Leaders need to ask tough questions before partnering with AI vendors

Over the past three years, AI has transformed business operations, with companies investing billions in generative AI solutions. However, according to MIT’s Project NANDA, only 5% of firms report a return on these investments, despite $30–$40 billion in spending. While some AI tools improve departmental workflows, they often fail to deliver strategic advantages across the entire organization. As a result, C-suite leaders are now more involved in AI decision-making, demanding greater customization and proof of accuracy. For instance, a large CPG brand avoided a $6,200 case loss by using industry-specific AI tools. Companies are now prioritizing vertical alignment, requiring suppliers to demonstrate industry-specific integrations and compliance. Leaders are also pushing for AI agents that can automate complex processes, such as phasing out products, while ensuring data accuracy and human oversight. By adopting a more rigorous evaluation process, executives aim to unlock strategic value from AI investments. Are Traasdahl, founder of Crisp, emphasizes the importance of asking the right questions during AI procurement. The deadline for the Most Innovative Companies Awards is October 2.