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	<title>Research - R6AI</title>
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		<title>Why most AI projects fail, and it isn&#8217;t the technology</title>
		<link>https://r6ai.com.au/why-most-ai-projects-fail-and-it-isnt-the-technology/</link>
					<comments>https://r6ai.com.au/why-most-ai-projects-fail-and-it-isnt-the-technology/#respond</comments>
		
		<dc:creator><![CDATA[James McDougall]]></dc:creator>
		<pubDate>Mon, 19 Oct 2026 04:58:57 +0000</pubDate>
				<category><![CDATA[Research]]></category>
		<guid isPermaLink="false">https://r6ai-com-au.zipit.r6d.dev/?p=1233</guid>

					<description><![CDATA[The technology works. It has for a while now. Yet most AI projects in business still go nowhere. An MIT report in 2025 found around 95% of companies' generative AI pilots were delivering little to no measurable return. BCG puts it another way: under its 10-20-70 rule, 70% of the work in AI transformation is ...]]></description>
										<content:encoded><![CDATA[<p><span style="font-weight: 400;">The technology works. It has for a while now. Yet most AI projects in business still go nowhere.</span><a href="https://fortune.com/2025/08/18/mit-report-95-percent-generative-ai-pilots-at-companies-failing-cfo/"> <span style="font-weight: 400;">An MIT report in 2025</span></a><span style="font-weight: 400;"> found around 95% of companies&#8217; generative AI pilots were delivering little to no measurable return.</span><span style="font-weight: 400;"> BCG puts it another way: under its</span><a href="https://www.bcg.com/publications/2025/agents-accelerate-next-wave-of-ai-value-creation"> <span style="font-weight: 400;">10-20-70 rule</span></a><span style="font-weight: 400;">, 70% of the work in AI transformation is people and processes, and only 10% is the algorithms.</span></p>
<p><span style="font-weight: 400;">That matches what we&#8217;ve seen. A business buys an AI tool, hands it to the team and waits for results. Six months later there&#8217;s a subscription nobody uses, a few people producing average content at high volume, and a leadership team wondering what happened.</span></p>
<p><span style="font-weight: 400;">What happened is they treated AI like a software rollout. It&#8217;s a culture change. So we wrote a playbook about it.</span></p>
<h3><b>AI amplifies what&#8217;s already there</b></h3>
<p><span style="font-weight: 400;">The most important idea in the playbook is simple. AI doesn&#8217;t replace judgment. It amplifies it.</span></p>
<p><span style="font-weight: 400;">Give AI to someone with good judgment and you get a force multiplier. They know when the output is good and when it&#8217;s rubbish, and they get faster and better. Give it to someone without that judgment and you get the opposite: more work, faster, and worse. </span><span style="font-weight: 400;">The playbook borrows a name for these people from writer</span><a href="https://www.thealgorithmicbridge.com/p/slop-cannons-and-turbo-brains"> <span style="font-weight: 400;">Dan Hockenmaier</span></a><span style="font-weight: 400;">: slop cannons.</span></p>
<p><span style="font-weight: 400;">His simple two-by-two maps people on two questions. Do they use AI? Do they have good judgment?</span></p>
<ul>
<li style="font-weight: 400;" aria-level="1"><b></b><b></b><b></b><b></b><b></b><b></b><b>Turbo Brains</b><span style="font-weight: 400;"> have good judgment and use AI.</span><span style="font-weight: 400;"> These are your stars.</span></li>
<li style="font-weight: 400;" aria-level="1"><b>Steady Hands</b><span style="font-weight: 400;"> have good judgment but haven&#8217;t picked up AI yet. This is where your effort should go.</span></li>
<li style="font-weight: 400;" aria-level="1"><b>Slop Cannons</b><span style="font-weight: 400;"> use AI enthusiastically but can&#8217;t evaluate what comes out.</span></li>
<li style="font-weight: 400;" aria-level="1"><b></b><b></b><b></b><b></b><b></b><b></b><b>Dead Weight</b><span style="font-weight: 400;"> have poor judgment with or without AI.</span><span style="font-weight: 400;"> Don&#8217;t start here.</span></li>
