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Why most AI projects fail before they start

The most common reason AI engagements fail has nothing to do with the model. It's the absence of a measurable outcome defined upfront.

Chidi Okonkwo

Head of AI Practice

Feb 12, 2025

5 min read

Every week, another company announces they're "implementing AI." Six months later, the project quietly disappears from the roadmap. The model wasn't wrong. The infrastructure wasn't broken. The project failed because nobody defined what success looked like before the first line of code was written.

This isn't a technology problem. It's a scoping problem — and it's almost entirely preventable.

The metric-free project

The most dangerous words in an AI engagement are "improve our process." Improve by how much? Measured how? By when? When you can't answer those questions before kick-off, you've created a project that can never fail — because it also can never succeed.

We've walked away from projects that couldn't answer this question. Not because we enjoy turning down work, but because we've watched too many of them consume six months and six figures without producing anything demonstrable.

What a good outcome definition looks like

A useful outcome statement has three parts: a metric, a target, and a timeframe. "Reduce compliance document review time by 40% within six months of deployment" is a good outcome definition. "Streamline our compliance workflow with AI" is not.

The target doesn't have to be exact — ranges are fine. "Reduce manual classification effort by 60–80%" gives you room to negotiate scope while staying anchored to something measurable.

The baseline problem

You can't measure a 40% improvement if you don't know what you're starting from. Before any AI engagement, we spend time establishing baselines: how long does the current process take, how accurate is it, what does it cost per unit of output?

Building for the outcome, not the demo

Once you have a clear outcome and a baseline, everything else follows. Architecture decisions become easier. Evaluation becomes cleaner. And scope creep has a natural governor — every proposed addition gets evaluated against whether it moves the needle on the outcome you agreed to.

The projects we're most proud of aren't the ones with the most sophisticated models. They're the ones where, six months after deployment, we can point to a number and say: that moved. That's what we said we'd do. We did it.

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LLMsStrategyProject Management

Author

Chidi Okonkwo

Head of AI Practice

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