Why Many Companies Waste Their AI Budget
Strategy beats speed, but you can have both.
In boardrooms across America, executives are racing to adopt artificial intelligence, often without asking the fundamental question: What business problem needs solving?
This technology-first approach can be costly. Companies often end up with expensive AI subscriptions and tools that go unused or create more confusion than value—essentially accumulating digital clutter instead of driving outcomes. Pair this misguided effort with “shadow IT,” the practice of employees using their personal licenses or unauthorized software tools, like ChatGPT, on company devices or for work purposes without the explicit approval or knowledge of the IT department.
People have work to do, and they want to use the tools that help them get the job done better, faster, or more reliably. If you rush to select AI tools, you may not be solving any problems.
Get back to those business fundamentals. AI should support your strategy, not dictate it. Successful implementations begin by identifying clear operational challenges or market opportunities before evaluating which tools—if any—can make a measurable difference.
Here’s a framework to guide your AI investments:
Map your processes and identify bottlenecks: Use tools like service blueprints to understand where your biggest inefficiencies lie.
Calculate the cost of inefficiencies: Quantify the real business impact of current pain points.
Evaluate AI tools holistically: Compare solutions based on their ability to deliver measurable outcomes with minimal disruption.
Start small: Pilot focused projects that deliver quick wins and clear results before scaling up.
Most companies seem to be settling. Either from confusion, apprehension to explore the overwhelming amount of resources, or misguidance from someone else (who are confused, unseasoned, overwhelmed, or misguided themselves as well). And while others rush to adopt the latest AI buzzword, the winning approach is deliberate and grounded in your business objectives. Each investment should tie directly to improving operations, serving your users, or growing the bottom line.
At Virgent AI, we specialize in helping businesses cut through the noise to create AI-informed roadmaps tailored to their unique needs. Using human-centered design and a product mindset, we help you define the problems worth solving and build solutions that deliver real value.
I think if you are going to partner with an AI thought partner, you should ask to see their work. How are they using AI to accelerate their work? What tools do they love using? This includes your team as well. You would probably be amazed at what people in your company are already capable of doing with AI enabled tools.
Your turn: What’s one AI solution that’s actually made a difference in your business? Let’s talk about how to make AI work for you, not the other way around.
Visit virgent.ai to learn more.
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