McKinsey says firms must spend about $3 on change management (training, process, monitoring) for every $1 spent on AI model development. Vendors rarely show quantifiable ROI, and AI‑enabling a customer service stack can raise prices 60–80% while leaders say they can’t cut headcount yet. The bottleneck is organizational adoption, not model capability.
— It reframes AI economics around organizational costs and measurable outcomes, tempering hype and guiding procurement, budgeting, and regulation.
BeauHD
2025.12.03
90% relevant
This article documents the exact operational friction the idea warns about — Lansweeper’s quote that 'slow change management processes' are the primary blocker and the added cost of paid Extended Security Updates (ESU) for firms. The same organisational change‑cost logic that tempers AI ROI (training, process, monitoring) explains why enterprises defer OS upgrades despite support deadlines.
Tyler Cowen
2025.12.03
85% relevant
The article links to Anthropic’s estimate of Claude’s productivity impact and to commentary (Zvi, Dean Ball) — this directly connects to the existing claim that measured model capability is only part of the story and that firm‑level change costs (integration, retraining, process redesign) determine realized ROI.
BeauHD
2025.12.03
88% relevant
The Reuters/Information report cites customers (e.g., Carlyle Group) cutting Copilot Studio spend because of integration and reliability problems — a concrete example of the high change‑management and verification costs this existing idea says determine AI ROI and adoption speed.
msmash
2025.12.01
72% relevant
The freeze in starting salaries and reduced graduate recruitment illustrates the non‑model costs and organizational reconfiguration (hiring, retraining, headcount restructuring) that determine whether AI produces net savings or job displacement in service firms.
EditorDavid
2025.11.30
72% relevant
The MIT authors caveat that displacement depends on firms' strategies and societal acceptance; this ties to the existing idea that organizational change costs (training, process redesign) determine whether technical capability translates into job loss or augmentation.
msmash
2025.10.16
74% relevant
The government and publishers spent roughly $1.4 billion yet adoption fell from 37% to 19% in months and the materials were downgraded; this is a textbook case of high AI spend without sufficient change management, product maturity, or workflow integration.
msmash
2025.10.09
100% relevant
McKinsey report: 'for every $1 spent on model development, firms should expect $3 on change management' and '60–80% price increase' for customer service AI; Fortune 100 HR quote on no headcount reduction.