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<!DOCTYPE html>    <html class="">  <head> <meta charset="utf-8" /> <meta http-equiv="X-UA-Compatible" content="IE=edge"/> <meta name="msapplication-config" content="none"/> <title>Building the AI-Powered Organization</title> <link rel="canonical" href="https://hbr.org/2019/07/building-the-ai-powered-organization"/> <meta name="item-id" content="tag:hbr.org,1922-01-01:201907.232795-R1904C"/> <meta name="issue-id" content="BR1904"/> <meta name="item-name" content="Building the AI-Powered Organization"/> <meta property="article:modified_time" content="2023-11-03T15:10:51Z"/> <meta name="apple-itunes-app" content="app-id=1445571382, app-argument=https://hbr.org"/> <meta name="twitter:card" content="summary_large_image"/> <meta property="og:url" content="https://hbr.org/2019/07/building-the-ai-powered-organization"/> <meta property="article:tag" content="AI and machine learning"/> <meta property="article:tag" content="Digital transformation"/> <meta property="article:tag" content="Decision making and problem solving"/> <meta property="article:tag" content="Innovation"/> <meta property="og:description" content="Artificial intelligence seems to be on the brink of a boom. It’s now guiding decisions on everything from crop harvests to bank loans, and uses like totally automated customer service are on the horizon. Indeed, McKinsey estimates that AI will add $13 trillion to the global economy in the next decade. Yet companies are struggling to scale up their AI efforts. Most have run only ad hoc projects or applied AI in just a single business process. In surveys of thousands of executives and work with hundreds of clients, McKinsey has identified how firms can capture the full AI opportunity. The key is to understand the organizational and cultural barriers AI initiatives face and work to lower them. That means shifting workers away from traditional mindsets, like relying on top-down decision making, which often run counter to those needed for AI. Leaders can also set up AI projects for success by conveying their urgency and benefits; investing heavily in AI education and adoption; and accounting for the company’s AI maturity, business complexity, and innovation pace when deciding how work should be organized."/> <meta name="twitter:creator" content="@harvardbiz"/> <meta property="og:site_name" content="Harvard Business Review"/> <meta name="article-type" content="premium"/> <meta property="og:type" content="article"/> <meta property="article:section" content="AI and machine learning"/> <meta name="twitter:site" content="@harvardbiz"/> <meta name="page-category-name" content="AI and machine learning"/> <meta name="description" content="Artificial intelligence seems to be on the brink of a boom. It’s now guiding decisions on everything from crop harvests to bank loans, and uses like totally automated customer service are on the horizon. Indeed, McKinsey estimates that AI will add $13 trillion to the global economy in the next decade. Yet companies are struggling to scale up their AI efforts. Most have run only ad hoc projects or applied AI in just a single business process. In surveys of thousands of executives and work with hundreds of clients, McKinsey has identified how firms can capture the full AI opportunity. The key is to understand the organizational and cultural barriers AI initiatives face and work to lower them. That means shifting workers away from traditional mindsets, like relying on top-down decision making, which often run counter to those needed for AI. Leaders can also set up AI projects for success by conveying their urgency and benefits; investing heavily in AI education and adoption; and accounting for the company’s AI maturity, business complexity, and innovation pace when deciding how work should be organized."