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Sunday, November 23, 2025

Why do 4 in 5 AI projects fail? - Canadian HR Reporter

‘This gap between ambition and execution is not a technology problem—it is a work design and people strategy problem’

Most artificial intelligence (AI) projects fail, and it’s mostly due to a lack of employee engagement—not technical issues—says one expert.

Overall, 80 per cent of AI projects fail at the human level, according to data provided by Work Time Reduction.

That’s because organisations “overlook the importance of employee buy-in and structured support,” says Joe O’Connor, CEO.

Citing the EU’s Generative AI Outlook Report, he notes that while 85 per cent of enterprises view AI as a strategic priority, fewer than 20 per cent have redesigned work to support its adoption.

AI: 'people strategy problem'

Only 11 per cent of employees report receiving structured support to use AI tools.

“This gap between ambition and execution is not a technology problem—it is a work design and people strategy problem,” O’Connor says.

He also notes that the main barrier to AI adoption is time, not cost or skills. Organisations that provide protected time for AI learning and experimentation are five times more likely to report successful adoption. However, a LinkedIn study found that 51 per cent of professionals feel that keeping up with AI is like taking on a second job.

“You cannot build AI capability without first creating capacity,” says O'Connor. “Asking people to accelerate AI adoption off the side of an overflowing desk is like driving a Formula 1 car in rush-hour traffic.”

He also...



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