Why Most AI Projects Fail to Deliver ROI

Get featured on the show by leaving us a Voice Mail: https://bit.ly/MIPVM    This episode reframes how leaders should approach generative AI, with insights from Justin Trombold. Instead of chasing use cases or tools, the focus is on fixing processes, incentives, and operating models. The conversation explores why many AI pilots fail, how ROI thinking can mislead, and why AI should be treated as a new way of working rather than a software upgrade. Practical examples show how small, disciplined changes can unlock productivity, innovation, and meaningful business impact without overinvesting or freezing in fear.  👉 Full Show Notes https://www.microsoftinnovationpodcast.com/802    🎙️ What you’ll learn  • How to identify AI opportunities by examining business processes, not tools  • Why most AI pilots stall before delivering real value  • How incentives and operating models determine AI ROI  • When ROI metrics help and when they get in the way  • How productivity gains can unlock business model innovation  • Why Most AI Projects Fail to Deliver ROI ✅ Find John Online: LinkedIn: https://www.linkedin.com/in/trombold/ 👉 Chapters 03:08 Stop Chasing AI Use Cases Fix the Lawn-Mowing Problem First 05:30 Why AI Efficiency Fails Without Process Redesign 08:22 The Real Reason AI Investments Aren’t Paying Off 13:16 AI Isn’t a Tool Upgrade, It’s an Operating Model Shift 17:39 Why ROI Is the Wrong First Question to Ask About AI 24:56 Productivity Creates Innovation, Not the Other Way Around 27:48 When AI Frees People to Think, Everything Changes 🔴 Highlights  • “Let’s not talk about use cases. Let’s talk about your processes.”  • “If you don’t have to mow your lawn, why would you do it?”  • “You’re just going to shift the bottleneck to another place.”  • “There’s a very high level of maturity in the potential.”  • “There’s generally a very low level of maturity in the willingness.”  • “People are talking a lot about the drill.”  • “Generative AI is transformation.”  • “It’s a change in the way that you’re working.”  • “AI gives people permission to innovate.”   🧰 Mentioned   • Start your own value-creating GenAI Journey with our "rapid" diagnostic here:  Survey Page | AnteSyn Advisors - https://www.antesynadvisors.com/blank-3   • "How to Flourish" with guest Daniel Coyle - EconTalk Podcast Archive - Econlib - https://www.econtalk.org/   • Generative AI - https://www.ibm.com/think/topics/generative-ai  • MIT study on AI ROI -  https://www.technologyreview.com/2025/10/28/1126693/finding-return-on-ai-investments-across-industries/   • Proofs of concept (POCs) -  https://www.projectmanager.com/blog/proof-of-concept-definition  • Design thinking viability and feasibility concepts https://www.uxdesigninstitute.com/blog/desirability-viability-and-feasibility/  ✅Keywords  generative ai, ai roi, operating model, business processes, productivity, innovation, incentives, ai pilots, digital transformation, leadership, applied ai, enterprise ai  Microsoft 365 Copilot Adoption is a Microsoft Press book for leaders and consultants. It shows how to identify high-value use cases, set guardrails, enable champions, and measure impact, so Copilot sticks. Practical frameworks, checklists, and metrics you can use this month. Get the book: https://bit.ly/CopilotAdoption 🔴 Subscribe for all the latest Microsoft Power Platform News: https://www.youtube.com/nz365guy?sub_confirmation=1 🔴 Share this video with a Youtuber friend: https://youtu.be/z8jygROjV-U ✅ Recommended Playlist: Hear the latest from Senior Microsoft Staff 👉 Power 365 Show - https://www.youtube.com/playlist?list=PLzf0yupPbVkqyy0tYMOozNcXsEdVn4sqh 👉 Copilot Show - https://studio.youtube.com/playlist/PLzf0yupPbVkqPyRqPii192UiJuT-SQHw-/videos ✅ All our Microsoft Innovation Podcasts: https://www.youtube.com/playlist?list=PLzf0yupPbVkoEIfkNYZ0dModTR5aLbRh3 ✅ Let’s Connect: Collaborate with me here – https://cloverbase.com YouTube - https://www.youtube.com/nz365guy Website: http://www.nz365guy.com/subscribe LinkedIn – https://www.linkedin.com/in/nz365guy X – https://twitter.com/nz365guy Facebook - https://www.facebook.com/nz365guy Instagram - https://www.instagram.com/nz365guy Pinterest - https://www.pinterest.nz/nz365guy I’m Mark Smith - nz365guy - Helping people reach their full potential I have been a Microsoft Applications MVP for over 14 years. I am passionate about helping people reach their full potential, through training, coaching and mentorship. Accelerate your Microsoft career with the 90 Day Mentoring Challenge (https://www.90daymc.com/) Support the show (https://www.buymeacoffee.com/nz365guy) If you want to get in touch with me, you can message me here on LinkedIn (https://www.linkedin.com/in/nz365guy). Thanks for listening 🚀 - Mark Smith