Nov. 14, 2025

Why AI Fails in Most Companies! And How to Fix It | Tullio Siragusa

In this episode of An Hour of Innovation podcast, host Vit Lyoshin sits down with Tullio Siragusa, strategist, author, and creator of the EmpathIQ Framework™, to unpack the real reasons behind failed AI transformations and what leaders must do differently.

Tullio reveals that AI failure has little to do with algorithms or tools. Instead, it stems from outdated organizational design, slow decision-making, disengaged teams, and leadership models rooted in the Industrial Age. AI thrives in environments that are autonomous, fast-moving, and human-centered, yet most companies still operate on rigid, top-down systems that choke innovation.

Together, Vit and Tullio explore how empathy, emotional intelligence, and decentralized decision-making are becoming essential ingredients in successful AI adoption. Tullio breaks down his EmpathIQ Framework™, a model that has helped organizations triple productivity without increasing headcount by focusing on collaborative OKRs, self-management, purpose-driven culture, and neuroscience-based leadership coaching.

The conversation also dives into how emotional intelligence will become the biggest competitive advantage in the age of AI, why employee engagement is the hidden engine of innovation, and how companies can integrate acquisitions or new technologies without destroying culture.

Show Notes

Tullio Siragusa brings over 30 years of experience across telecom, ad tech, and software engineering, and has helped organizations worldwide transform through human-centered leadership. He’s the founder of Inventrica Advisory, a speaker and strategist specializing in organizational design, culture transformation, emotional intelligence, and AI readiness. His EmpathIQ Framework™ has guided companies toward building empowered, autonomous, and highly productive teams capable of thriving in the age of AI.

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Takeaways

AI fails in most companies because of culture, not technology.
Outdated command-and-control structures suffocate the speed and autonomy AI requires.
Over 70% of AI projects fail due to human and cultural barriers, not technical ones.
Only 21% of employees are engaged, a massive hidden productivity leak.
Empowered, decentralized teams dramatically increase innovation and output.
The EmpathIQ Framework™ can triple a company’s capacity without adding headcount.
Empathy is a strategic advantage, not a soft skill, and it boosts revenue and performance.
AI amplifies whatever culture it enters, making organizational design a critical success factor.
Emotional intelligence will become the biggest competitive edge in the AI era.
Customers buy based on emotional needs first, not just transactions; empathy wins in sales.
Fixing culture first is essential before rolling out any meaningful AI transformation.
AI agents can mimic empathy, but they can’t replace human curiosity, wisdom, or intuition.
Leaders who ignore emotional intelligence risk building companies that sound cold, clinical, and interchangeable.