AI’s allure is undeniable, and businesses invest heavily in its promise. Companies today invest significant amounts into generative AI initiatives. This pursuit is fueled by AI’s potential to improve productivity, cut costs, and unlock new opportunities that may create new revenue streams. However, many companies find the path to successful AI challenging because of fundamental mistakes in their approach.
A few days ago I attended the strategy meeting of a portfolio company. Like all of our Synapse Partners portfolio companies, this one provides AI solutions to enterprise customers. Their initial success is in the medical devices industry. While reviewing the company’s sales pipeline and the progress of delivering the company’s solution to signed customers, several of the enterprise’s struggles with generative AI became evident. These struggles can be attributed to a lack of people with the right background and the state of the enterprise data.