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George Westerman explains that successful artificial intelligence integration requires organizational change rather than just better algorithms.

George Westerman, a senior lecturer at the MIT Sloan School of Management, asserts that companies achieving significant returns from artificial intelligence are those that restructure their operations rather than simply adopting better algorithms. Westerman argues that the primary challenge of AI transformation is not the technology itself, but the way an organization does business. He emphasizes that leaders must ask strategic questions regarding how AI can improve customer and employee experiences before deployment. To succeed, Westerman notes that governance should act as a steering wheel to propel initiatives forward rather than just a set of brakes. He highlights that many AI pilots fail to scale because of a lack of executive support and poor data management. Successful implementation requires a culture of experimentation and clear communication with employees to ensure they do not feel threatened by the technology. By focusing on organizational culture and data readiness, companies can move from isolated projects to a full-scale transformation.

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