Sahin Boydas
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The ROI of AI: New Data from 1,000+ Enterprise Implementations.

What separates AI and business intelligence projects that pay off from the ones that stall: patterns from enterprise rollouts and what to fix first.

2024-11-127 min read602 words

After three years and dozens of clients, my AI consulting firm has a treasure trove of data on what works and what doesn't in business intelligence. I'm sharing our most surprising findings.

Why Most Approaches Fail

Many common approaches to enterprise AI are flawed at the root.

The root cause is usually one of three things:

Copying what big companies do without understanding why they do it. What works for Google doesn't work for a 10-person startup.

Over-engineering the solution when a simple approach would work better. I've seen teams spend six months building something that could have been done in two weeks.

Ignoring the human element. Technology is the easy part. Getting people to actually use it is where the real challenge lives.

The Framework That Actually Works

Here is a simple framework for evaluating enterprise AI. It's not complicated, but it requires discipline.

Step 1: you should focus on one thing and do it exceptionally well

This is where most people go wrong. They skip this step entirely and jump straight to execution. Don't do that.

Step 2: most founders overthink this and underspend on execution

Once you have the foundation right, this becomes much easier. I've watched founders struggle with this for months when the answer was staring them in the face.

Step 3: Iterate relentlessly

Nothing works perfectly the first time. The companies that get enterprise AI right treat it as an ongoing process, not a one-time project.

Real Talk: What Actually Matters

Here is what actually matters in enterprise AI.

First, execution speed beats perfection. Every time. Companies rarely fail because they moved too fast on enterprise AI. Many fail because they moved too slowly.

Second, measure everything. If you can't measure it, you can't improve it. Set up tracking from day one, even if it's basic.

Third, talk to your users. It sounds obvious, but many founders make decisions about enterprise AI in a vacuum. Get out of the building. Talk to real people.

This connects to broader themes around enterprise AI, business intelligence AI, AI strategy that I've been thinking about a lot lately.

The Bottom Line

None of this is rocket science. But it does require intentionality, consistency, and a willingness to learn from mistakes.

If you take one thing from this article, let it be this: start now, start small, and iterate. The founders who win at enterprise AI aren't the ones with the best strategy on paper. They're the ones who execute, learn, and adapt faster than everyone else.

Companies that take enterprise AI seriously tend to pull ahead of the ones that don't.

If you're working on something interesting in this space, I'd love to hear about it. Drop me a line.

FAQ

Frequently Asked Questions

Q:How can I apply this thinking to my own situation?

Start by identifying the core principle behind the opinion, not the specific example. Then ask yourself: does this principle apply to my context? If yes, test it in a small, low-risk way before going all in.

Q:Do all experts agree with this view?

No, and that's fine. The best ideas in business are often contrarian. I share my perspective based on my experience and data, but I encourage you to seek out opposing viewpoints and form your own conclusions.

Q:What experience informs this perspective?

This perspective comes from over a decade of building companies in Silicon Valley, two successful exits (RemoteTeam to Gusto, MovieLaLa to Gfycat), and investing in 234 startups including Anthropic, OpenAI, and Scale AI. I write about what I've lived.

Written by

Sahin Boydas

Serial entrepreneur, #1 angel investor, author of Becoming Top 1%

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