Generative AI adoption is 'creating deep rifts' at enterprises: Execs are battling each other over poor ROI, IT teams are worn out, and workers are sabotaging AI strategies

While generative AI adoption continues at pace, new research suggests the technology is leading to intense power struggles, friction between IT and business leaders, and creating a rebellious workforce.

Analysis from Writer paints a worrying picture of the effects of AI adoption on the C-suite, with around two-thirds of US execs claiming it’s led to heightened tension and division at their company.

Nearly half (42%) of respondents went so far as to say it’s tearing their company apart.

The same proportion of C-suite leaders said there's been tension between IT teams and areas of the business over AI adoption, with seven-in-ten saying that applications are being created in a silo within their organization.

Similarly, fears about AI or annoyance over the quality of AI tools mean 31% of employees — including 41% of Gen Z — admit to sabotaging their company’s AI strategy, for example by refusing to use AI tools or outputs.

More than a third are paying out-of-pocket for the generative AI tools they use, because their employer doesn’t provide the tools they want.

"The future belongs to the enterprises that can turn AI enthusiasm into business reinvention," said May Habib, CEO and co-founder of Writer.

"Generative AI holds transformative potential, but it’s also creating deep rifts within companies that are relying on a patchwork of point solutions or developing internal apps in a silo."

Generative AI adoption costs are surging

The costs associated with the technology are also creating significant tension among enterprise leaders, the study found. Nearly three-quarters of companies are investing at least $1 million each year in generative AI, but only a third said they'd seen significant ROI.

More than one-third of executives said that generative AI has been a massive disappointment, while a whopping 94% said they’re not satisfied with the vendors they use, noting a variety of ways in which vendors could be providing more support.

Those that are happy with their AI adoption journey tend to be those which are spending more, with a 40 percentage-point gap between companies who invest the most and those who invest the least.

Implementing a clear organization-wide approach seems to make the most difference in terms of success, researchers found. At companies that don't have a formal AI strategy, just 37% of executives say they’ve been very successful at adopting and implementing AI, compared with 80% at companies that do have a strategy.

"The companies who will lead in the next era of AI adoption are the ones putting the right processes and systems in place today,” said Dan Schawbel, managing partner at Workplace Intelligence, which conducted the survey.

"They’re prioritizing their change management efforts, cultivating support for AI among their people, and ensuring they’re making the right investment in AI tools. Above all, they’re carefully assessing AI vendors, recognizing that the right vendor is key to unlocking the full potential of AI within their business."

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