Despite the rapid acceleration of generative AI (GenAI), many businesses remain uncertain about where is best to deploy it…
“It’s a conversation that the CEO is having, and the board is having, and—therefore—there’s a lot of pressure to somehow do something with AI,” says Rahul Kanodia, CEO of Datamatics, in an interview at Davos 2025.
Yet, pressure doesn’t always derive results. Indeed, last year, Gartner predicted that at least 30 percent of generative AI (GenAI) projects will be abandoned after proof of concept by the end of 2025
As such, while the urgency to act is evident, for many organizations, a concrete strategy for integrating AI into day-to-day operations is still missing.
The Race to Implement AI
This growing pressure is fueling a race to implement AI as companies seek to prove their technological edge. Investors are attaching significant valuations to businesses with AI initiatives, intensifying their need for organizations to showcase progress—even if their approach is not yet fully developed. As a result, many companies are rushing into AI adoption without a clear strategy, leading to implementations that fail to deliver real value.
While early AI adoption was primarily driven by curiosity and experimentation, Kanodia acknowledges that today’s push is increasingly fueled by “the fear of missing out”. AI isn’t a plug-and-play solution; it requires strategic planning, workforce training, and the proper infrastructure to be truly transformative. Without a thoughtful approach, rushed AI initiatives risk becoming expensive missteps rather than game-changing innovations.
The Productivity Gains Are Significant, If AI is Applied Correctly
Despite its hiccups, AI-driven automation is already delivering substantial efficiency gains across industries, Kanodia notes.
For instance, AAA Washington uses Salesforce’s Agentforce to provide “always-on” AI-powered support, handling routine interactions so human agents can focus on more complex customer needs.