What's Happening?
The AI Adoption Institute (AiAi) has officially launched with the mission to assist mid-market companies, those with 50 to 5,000 employees, in transitioning from AI experimentation to achieving tangible, measurable returns on their AI investments. AiAi plans
to accomplish this through a combination of peer circles for business leaders, original research, and a standardized metric called Return on AI (ROAI). According to Brett Schklar, President and Enterprise Futurist of AiAi, many companies have acquired AI tools but struggle to integrate them effectively to drive business value. Data indicates that while nearly 90% of organizations use AI in at least one business function, only 37% report a profit impact, a figure that has remained stagnant. Furthermore, only 6% are considered 'AI high performers' with at least 5% of earnings tied to AI, and 56% of CEOs report no revenue gains or cost reductions from AI.
Why It's Important?
The launch of the AI Adoption Institute highlights a critical challenge in the current landscape of artificial intelligence: the disconnect between significant AI investments and the realization of measurable business outcomes. This initiative is important because it addresses the need for practical strategies and frameworks to ensure AI adoption translates into profitability and efficiency for mid-market companies. Without clear methodologies for measuring impact and integrating AI into workflows, businesses risk substantial financial outlays with limited returns. The focus on peer circles and a standardized ROAI metric could provide a much-needed community and accountability structure, helping companies avoid 'buying licenses and skipping the hard part' of operational change. This could lead to more strategic and effective AI implementation across various sectors, fostering innovation and competitive advantage for businesses that successfully navigate this transition.
What's Next?
AiAi will host free webinars on November 12 and November 24, featuring Brett Schklar and Dr. Rebecca Nusbaum, AiAi's Head of Research & Education. These sessions will explain the functioning of the peer circles, introduce AiAi's five-level Operational Maturity Scale, and detail how ROAI is measured. An in-person lunch session is also scheduled for December 15 in Denver. The institute is currently conducting five anonymous studies on AI adoption, HR, CEO perspectives, trust, and external AI consultants, with initial findings expected in Q1 2027. These upcoming events and research initiatives aim to provide businesses with the knowledge and tools necessary to improve their AI adoption strategies and achieve better results.
Beyond the Headlines
The struggle for companies to realize measurable returns from AI investments points to a broader issue beyond just technology: a leadership and organizational change challenge. The statement that 'profitable AI adoption is a leadership problem before it's a technology problem' underscores the need for a fundamental shift in how businesses approach AI. It's not merely about acquiring advanced tools but about redefining workflows, fostering a culture of continuous learning, and establishing clear metrics for success. The emphasis on peer learning and shared experiences through 'circles' suggests a recognition that collective intelligence and practical insights from those navigating similar challenges can be more effective than top-down mandates. This approach could also highlight ethical considerations and the importance of human oversight in AI systems, ensuring that technological advancements are aligned with responsible business practices and societal values.
