Future Ready Leadership With Jacob Morgan The Great AI Reality Check: Why Most Companies Are Losing Money, Meaning, and Momentum
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Oct 8, 2025 AI was expected to revolutionize work, but it's often creating low-quality output, dubbed 'work slop', which erodes trust. Most companies are stuck in an 'AI plateau', with 95% seeing no real ROI from their tools. A recent report highlights $4.4 billion lost due to poor AI governance. Jacob reveals that the true advantage will go to those who govern AI thoughtfully, rather than just adopt it quickly. He encourages leaders to conduct clarity audits on their AI processes to improve outcomes and increase trust.
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The Work Slop Problem
- AI-generated output often looks polished but lacks depth and meaning, creating a productivity illusion.
- This low-quality output shifts cleanup work to humans and erodes trust and value.
Why The AI Plateau Exists
- High adoption of AI doesn't equal value; 95% of firms reported no measurable ROI despite heavy use.
- Organizations often automate broken processes instead of redesigning them, causing the AI plateau.
Design Before You Automate
- Stop layering AI on broken processes and intentionally redesign workflows before automating.
- Focus AI use on aligned outcomes rather than curiosity or blanket adoption.