Why AI Projects Fail—and How Leaders Turn Strategy into Results
Up to 80–90% of AI projects fail to deliver expected value. That gap isn’t just about models or data—it’s about leadership, focus, and execution. In this episode of AI with Bry, I talk with Sarah Cornett, Founder & CEO of Global AI Advisors, about why initiatives stall and how leaders can turn AI strategy into measurable business outcomes.
We dig into aligning AI with real problems, building governance before scale, and empowering teams with the right education and workflows—so you ship value, not just pilots.
Key Takeaways from Sarah Cornett’s Conversation
✅ Start with Strategy, Not Tools
Begin at the top: define objectives, where your industry is headed, and the value you aim to create. Then prioritize use cases by (1) business value and (2) feasibility (data readiness, tech stack, risk). Don’t start with a shiny solution—start with a real problem.
✅ Win Fast with “High-Value / High-Feasibility” Use Cases
Skip the 10-year moonshots. Prove value with smaller, well-scoped projects that your current data and systems can support. Compound wins from there.
✅ Education is Not Optional
Generic “prompt engineering” courses won’t move the needle. Provide role-specific training tied to your actual tools, data, and workflows—plus safe-use guidelines (privacy, IP, regulated data).
✅ Governance First—Especially in Regulated Industries
Separate data governance (quality, lineage, access) from AI governance (model risk, explainability, approvals).
Build a cross-functional AI Governance Board (legal, compliance, security, data, product/ops) and a clear intake → review → approval workflow before production.
✅ Redesign Work, Don’t Just Automate It
Sarah’s “three buckets” of impact:
Some tasks will be fully automated.
Many roles will be augmented (AI handles busywork; humans analyze & decide).
New roles are emerging (AI strategist, AI ethicist, model risk lead, automation architect).
✅ Plan for Human Concerns
Communicate early and often: what AI will do, what humans will own, and how careers evolve. Adoption fails when fear fills the silence.
✅ Use the Right Tools, Intentionally
Daily drivers that accelerate research and delivery: ChatGPT, Claude, Perplexity—plus Perplexity’s Comet for web-powered investigation. Tooling should support your roadmap—not dictate it.
From Experimentation to Strategy
Exploration matters, but unstructured tinkering is why many teams stall. Convert curiosity into outcomes:
Create an experimentation budget (time + dollars) with clear guardrails.
Standardize pilots: owner, success metrics, data scope, risk checklist, 4–8 week timeline.
Graduate winners to production with governance sign-off and training for the teams who will own them.
Leading with AI in the Enterprise
Leaders who ship value do three things consistently:
Build an AI roadmap
Map workflows → identify bottlenecks → match fit-for-purpose tools (horizontal + vertical AI) to real needs.Institutionalize governance
Data quality, lineage, retention
Model documentation, explainability & monitoring
Privacy, IP, security, and regulatory compliance (e.g., HIPAA, EU AI Act where applicable)
Invest in people
Equip teams with role-specific training, updated job definitions, and success metrics that reward adoption—not just delivery.
The Road Ahead
AI won’t rescue a weak process. But strong leadership + clear strategy + disciplined execution will transform AI from a cost center into a compounding advantage. The organizations that align use cases to value, govern before they scale, and upskill their people will avoid the 80–90% failure trap—and win faster.
Show Notes & Links
🔗 Connect with Sarah Cornett
Connect with Sarah Cornett
🌐 Global AI Advisors: https://www.globalaiadvisors.ai
👉 LinkedIn: https://www.linkedin.com/in/sarahcornett-ai/
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Episode's Transcript
Please understand that a transcription service provided the transcript below. It undoubtedly contains errors that invariably take place in voice transcriptions.
[00:00.000] Sarah Cornett:
Up to 80 to 90% of AI projects fail to deliver. So there's really a huge gap still.
[00:23.342] Bryan Dennstedt:
It feels like it's almost going back to the basics—like, get out the crayons and color, and learn how to draw again. There are all these new opportunities now in this AI world that we're in.
[00:23.342] Bryan Dennstedt:
Hey everybody, welcome back to AI with Bry, the show where we dive deep into how to learn, leverage, and lead with AI. I'm your host, Bryan Dennstedt — technologist, strategist, and someone deeply curious about how AI is reshaping our lives and work.
Today, I’m thrilled to welcome Sarah Cornett to the show. Sarah, welcome.
[00:39.512] Sarah Cornett:
Thank you, Bryan — so excited to be here.
[00:41.271] Bryan Dennstedt:
Sarah is the founder and CEO of Global AI Advisors, helping organizations turn AI strategy into real business value. She brings a unique blend of quantitative finance, enterprise strategy, and deep knowledge in governance and AI adoption.
We’ve gotten to talk a few times about how to make AI practical, impactful, and people-centered. I'm really looking forward to today’s conversation because you're bringing both technical depth and business perspective — which is something so many leaders are trying to balance right now.
