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Why most AI projects flop - and how your business can beat the odds

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Elyse Betters Picaro / ZDNET

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ZDNET's key takeaways

Only 5% of AI projects deliver. It comes down to the ability to customize.

With partnerships in place, AI success odds double.

Ask the right questions before deciding between building or buying.

There's a tremendous gap between AI aspirations and actual successful projects -- this was shown in the recent MIT study that found only 5 percent of generative AI projects have delivered measurable value to businesses. What is that top 5 percent doing differently? Their common denominator is that their technology teams are mastering the art and science of highly customizing AI to their businesses, while fostering partnerships versus go-it-alone approaches. They are going deep -- very deep.

What successful AI projects do differently

Successful AI efforts "focus on narrow but high-value use cases, integrate deeply into workflows, and scale through continuous learning rather than broad feature sets," according to the study's research team, consisting of Aditya Challapally, Chris Pease, Ramesh Raskar, and Pradyumna Chari. "Domain fluency and workflow integration matter more than flashy UX."

Also: 95% of business applications of AI have failed. Here's why

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