A recent MIT report featured in Fortune magazine revealed that 95% of generative-AI pilot projects are failing, resulting in investors pulling back and misrepresenting this as a failure of the technology itself.
However, the real failure lies in the way organisations are adopting and managing it. AI does not break business; a poor strategy does, according to Daniel Novitzkas, chairman of Specno.
He says the problem is not how AI has failed to deliver but how too many companies have rushed into it without a plan, according to.
“Too many organisations start with a solution and then look for a problem. This is a wholly redundant approach.
“Instead, it should be the reverse: identifying a hurdle and assessing whether AI can realistically mitigate it,” Novitzkas says. “This requires clarity on workflows, data quality, and change-management processes; the same fundamentals that determine success in any complex software project.
“The MIT study shows that generic, off-the-shelf AI tools may be adequate for individuals but regularly fail in complex business environments. By contrast, bespoke AI tools designed by specialists enjoy a sixty-seven percent success rate, far higher than the thirty-three percent success rate of internally built tools.
“The lesson is clear: technology must adapt to the business, not the other way around.”
For South African businesses, the imperative is not whether to adopt AI, but how, says Novitzkas.
The country faces slow economic growth, collapsing infrastructure, and intensifying competition from global giants such as Amazon and Walmart. In such an environment, efficiency is not optional but rather essential. AI offers a practical way to do more with less: automate repetitive tasks, improve forecasting accuracy, and enrich customer insights.
Novitzkas clarifies: “Caution is naturally healthy, but fear should not invalidate action. AI’s value rarely arrives with fanfare; it appears quietly in shorter service queues, smarter inventory management, and fewer compliance errors; the kinds of improvements that build resilience over time.
“When leaders see AI as a tool to enhance core processes, the results are tangible: saved time, reduced costs, and accelerated development,” he adds.
“It has never been easier for companies to get the right help. The strategic deployment of AI in the early stages of developing a Minimum Viable Product enables a shorter feedback loop, allowing businesses to make critical decisions more quickly.
“This faster turnaround means more time dedicated to input and iteration, resulting in stronger, more reliable systems that minimise disruption to operations,” Novitzkas describes.
Still, many businesses treat AI as an add-on rather than embedding it into their core operations. This adoption gap remains one of the biggest barriers to success, he says, adding that technology cannot compensate for the absence of strategy, governance, or skilled people.
Sustainable adoption requires all three: clear direction, capable teams, and thoughtful process design.
“AI is not a magic bullet. It is objectively a tool. When integrated with clarity and purpose, it has the power to transform efficiency, sustainability, and competitiveness. The future is already rewarding those who choose to make it work intelligently,” Novitzkas concludes.