanning process deconstruction, capability development, governance structures, and change management offer pathways from tactical adoption to strategic value creation.
United States
