Why 90% of AI Initiatives Fail & How to Fix It

Impact with Digital with Jay Tikam

In this episode of Impact with Digital, we dive into a critical problem in AI adoption: 90% of AI initiatives fail—not because of the technology itself, but because companies approach AI as a tech-first initiative rather than a business-value-driven transformation.

Our guest, Andrey Kaluzhny, CEO of 8Allocate, shares insights into:

✅ Why AI implementations often fail to deliver business value

✅ The common mistakes companies make when adopting AI

✅ The stakeholder-first approach to AI & digital transformation

✅ Why Ukraine has become a global leader in IT & AI talent

✅ The importance of ecosystems and partnerships in digital success

Andrey brings over 20 years of experience in software development, financial technology, and AI innovation, working with organisations across Ukraine, Poland, and Romania to drive digital transformation.

🎯 Key Takeaways

🚨 AI is not a magic bullet!

• Many AI projects fail because companies implement AI for the sake of AI—without aligning it to business goals and measurable value.
• Organisations must start with business strategy first, then integrate AI where it drives impact.

📊 Data is the foundation of AI success.

• Companies often jump into AI solutions before organising a strategy.
• A successful AI implementation starts with data collection, data quality, and stakeholder needs before introducing automation.

🌍 Ukraine is a rising powerhouse in AI & software engineering.

• With world-class engineers, a strong mathematical background, and a thriving tech ecosystem, Ukraine is one of the best places to source high-quality AI & IT talent.
• The Ukrainian tech industry is scaling fast, offering cost-effective, top-tier software development services.

🤝 The power of strategic partnerships.

• Large enterprises and banks often fail at digital transformation because they try to replicate FinTech models internally.
• The smarter approach? Partnering with FinTech innovators instead of competing against them.

⚠️ Why stakeholder buy-in matters.

• Digital transformation isn’t just about technology—it’s about people, processes, and culture.
• Without alignment from leadership & teams, even the best technology won’t succeed.

💡 Quotes from the Episode

💬 "90% of AI actions fail because they focus on technology first instead of business value." – Andrey Kaluzhny

💬 "If you don’t get stakeholder buy-in, even the best AI solution won’t succeed." – Jay Tikum

💬 "Ukraine’s IT industry is one of the most scalable and cost-effective in Europe, with world-class AI and software engineers." – Andrey Kaluzhny

💬 "Technology is just a tool. The real question is—are you solving the right problem?" – Jay Tikum

📚 Resources & Links

🔹 Connect with Andrey Kaluzhny on LinkedIn

🔹 Learn More About 8Allocate:

🔹 Read More on AI & Digital Transformation:

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