Kearney Report: Only 30% of Transformations Deliver Expected Value Despite High AI Investments
According to a new study by Kearney, only 29 percent of corporate transformations consistently deliver the value they aim for, despite significant investments in technology and artificial intelligence. The report highlights that resistance to change remains the primary barrier to successful transformation efforts, surpassing challenges related to budget, timelines, or technological limitations. The research surveyed over 100 senior executives across industries and found that more than 80 percent of them believe less than half their AI initiatives are delivering measurable financial impact. Companies embedding capability-building from day one are nearly three times as likely to achieve transformation success compared to those who don't. The study emphasizes the need for a 'human-shaped' approach, focusing on motivation, human contribution, capacity for change, and early skill development. Kearney's findings suggest that while companies have improved in designing transformations, they lag behind in ensuring organizational adoption of these changes. Leadership is often setting transformation priorities without sufficient input from employees or readiness planning.
Topics: AI adoption Kearney study resistance to change transformation failure