[01:09.112] Sarah Cornett:
Absolutely. Yes. We are definitely living in a new AI era. There are so many ways we can talk about the future of AI and what this means for organizations.
[01:23.580] Bryan Dennstedt:
Let’s dive into the Learn segment. What’s something you’ve learned recently that really stood out?
[01:29.442] Sarah Cornett:
From working with organizations on AI transformation, what really stands out is that we still have a long way to go. I recently learned that 80–90% of AI projects fail to deliver expected value. That was an alarming statistic.
[02:39.138] Sarah Cornett (continued):
Some of it is technical — like data availability or infrastructure. But one of the biggest reasons for failure is leadership.
Leaders are still learning how to adopt AI, how to align it with strategy, and how to guide teams through change. There’s a major gap in education and leadership around AI.
[03:29.512] Bryan Dennstedt:
It’s so true. It feels like we have to go back to the basics — like, touch it, play with it, break it, and see what it can do. You touched on the data gap, but also on workflow. There are so many ways you can apply AI across roles. How do you help leaders learn and experiment?
[04:57.280] Sarah Cornett:
Great question. First, I always advise starting with an AI strategy. What are your goals? Where is your industry going? What value could AI bring to your customers?
Then you prioritize use cases — not just by business value, but also feasibility. You don’t want to start with something that could take 10 years to implement. Find the high-impact, low-hanging fruit — that’s where you build momentum.
[07:10.868] Bryan Dennstedt:
What’s a tool you’ve recently used that everyone should check out?
[07:15.412] Sarah Cornett:
I use ChatGPT, Claude, and Perplexity almost daily. But lately, I’ve been playing with Perplexity’s Comet feature — it’s like their version of web browsing, and it’s really powerful. Highly recommend trying it.
[08:02.300] Bryan Dennstedt:
You’ve already started touching on this — but let’s unpack leverage. I believe AI is going to be like electricity — every business will use it. Where do companies start?
[09:12.428] Sarah Cornett:
It always starts with your strategy — that becomes your guide. Then, once you’ve identified the right use cases, you need to layer in education and change management.
People need to understand their roles with AI. How does leadership change? How do teams evolve?
I've worked with analytics teams, marketing teams — and the most powerful training is always customized to the tools, tasks, and challenges that specific team is facing.
[11:28.098] Bryan Dennstedt:
I love that. And I think as AI becomes more embedded in orgs, planning becomes more important. We’re used to agile, but maybe more detailed planning enables better AI results. Are you seeing that?
[12:55.320] Sarah Cornett:
Totally. It starts with leadership — understanding team structure, AI vs. human responsibility, and defining the workflows.
I've spoken at conferences on the future of work, and we see three big buckets:
AI replaces roles — like memo writers in the pre-Internet era.
AI augments roles — freeing humans to focus on high-value work.
New roles emerge — AI strategists, ethicists, prompt engineers.
[16:13.228] Bryan Dennstedt:
Yes! And I say this almost every episode: we’re entering a new Renaissance era — creativity will explode. But we need structure — especially governance. Without it, people are spending money on ChatGPT with no oversight.
[17:22.301] Bryan Dennstedt:
Let's close with leadership. How are you helping teams grow in this space?
[17:32.412] Sarah Cornett:
I’m doing a lot around AI leadership development — especially educating leaders on governance, investment, and human-centered adoption.
Governance is huge. And human-centered leadership is critical. We can’t just replace people — we need to lift them upand help them adapt. That’s the kind of leadership this moment calls for.
[20:46.122] Bryan Dennstedt:
Yes — and we need explainability too. People have to understand how the AI came to its decision. That’s leadership’s responsibility.
[21:14.372] Sarah Cornett:
Exactly. I’ve worked with banks and healthcare orgs to stand up governance programs. Some industries — like healthcare — start with governance first, due to regulation.
If you’re new to AI, start with your data governance. Then, establish a governance board, educate them, and build a workflow for approval before AI is pushed to production.
[23:04.992] Sarah Cornett (continued):
Make sure you’re aware of regulations like EU AI Act or state-specific US policies. Your governance program should align your legal, compliance, and tech teams. That’s how you lead with responsibility.
[24:31.112] Bryan Dennstedt:
Love that. And it all ripples out — governance → data → security → workflows → business outcomes. That’s what leadership with AI looks like.
[25:00.821] Bryan Dennstedt:
Tell us how people can connect with you and Global AI Advisors.
[25:10.100] Sarah Cornett:
You can reach me on LinkedIn. At Global AI Advisors, we help with strategy, governance, implementation, and leadership development. We also offer executive education and speak at conferences and internal events.
[26:10.112] Bryan Dennstedt:
Awesome. Please reach out to Sarah or me if you need help with your AI journey. Sarah, thank you so much for joining us — this was a powerful episode.
[26:33.528] Bryan Dennstedt:
This episode of AI with Bry was hosted and produced by me, Bryan Dennstedt. Special thanks to Nancy Velazquez and Kelly Lopez. Video by Leo Moralina. Sound: AI-generated.
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