Industry Knowledge is Essential for AI Success
Industry Knowledge is Essential for AI Success
Many technology vendors are de-prioritising industry training to free up budgets to invest more heavily in AI skills training and it is a mistake – a huge mistake.
A recent McKinsey survey said that 70% of all AI projects have no impact at all on EBIT (earnings before interest and taxes). Of the 30% that do, it gave no analysis of how many made a significant impact, some did, but a number were probably small beer.
Other reports have said that a related issue is that people designing AI agents do not know enough about how the people on the ground make a process really work, as opposed to the process written up in company manuals.
The lesson is that you cannot start a successful AI project unless the people running it have enough industry knowledge to investigate an existing process, find its potential for improvement, and then design the AI solution to achieve it.
If you are a retailer anxious to get your AI strategy right, make sure the vendors and consultants you select to help, are those investing to maintain or improve their level of industry expertise as well as their AI skills, or find another set of partners that is.
If you want to expand your use of AI in a way that will give you strategic advantage over competitors and a positive impact on your EBIT, read this article to learn more, before you spend any more money chasing ghosts.
-
Posted by Brian Hume
16th September 2026
