Innovation Management Watch Summary: “Beware the AI Experimentation Trap” by Harvard Business Review

Experimentation without focus leads to disillusionment. The MIT Media Lab’s 2025 report found that 95% of generative AI investments have produced no measurable returns, echoing a familiar trap from the digital transformation era: scattering resources across unfocused pilots. Gartner now warns that generative AI is sliding into the “trough of disillusionment” stage of its hype cycle.   

Why Leaders Fall Into the Trap

While individuals see productivity gains, companies struggle to capture measurable P&L impact. Most spending goes to sales and marketing pilots, rather than transforming the core business operations that drive real ROI. Leaders risk repeating the 2010s mistake of letting “10,000 flowers bloom”—funding experiments without clear customer or value alignment.

 What Leaders Should Do Instead

1. See AI in the Larger Arc of Transformation – Position AI as part of the ongoing shift from peripheral IT to digital-first organizations.  
2. Focus on Customer Value – Anchor every experiment in solving real, high-intensity customer problems, not chasing hype.  
3. Run Experiments with Scale in Mind – Apply the IFD framework (Intensity, Frequency, Density) to prioritize opportunities worth testing.
4. Scale with Dedicated “Ninja” Teams – Move proven pilots into enterprise value creation with leadership backing, resources, and cross-functional power.

Why It Matters for Innovation Leaders

Generative AI is not failing—it’s misapplied. Leaders who treat experimentation as a bridge to scaling, rather than an end in itself, will unlock AI’s true potential. The real purpose of business has not changed: solving important problems for customers. AI can accelerate that mission, but only if experimentation is disciplined, value-driven, and scalable.

This summary is based on the original article published “Beware the AI Experimentation Trap” by Harvard Business Review. All rights to the original content remain with the respective copyright holders.