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Argues that most AI projects fail because organizations treat LLMs as simple SaaS products rather than complex infrastructure requiring technical rigor.
A RAND study of 2,400 AI projects found only 19.7% succeeded, with 77% of failures due to strategy and governance issues rather than technology. Companies with strong data foundations achieved 10.3x ROI versus 3.7x for weak data, and sustained executive sponsorship was critical to success.