Insights

Why 70% of AI Projects Fail: Leaders Ignore the Human Side

By George Villagran | September 24, 2025

The Critical Role of an Adoption Plan & Organizational Change Management in AI Deployments

In today’s fast evolving digital landscape, enterprises, and larger midsize organizations are increasingly adopting Artificial Intelligence (AI) to drive efficiency, innovation, and competitive advantage. Yet despite large investments in AI tools, platforms, and models, many AI deployments fall short of expectations. Why? Because success in AI is as much about people, process, and culture as it is about technology.

An adoption plan grounded in sound organizational change management (OCM) is not optional it’s essential. Below we examine why that is, what it takes, and how medium to enterprise sized organizations can build and execute a plan that ensures AI doesn’t just get deployed, but gets adopted, used well, and delivers real, sustainable value.

Why OCM is Critical for Successful AI Deployments

  1. Technology Isn’t Enough: The Human Factor Matters
    AI changes workflows, roles, decision rights, and expectations. Employees may face shifts in how they do daily work, who they report to, or whether certain tasks are automated away. Without proactively managing those changes, organizations risk resistance, low adoption, or even active sabotage. Research and case studies repeatedly show that many AI failure modes stem not from technical defects, but from lack of stakeholder buy in, insufficient training, or misaligned expectations.
  2. Alignment with Strategy, Culture & Governance
    AI initiatives that are not aligned with organizational goals, culture and governance run into problems. Silos, legacy systems, poor data quality, unclear ownership, and mismatched incentives often derail what looked like promising AI projects. OCM ensures those pieces are addressed: you anchor AI projects to strategy, assign accountability, manage data & integration challenges, and ensure governance (including ethical governance) is in place.
  3. Managing Fear, Uncertainty, and Resistance
    AI can create uncertainty: Will my job change or be displaced? What new skills will I need? Will decisions be transparent or explainable? Without careful communication and change planning, people often fill unknowns with fear. A well structured adoption plan responds to these emotional, psychological, and practical concerns.
  4. Speed of Value Realization
    Even when an AI system is technically implemented, without adoption its usage may be limited or inefficient. OCM helps accelerate uptake: through training, incentives, pilot programs, feedback loops. That means sooner realization of ROI, better performance, and fewer wasted resources.
  5. Sustainable Change & Continuous Improvement
    AI deployments are rarely “set and forget.” They evolve with data, user feedback, shifting business conditions, and regulatory/ethical landscapes. Organizations need to embed processes for continuous learning, feedback, measurement, and iteration. OCM provides structure for embedding these into culture, not just as one off projects.

 

What an Effective Adoption / OCM Plan Looks Like for Medium-to-Enterprise Organizations

To realize the benefits above, an adoption plan should include several key components. Here are best practices, drawn from recent AI transformations, that companies should incorporate.

Component

What It Means

Key Practices

Executive Sponsorship & Vision

Leaders must not only approve the AI initiative they must embody vision, communicate it, and consistently support change.

Define clear goals & outcomes. Allocate resources. Make senior leaders visible in communications. Tie AI efforts explicitly to corporate strategy.

Stakeholder Engagement & Stakeholder Mapping

Understand who will be impacted directly or indirectly by the AI deployment. Include all levels (frontline, middle management, executives).

Conduct mapping exercises. Hold listening sessions. Identify change champions. Address stakeholder concerns early.

Communication Plan

Transparent, consistent messaging about what is changing, why, how, when, and what support is available.

Segmented messaging for different groups. Use multiple channels. Provide updates. Be honest about risks, not just promise upside.

Skills & Capability Building

AI often requires new skills (data literacy, model interpretation, human AI collaboration, etc.). Training must be proactive and scalable.

Assess current skill gaps. Build internal/external training programs. Use hands-on / scenario-based learning. Support peer mentoring.

Redefinition of Roles, Processes & Workflows

AI may automate tasks, shift who does what, or change decision flows. Work must be restructured to avoid confusion or overlap.

Map as is workflows. Define to be. Clarify accountability. Ensure compatibility with legacy systems. Pilot small, iterate.

