Friction

Most AI pilots succeed in isolation, but organizations cannot scale them into production because their IT systems, data governance, and operating models are not ready. In 2025, companies scrapped an average of 46% of AI proofs-of-concept before production—not because the models failed, but because of unclear ownership and unstructured data. MIT researchers found that established companies adopting AI experienced declines in structured management practices that accounted for nearly one-third of their productivity losses.