Nearly 56% of logistics and transportation organizations say that process-related challenges have caused AI initiatives to fail at an average cost of $1.81 million per business, according to new research from Camunda.
In fact, another six in 10 (61%) say that AI costs will spiral unless they gain better control over their business processes, with 68% believing that their AI investments will be a bust without more investment in process re-design.
“Logistics and transportation organizations are rapidly adopting AI. But they are applying it to processes designed for a world before AI, then wondering why the return on investment falls short,” says Kurt Petersen, SVP customer success at Camunda. "Half (50%) say business process re-design simply can't keep pace with how fast they need to move on AI. So, it's no surprise that under pressure to operationalize AI quickly, most organizations reach for the quick fix of bolting AI onto processes that were never built for it."
Key takeaways:
· 66% of organizations state that adding AI onto existing processes creates less internal resistance, with 88% saying adapting all their most important processes for AI will take up to five years.
- 36% of organizations have suffered an AI-related compliance or governance issue in the past 12 months. And process-related issues have contributed to the vast majority (78%) of them.
- Over one-third (38%) of organizations fear AI agents going rogue if they make changes to a process.
- 75% of employees fear that their use of AI will lead to a compliance issue in their organization and almost all (97%) expect process challenges will contribute to future AI-related compliance issues.
- While 88% of logistics and transportation organizations say AI is making their teams more productive, only 63% of employees agree.
- In fact, one-third (29%) of organizations say they have rolled back on the use of AI because it’s had a negative impact on employees’ ability to do their job. And the consequences go further, with 45% of employees saying they would consider changing jobs due to poorly implemented AI.
- 69% of employees were not fully consulted about how AI would be used to support their day-to-day work.
- 64% of employees say they could use AI a lot more effectively if it was implemented differently.
- 43% of employees say they have had to manually override AI outputs because the underlying process wasn't set up correctly.
- 39% of employees say they have used AI to artificially comply with their organization's AI mandate when there was no need to do so.
