While excitement around AI’s immense potential is inspiring, its true value doesn’t need to be overhyped. When companies view AI as a universal solution for every process and challenge, they risk losing focus on the business problems that truly matter, ultimately resulting in disappointing outcomes. Some studies suggest that a third of generative AI projects will be abandoned next year.
Business leaders need to shift their focus away from flashy, future-facing possibilities towards more pragmatic applications of ‘practical AI’ that deliver real-world value for their organisation and customers. This grounded approach not only ensures immediate, competitive value but also preserves limited resources like time and budget. Here’s how to take a pragmatic approach to AI adoption within your own organisation:
Go deeper with GlobalData
Customer value is key to AI adoption
When adopting AI, the guiding principle should always be customer value. Ask yourself: how will this technology enhance the customer experience, streamline processes, or address pain points? By keeping this question at the forefront, businesses can ensure their AI investments are not just innovative, but also impactful. Customers are going to notice when their issues are handled promptly and accurately – it’s a clear win for both user satisfaction and efficiency.
As an example, look at how AI is being applied to make an immediate impact on customer support. Many companies are leveraging AI to deploy chatbots or virtual assistants equipped with comprehensive knowledge bases that can handle a range of inquiries. When thoughtfully implemented, these tools can provide 24/7 support for routine inquiries, ensuring faster response times while freeing up human agents for complex issues. In fact, a recent study from McKinsey found that one large enterprise successfully used generative AI chatbots to improve issue resolution by as much as 14% per hour and reduced agents’ time spent handling issues by 9%.
Practical benefits without budget bloat
High-profile AI experiments often require significant resources and, when they fail to deliver, the financial and reputational costs can be steep. Alternatively, more targeted AI applications can be very affordable and straightforward to deploy. To avoid the pitfalls of overly large or uncertain deployments, companies should start small, targeting specific use cases that have a clear business outcome and return on investment. Generative AI tools – like predictive analytics, translation, and summarisation – can integrate seamlessly into existing business systems, processes, and user workflows. These use cases deliver quick wins for businesses aiming to stay competitive, while also helping them build essential AI capabilities within their organisation.
On the other hand, speculative AI investments, like experimental automation for tasks that aren’t fully understood or standardised, can waste valuable resources. Businesses risk sinking budgets into AI initiatives that fail to optimise the human experience or align with customer and business operational needs. Practical AI, rooted in solving tangible problems, not only delivers more immediate value, but also provides financial sustainability as businesses refine their implementations over time.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataStaying competitive through innovation
In today’s fast-moving landscape, customers and employees expect seamless, intuitive experiences. Businesses that focus on integrating AI into the everyday touchpoints of their customer journey are more likely to earn loyalty and stand out in a crowded market. For example, AI can help teams personalise customer experiences using insights from past interactions, purchase histories, and sentiment analysis to deepen engagement and foster trust. AI-powered systems like these are positively viewed by users, helping to solve their problems more efficiently.
Practical AI isn’t about chasing exciting headlines; it is about making real, measurable improvements to your business. By focusing on how AI impacts the here-and-now of customer experiences, companies can position themselves as innovators without overpromising or overextending their capabilities.
AI’s potential is vast, but its immediate value lies in the tangible, practical improvements. The key to success is balancing ambition with realism—leveraging AI to enhance existing processes and focusing on customer-centric outcomes.
As leaders, we must resist the allure of the flashy and futuristic and instead commit to the grounded and useful. When AI is implemented with a clear purpose and a focus on everyday impact, the results speak for themselves: stronger customer relationships, financial stability, and a future-ready business.
