Reflection — The 10-20-70 rule: 70% of AI's value is decided outside the technology

Across 1,000 executives surveyed in 59 countries, only 26% of companies get beyond the pilot stage to draw measurable value from AI. Those that succeed share a single allocation rule: 10% of the effort on algorithms, 20% on technology and data, 70% on people and processes. Most organizations do the opposite: they buy the tool, then discover nobody uses it.

The value comes not from the model but from redesigning how people work around the model. Before approving the next AI project, require that 70% of the budget and time go to training, process redesign, and team support; if most of it goes to licenses and integration, send the plan back.

Source: BCG, "Where's the Value in AI?", October 2024 (1,000 executives, 59 countries).