4 Reasons AI Keeps Failing in Regulated Sectors

If you're a $3M+ business in a regulated industry, we'll find the #1 constraint bottlenecking your business and the best solution to solve it - whether it's AI or not - for free: https://alreadybuilt.ai/strategy?r=y23p&utm_source=podcast&utm_medium=description&utm_campaign=Y23-four-reasons-ai-fails-to-grow&utm_content=desc_top You spent real money on AI. The system is live, it works the way it was promised, and your revenue and margins have barely moved. That is not a technology problem, and a second round of spending against the same four decisions buys you the same result, because almost every one of those decisions was settled before anybody wrote a line of code. In this episode Otavio ranks the four reasons the AI you paid for failed to grow the business by how much damage they do: buying on a demo, which tells you almost nothing about the work you would actually put in front of that system; mandating usage and trusting a dashboard, which can only manufacture logins; nobody in the room being paid to say no; and the one that does the most damage, aiming the AI at the loudest pain instead of the actual constraint. Along the way: GPT-4 scoring 298 out of 400 on the bar exam while attorneys using AI get sanctioned for citing cases that do not exist, and an AM100 law firm where usage went from 32 percent to 72 percent and work that needed redoing fell from 83 percent to 24 percent, after his team replaced a breached cloud AI vendor with an on-prem build that backs every answer with the firm's own work. He also breaks down how his own business actually runs: why they tell clients when the answer is not AI, and why a no still pays. In this episode: 00:00 You spent the money and nothing moved 00:42 Reason one: you bought on the demo 02:56 What happens when AI is graded on the whole job 07:11 Reason two: you mandated usage 08:09 Inside an AM100 law firm's M&A group 10:46 Measure the rework rate, not the logins 14:12 Reason three: nobody was paid to say no 16:45 How we actually run this business 24:23 Reason four: you aimed at the loudest pain 26:47 Tripling leads beats a better close rate 30:45 The two questions to ask before you fund anything