Key Takeaways:
- The majority of companies (93%) are investing in AI technology, while only 7% are investing in the people expected to use it.
- This imbalance is causing a "buyer’s remorse" anxiety in boardrooms, where leaders are hesitant to commit to AI investments due to the fear of obsolescence.
- The consequences of ignoring the human side of AI adoption include a loss of trust and the rise of "Shadow AI," where workers use unauthorized AI tools.
- Companies need to shift their focus to a human-centric approach, investing in training and cultural transformation to ensure successful AI adoption.
- The fastest path to progress is to start implementing AI solutions, rather than waiting for the perfect moment.
Introduction to the Problem
In today’s fast-paced technological landscape, companies are struggling to keep up with the rapid advancements in artificial intelligence (AI). According to Bill Briggs, Deloitte’s chief technology officer, companies are investing 93% of their AI budget into technology and only 7% into the people expected to use it. This "93-7" split is a critical error, as organizations are obsessing over the "ingredients" of AI, such as models, chips, and software, while ignoring the "recipe" of culture, workflow, and training required to make the technology work.
The Origins of the Tech Trends Report
The Tech Trends report, which highlights the 93-7 split, is an initiative that Briggs has been a part of for nearly two decades. The report came about when Briggs was consulting with companies that were setting up CTO organizations, and Deloitte didn’t have one. Briggs recalled that he was hired straight out of Notre Dame as part of a wide effort to bring a tech flair to what was then mostly a tax and audit firm. The Tech Trends report has since become a valuable resource for companies looking to navigate the complex world of AI.
The Consequences of the 93-7 Split
The 93-7 split is not just a minor issue, but a critical error that can have significant consequences. Briggs likened it to every technology wave, when the easiest thing to do is apply the new tech to the way a company has always worked. However, this incrementalism is a hard trap to get out of, and companies need to push through what’s comfortable and reimagine their processes holistically. The consequences of ignoring the human side of the equation are already visible in the workforce, with a loss of trust and the rise of "Shadow AI," where workers use unauthorized AI tools.
The Need for a Human-Centric Approach
To correct the 93-7 imbalance, Briggs suggested a radical shift in how companies view AI agents. Organizations need to establish the equivalent of an HR process for agents, robots, and advanced AI, and complex questions about liability and performance management need to be addressed. This is going to be hard, but it’s essential to ensure that companies get the most out of their AI investments. The data supports this need for a human-centric approach, with workers who received hands-on AI training and workshops reporting 144% higher trust in their employer’s AI than those who did not.
The Fear of Buyer’s Remorse
For CEOs and boards, the reluctance to address the cultural shift stems from a deeper fear that today’s investment will be obsolete by next week. Briggs noted that leaders are terrified of committing to a vendor only to face "buyer’s remorse" when a better model releases days later. However, this hesitation is "almost like a pre-snap penalty" in sports, and the fastest path to progress is just getting started on a solution, regardless of how crowded the market is.
The Urgency to Fix the Ratio
The urgency to fix the 93-7 ratio is compounded by the arrival of "Physical AI," which moves beyond text generation to robotics and drones. Real-world applications are already proving the value of getting the integration right, and companies need to shift their focus to the human and cultural transformation to ensure successful AI adoption. As Briggs warned, "No matter how much traffic there is, the sooner you leave, the sooner you can get there." Companies need to take a human-centric approach to AI adoption, investing in training and cultural transformation to ensure that their AI investments pay off.
