AI Readiness Assessments: The Key to Turning AI Projects from False Starts into Success

In this article, we explore the opportunities of AI and why many projects fail to get off the ground. We also make the case for why organisations should undertake AI readiness assessments during their digital transformation journey.

The AI opportunity

AI is evolving fast, and businesses are racing to keep up. While machine learning has powered analytics for years, the rise of Generative AI in 2022 truly brought AI into the mainstream. Now, Agentic AI is taking centre stage, promising even greater transformation.

From boosting productivity to cutting risk, the potential is huge. That’s why companies are diving in, using tools like Microsoft Copilot and ChatGPT, or building custom solutions with their own data.

But here’s the catch: although 78% of organisations use AI in some form, only 1% have fully embedded it into their workflows (¹). The gap between ambition and impact is real, and readiness is the key to closing it.

Why do AI projects fail to deliver?

With countless AI solutions available, organisations often invest in the wrong problems or overlook the right opportunities.

In some cases, the chosen solutions don’t align with the broader business strategy. In others, the foundations simply aren’t in place, data quality may be poor, or the infrastructure to manage data and deploy AI models may be lacking.

Just as importantly, many organisations neglect appropriate change management, ignoring the human side of AI projects. With this, they risk low adoption and resistance, mirroring common challenges seen in other technology transformations.

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The Solution? An AI readiness assessment

AI readiness refers to an organisation's preparedness across critical areas to successfully initiate and scale its AI journey.

AI readiness assessments are designed to help tackle these challenges. They provide a structured evaluation of the key pillars of AI within an organisation, highlighting strengths, weaknesses, and gaps. At the same time, they leverage frameworks to uncover and prioritise high-value AI opportunities within your existing processes.

The outcome is a tailored roadmap that connects your current level of readiness with your most promising opportunities, reducing risk, aligning initiatives with strategic goals, and setting a clear path to realising value from AI.

How important is AI readiness?

Research shows that companies conducting AI readiness assessments are 47% more likely to achieve successful implementation. However, 37% of executives still underestimate their value (²).

There are countless examples of companies that have rushed into implementation and suffered the consequences. Take the examples below:

AirCanada – their AI chatbot gave a customer false information about bereavement fares, leading to a tribunal ruling that held the airline liable and required it to pay damages for not ensuring the chatbot’s accuracy.
McDonalds - they abandoned their AI drive-through after a series of blunders which saw customers receive incorrect orders – including bacon-topped ice cream and hundreds of dollars’ worth of chicken nuggets.
Zillow - their home-buying program collapsed after its pricing algorithm consistently overestimated home values, forcing the company to write down $304 million in losses and lay off 25% of its workforce.

These examples underscore the need for a more measured approach to AI, aiming to mitigate its risks and foster a more sustainable strategy that evolves in tandem with business needs.

When should you conduct an AI readiness assessment?

It’s a common misunderstanding to think that you might only need a readiness assessment at the start of your AI journey. However, there are various drivers for undergoing one.

Preparing for AI transformation initiatives

Before embarking on any AI transformation, it’s essential to understand the current state of your organisation’s AI capabilities. This will ensure that future initiatives are feasible to build and scale. Establishing the right foundations, such as robust technical infrastructure and strong data management practices, is critical.

Identifying skill and awareness gaps

AI solutions are only as effective as the people who use them. Your teams may be unaware of the AI tools available, and limited sponsorship or guidance can leave them unsure how to leverage these tools effectively. You may also uncover resistance to adopting new ways of working. Conducting a readiness assessment helps reveal these gaps, ensuring you have a clear view of your people’s skills and their preparedness for AI-driven change.

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Scaling existing AI efforts

If you’ve already begun experimenting with pilots and are now considering scaling these initiatives, this is an ideal time to conduct a readiness assessment. Scaling introduces new demands and complexities that your organisation needs to be prepared for. An assessment can help identify which use cases are most suitable for scaling, those that are both technically feasible and capable of delivering meaningful business value.

The benefits of being AI-ready are now too significant to overlook. AI readiness helps identify capability gaps, clarify next steps, and set strong foundations for a successful transformation. To evaluate your organisation’s current AI capabilities and gain confidence in advancing your AI journey, book an AI Readiness Assessment today.

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Sources

(¹) https://www.itdeskuk.com/latest-ai-statistics

(²) https://www.virtasant.com/ai-today/ai-readiness-assessment

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