Why AI Projects Fail and the Kellogg Laboratory
While research shows that the majority of AI projects fail, the Kellogg School of Management is launching the Applied AI Lab program to overcome this issue.
Research shows that the majority of enterprise artificial intelligence projects fail not due to technological inadequacy, but because of internal resistance and alignment issues. To bridge this gap, the Kellogg School of Management is launching the Applied AI Lab program, where students will develop real artificial intelligence products for corporate partners.
Failure Rate in Artificial Intelligence Projects
A significant portion of companies' artificial intelligence initiatives fail to deliver a measurable return. The primary reason for this situation is not the technology itself, but unfamiliarity with processes and internal resistance to change.
The Purpose of the Applied AI Lab Program
As part of the ten-week course led by Pablo Landa and Benjamin Grant, cross-functional student teams design working artificial intelligence products for corporate partners. The program aims to ensure that technology adds real value to businesses.
Identifying the Right Problem and Process Management
The laboratory discipline is based on the reality that while software costs approach zero, the expenses of developing the wrong product are increasing. The students' first task is to identify the institutions' actual problems and hidden constraints.
Building Trust and Approval Processes
Implementing artificial intelligence within a company involves a series of trust-building processes. Students work with IT managers and finance departments to navigate approval mechanisms and secure data access for projects.
Corporate Adoption and Real Solutions
The most critical metric of success is the rate of corporate adoption. Student teams produce prototypes that reduce companies' workloads and are sustainable across various fields such as sales, legal, and product management.
Future Competencies and Project Diversity
The program is open to institutions from different sectors and aims to cultivate a versatile student profile that combines strategy, operations, and technical skills.