HCLTech report warns 43 pc of enterprise AI initiatives may fail as leaders face shrinking timelines for impact

NEW YORK, NOIDA: HCLTech (NSE: HCLTECH) (BSE: HCLTECH), a global technology company, on Thursday released findings from its latest Enterprise AI Market Report, The AI Impact Imperatives, 2026, highlighting a growing execution gap as enterprises race to scale AI while facing mounting pressure to deliver results within increasingly compressed timeframes.

The research, based on a global survey of 467 senior executives responsible for AI investments across enterprises with more than $1 billion in annual revenue, finds that while AI adoption is now widespread across IT operations, software engineering and business functions, nearly 43 per cent of major AI initiatives are expected to fail. The risk is not driven by lack of experimentation or access to tools, but by the difficulty of translating ambition into consistent, enterprise-wide outcomes.

At the same time, expectations around returns are tightening. Nearly half of enterprise leaders expect measurable value from AI investments within 18 months, leaving little margin for error as organizations balance rapid deployment with the structural changes AI demands. The report signals that this collision between speed and preparedness is becoming one of the most defining challenges facing enterprise leadership teams today.

For CIOs and technology leaders, the findings underscore how scaling AI is exposing hidden constraints across application estates, data environments and operating models that were not designed for autonomous, continuously learning systems. For business owners and senior executives, the data highlights a different but related concern: the strategic risk of investing aggressively in AI without the organizational alignment required to sustain it. As AI initiatives move closer to the core of enterprise operations, failures are becoming more visible and more consequential.

The study also points to an evolution in how enterprises are applying AI, with growing interest in Agentic and Physical AI use cases that extend beyond digital workflows into real-world environments such as manufacturing, engineering and operations. While adoption remains early, these models raise new questions around accountability, reliability and oversight, further increasing the leadership burden associated with scaling AI responsibly.

The report suggests that many organizations are underestimating the degree of cross-functional coordination and decision-making clarity required to succeed. AI programs that advance without alignment between technology teams and business leaders are more likely to stall, even as investment levels continue to rise.

Among the report’s most significant findings is the extent to which change management has become a critical determinant of AI success, and yet it remains one of the most consistently underinvested areas of enterprise AI programs. The data reveals that majority of organizations are deploying AI into workflows without adequate preparation of the people expected to work alongside it. It is cited as a primary execution risk.

“AI has moved from being a technology initiative to becoming an enterprise operating reality,” said Vijay Guntur, CTO and Head of Ecosystems at HCLTech. “What leaders are grappling with now is not whether AI can deliver value, but how organizations adapt their structures, decision rights and risk tolerance to keep pace with it. The pressure to move fast is real, but without the right investment in people, in helping them understand, trust and work effectively alongside AI, speed can just as easily amplify failure as success.”

The AI Impact Imperatives, 2026 report concludes that as AI becomes embedded across critical enterprise functions, success will depend less on adoption rates and more on an organization’s ability to align ambition, execution and accountability within tight timelines. For enterprises navigating this transition, the next phase of AI will test not only technology readiness, but leadership readiness and people readiness at scale. (PRNewswire/ANI).