Enterprises Must Put Business Problems Ahead of AI Hype

Industry leaders point to talent, broken workflows, governance and weak problem definition as key barriers to turning AI experiments into lasting business value.
Enterprises are not short on AI ambition, but many still struggle to build the talent, processes, governance and operating models needed to turn experiments into lasting business value, according to industry leaders.
Enterprises are pushing to scale AI, but many are finding that ambition alone does not translate into business value. Leaders from Tata Play, PayPal, Western Governors University and the data science industry point to gaps in talent, processes, governance, data and operating models as key barriers to scaling AI effectively.
Across their views, one message stands out. Scaling AI requires more than deploying new models or increasing the number of pilots. Organisations need to rethink workflows, focus on validated business problems and build the foundations required to move AI from experimentation into production.
AI Readiness is a Layered Problem
Krupa Shah, Head of Analytics at Tata Play, says AI readiness in large enterprises involves multiple areas that need attention, but identified three as particularly important: experienced talent, execution speed and responsible AI governance.
“Availability of AI-experienced talent who also understands the business/product” remains a key challenge, Shah says. Enterprises need people who can connect AI capabilities with specific business and product requirements rather than treating AI as a standalone technology function.
She also highlights the need to move faster in experimentation and deployment. “Fail fast, experiment multiple POCs and speed to production” should be part of how enterprises approach AI, she says.
At the same time, faster deployment needs to be accompanied by “governance around responsible” AI, making governance a parallel requirement rather than something addressed after deployment.
Start With the Problem, Not the Technology
For Bibhash Chakrabarty, Senior Director, AI and Decisioning at PayPal, the biggest mistake is more fundamental. Enterprises often start building solutions before they have properly understood the problem they are trying to solve.
“The biggest misstep is rushing to solve before the problem is properly understood,” Chakrabarty says.
He notes that many enterprise problems are not purely technical. They are often embedded in processes that have become outdated or inefficient. Applying GenAI or agentic AI to those processes without redesigning them can produce an impressive demonstration but fail to deliver when the solution needs to scale.
“Dropping a GenAI or agentic AI solution on top of that process without redesigning it leads to a cool demo or pilot but struggles with scaling,” he says.
For Chakrabarty, closing the gap between AI ambition and readiness therefore begins before a solution is even scoped. “Spend a disproportionate amount of time diagnosing the problem before scoping the solution,” he says.
AI Readiness is an Operating Model Issue
Ram Kumar Nimmakayala, Product Leader (AI/ML & Data) at Western Governors University, says enterprises often make the mistake of viewing AI readiness primarily through a technology lens.
“The biggest misstep enterprises make is treating AI readiness as a technology gap,” he says. “It is usually an operating model gap.”
According to Nimmakayala, organisations generally do not lack ambition. What they lack are the conditions required to convert AI initiatives into durable business value. These include trusted data, redesigned workflows, governance, evaluations, decision rights, adoption and clear ownership.
The challenge becomes more significant as enterprises move from copilots to AI agents. “Every prompt, workflow, and agentic action carries real cost,” he says. Poorly designed AI use cases can therefore scale more than just experimentation. They can also scale cost, risk and fragmentation.
Nimmakayala compares the transition to the adoption of electric motors. Productivity did not come simply from replacing steam engines with electric motors. Factories had to redesign their operations around the new technology.
“Enterprise AI needs the same shift,” he says.
That means organisations should move beyond measuring AI progress by the number of use cases launched. “The better question is not, ‘How many AI use cases can we launch?’ It is, ‘Which business outcomes are worth redesigning around AI?’”
From a product perspective, Nimmakayala says the readiness gap closes when AI moves from pilot activity to product discipline. That requires clear outcomes, trusted data, refactored workflows, evaluations and guardrails, human handoffs, cost-to-value visibility and accountable owners.
“AI readiness is not about having more experiments,” he says. “It is about knowing which experiments deserve to become products.”
Customer Problems Should Drive the AI Roadmap
Dr Rajan Gupta, Director of Data Science & AI/ML, also cautions against allowing technology trends to dictate enterprise AI strategies.
“The biggest misstep while scaling AI is when every new model, feature, or hype cycle takes precedence over solving real, validated customer problems,” Gupta says.
When that happens, AI roadmaps can become technology showcases rather than value engines, with organisations accumulating POCs and demos that deliver little lasting value to customers or business owners.
“AI ends up optimised for novelty, not for outcomes,” he says.
Gupta argues that organisations should instead make customer signals the primary input into their AI roadmaps. Enterprises should instrument AI touchpoints to capture friction and behaviour, address those issues through tight iteration and introduce new models, tools or frameworks only when they clearly solve a proven workflow or customer-experience bottleneck.
That changes the central question for AI teams from “What can this new model do?” to “What is the next business-critical problem we can reliably remove with AI?”
For Gupta, the discipline to resist every new AI breakthrough can be as important as the ability to adopt one.
Karthikeyan Ilangovan, Vice President of Data Analytics and AI/ML at MODE Global, says enterprises that build strong data and AI foundations will have the advantage over the next two to three years.
“The enterprises that win with AI will be those that build strong data and AI foundations first. No trusted data, no trusted AI,” Ilangovan says.
He says the key differentiator will be the ability to bring together governed, high-quality data, clear business definitions, modern platforms and responsible controls at an enterprise level, and then embed AI into daily work.
According to Ilangovan, the greatest value will come from rethinking workflows rather than simply adding AI to existing processes. This includes reducing handoffs, accelerating decisions and automating routine tasks while keeping people accountable where human judgment remains important.
Key Takeaways
- Prioritize validated business problems over AI hype for lasting value.
- Address talent gaps and broken workflows to scale AI effectively.
- Implement responsible AI governance to ensure ethical applications.
- Rethink organizational processes to transition AI from experimentation to production.
- Focus on execution speed to enhance AI readiness in enterprises.