The Right Way to Launch an AI Initiative

In this episode of HBR on Strategy, Harvard Business School professor Iavor Bojinov discusses the high failure rate of AI projects and provides best practices for leaders to improve their success. Bojinov emphasizes the probabilistic nature of AI, which differentiates it from IT projects, and highlights the importance of selecting the right projects by considering both feasibility and impact, with a focus on strategic alignment and ethical implications. He also stresses the significance of building trust with users, involving them early in the development process, and understanding whether the AI is intended for internal employees or external customers. Bojinov advises companies to balance the need for rapid experimentation with ethical considerations by creating safe testing environments and to evaluate AI products rigorously to avoid unintended consequences, using audits to monitor long-term effects and ensure algorithms add value.