95% of AI Pilots Fail to Deliver Meaningful Efficiency: TCS CEO
The world of artificial intelligence (AI) has been abuzz with excitement and promise, with many organizations investing heavily in AI pilots to improve efficiency and drive business growth. However, according to K Krithivasan, CEO of Tata Consultancy Services (TCS), a staggering 95% of these AI pilots have failed to deliver measurable value. This revelation is both startling and thought-provoking, raising important questions about the effectiveness of AI in driving business outcomes.
Krithivasan’s statement, backed by research, suggests that the vast majority of AI pilots are not living up to their promise. This is a concerning trend, given the significant resources and investments being poured into AI initiatives. As we look ahead to 2026, it is clear that a clearer picture of AI’s impact is emerging, and it is not entirely positive.
However, Krithivasan’s remarks also offer a glimpse of hope and a new perspective on the role of AI in organizations. He notes that we are witnessing “a new form of organisational intelligence, where combinations of humans and machines shape how choices are developed, presented and discussed.” This statement highlights the potential for AI to augment human capabilities, rather than replacing them, and to create new forms of intelligence that can drive business success.
The idea of human-machine collaboration is not new, but it is gaining increasing attention as organizations seek to harness the power of AI while also leveraging the unique strengths of human employees. By combining the analytical capabilities of machines with the creativity, empathy, and judgment of humans, organizations can create more effective and efficient decision-making processes.
So, what can organizations do to ensure that their AI pilots deliver meaningful efficiency and value? Krithivasan highlights five core principles that can help organizations succeed in their AI initiatives. These principles include:
- Define clear goals and objectives: Before embarking on an AI pilot, it is essential to define clear goals and objectives. What problems do you want to solve? What outcomes do you want to achieve? By establishing a clear direction, organizations can ensure that their AI initiatives are focused and effective.
- Develop a robust data strategy: AI is only as good as the data it is trained on. Organizations need to develop a robust data strategy that ensures they have access to high-quality, relevant data that can be used to train and validate AI models.
- Foster a culture of innovation: AI requires a culture of innovation and experimentation. Organizations need to encourage employees to think creatively and develop new solutions that leverage AI capabilities.
- Invest in human capital: While AI can automate many tasks, it is essential to invest in human capital to ensure that employees have the skills and expertise needed to work effectively with AI systems.
- Monitor and evaluate progress: Finally, organizations need to monitor and evaluate the progress of their AI pilots regularly. This includes tracking key performance indicators (KPIs) and making adjustments as needed to ensure that the AI initiative is on track to deliver meaningful value.
By following these principles, organizations can increase the chances of success for their AI pilots and deliver meaningful efficiency and value. As Krithivasan notes, the future of AI is not about replacing humans with machines, but about creating new forms of intelligence that combine the strengths of both.
In conclusion, while the fact that 95% of AI pilots fail to deliver meaningful efficiency is a concern, it also presents an opportunity for organizations to re-evaluate their approach to AI and to focus on creating more effective and efficient AI initiatives. By leveraging the power of human-machine collaboration and following the five core principles outlined by Krithivasan, organizations can unlock the full potential of AI and drive business success in 2026 and beyond.
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