/> <meta property="article:publisher" content="https://www.facebook.com/HBR"/> <meta property="og:image" content="https://hbr.org/resources/images/article_assets/2019/06/R1904C_ULIAN_TOC.jpg"/> <meta property="article:published_time" content="2019-07-01T04:00:00Z"/> <meta name="twitter:image" content="https://hbr.org/resources/images/article_assets/2019/06/R1904C_ULIAN_TOC.jpg"/> <meta name="article-content-type" content="Magazine Article"/> <meta name="viewport" content="initial-scale=1,width=device-width"/> <meta name="page-category-id" content="391808"/> <meta name="uid" content="E4DBF1C29504C0A0C5B3B7A385DA188E"/> <meta name="shopper-attributes" content="state:guest"/> <meta property="og:title" content="Building the AI-Powered Organization"/> <meta name="page-type" content="ITEM"/> <meta name="page-id" content="320"/> <meta name="ox-group" content="537063787"/> <meta name="robots" content="max-image-preview:large">  <script type="text/javascript"> ;window.NREUM||(NREUM={});NREUM.init={distributed_tracing:{enabled:true},privacy:{cookies_enabled:true}}; ;NREUM.loader_config={accountID:"858143",trustKey:"858143",agentID:"16887721",licenseKey:"e93df31780",applicationID:"8171118"}; ;NREUM.info={beacon:"bam.nr-data.net",errorBeacon:"bam.nr-data.net",licenseKey:"e93df31780",applicationID:"8171118",sa:1}; ;/*! 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content-area--centered"> <div class="pre-container"> <div class="headline-wrapper"> <div class="top-components article-width-wrapper"> <div class="site-logo--for-print premium"> <img src="/resources/css/images/HBR_logo_black.svg"> </div> <div class="slug-container"> <a class="slug-content" href="/topic/subject/ai-and-machine-learning"> AI and machine learning </a> </div> <div class="headline-container text-center"> <h1 class="article-hed premium"> Building the AI-Powered Organization </h1> </div> <div class="article-dek-group"> <div class="article-dek">Technology isn’t the biggest challenge. Culture is. <div class="article-byline "> <span class="by-prefix">by </span> <ul class="article-byline-list"> <li class="article-author"><a href="/search?term=tim%20fountaine">Tim Fountaine,</a></li> <li class="article-author"><a href="/search?term=brian%20mccarthy">Brian McCarthy,</a></li> <span class="last-author-joint"> and </span> <li class="article-author"><a href="/search?term=tamim%20saleh">Tamim Saleh</a></li> </ul> </div> </div> </div> <div class="article-byline detached"> <span class="by-prefix">by </span> <ul class="article-byline-list"> <li class="article-author"><a href="/search?term=tim%20fountaine">Tim Fountaine,</a></li> <li class="article-author"><a href="/search?term=brian%20mccarthy">Brian McCarthy,</a></li> <span class="last-author-joint"> and </span> <li class="article-author"><a href="/search?term=tamim%20saleh">Tamim Saleh</a></li> </ul> </div> <div class="pub-date"> <a href="/archive-toc/BR1904" class="magazine-toc-link"> From the Magazine (July–August 2019) </a> <span class="long-read is-hidden"> · Long read</span> </div> </div> </div> </div> <hero-image > <div class="hero-image-content "> <div class="image-wrapper" style="width: fit-content;"> <img src="/resources/images/article_assets/2019/06/R1904C_ULIAN.jpg" sizes="(min-width: 64em) 84vw, 100vw" srcset="/resources/images/article_assets/2019/06/R1904C_ULIAN.jpg 2000w, /resources/images/article_assets/2019/06/R1904C_ULIAN-300x141.jpg 300w, /resources/images/article_assets/2019/06/R1904C_ULIAN-768x361.jpg 768w, /resources/images/article_assets/2019/06/R1904C_ULIAN-1024x481.jpg 1024w, /resources/images/article_assets/2019/06/R1904C_ULIAN-383x180.jpg 383w, /resources/images/article_assets/2019/06/R1904C_ULIAN-500x235.jpg 500w, /resources/images/article_assets/2019/06/R1904C_ULIAN-700x329.jpg 700w, /resources/images/article_assets/2019/06/R1904C_ULIAN-850x400.jpg 850w, /resources/images/article_assets/2019/06/R1904C_ULIAN-1200x564.jpg 1200w, /resources/images/article_assets/2019/06/R1904C_ULIAN-1900x893.jpg 1900w" /> <div class="container--caption-credits-hero "> <span class="caption--hero-image">Leonardo Ulian </span> </div> </div> </div> </hero-image> <div class="premium--container"> <div class="article-width-wrapper"> <div class="article-summary" more-caption="more" close-caption="close"> <span class="summary-header font-bold">Summary.   </span> <span class="summary-text"><p>Artificial intelligence seems to be on the brink of a boom. It’s now guiding decisions on everything from crop harvests to bank loans, and uses like totally automated customer service are on the horizon. Indeed, McKinsey estimates that AI will add $13 trillion to the global economy in the next decade. Yet companies are struggling to scale up their AI efforts. Most have run only ad hoc projects or applied AI in just a single business process.</p> <p>In surveys of thousands of executives and work with hundreds of clients, McKinsey has identified how firms can capture the full AI opportunity. The key is to understand the organizational and cultural barriers AI initiatives face and work to lower them. That means shifting workers away from traditional mindsets, like relying on top-down decision making, which often run counter to those needed for AI. Leaders can also set up AI projects for success by conveying their urgency and benefits; investing heavily in AI education and adoption; and accounting for the company’s AI maturity, business complexity, and innovation pace when deciding how work should be organized.</p> </span> </div> </div> <div class="article-body"> <div class="left-rail--container"> <page-utils class="article-utils--vertical hide-for-print" data-js-target="page-utils" data-id="tag:hbr.org,1922-01-01:201907.232795-R1904C" data-title="Building the AI-Powered Organization" data-url="/2019/07/building-the-ai-powered-organization" data-topic="AI and machine learning" data-authors="Tim Fountaine; Brian McCarthy; Tamim Saleh" data-content-type="Magazine Article" data-content-image="/resources/images/article_assets/2019/06/R1904C_ULIAN_TOC-383x215.jpg" data-summary="<p>Technology isn’t the biggest challenge. Culture is.</p> "> <ul> <li class="twitter-icon"> <a href="http://twitter.com/HarvardBiz" target="_blank" rel="noopener noreferrer" js-target="twitter-share"> <i class="updated-twitter-x-icon"> <svg class="" alt="" aria-labelledby="title"> <title></title> <use xlink:href="/resources/css/images/hbr-icons.svg#updated-twitter-x-icon"></use></svg> </i> <div class="utility--icon-label">Post</div> </a> </li> <li class="facebook-icon"> <a href="http://www.facebook.com/HBR" target="_blank" rel="noopener noreferrer" js-target="facebook-share"> <i class="updated-facebook-icon"> <svg class="" alt="" aria-labelledby="title"> <title></title> <use xlink:href="/resources/css/images/hbr-icons.svg#updated-facebook-icon"></use></svg> </i> <div class="utility--icon-label">Post</div> </a> </li> <li class="linkedin-icon"> <a href="https://www.linkedin.com/company/harvard-business-review?trk=biz-companies-cym" target="_blank" rel="noopener noreferrer" js-target="linkedin-share"> <i class="updated-linkedin-icon"> <svg class="" alt="" aria-labelledby="title"> <title></title> <use xlink:href="/resources/css/images/hbr-icons.svg#updated-linkedin-icon"></use></svg> </i> <div class="utility--icon-label">Share</div> </a> </li> <li class="annotate-icon hide do-not-show" js-target="annotate-icon"> <a js-target="handle-mindstone-click"> <i class="mindstone-icon-black" js-target="mindstone-icon-black"> <svg class="" alt="" aria-labelledby="title"> <title></title> <use xlink:href="/resources/css/images/hbr-icons.svg#mindstone-icon-black"></use></svg> </i> <div class="utility--icon-label">Annotate</div> </a> <li> <a href="#" target="_blank" rel="noopener noreferrer" js-target="save-flyout"> <i class="updated-save-icon"> <svg class="" alt="" aria-labelledby="title"> <title></title> <use xlink:href="/resources/css/images/hbr-icons.svg#updated-save-icon"></use></svg> </i> <div class="utility--icon-label">Save</div> </a> </li> <li class="pdf-download