Where AI Works: Conversations at the Intersection of AI and Industry

Beyond the Hype: Peter Cappelli on Where AI Boosts Productivity, and Where It Just Doesn’t

14 snips
Nov 20, 2025
Peter Cappelli, Wharton professor and workforce strategy expert, joins to cut through AI hype. He explains why few firms actually implement AI and why boards obsess over headcount cuts. Short case studies show when automation helps and when off‑the‑shelf models fail. The conversation focuses on job redesign, securing worker cooperation, and practical barriers to real AI-driven productivity.
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INSIGHT

Real Adoption Rates Are Tiny

  • Only about 5% of companies push AI seriously, and fewer than 1% changed jobs enough to replace people.
  • Hype exceeds implementation because substantive change requires sustained effort and resources.
INSIGHT

Why Boards Obsess Over Headcount

  • Boards obsess over headcount because financial accounting makes people invisible as assets and rewards per-employee metrics.
  • This creates pressure for quick layoffs rather than measured investments in productivity and redesign.
ADVICE

Sell AI With Job-Level Wins

  • Show boards concrete, job-level AI wins (e.g., paint-quality project) rather than corporate productivity promises.
  • Use demonstrations to secure funding and set realistic expectations about costs and timelines.
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