According to Gartner research 85% of all AI projects fail, and if you’re a business leader looking to drive value through technology transformation and leverage AI, this won’t fill you with confidence.
But AI has the potential to revolutionize industries, and its adoption shows no signs of slowing down. In fact, global adoption of AI by organizations is expected to grow at a CAGR of 36.6% between 2024 and 2030. When adopted and used effectively, the benefits of AI are immense.
The reason many AI projects fail is that they have unclear goals, inadequate measurement frameworks, and an unstructured implementation approach. As a new year dawns, UK businesses must strategically harness the full potential of AI to remain competitive. To maximize the benefits of AI in 2025, business leaders must take three critical steps: assessing AI readiness, building trust, and establishing strong governance.
Step One: Setting the Stage for AI Readiness
- Preparing for AI integration
The journey to successful AI integration begins with preparation. Preparing for AI involves more than just adopting new technologies; this requires a comprehensive strategy that includes defining AI policies, scalable technology tools and robust governance frameworks. Establishing these foundations ensures that AI initiatives are not only effective but also sustainable in the long term.
AI readiness encompasses both technical and organizational readiness. This involves assessing the current state of data infrastructure, talent and organizational culture. A key first step is to conduct a thorough AI readiness assessment to identify gaps and opportunities. This assessment should cover:
- Data quality and availability
- Existing technological capabilities
- The workforce is ready to embrace AI-driven change
Setting clear goals and KPIs against which to measure progress is essential to fostering focus and accountability. For example, Microsoft reported that 70% of Copilot users said it made them more productive. So, if a company had made productivity a key indicator of its success, its AI project would certainly have been effective.
Once you’ve created a solid foundation, it’s time to focus on successful implementation.
Step Two: Implement a Trust-Based AI Strategy
Trust is paramount in AI adoption. Without trust, the potential benefits of AI cannot be fully realized. According to a KPMG In the study, 73% of people express concerns about the risks of AI, while 75% are more willing to trust AI when mechanisms to ensure ethical and responsible use are in place .
- Focus on transparency, accountability and explainability
Building trust in AI requires a commitment to transparency, accountability and explainability. Transparency involves making the decision-making processes of AI systems visible and understandable to stakeholders. This can be achieved through clear documentation and communication on how AI models are developed and deployed.
Accountability ensures that AI systems are accountable for their actions and decisions. There must be a clear chain of custody for any negative consequences, ensuring that developers and operators are accountable. Explainability goes a step further by making AI decision-making understandable to end users. This not only builds trust but also enables stakeholders to effectively use and manage AI systems.
Once you have implemented AI in your organization, you need to put the safeguards in place to ensure responsible and effective use of AI on an ongoing basis.
Step Three: Establish Strong Governance Frameworks
- Address ethical considerations
Whether business leaders adopt or create their own AI solutions, they must ensure they prioritize ethical considerations. This means checking both the data that goes into the AI and the results of the AI to detect any potential bias and ensure fairness. Ethical adoption of AI also requires protecting data privacy and security, as well as protecting personal information from cyber threats and data breaches.
- Establish governance frameworks
Effective AI governance is crucial to balancing innovation with ethical and societal considerations. Governance frameworks should include compliance with regulations, ethical standards and accountability mechanisms.
To effectively govern AI initiatives on an ongoing basis, companies should establish AI governance councils. These councils are responsible for overseeing AI strategies, policies and compliance. They play a crucial role in ensuring that AI projects align with organizational goals and ethical standards.
- Define responsibilities
The AI governance council should include stakeholders from various departments, including IT, legal, compliance, and business units. Their responsibilities include setting AI policies, monitoring AI deployments, and ensuring compliance with regulatory and ethical standards. Additionally, they should facilitate ongoing education and training to keep staff informed of AI advances and ethical considerations.
A happy new year
By strategically navigating AI integration in 2025, UK businesses can unlock unprecedented opportunities for innovation and growth. But this requires a thoughtful approach that prioritizes preparation, trust, governance and responsible development. Through these efforts, companies can ensure that their AI initiatives are not only effective, but also aligned with broader societal and ethical values. But if business leaders follow the three steps outlined, they can prepare the New Year’s fireworks and sparklers and pave the way for a successful and sustainable AI-driven future.
Robert Cottrill is Chief Technology Officer at YEARa digital transformation provider and Microsoft Services Partner of the Year 2024 in the UK. Headquartered in Manchester, it provides public and private cloud, security, business applications, low code and data services to thousands of customers, from enterprises to SMEs and public sector organisations. .
