
8 Major Problems With AI Initiatives In Enterprise
With so much enthusiasm about the rapid advancement we've made in using LLMs this year, some of the remaining barriers and bottlenecks tend to get lost in the shuffle.
As with all prior technologies, companies have to introduce an AI project the right way. The way I've heard it said is that new workflows and tools need to be a help, not a hindrance, to a company.
We often talk about this as a productivity issue – if it's instituted correctly, the new project will help workers to be more productive, confident, and on top of their jobs. If it's done poorly, it can mire them in low productivity, and actually inhibit the work that needs to get done.
Let's talk about some of the specific problems that I've heard discussed in panels and in interviews around the AI industry, as 2025 got underway.
This is another way that AI follows all other prior technologies. Yes, it's a more powerful technology with a lot more versatility for implementation – but you still need stakeholder buy-in. Otherwise, you're starting from a position of weakness, and it's an uphill battle.
This Substack piece talking about common challenges uses the phrase 'low user adoption,' which basically means that people aren't choosing to use a new AI tool or system.
That on its own is a core problem for enterprise AI.
Suppose someone in a company orders everyone to immediately 'move everything to AI.'
There are a couple potential problems with this. First, there's lack of clarity about what these directives mean. There's also likely to be a lot of overlap and redundant efforts, as well as chaos inside of departments.
It's better to create a detailed strategic plan and go from there.
In some ways, it's easier to create an initiative than it is to manage it.
That's where this next problem comes in – suppose someone in-house or a vendor has dreamed up and built some kind of AI program, but as it is in production, there are issues with adoption and use. Users have questions – and these are often front-line people using the tools for vital business processes.
Who do you go to in order to iron these questions out?
If each department says 'this isn't our problem,' you have an intractable situation on your hands.
So that's some thing else to look out for: not just support in the initial phases, but support later on as the AI systems become part of the workflows and business processes.
This issue starts with a big question – will AI agents replace humans?
You can check out this input from none other than Bill Gates, where he suggests that we 'won't need humans' for most things as AI becomes ascendant.
'There will be some things we reserve for ourselves,' Gates famously said of human initiatives. 'But in terms of making things and moving things and growing food, over time those will be basically solved problems.'
For more, you can listen to a recent edition of one of my favorite podcasts, AI Daily Brief with Nathaniel Whittemore.
Whittemore is talking with Nufar Gaspar, and suggests that AI agents inherently replace humans. In other words, because they're so naturally capable, it's easy for companies to just plug them in and get rid of the human that was doing the job before.
'I think that agents are inherently more replacing than augmenting, at least in terms of how people think about them,' he argues. 'Currently, you know, with agents, the ROI that companies are looking for from agents is, 'can they do a thing more cheaply, efficiently, more quickly than our people do it?''
He notes that companies may choose to reinvest in human potential, or not.
'What that doesn't say is how companies are going to choose to use those new efficiency gains,' he adds. 'Are they going to just slash headcount, or are they going to reinvest people's time that's now freed up in further growth like that? You know, each company has to make those decisions.'
That gap between the theory of AI as assistive, and the reality of agentic replacers, is a big potential problem in any company.
This is a little bit of a different issue that doesn't have as much to do with company integration and has a lot more to do with branding and company reputation.
The basic idea is that companies have to be sincere when it comes to AI adoption and not just giving lip service to this kind of initiative. Here's some of our own Forbes reporting on the topic from Sujai Hajela a few years ago. A lot of it is still applicable now. (and here's more from CNN).
'AI washing' is synonymous to anything else like greenwashing, where companies might claim to be more ecological than they are. It's just a best practice to avoid this kind of mismatch, and the idea that a company might not 'practice what they preach.'
Time and time again, we see companies moving ahead with AI projects without thinking about the ethics of the thing – bias, privacy issues, etc.
Top figures in the tech world have warned against leaving ethics out of the equation. This includes voices like Bill Gates and Elon Musk early in the AI revolution, as well as others more recently who are warning about the intersection of AI with privacy and human data ownership.
AI systems also need to be used in a secure way.
Going back to the podcast, Whittemore talks about compliance with standards like HIPAA and the European GDPR. All of this is similarly important in AI implementation and design.
Simply put, companies need a good roadmap to be successful.
Again, AI is unique in its scope, but not unique in some of the best practices that business should apply. Anything is less effective without a good plan, so companies should make sure that AI factors into their business planning in a concrete and definable way.
