The Enterprise AI Value Paradox: Why successful AI projects do not always add up to a better business
Year: 2026
Type: article
Abstract: Companies can improve dozens of activities with AI and still leave customers waiting, employees repeating work, and managers reconciling incompatible decisions. The problem is not always the AI project. It is often the assumption that the way the business currently operates should remain intact. This paper examines why useful improvements at task and department level do not necessarily produce a better end-to-end business result. It draws on published evidence about productivity, organisational change, and AI adoption. The proposed explanation is twofold. First, reported gains may be lost or miscounted when work crosses departmental boundaries. Second, organisations often ask where AI can be inserted into existing work before asking how the work should be organised to deliver the intended result. The paper proposes a different starting point: define the business result, reconsider the service or operation that produces it, and decide where AI, conventional software, and human judgement belong. This is a conceptual argument supported by a selected literature review and illustrative examples. It does not claim that all local automation is wasteful or that the approach has been empirically proven. Working Paper No. 001, Version 1.0.
Author: Sadek, Baher
Language: English
Field: Decision Sciences
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W7225386347