The Boardroom Directive
Imagine this: A Fortune 500 CEO, whose expertise lies in navigating market trends, managing investor expectations, and maximizing shareholder value, receives a directive from the board, "We need to do something with AI."
The board itself, a collection of seasoned executives and financial experts, has little to no understanding of AI beyond headlines promising revolutionary efficiencies, unprecedented automation, and existential risk. But they know one thing: their competitors are "doing AI," and so should they.
Enter the Consultants
The CEO, now under pressure, turns to the natural solution, consultants. These consultants, eager to capitalize on the AI gold rush, present themselves as AI experts. But, in reality, they often have no actual AI experience beyond generic PowerPoint decks and a few buzzword-heavy LinkedIn posts.
Phase 2: The AI Report
After weeks (or months) of research, mostly Googling case studies, benchmarking competitors, and repackaging vendor marketing materials, the consultants produce a glossy, 100-page report. The report is rich in executive-friendly terminology but devoid of any real technical or operational roadmap. It suggests AI-driven transformation but conveniently avoids specifying how to actually implement AI in a meaningful way.
A report by MIT Sloan Management Review indicated that 70% of companies reported minimal or no value from their AI investments, often due to ineffective strategy implementation (MIT Sloan).
Phase 3: The AI Pilot (a.k.a. The POC to Nowhere)
The company funds a small proof of concept (POC), often a chatbot or predictive analytics tool, neither of which solve core business problems. It is handed off to an IT department already stretched thin. The pilot shows some promise but fails to scale, and by the time anyone realizes it's going nowhere, the consultants are long gone, with their invoices paid in full.
Meanwhile, actual AI practitioners, data scientists, engineers, and architects, watch from the sidelines as decisions are made at the top without foundational understanding.
A McKinsey Global Institute report revealed that 45% of consulting work could already be automated using existing AI technology, which ironically suggests consultants advising on AI could be disrupted by AI itself (McKinsey).
Start with Education, Not Implementation
Before investing in AI, boards and executives need to understand what AI actually is, what it isn't, and where it can drive real value. Internal AI literacy should be a priority.
A BCG survey found that only 28% of organizations feel prepared for AI regulations, demonstrating a widespread knowledge gap at the leadership level (BCG).
Hire Practitioners, Not Just Consultants
Bringing in AI talent who can build and deploy real models is critical. If external consultants are needed, they should be vetted for actual AI experience, not just strategy expertise.
Microsoft highlights the necessity of assembling a cross-functional team, including IT specialists, data scientists, and business experts, to ensure AI projects are technically sound and aligned with business objectives (Microsoft).