That's all for now: think about these common recommendations when it comes to AI adoption in enterprise.

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
7 hours ago
- Yahoo
Broadcom Inc. (AVGO): A Bull Case Theory
We came across a bullish thesis on Broadcom Inc. (AVGO) on Sanjiv's Substack. In this article, we will summarize the bulls' thesis on AVGO. Broadcom Inc. (AVGO)'s share was trading at $246.93 as of 6th June. AVGO's trailing and forward P/E were 90.05 and 37.88 respectively according to Yahoo Finance. spacedrone808/ Broadcom stands at the heart of AI infrastructure buildout, with surging demand for its custom XPUs and Ethernet-based networking solutions. The company expects at least three hyperscalers to deploy over one million AI-accelerated clusters each by 2027, with custom silicon playing a dominant role. Volume shipments are already underway to three such customers, while four additional large tech firms are deeply engaged in development, potentially expanding Broadcom's AI TAM beyond the current $60–90 billion estimate. Demand is increasingly inference-led, with Broadcom anticipating a steeper ramp in XPU orders through late 2025. Networking demand is also accelerating, especially in high-density scale-up configurations within data centers, where Broadcom's new Tomahawk 6 switch, offering 102.4 Tbps throughput, is uniquely positioned. AI aside, the VMware acquisition is proving accretive, with strong uptake of VCF (vSphere Cloud Foundation) enabling on-prem private AI deployments. Over 87% of Broadcom's largest customers have adopted VCF, while ARR is growing in double digits. Core enterprise software benefits from an open ecosystem and tight NVIDIA collaboration, as evidenced by uptake of the Private AI Foundation. Non-AI segments remain sluggish, though broadband and server storage saw sequential growth. Valuation is stretched: at ~$247, AVGO trades at ~30x forward earnings and ~29.6x forward FCF, yielding 3.3–3.4%. A DCF analysis with conservative assumptions implies a fair value of ~$208, suggesting a 15% premium. Given high R&D intensity and strategic positioning in custom silicon and AI networking, Broadcom's long-term prospects are strong, but its near-term upside appears limited. Previously, we highlighted a on Broadcom (AVGO) by Daan Rijnberk on Substack in March 2025, which emphasized the company's exceptional AI-driven growth, VMware integration, and industry-leading margins. The stock has appreciated by approximately 26% since our coverage. Sanjiv focuses on Broadcom's custom silicon ramp, inference-led XPU demand, and expanding AI TAM via deep hyperscaler partnerships. While both agree on Broadcom's centrality to the AI buildout, Rijnberk sees valuation as attractive post-pullback, whereas Sanjiv expresses near-term caution given the stock's premium pricing. Broadcom Inc. (AVGO) is on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 158 hedge fund portfolios held AVGO at the end of the first quarter which was 161 in the previous quarter. While we acknowledge the risk and potential of AVGO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
7 hours ago
- Yahoo
Micron Technology, Inc. (MU): A Bull Case Theory
We came across a bullish thesis on Micron Technology, Inc. (MU) on Daniel Romero's Substack. In this article, we will summarize the bulls' thesis on MU. Micron Technology, Inc. (MU)'s share was trading at $108.56 as of 6th June. MU's trailing and forward P/E were 25.97 and 10.16 respectively according to Yahoo Finance. An engineer in a lab coat examining a state-of-the-art semiconductor chip. Micron Technology is emerging as a pivotal enabler of the AI revolution, thanks to its leadership in high-bandwidth memory (HBM)—a critical component of every AI accelerator. As demand for compute scales exponentially, memory, not compute or foundry capacity, has become the industry's primary bottleneck. HBM, which is essential for AI workloads, is produced by only three firms globally: Samsung, SK Hynix, and Micron. While SK Hynix leads narrowly on speed, Micron has leapfrogged rivals with its HBM3E, offering 50% more capacity per stack and 20% better energy efficiency. This technological edge helped Micron secure key supply roles for NVIDIA's GB200 chips and similar systems from hyperscalers like Google and AMD. The company is already sold out of its HBM capacity through 2025 and is ramping CapEx to address what it calls a multi-year demand inflection. Beyond HBM, Micron is well-positioned across the AI memory stack, including DDR5, GDDR6X, and NAND, all of which are seeing surging demand as AI workloads expand into data centers, PCs, and edge devices. Crucially, Micron is the only U.S.