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Gen AI’s Dirty Secret: Why 68% of Use Cases Fail and How to Resurrect ROI

The $2.1 Billion Graveyard of Solutions Hunting for Problems

BCG’s latest AI adoption study reveals 68% of GenAI initiatives deliver zero ROI, while enterprises waste $2.1 billion annually on “solutions hunting for problems.” This epidemic of wasted potential stems from a fundamental misalignment: Teams chase flashy demos while ignoring operational pain points where real value hides. McKinsey data shows 82% of AI projects fail during handoff to operations, and Frankenstein integrations cause $850,000 average rework per pilot.

Manish Kumar Agrawal, a renowned Gen AI strategist, exposes the core issue: “If your use case doesn’t keep a CFO awake at night, it’s innovation theater. Winners fix broken workflows, not hypothetical futures.” His Use Case Autopsy series dissects 100+ failed projects to reveal actionable recovery strategies.

The Four Failure Archetypes Killing Value

  1. The Shiny Object Trap
    Organizations implement ChatGPT because competitors do, not because it solves a $10M problem. Seventy-three percent of generative chatbots are abandoned within six months when they fail to address core operational pain. Manish Kumar Agrawal’s rule cuts through the noise: “If it doesn’t impact P&L line 5 (COGS) or 15 (OPEX), kill it immediately.”
  2. The Lab vs. Line Disconnect
    Data scientists build solutions that operations teams can’t or won’t use. This cultural mismatch causes 92% of technical metrics to never translate to boardroom KPIs. As Manish Kumar Agrawal states: “Your best use case detector works in accounts payable – not the AI lab.” His Field-to-Lab Framework bridges this gap.
  3. The Integration Nightmare
    Custom point solutions requiring 12+ months to connect with SAP or Oracle systems drain budgets before creating value. Manufacturers wasted $2 million on generative maintenance manuals that technicians never adopted due to incompatible interfaces.
  4. The Phantom ROI Mirage
    Celebrated “time savings” fail to materialize as financial impact in 92% of cases (Bain). Employees rarely reinvest freed capacity productively unless directly tied to incentives. One retailer’s “efficiency gains” vanished because staff didn’t convert saved hours into revenue-generating activities.

The $10M Use Case Filter: Separating Winners from Zombies

Manish Kumar Agrawal’s battle-tested framework, adapted from McKinsey Value Architecture, applies five diagnostic questions to expose low-value initiatives:

Financial Anchoring distinguishes zombie projects (“potential time savings”) from winners with direct impact on cost of goods sold or operational expenses. A bank pivoted from a $0 chatbot to loan default prediction that reduced write-offs by 23% ($18M EBITDA impact).

Operational Pain Validation rejects “nice-to-have” solutions in favor of those addressing C-suite KPIs bleeding 5%+ monthly. A manufacturer shifted from inventory hallucinations to shortage prediction, cutting line stoppages 32%.

Integration Viability favors pre-built SAP/Oracle connectors over custom API development. Retailers using standardized templates scaled AI to 1,000 stores in 90 days.

Talent Fit leverages existing teams rather than requiring $900k hires. Loan officers became AI architects through 8-week certification, saving $14M on fraud.

Scalability Potential requires blueprints for 100+ site replication. Plant managers transformed into AI ambassadors rolled out predictive maintenance across 47 facilities in 8 weeks.

Industry Resurrection Stories

Banking’s $18M Pivot

A global bank abandoned a customer service chatbot producing zero ROI. Instead, they targeted loan default prediction using transaction pattern analysis. The result: 23% lower write-offs and $18M EBITDA impact in six months – proving that swapping “cool tech” for CFO nightmares pays dividends.

Manufacturing’s Inventory Miracle

After generative maintenance manuals gathered digital dust, a manufacturer applied Manish Kumar Agrawal’s filter to predictive shortage alerts. The outcome: 32% reduction in production line stoppages and $8.3M annual savings from avoided rush shipments. The Azure AI + SAP integration became their profit engine.

Retail’s Markdown Masterstroke

A retailer converted failed “creative campaign generators” into markdown optimization AI. By linking negative reviews to inventory glut patterns, they accelerated clearance cycles by 31% and recovered $14M from dead stock. As Manish Kumar Agrawal observed: “They stopped counting smiles and started counting cash.”

The 90-Day Zombie Elimination Protocol

Phase 1: Triage (Days 1-15)

  • Apply the $10M Use Case Filter to all active/pipeline projects
  • Execute BCG’s Project Triage Protocol to terminate three low-impact initiatives
  • Conduct “Pain Sprints” with operations teams to identify bleeding KPIs

Phase 2: Resurrect (Days 16-45)

  • Embed ops leaders in design teams using Manish Kumar Agrawal’s Field-to-Lab Framework
  • Hardwire P&L impact trackers like cost-per-defect-reduced
  • Implement integration templates for SAP/Oracle systems

Phase 3: Scale (Days 46-90)

  • Reallocate 100% savings from killed projects to two “anchor use cases”
  • Launch replication playbooks for 10X expansion
  • Report to board: “Redirected $1.2M zombie spend into 19% EBITDA growth”

The 2025 Use Case Frontier

Three emerging paradigms will redefine value creation:

Agentic Operations will autonomously resolve 40% of supply chain disruptions without human intervention (Gartner prediction). Profit-Aware AI will self-prioritize tasks based on real-time EBITDA impact. Compliance Arbitrage will transform GDPR/PCI requirements into competitive advantage through automated governance.

As Manish Kumar Agrawal concludes: “Future-proof use cases don’t just save costs – they build unassailable revenue moats through operational mastery.”

About Manish Kumar Agrawal

Manish Kumar Agrawal is a Gen AI strategist with 17+ years at McKinsey & BCG. His $10M Use Case Filter has redirected $2.1B+ from failed initiatives to profit engines across banking, retail, and manufacturing. A certified Azure architect and innovation expert, he specializes in transforming AI potential into auditable EBITDA impact.

Access his use case resources:
LinkedIn: https://www.linkedin.com/in/manish-kumar-agrawal-65326823/
“In the GenAI revolution, the fastest path to value runs through a graveyard of failed projects.” – Manish Kumar Agrawal

 

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