Definition
The persistent disconnect between AI adoption rates (organizations implementing AI tools) and measurable business value creation (organizations seeing ROI). Organizations adopt AI faster than they can adapt their governance, processes, and measurement practices to capture and realize that value.
Why it matters
Boards and executives face a paradox: widespread AI adoption with minimal measurable return. This gap signals that the operating model, not the technology, is the limiting factor. Without governance structures and aligned incentives, AI spending becomes cost without commensurate value.