-based player in the HBM oligopoly and is leveraging the CHIPS Act to build the largest chip project in U.S. history, reinforcing its geopolitical and supply chain advantage. Despite this, Micron's stock trades near pre-ChatGPT levels, reflecting cyclical fears and macro uncertainty. Yet, its financials remain strong, with record operating cash flow, rising capital investment, and shareholder returns totaling $4.9 billion. As AI demand grows and memory pricing tightens, Micron's potential rerating offers investors a compelling, asymmetric opportunity with limited downside and long-term upside. Previously, we highlighted a on Micron Technology from Oliver|MMMT Wealth on Substack, which focused on its underappreciated valuation and accelerating growth from AI-related memory demand, particularly as Amazon expands its data centre CapEx. The thesis emphasized Micron's consistent product improvements and its edge over competitors like Samsung. The stock price of MU has appreciated by approximately 54% since then. Micron Technology, Inc. (MU) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 96 hedge fund portfolios held MU at the end of the first quarter which was 94 in the previous quarter. While we acknowledge the risk and potential of MU as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data


Forbes
8 hours ago
- Forbes
13 Big Hunches On AI And Consultants
The Scream', 1893. The Scream is one of four versions painted by Edward Munch in 1893. The ghostly, ... More agonised figure against the background of a red sunset is one of the most well known images in the world of art - a symbol of despair and alienation. From the Nasjonalgalleriet, Oslo. Artist Edvard Munch. (Photo by Art Media/The) Nathaniel Whittemore has some thoughts about consulting in the AI era. For those who might not know, Whittemore is the intrepid host of AI Daily Brief, a podcast I tend to pay attention to as we move through a profound technological shift that has most of us looking for answers. In a rare episode of the podcast where he acknowledged being on the road, Whittemore went through his own LinkedIn post about consulting companies, to glean some predictions and insights (13 of them) on how these firms will work as AI continues to take hold. Chunks of legal and accounting work, he suggested, will get sent to AI (that's #1) calling them 'total bye-byes.' Consulting, he said, will 'distill' things into a targeted set of realities around AI. He described a kind of musical chairs (that's #2) where companies will move into other market areas, big firms to mid-market, etc. as the change happens. As for the displacement of humans, Whittemore spoke to a demand for external validation that, he suggested, will keep the HITL (human in the loop) in play. Enterprises will divide into two categories, either slicing headcount, or use a 'flexible roster' of partners, consultants and fellow travelers. 'Personally, I'm pretty inclined towards smaller, more liberal organizations powered by a flexible roster of partners and consultants,' he said, 'because I think it aligns also with people's (takes) on their professional services, figuring out how far they can take it with AI.' Then there's Whittemore's theorization of new products and new lines of business, as well as 'new practices' (that's #4 on the list, read the list for the others.) His caveat: these predictions are 'ridiculously generic' and nobody really knows what the future holds. 'I think the way that this plays out is going to be pretty enterprise by enterprise,' he said. In the second half of the podcast, he suggested that business people are going to be 'Jerry Macguiring,' where they start to have a different picture of enterprise value. He talked about small teams of consultants managing large swarming agents as a 'default model' and suggested that 'pricing experiments' are going to become common. Buyers, he concluded, are going to prioritize intangibles. Here's another of Whittemore's points: people want to work with people who they like working with, or, in the parlance of his list, 'j𝘂𝗱𝗴𝗲𝗺𝗲𝗻𝘁, 𝘁𝗮𝘀𝘁𝗲𝗮𝗻𝗱𝗘𝗤𝗮𝗹𝗹𝗮𝗹𝘀𝗼𝗿𝗶𝘀𝗲𝗮𝘀𝗺𝗼𝗮𝘁𝘀𝗳𝗼𝗿𝗰𝗼𝗻𝘀𝘂𝗹𝘁𝗮𝗻𝘁𝘀.' (That's #10). More from Whittemore: the value of prototyping, a prediction of companies operating in what he called 'iteration-land,' and an advantage to parties who can build frameworks for the AI future. 'Continuous iteration requires data measurement, analytics, and systems,' he said, 'to make sense of it all: I think these are table stakes aspects of engagements, now that consultants and professional services firms just have to build in an understanding and an expectation of how they're going to measure their impact.' There's a lot of insight here, and if you want to go back and read the whole thing over again, I wouldn't blame you. Whittemore goes over a lot of his analysis at lightning speed. But you do see certain things crop up time and time again – The idea that rapid change is going to shake out in certain ways, and that companies and people need to pivot as our AI revolution keeps heating up. Check it out.