Governance, Ethics & Transparency

Particularly for enterprise deployments, ensuring data privacy, ethical AI, bias mitigation, explainability and regulatory compliance is critical.

Build ethics committees or oversight bodies. Publish policies. Provide clarity about how models work and are monitored. Ensure auditability.

Feedback Loops, Monitoring & Metrics

Measure adoption, usage, performance, user sentiment not just technical metrics. Use data to adapt the plan.

Define KPIs (e.g. user adoption rates, productivity changes, model error, trust metrics). Monitor regularly. Collect user feedback. Adjust course as needed.

Change Reinforcement & Culture Embedding

For AI change to stick, it must become part of the culture not orphaned or siloed.

Celebrate early wins. Incentivize behaviors aligned with AI usage. Recognize and reward change champions. Audit processes regularly.

 

Challenges & How to Overcome Them

Even with a solid adoption plan, several common challenges crop up in medium and enterprise contexts. Being aware and having strategies to deal with them makes the difference.

Challenge

Why It Happens

Mitigation Strategies

Siloed Organizational Structure

Different departments may work in isolation, with different data, priorities, or tight control over processes.

Use cross-functional teams. Alignment workshops. Shared KPIs. Clear governance.

Legacy Systems & Data Issues

Poor data quality, fragmented data, or outdated IT infrastructure complicate AI adoption.

Invest in data hygiene. Modernize or integrate systems. Start with smaller pilots to build credibility.

Lack of Digital Literacy

Some staff may be unfamiliar or uncomfortable with AI tools or data

driven decision making.

Broad awareness training. Use peer mentors. Provide clear, simple examples. Ensure intuitive tool design.

Resistance & Fear

Concerns about job security, changes in role, or loss of control.

Transparent dialogue. Show where AI augments rather than replaces. Offer reskilling/upskilling. Provide job role clarity.

Ethical, Legal, or Regulatory Risks

AI often deals with sensitive data, or complex decision logic that raises questions of bias or fairness.

Build ethics oversight. Ensure explainability. Stay abreast of relevant regulation. Engage legal / compliance from early stages.

Change Fatigue

If many transformations are happening simultaneously, people may become overwhelmed.

Prioritize. Stagger initiatives. Keep change initiatives manageable. Celebrate small wins. Ensure adequate support.

 

A Roadmap: How EXXEED Helps You Build and Execute an Adoption Plan

At EXXEED we believe in partnering with organizations to ensure their AI deployments deliver on promise. Our approach typically includes:

  1. Readiness Assessment
    Evaluate your current culture, leadership alignment, skills, data / tech infrastructure, and past change success/failure. Identify strengths to build on, risks to mitigate.
  2. Visioning & Strategic Alignment
    We workshop with senior leadership to define a clear AI vision, what success looks like, what business outcomes are expected, and how AI supports the broader strategy.
  3. Stakeholder Mapping & Change Champion Network
    Mapping all affected stakeholders. Identify and empower change champions across functions who will help advocate, train peers, and provide feedback.
  4. Design of Change Management / Adoption Plan
    Including communications, training, role redefinition, governance, feedback loops, metrics, piloting and scaling strategy.
  5. Implementation Support & Monitoring
    Support during deployment: communication execution, training delivery, technical integration of feedback. Monitor adoption metrics, user sentiment, etc., and adjust course as needed.
  6. Culture and Capability Building
    Embed continuous learning, clarity, and trust. Make sure AI becomes part of how work is done not a bolt on. Build internal capabilities so you are less reliant on external consultants in future deployments.

 

The Bottom Line

For medium to enterprise-sized organizations, deploying AI without a strong adoption plan and robust organizational change management is a high risk endeavor. The technical implementation may succeed, but if people don’t adopt, resist, or misunderstand it, the business outcomes will fall short.

An OCM anchored adoption plan allows for alignment with strategy, mitigation of risk, accelerated value realization, and sustained change. In a world where AI’s pace is only accelerating, getting the human side of the change right is what separates AI experiments from AI transformations.

If your organization is preparing for an AI deployment or already midstream and want to ensure your plan includes the people, culture, and process elements that drive real impact, EXXEED is here to help.