hide-for-non-subscriber"> <a rel="noopener noreferrer" href="#" js-target="pdf-download-link" data-reprint-product-id="R1904C-PDF-ENG"> <i class="updated-download-icon"> <svg class="" alt="" aria-labelledby="title"> <title></title> <use xlink:href="/resources/css/images/hbr-icons.svg#updated-download-icon"></use></svg> </i> <div class="utility--icon-label">Get PDF</div> </a> </li> <li class="buy-copies"> <a target="_blank" rel="noopener noreferrer" href="/product/building-the-ai-powered-organization/R1904C-PDF-ENG" js-target="buy-reprint-link" data-reprint-product-id="R1904C-PDF-ENG"> <i class="updated-buy-copies-icon"> <svg class="" alt="" aria-labelledby="title"> <title></title> <use xlink:href="/resources/css/images/hbr-icons.svg#updated-buy-copies-icon"></use></svg> </i> <div class="utility--icon-label">Buy Copies</div> </a> </li> <li class="print-page"> <a href="javascript:window.print();" js-target="print-article"> <i class="updated-print-icon"> <svg class="" alt="" aria-labelledby="title"> <title></title> <use xlink:href="/resources/css/images/hbr-icons.svg#updated-print-icon"></use></svg> </i> <div class="utility--icon-label">Print</div> </a> </li> </ul> </page-utils> </div> <div class="article-width-wrapper premium-content flexed"> <content js-target="article-content" data-key="z9E5NmOtA0ispIBXy0Fzne5F+MTOZijMjxsLLHhw2TahG+AItFYEUY9sHM5eNraO" data-index="J+MqQf1xc7VFXqC49X3sLZBsQfAirNvtEBgt1yk+E61HT0eKx0xlElX8qDqawYqL" data-waiver="false" data-page-year="2019" data-page-month="07" data-page-seo-title="building-the-ai-powered-organization" data-page-adUnit-locations="" data-page-slug="article" data-piano-verified="false" > <article-ideainbrief class="article-ideainbrief"> <h4 class="ideainbrief-title">Idea in Brief</h4> <div class="ideainbrief-contents"> <h5>The Problem</h5> <p>Many companies’ efforts to scale up artificial intelligence fall short. That’s because only 8% of firms are engaging in core practices that support widespread adoption.</p> <h5>The Solution</h5> <p>Cutting-edge technology and talent are not enough. Companies must break down organizational and cultural barriers that stand in AI’s way.</p> <h5>The Leadership Imperatives</h5> <p>Leaders must convey the urgency of AI initiatives and their benefits for all; spend at least as much on adoption as on technology; organize AI work on the basis of the company’s AI maturity, business complexity, and innovation pace; and invest in AI education for everyone.</p> </div> </article-ideainbrief><p><span class="lead-in">Artificial intelligence is reshaping business—though </span><span class="lead-in-large">not at </span> the blistering pace many assume. True, AI is now guiding decisions on everything from crop harvests to bank loans, and once pie-in-the-sky prospects such as totally automated customer service are on the horizon. The technologies that enable AI, like development platforms and vast processing power and data storage, are advancing rapidly and becoming increasingly affordable. The time seems ripe for companies to capitalize on AI. Indeed, we estimate that AI will add $13 trillion to the global economy over the next decade.</p> </content>  <div class="mvm description-text hbrgray, line-height-tight">A version of this article appeared in the <a href="/archive-toc/BR1904">July–August 2019</a> issue (pp.62–73) of <em>Harvard Business Review</em>.