We get it. Every company on the planet is asking itself and its partners what it can do with Artificial Intelligence. We get asked the question constantly. No one likes the answer: “Well, it depends.” Unfortunately, it’s correct.

Organizations cannot keep spending on AI like this without expecting a revolt, at best. The question is whether they are going to revisit their strategy now or hope that AI gets much better soon enough so the waste won’t matter.

Oxford Economics estimates the US AI enterprise spend was roughly $200 billion in 2025. US companies spent $1 trillion on all R&D in 2025, according to the National Science Foundation. That means AI accounted for 20% of ALL R&D spending for 2025, and it’s increasing rapidly.

That’s a huge number. Obviously, the next question from anyone fiscally inclined is “What value did we derive from that massive spend?” That’s when the consultants look back at them with a blank stare. The ROI on that spend is MISERABLE. Deloitte reports that only 6% of investments had a payback in under a year, and even among the best efforts, only 13% saw returns in that same period. In fact, AI pilot failure rate estimates range from 70% to 95%. By any measure, that’s insane.

Einstein never said, “The definition of insanity is doing the same thing over and over and expecting different results,” but that doesn’t make it any less true. Organizations cannot keep spending on AI like this without expecting a revolt, at best. The question is whether they are going to revisit their strategy now or hope that AI gets much better soon enough so the waste won’t matter.

We are definitely in camp #1. Don’t get us wrong, we are not advocating that AI spending stop. Not at all. We firmly believe that AI will add tremendous value in the long run. However, we do believe the throwing of AI spaghetti at the wall needs to end. Choosing AI use cases based on enthusiasm or fear that you need to do something because your competitors are is not a recipe for favorable business outcomes. It will only make future efforts harder.

AI adoption will not be easy. There are many variables that factor into whether an AI effort will succeed or fail. And even with favorable variables, AI is frequently and confidently wrong. A lot. That’s why a far more deliberate strategy is needed.

Our advice to organizations that are frustrated with a lack of AI success and those who are paralyzed by the breadth of the choices is the same: Take your cold shower. Learn to prioritize where to focus your resources. Used correctly, AI can be a strong accelerator for making your business better at what it does well. It cannot fix areas that already don’t work because they are immature.

Figuring out the right workflows for AI adoption does not need to be an exhaustive analysis of every single flow, system, and business unit in the organization. Talking to the right people will quickly reveal patterns across the organization that will allow for a solid 18-month roadmap that lets you focus on what will work now and what should be planned for.

Not sure where to start? We can help navigate through the noise and find your footing. Our AI Reality Check will give you the intelligence and confidence to move forward.