IBM spin-off Kyndryl found 21% of leaders scrapped a major AI project after it failed. Most CIOs say their tech isn't ready.
That is one in five leaders, not one in five projects.
A company that stopped ten major initiatives counts once. The reporting gives no cost or stage for the cancelled work.
Kyndryl surveyed leaders across 21 countries, CIO Dive reported on 10 November. Nearly half substantially changed their AI strategy this year; fewer than half said they were still experimenting.
The infrastructure findings need reading together. While 71% called their IT nearly or fully modernised, two-thirds of CIOs said their technology still needed significant work before it is ready to scale AI. Modernised does not necessarily mean ready for the work being proposed.
Less than a third had formally updated job roles for AI or established a way to manage the change for staff. Ismail Amla, who runs Kyndryl's consulting arm, told reporters the harder problems concerned how work changes and whether staff are trained to work with agents.
Kyndryl, spun off from IBM, sells IT modernisation and AI services itself.
Image: AI-generated.
Sources
Our file on IBM
- 12 Nov
IBM and Microsoft launched a platform promising over 6,000 ready-made AI agents. Gartner found 4% of CIOs implemented plans to adjust roles.
- 10 Nov
The EU's IT agency sued IBM, Atos and Leonardo over delays on a €212 million contract. It calls the system fully operational.
- 6 Nov
Royal London appointed IBM for technology infrastructure and cut hundreds of jobs, sources said. Adjusted first-half profit was £187 million.
- 22 Oct
IBM's CEO says open AI models work 90% as well as top models. Per token, they can cost a tenth.
- 9 Oct
IBM sold the contracts of hundreds of VMware customers. It did not answer questions.
For your next steering committee
- 1Ask which design decisions in your programme would be expensive to reverse, and when each was last reviewed.
- 2Ask which expected benefits change if the implementation approach changes.
- 3Ask who owns a decision to change course, and where it would be recorded.
Issue 01 of the ERP LEADERS brief puts a timeline, the three-number review and six questions on one page. Read issue 01
Welcome back. · Issue 01
