{
  "id": 19600744,
  "title": "AI won't transform your business unless you transform it first",
  "url": "https://urgent.news/2026/11/12/ai-wont-transform-your-business-unless-you-transform-it-first",
  "topic": "ai",
  "section": "AI",
  "published": "2026-11-12T04:31:29.000Z",
  "source": {
    "name": "The National Business",
    "slug": "the-national-business",
    "url": "https://www.thenationalnews.com/future/technology/2026/11/12/ai-wont-transform-your-business-unless-you-transform-it-first/"
  },
  "original_language": "en",
  "account": "Organisations must fundamentally change their processes to fully benefit from artificial intelligence (AI), experts advise. Simply attaching AI to existing systems will not produce the dramatic shifts that AI providers claim. Denis Torii, vice president analyst at Gartner, explained that AI is not merely an IT issue; it requires an organizational transformation. \"It's not an IT story for sure. It's not [the case of] only the business stakeholders who are pushing us to adopt more AI,\" he stated. AI currently functions as an accessory, merely augmenting current operations, rather than driving the transformative changes companies anticipate. Currently, enterprises use AI across various sectors, including chatbots, software coding agents, and autonomous systems, according to a McKinsey report. However, the financial impact remains limited, with only 37 percent of respondents reporting AI contributions to their earnings before interest and tax (EBIT), unchanged from the previous year, according to a McKinsey Global Survey. To leverage AI, organizations need a shift in leadership mindset, according to Gabby Fredkin, head of analytics and insights at Adapt. A fundamental change is needed, moving from \"we're just going to layer technology on\" to \"we're actually going to think about the ethos of our organization, what we do, the type of roles that we have.\" High-performing organizations that successfully implement AI pursue growth and innovation alongside efficiency, redesigning workflows enabled by AI rather than simply inserting AI into existing processes. Such a shift often requires rethinking existing operating models and capturing new revenue streams. For instance, a bank with data investments in different infrastructure might consider real estate investments or even a real estate investment trust. However, cost factors are beginning to constrain AI adoption for about one in five organizations, according to the McKinsey report. Companies are adopting a cautious approach as they prepare their data and processes for AI integration. Analyst John Reed noted that companies are taking a cautious approach as they prepare their data and processes for AI integration. \"If companies know that it's not going to be that expensive to use these technologies, I think they are going to find significant benefits.\" Adoption will be challenging due to fragmented data and legacy systems. The AI industry's trillion-dollar ROI challenge remains a concern. Worldwide spending on AI is forecast to reach $2.7 trillion this year, up 49.5 percent annually, according to Gartner. However, Bain estimates that $1 trillion in global AI-related investment this year is needed to justify the capital expenditure. The AI industry needs to generate $6 trillion in annual revenue by 2031 to justify the investments, but measuring returns remains a significant challenge for organizations.",
  "summary": "Organisations need to overhaul their processes to truly reap the benefits of artificial intelligence , according to experts. Bolting the technology to existing systems will not bring about the drastic changes that AI providers are touting. “It's a huge change and that's why the dynamic is not going to be as fast as people imagine,” said Denis Torii, vice president analyst at Gartner. “It's not an…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}