AI is driving a wave of dramatic change in businesses, from integrating technology to transforming employee workflows.

Over the past 15 years, many large enterprises have struggled with the adoption of new technologies such as mobile, Big Data, and cloud computing. Now, AI is becoming a must-have for businesses to change the way they operate. The challenge lies not only in the choice and implementation of technology, but also in the ability to manage change, which requires organizations to face great risks.

One of the biggest challenges businesses face is “technical debt.” Upgrading existing technology systems to take full advantage of AI is not easy, especially when those systems were designed for an earlier technology era. Changing the core of a business always carries risks, which many managers are hesitant about.

Another problem is “institutional inertia” – the difficulty in changing ways of doing things that have existed for many years. People are often reluctant to change, especially when it threatens their status and power.

From this, it can be seen that change management is a key factor when implementing new technology. Purchasing and installing the system is only part of the process; the most difficult part is getting people ready to use it.

Changing an organization is hard and requires top-down support. Image source: Andrewgenn / Getty Images AI – a whole new way of working

AI is changing not only the way people work, but also the way they make decisions. “For the first time, computers are not only making people more productive, but they’re doing the work that people did before,” says Aaron Levie, CEO of Box.

This requires businesses to rethink the role of technology in the organization, from data accuracy to AI model training.

However, a major problem facing organizations is how to prove that AI actually delivers productivity gains. Employee skepticism, pressure from AI advocates, and the difficulty of measuring effectiveness are creating tension within businesses.

Jamin Ball, partner at Altimeter Capital, noted in the Clouded Judgment newsletter that failing to adopt AI could leave businesses behind and lose market share. Meanwhile, Rita Sallam, an analyst at Gartner, argued that AI is not simply a cost-saving tool but also a completely new way of working, similar to the adoption of personal computers and word processors in the 1980s.

“AI will fail if there is no change from the top and no incentive for employees to accept it,” says Karim Lakhani, director of the Institute for Digital Data Design at Harvard. This means setting clear goals and creating an environment where people feel comfortable with change, rather than imposing it.

AI is not just a new technology, but also a measure of organizational agility. Businesses will face profound changes, and their ability to adapt to AI will determine their future survival.