AI Isn’t the Problem! Why AI Adoption Fails at Work (95% Get Zero ROI) | Jay Kiew
In this episode of An Hour of Innovation podcast, Vit Lyoshin speaks with Jay Kiew about a growing but often misunderstood challenge facing organizations today: why AI adoption so rarely leads to real productivity or innovation.
Jay explains why many companies invest heavily in AI tools yet see little to no return, pointing to research showing that the vast majority of organizations fail to achieve meaningful ROI from AI initiatives. Rather than blaming the technology, the conversation highlights how unclear processes, weak critical thinking, and low readiness for change quietly undermine AI efforts. AI, Jay argues, does not fix broken systems; it exposes them.
Vit and Jay explore how leaders misunderstand what AI is capable of, why undocumented workflows and poorly defined roles cause AI agents to fail, and how learning and integration matter more than deploying new tools. They also discuss how AI reshapes roles and responsibilities, why teaching AI inside organizations is harder than expected, and why design thinking and influence play a critical role in successful adoption.
This is a grounded, practical conversation for leaders, product teams, and professionals navigating the future of work, focused on the mindset shifts, organizational discipline, and change fluency required to unlock real value from AI.
Jay Kiew is a change strategist and transformation leader who works with organizations navigating complex change at scale. He is known for helping leaders move beyond tool-driven thinking toward building adaptive, change-ready cultures. In this episode, Jay’s perspective matters because it challenges the assumption that AI failures are technical problems and shows why leadership, process discipline, and learning capability are the real differentiators.
Takeaways
- AI does not create productivity by itself; it only amplifies the quality of existing processes and decision-making.
- Most AI initiatives fail not because of weak models, but because teams cannot clearly explain how their work actually gets done.
- Research showing that 95% of companies see no AI ROI reflects organizational readiness gaps, not a lack of AI capability.
- Poorly defined workflows become painfully visible the moment AI is introduced into a team.
- Leaders often deploy AI as a solution before agreeing on what problem they are trying to solve.
- Organizations that struggle with change management tend to struggle the most with AI adoption.
- AI agents fail when humans cannot articulate rules, context, and success criteria for the work.
- Critical thinking is becoming more valuable than technical AI skills as automation increases.
- Change fluency, the ability to adapt continuously, is emerging as a core career skill for the next decade.
- Teams that succeed with AI focus less on tools and more on learning, feedback loops, and behavior change.
Timestamps
00:00 Introduction
01:48 Why Leaders Misunderstand AI
03:22 How AI Reveals Organizational Dysfunction
05:58 SOPs and Critical Thinking for AI Success
08:41 AI Adoption and ROI Reality
13:19 Learning and Integration Matter More Than Tools
16:11 What AI Agents Really Are
18:03 How AI Agents Change Roles
22:42 Training Teams for AI Adoption
23:59 Why Teaching AI Tools Is Hard
25:49 Learning on the Job with AI
28:01 Essential Skills for the AI Era
29:03 Design Thinking and Influence
32:16 Why Human Perception Matters
33:17 Change Fluency as a Future Skill
34:13 AI’s Real Impact on Productivity
36:19 Asking Better Questions with AI
37:55 Practical AI Use at Work
39:38 Innovation Q&A
Connect with Jay
- Website: https://www.changefluency.com/
- LinkedIn: https://www.linkedin.com/in/jaykiew-change-fluency/
- Instagram: https://www.instagram.com/changefluency
- Book: https://www.amazon.com/Change-Fluency-Principles-Uncertainty-Innovation/dp/1774586991
Sponsors
- Google Workspace: Collaborative way of working in the cloud, from anywhere, on any device - https://referworkspace.app.goo.gl/A7wH
- Webflow: Create custom, responsive websites without coding - https://try.webflow.com/0lse98neclhe
- MeetGeek: Record, transcribe, summarize, and share insights from every meeting - https://get.meetgeek.ai/yjteozr4m6ln
Connect with Vit
- Substuck: https://substack.com/@vitlyoshin
- LinkedIn: https://www.linkedin.com/in/vit-lyoshin/
- X: https://x.com/vitlyoshin
Episode References
BCG AI Value Study
https://www.bcg.com/press/24october2024-ai-adoption-in-2024-74-of-companies-struggle-to-achieve-and-scale-value
A Boston Consulting Group report cited for finding that 74% of organizations fail to scale value from AI.
MIT AI ROI Report
https://mlq.ai/media/quarterly_decks/v0.1_State_of_AI_in_Business_2025_Report.pdf
An MIT study referenced stated that 95% of organizations are not seeing ROI from AI, largely due to learning and integration gaps.
ChatGPT
https://chatgpt.com/
An AI tool frequently used by employees for basic tasks like drafting emails and research, cited as an example of low-value AI usage.
Microsoft Copilot
https://copilot.microsoft.com/
An AI assistant referenced as commonly used for surface-level productivity tasks rather than workflow transformation.
Claude (Anthropic)
https://claude.com/product/overview
An AI model referenced in discussion about internal AI-written code and future productivity forecasts.
Loom
https://www.loom.com
A screen-recording tool mentioned as a way to capture workflows and SOPs for AI readiness.
Tango
https://www.tango.ai/
A process documentation tool referenced for capturing step-by-step workflows.
Lindy.ai
https://www.lindy.ai
A no-code AI agent platform highlighted as one of the best examples of plug-and-play AI agents.
Make
https://www.make.com
An automation platform referenced for building more technically advanced AI-driven workflows.
Salesforce
https://www.salesforce.com
Cited as a major example of AI agents outperforming human support agents, leading to role restructuring and layoffs.
Coursera
https://www.coursera.org
An online learning platform referenced as focusing heavily on tool-based AI training rather than application and thinking skills.
Ethan Mollick
https://mgmt.wharton.upenn.edu/profile/emollick/
A Wharton professor referenced for his concept of “secret cyborgs” — employees using AI quietly to boost productivity.
Wharton School
https://www.wharton.upenn.edu
Mentioned as the academic home of Ethan Mollick, whose research informs AI productivity discussions.
Meta Ray-Ban Smart Glasses
https://www.meta.com/ai-glasses/
Referenced as an example of innovation through combining AI with wearable technology and real-time translation.
