Why Most AI Projects Fail to Deliver ROI

Feb 22, 2026

Justin Trombold, an independent consultant who finds value-creating generative AI opportunities by diagnosing processes and operating models. He urges fixing processes not chasing tools. Short, practical ideas about starting small, avoiding stalled POCs, and how productivity gains can enable business-model innovation. Conversation focuses on incentives, measuring change, and treating AI as a new way of working.

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ADVICE

Map Processes Before Picking AI Tools

Do stop chasing AI use cases and start mapping end-to-end business processes first.
Justin Trombold advises identifying process bottlenecks and then placing AI where it truly shifts throughput rather than just adding a tool.

INSIGHT

AI Can Just Move Your Bottleneck

Insight: Improving one task with AI often just shifts the bottleneck elsewhere in the workflow.
Justin gives a sales example where better lead screening increases lead volume but fails if incentives or downstream processes don't change.

ADVICE

Start With Small Measurable Wins

Do apply AI incrementally to measurable 10% improvements and iterate from there.
Justin recommends starting with small, confidence-building wins and then taking the next step rather than overinvesting upfront.

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This episode reframes how leaders should approach generative AI, with insights from Justin Trombold. Instead of chasing use cases or tools, the focus is on fixing processes, incentives, and operating models. The conversation explores why many AI pilots fail, how ROI thinking can mislead, and why AI should be treated as a new way of working rather than a software upgrade. Practical examples show how small, disciplined changes can unlock productivity, innovation, and meaningful business impact without overinvesting or freezing in fear.

👉 Full Show Notes
https://www.microsoftinnovationpodcast.com/802

🎙️ What you’ll learn

How to identify AI opportunities by examining business processes, not tools
Why most AI pilots stall before delivering real value
How incentives and operating models determine AI ROI
When ROI metrics help and when they get in the way
How productivity gains can unlock business model innovation

✅ Highlights

“Let’s not talk about use cases. Let’s talk about your processes.”
“If you don’t have to mow your lawn, why would you do it?”
“You’re just going to shift the bottleneck to another place.”
“There’s a very high level of maturity in the potential.”
“There’s generally a very low level of maturity in the willingness.”
“People are talking a lot about the drill.”
“Generative AI is transformation.”
“It’s a change in the way that you’re working.”
“AI gives people permission to innovate.”

🧰 Mentioned

Start your own value-creating GenAI Journey with our "rapid" diagnostic here:
Survey Page | AnteSyn Advisors - https://www.antesynadvisors.com/blank-3
"How to Flourish" with guest Daniel Coyle - EconTalk Podcast Archive - Econlib - https://www.econtalk.org/
Generative AI - https://www.ibm.com/think/topics/generative-ai
MIT study on AI ROI - https://www.technologyreview.com/2025/10/28/1126693/finding-return-on-ai-investments-across-industries/
Proofs of concept (POCs) - https://www.projectmanager.com/blog/proof-of-concept-definition
Design thinking viability and feasibility concepts https://www.uxdesigninstitute.com/blog/desirability-viability-and-feasibility/

✅Keywords
generative ai, ai roi, operating model, business processes, productivity, innovation, incentives, ai pilots, digital transformation, leadership, applied ai, enterprise ai

Microsoft 365 Copilot Adoption is a Microsoft Press book for leaders and consultants. It shows how to identify high-value use cases, set guardrails, enable champions, and measure impact, so Copilot sticks. Practical frameworks, checklists, and metrics you can use this month. Get the book: https://bit.ly/CopilotAdoption

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Thanks for listening 🚀 - Mark Smith