Why Most AI Projects Fail to Create Value

What this episode covers

Why do so many AI initiatives fail—even when the technology seems impressive? In this episode, Dr. Michael Prok breaks down what it really takes to create value with AI in business. Drawing on decades of experience across academia, consulting, insurance, and enterprise transformation, Michael explains why AI success requires far more than strong technology or advanced analytics. He introduces a five-part value framework built on technology, analytics, data, business, and psychology—and explains why missing even one of these elements guarantees failure. Rather than being additive, these factors are multiplicative. If one is absent, the outcome is zero value. Michael also challenges common misconceptions about AI, including the belief that it’s either completely new or simply another form of software development. He explores the critical difference between knowledge and wisdom, showing why today’s AI systems can summarize, recombine, and automate—but cannot reason, contextualize, or assign meaning the way humans do. The discussion covers real-world examples such as generative AI content, recommendation systems, and automated RFPs, revealing how AI can unintentionally create noise, randomness, and poor decisions when applied without end-to-end thinking. Rather than replacing people, Michael argues AI should amplify human judgment, creativity, and accountability. If you’re trying to move beyond AI hype and understand how to apply it responsibly and effectively, this conversation offers a clear, practical perspective.

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