While 89% of large companies are heavily investing in digital transformation, research by McKinsey shows most are realizing just a fraction of the potential gains—only 31% of the expected revenue lift and 25% of anticipated cost savings. The culprit? It’s not the technology. It’s the people.
At the heart of every digital transformation—whether it’s ERP, GenAI, or automation—lies a critical, often-overlooked question: Are your people ready to adopt and effectively use these new tools and processes?
Technology Alone Won’t Deliver Value
Generative AI (GenAI) offers remarkable promise: accelerating productivity, reshaping business models, and unlocking competitive advantages. But GenAI, like any other digital innovation, is not a strategy in itself. It’s a tool. And tools only generate value when people know how—and are willing—to use them.
Prosci’s research is clear: organizations that strategically prepare their workforce for AI-driven change are 7x more likely to meet or exceed their objectives. The key differentiator isn’t the tech stack; it’s how well you lead the human side of change.
3 Common Pitfalls That Undermine AI Adoption
- Unstructured Rollouts
Encouraging teams to “just experiment with AI” may uncover early use cases, but it rarely leads to enterprise-wide adoption. Without clear goals, training, and support, most employees lack the time and confidence to meaningfully engage. - Overfocus on Cost Reduction
If AI is positioned merely as a way to cut costs, it breeds fear, resistance, and disengagement. Reframing AI as a tool to enhance creativity, improve workflows, and empower employees is far more effective. - One-Size-Fits-All Implementation
Not every department is at the same level of AI readiness. A big-bang approach ignores these nuances and often fails. Targeted rollouts, starting with high-readiness teams, drive better engagement and ROI.
A Human-Centered Framework for AI Success
To close the value gap, organizations must integrate technical implementation with strategic change management. Here’s how:
1. Define What Success Looks Like
Start with the end in mind. What are the business outcomes you expect from GenAI? How will AI impact roles, tasks, and workflows? Use visioning exercises to link AI adoption directly to business goals.
2. Embrace a Dual Integration Strategy
Prosci identifies two critical paths:
- Tailored Technologies: Align AI tools to your business strategy and core value drivers.
- Pervasive Proficiencies: Build an AI-literate workforce that can use AI confidently across departments.
3. Support Individual Transitions with the ADKAR® Model
Change happens one person at a time. Awareness, Desire, Knowledge, Ability, and Reinforcement—this model empowers employees to move from uncertainty to confident use of AI in their daily work.
4. Manage Resistance with Empathy and Strategy
AI brings real concerns—job displacement, ethical worries, and fear of failure. Address these proactively. Encourage dialogue, offer reskilling opportunities, and highlight how AI can elevate rather than replace people’s roles.
5. Ensure Strong Sponsorship
Executive sponsors must be active, visible, and vocal advocates of the change. Sponsorship is one of the strongest predictors of successful transformation.
Win With AI—By Leading with People
AI can transform your business, but only if your people are ready to transform with it. Investing in the human side of change isn’t a “nice to have”—it’s the difference between tech spend and business success.
Are your people prepared to adopt and embrace the new tools you’re investing in?
👉 Discover the full set of strategies in Prosci’s white paper: Win With AI: Lead the Human Side of Change.