</div> </div> <div class="right-rail--container"> <div class="right-rail--inner"> <div class="related-topics--common related-topics--textnotmobile hide-for-print"> <span class="related-topics--links">Read more on <a href="/topic/subject/ai-and-machine-learning?ab=articlepage-topic"><strong>AI and machine learning</strong></a> or related topics <a href="/topic/subject/digital-transformation?ab=articlepage-topic"><strong>Digital transformation</strong></a>, <a href="/topic/subject/decision-making-and-problem-solving?ab=articlepage-topic"><strong>Decision making and problem solving</strong></a> and <a href="/topic/subject/innovation?ab=articlepage-topic"><strong>Innovation</strong></a> </span> </div> </div> </div> </div> </div> <script type="text/javascript"> window.digitalData.readingLists = { data: JSON.stringify([{"readingListTitle":"Must Reads on Innovation","image":"","curationDate":"2021-12-01","dek":"HBR’s definitive articles on innovation will help your organization create breakthrough products, business models, and growth.","recordList":{"recordItems":[{"type":"CONTENT","content":{"itemId":"R2006F","title":"How Apple Is Organized for Innovation","link":"/2020/11/how-apple-is-organized-for-innovation","primaryCategory":"Organizational restructuring","contentType":"Magazine Article","contentDistinction":"Magazine Article","summary":"It’s about experts leading experts.","publicationDate":1604203200000,"publicationDateString":"From the November–December 2020 Issue","productId":"R2006F","productListPrice":0.0,"downloads":[],"sharedWith":[],"imageSrcset":"/resources/images/article_assets/2020/10/R2006F_JANSSON-383x215.jpg 383w, /resources/images/article_assets/2020/10/R2006F_JANSSON-500x281.jpg 500w","imageSizes":"(min-width: 48em) 55.7291667vw, 97.3924381vw","listPrice":0.0,"imageUri":"/resources/images/article_assets/2020/10/R2006F_JANSSON-383x215.jpg","author":["Joel M. 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Dyer; Hal Gregersen"]}}]}]) }; </script> <reading-list> <reading-list-container> </reading-list-container> </reading-list> <div style="display: none !important;" class="promo-trigger promo-trigger--centered"> <div class="promo-trigger--wrapper"> <div class="promo-trigger--header">For HBR Subscribers</div> <div class="promo-trigger--title">Must Reads on Innovation</div> <div class="promo-trigger--dek">HBR’s definitive articles on innovation will help your organization create breakthrough products, business models, and growth.</div> <div class="promo-trigger--cta"> <span id="regularTemplateRLFirer" data-listName="Must Reads on Innovation" class="promo-trigger--cta-firer">Show Reading List</span> </div> </div> </div> <div class="post-container"> <div class="article-width-wrapper"> <ul class="author-bio author-bio--mobile-only"> <li> <div> <author-avatar data-url data-author-name="Tim Fountaine" data-js-target="author-avatar"> TF </author-avatar> </div> <div> <span> <a href="/search?term=tim%20fountaine&search_type=search-all">Tim Fountaine</a> is a senior partner in McKinsey’s Sydney office. </span> </div> </li> <li> <div> <author-avatar data-url="/resources/images/article_assets/2014/09/110-Brian_McCarthy1.jpg" data-author-name="Brian McCarthy" data-js-target="author-avatar" style="background-image: url(/resources/images/article_assets/2014/09/110-Brian_McCarthy1.jpg);"> </author-avatar> </div> <div> <span> <a href="/search?term=brian%20mccarthy&search_type=search-all">Brian McCarthy</a> is a partner in McKinsey’s Atlanta office and co-leads the analytics transformation and knowledge development agendas for McKinsey Digital. </span> </div> </li> <li> <div> <author-avatar data-url data-author-name="Tamim Saleh" data-js-target="author-avatar"> TS </author-avatar> </div> <div> <span> <a href="/search?term=tamim%20saleh&search_type=search-all">Tamim Saleh</a> is a senior partner in McKinsey’s London office and is a global analytics leader for McKinsey Digital. </span> </div> </li> </ul> <page-utils class="article-utils--horizontal hide-for-print" data-js-target="page-utils" data-id="tag:hbr.org,1922-01-01:201907.232795-R1904C" data-title="Building the AI-Powered Organization" data-url="/2019/07/building-the-ai-powered-organization" data-topic="AI and machine learning" data-authors="Tim Fountaine; Brian McCarthy; Tamim Saleh" data-content-type="Magazine Article" data-content-image="/resources/images/article_assets/2019/06/R1904C_ULIAN_TOC-383x215.jpg" data-summary="<p>Technology isn’t the biggest challenge. 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