Friday, May 16, 2025

"Got AI?"

By now, every salesperson for every technology firm is probably being asked “do you have AI” by prospects. And most answers, in most cases, will require the salesperson to ask a further question: “what is your use case?” 


Because right now, most technology buyers are likely reacting to the hype and “FOMO” (Fear of Missing Out). The pressure for businesses to "do something with AI" is going to lead to many deployments that fail to deliver the expected results, as often is the case for new technology. 


Of course, the other typical pressures also exist. Vendors and consultants suggesting AI as a “must-have” will drive such buyer requests. 


But firms might also be engaging in “innovation signaling;” trying to appear innovative to investors, customers, or partners by touting AI initiatives, regardless of substantive application.


Study/Source

Technology

Key Findings on Adoption Behavior

Use Case Clarity

McKinsey Global Survey on AI (2025)

AI, GenAI

Rapid AI adoption; many orgs use AI in multiple functions; limited enterprise-wide impact

Often unclear; many deployments exploratory

IBM AI Business Use Cases (2024)

AI

Lists productive AI use cases; highlights need for business alignment

Stresses importance of defined use cases

NBER Working Paper: Adoption of New Technology

ATMs, Telecom, etc.

Adoption driven by scale, network effects, and competitive pressure

Use cases often emerge post-adoption

Technology Adoption Lifecycle Model

General

Early adoption often driven by hype, FOMO, and signaling

Use case clarity increases over time

Forbes: AI as Fastest Adopted Tech (2023)

AI

AI adoption outpaces previous technologies; driven by hype

Use case definition lags adoption

Harvard Baker Library: Tech Adoption & Economies

Multiple

Adoption lags, driven by economic and social factors

Use cases sometimes secondary

Essentially, the “wasted effort and capital investment” happens because it typically takes some time and experience, plus business process change, before any important new technology can produce measurable outcomes. 


Study Name / Article

Date

Publisher

Key Conclusions

The Gartner Hype Cycle Approach: Understanding the Technology Adoption

2023-12-16

LinkedIn / Gartner

Outlines five phases: innovation trigger, peak of inflated expectations (hype/FOMO), trough of disillusionment, slope of enlightenment, plateau of productivity where useful applications emerge3.

The Role of FOMO in Digital Transformation

2021-01-27

MIT Press: Harvard Data Science Rev.

FOMO drives rapid, sometimes poorly planned digital adoption; over 70% of digital projects fail to deliver intended impact; useful applications emerge only with strategic alignment and learning6.

Technology Adoption Lifecycle - from hype to reality

2022-02-08

THE WAVES

Adoption often starts with hype or fear of missing out, followed by a crash in expectations, and eventually stabilizes as practical, value-driven uses are found7.

Technology Adoption Life Cycle-redefined

2023-12-06

THE WAVES

Adoption unfolds in stages among different user groups; initial hype/FOMO is replaced by economic justification and practical applications as technology matures2.

The Role of Fear of Missing Out and Experience in the Formation of ...

2022

ScienceDirect

FOMO is a significant driver of early technology adoption, but prior experience helps organizations move from hype to rational, use-case-driven adoption1.

Technology Adoption: Escaping the Hype to Maximize Decision ...

2023-01-12

HG Insights

The Hype Cycle model helps organizations distinguish between hype and real business value, guiding them toward effective, use-case-driven adoption8.

AI is not going to be much different, in that regard. 


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