The AI Hype Tax: Why AI Demos Fail in Production | Andrew Brooks

AI demos are easy. Building AI that actually works inside a business is much harder.Andrew Brooks, founder and CEO of Contextual.io joins Ian Bergman to unpack the AI hype tax, the hidden cost of confusing ChatGPT, Copilot, and impressive prototypes with real business transformation.They explore what makes an AI system truly production ready, why even 99% accuracy can create serious problems at scale, and where human judgment, guardrails, governance, and accountability still matter.You’ll also learn how to decide when to build AI capabilities versus rent existing tools, why differentiated data and workflows should guide that decision, and how AI can amplify expertise instead of simply replacing people.For founders, operators, and innovation leaders trying to turn AI experimentation into measurable business value, this conversation offers a practical framework for separating hype from what actually works.Key Topics⏱️ 04:14 What is the AI hype tax?💸 09:50 Where companies are wasting money on AI🧠 16:18 Human + AI: why the goal is augmentation, not replacement🏗️ 22:20 Why simply turning on Copilot is not enough🏰 27:23 Build vs. rent: when custom AI actually makes sense📊 29:56 Accountability, governance, and measuring AI ROI🏠 34:35 What enterprise AI can learn from the smart home era💡 40:52 How employees can become internal AI champions🔮 46:39 What Andrew was wrong about AI two years agoEnjoying the conversation?Discover more stories of innovation and transformation at alchemistaccelerator.com/podcasts — and explore how today’s leaders are shaping the future.