95% of AI pilots fail. And most companies don’t even know theirs is one of them.Not my opinion. MIT’s 2025 research. It’s getting worse. 42% of companies abandoned most of their AI initiatives this year—up from 17% in 2024.Everyone’s “doing AI.” Almost no one’s shipping it. How long has your AI pilot been running?
TL;DR: 95% of AI pilots fail—not because of technology, but leadership and execution. Mid-market companies have a speed advantage (90 days vs quarters). Win by starting with workflows, prioritising data readiness, and buying over building. If your pilot is older than 90 days with no production date, kill it or ship it.
The Real Reason AI Fails
Here’s what most people get wrong: they think AI failure is a technology problem. It’s not. RAND Corporation’s research is clear: 84% of AI implementation failures are leadership-driven, not technical. The models work. The tools exist. What’s missing is:
- Data readiness — 43% cite this as their top obstacle (Informatica CDO Survey). Translation: your data isn’t clean enough to use.
- Solving a real problem — Companies adopt AI because of hype, not because they’ve identified a specific workflow to fix.
- Execution capability — The gap between pilot and production takes 8 months on average. Most pilots never cross it.
I’ve seen this pattern repeatedly: companies buy an AI tool, run a pilot, declare success in a slide deck—then nothing ships. The pilot becomes a permanent “proof of concept.” Sound familiar? The technology isn’t the bottleneck. Leadership and execution are.
The Mid-Market Squeeze
If you’re running a mid-market company ($1M”$60M), you’re caught in a vice. On one side: Enterprises pouring millions into AI infrastructure, dedicated teams, and 18-month transformation programmes. On the other: Startups born AI-native, with automation built into their DNA from day one. You’re in the middle. And the gap is widening. Every quarter you spend in pilot mode, both sides pull further ahead. Here’s the uncomfortable truth: 53% of mid-market firms feel only “somewhat prepared” to implement AI. Another 10% aren’t prepared at all. (RSM 2025 AI Survey) But there’s good news.
The Mid-Market Advantage
Mid-market companies have something enterprises don’t: speed.
“Mid-market firms can implement AI across departments in weeks—not quarters—thanks to flatter hierarchies and leaner approval cycles.”
— Mondo
The RSM survey confirms this: top-performing mid-market companies go from pilot to production in 90 days. Enterprises? They’re still in committee meetings. Your size isn’t a disadvantage. It’s your weapon—if you use it.
What Actually Works
Forget the AI hype cycle. Here’s what the research says separates the 5% who succeed:
| What Fails | What Works |
|---|---|
| “What model should we use?” | “Where do humans make repetitive decisions?” |
| Start with technology | Start with workflows |
| Perfect data requirements | Use the data you have |
| 6-month pilot programmes | 90-day production commitments |
| Build from scratch | Buy and integrate |
Let’s break these down:
1. Workflows first, models second: McKinsey’s 2025 AI survey found that organisations reporting “significant” financial returns are twice as likely to have redesigned workflows before selecting AI tools. Don’t start with “what model should we use?” Start with “where do humans make the same decision over and over?”
2. Data readiness is 50″70% of the work: Successful programmes allocate the majority of their timeline and budget to data—cleaning it up, connecting it, and making it usable. This isn’t glamorous. It’s necessary. 80% of AI work is still data preparation.
3. Buy beats build: Here’s a stat that should change your approach: buying AI from vendors succeeds 67% of the time. Building internally? About 22%. Unless AI is your core product, don’t build from scratch.
4. Commit to one problem for 12 months: RAND’s recommendation: before starting any AI project, commit to solving a specific problem for at least a year. Not a 6-week pilot. Not a proof of concept. A real commitment to a real problem with a real production deadline.
First Thing Tomorrow
Stop reading. Start doing.
- List every AI pilot running in your company right now
- For each one, answer: When did it start? What’s the production date?
- Kill anything over 90 days old without a ship date
- Pick one. Commit to production in 30 days. Not perfect—production.
If you can’t name a single AI system running in production (not pilot, not POC—production), you’re in the 95%.
The Execution Gap
Only 8% of AI models make it to production. That’s not a technology gap. It’s an execution gap. And execution is exactly what mid-market companies are built for. Fewer layers. Faster decisions. Direct access to leadership. The question isn’t whether you can afford to invest in AI. It’s whether you can afford to stay in the 95%.
95% failing. 8% shipping. Which side are you on?
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