</ul>
<p><span style="font-weight: 400;">The question isn&#8217;t who should get AI access. It&#8217;s who has the judgment to use it well.</span></p>
<h3><b>We learned this the expensive way</b></h3>
<p><span style="font-weight: 400;">The playbook includes our own mistakes, because they teach more than the success stories.</span></p>
<p><span style="font-weight: 400;">One team member with no coding background tried to build a software project with AI coding tools. The AI wrote plenty of code. Nobody could tell whether it was any good. Two days and $2,000 in usage costs later, there was nothing usable.</span></p>
<p><span style="font-weight: 400;">Another spent hours trying to get an AI to click one button in a desktop app. Someone with the technical context spotted the problem in minutes: the click was off by a few pixels. Same tool, same problem, completely different result.</span></p>
<p><span style="font-weight: 400;">The lesson in both cases is the same. AI rewards expertise. It doesn&#8217;t replace it.</span></p>
<h3><b>The champion model</b></h3>
<p><span style="font-weight: 400;">So what do the few successful projects do differently? The playbook lays out a five-step approach we use across <a href="https://r6digital.com.au/">R6 Digital</a>, <a href="https://r6automate.com/">R6 Automate</a> and now with <a href="https://r6ai.com.au/">R6AI</a> clients:</span></p>
<ol>
<li style="font-weight: 400;" aria-level="1"><b>Map your people.</b><span style="font-weight: 400;"> Work out who has the judgment before you buy a single tool.</span></li>
<li style="font-weight: 400;" aria-level="1"><b>Pick two or three champions.</b><span style="font-weight: 400;"> Not ten. Give them access, time and a real business problem with a dollar figure attached.</span></li>
<li style="font-weight: 400;" aria-level="1"><b>Let them build.</b><span style="font-weight: 400;"> Prompts, workflows and guardrails, tested and measured. &#8220;We saved 12 hours a week&#8221; counts. &#8220;The team likes it&#8221; doesn&#8217;t.</span></li>
<li style="font-weight: 400;" aria-level="1"><b>Roll out through champions, not mandates.</b><span style="font-weight: 400;"> People trust their colleagues more than a company memo. Show, don&#8217;t tell.</span></li>
<li style="font-weight: 400;" aria-level="1"><b>Document everything and keep iterating.</b><span style="font-weight: 400;"> Update what works, remove what doesn&#8217;t, and add guardrails as you learn.</span></li>
</ol>
<h3><b>The 90/10 rule</b></h3>
<p><span style="font-weight: 400;">If you take one thing from the playbook, make it this. Around 10% of the value in AI comes from building the thing. The other 90% comes from rolling it out: the training, the documentation, the permission to experiment, and the iteration.</span></p>
<p><span style="font-weight: 400;">Most businesses get this backwards. They spend months choosing tools, then launch with a Slack message and wonder why nobody uses it.</span></p>
<h3><b>Download the playbook</b></h3>
<p><span style="font-weight: 400;">The AI Culture Playbook is free. It covers the Judgment Matrix, our own war stories and some very public ones, the champion model, the guardrails every rollout needs, and a five-step checklist you can use this week.</span></p>
<p><a href="https://r6ai.com.au/wp-content/uploads/2026/10/R6AI-AI-Culture-Playbook.pdf" target="_blank" rel="noopener"><b>Download The AI Culture Playbook (PDF)</b></a></p>
<p><span style="font-weight: 400;">Every recommendation in it was tested on our own businesses first. If AI isn&#8217;t the answer for yours, <a href="https://r6ai.com.au/services/">we&#8217;ll tell you</a>.</span></p><p>The post <a href="https://r6ai.com.au/why-most-ai-projects-fail-and-it-isnt-the-technology/">Why most AI projects fail, and it isn’t the technology</a> first appeared on <a href="https://r6ai.com.au">R6AI</a>.</p>]]></content:encoded>
					
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