I just saw a stat that blew my mind: one-third of all companies trying to build an AI culture are failing. One-third! That’s a lot of wasted time, money, and potential. And honestly, I’m not surprised.
Everyone is so obsessed with the latest AI tools and models that they’re completely missing the point. They think that just by throwing a bunch of fancy tech at their employees, they can magically transform their company into an AI powerhouse. But that’s not how it works.
I’ve seen this firsthand. I’ve invested in over 200 companies, including some of the biggest names in AI like Anthropic, OpenAI, and Scale AI. I’ve seen what works and what doesn’t. And I can tell you that the secret to building a successful AI culture has almost nothing to do with the technology itself.
It’s about the people.
The People Problem
The biggest mistake I see companies make is that they forget about the human element. They get so caught up in the hype of AI that they forget that it’s their employees who are actually going to be using these tools. And if their employees aren’t on board, then their AI initiatives are doomed to fail.
I remember one of my portfolio companies, a promising startup in the e-commerce space. They had a brilliant idea for using AI to personalize the customer experience. They spent months developing a sophisticated recommendation engine, and they were convinced it was going to be a huge success.
But when they launched it, nothing happened. Crickets. The new feature had almost no impact on sales. Why? Because they had completely neglected to train their employees on how to use it. The customer service team didn’t know how to explain it to customers, the marketing team didn’t know how to promote it, and the sales team didn’t know how to sell it. It was a total disaster.
The 1% Solution
So what’s the secret to building a successful AI culture? It’s actually pretty simple: you need to focus on your people first, and the technology second.
Here’s what the top 1% of companies are doing differently:
- They invest in training and development. They don’t just throw their employees in the deep end and expect them to figure it out on their own. They provide them with the resources and support they need to learn how to use AI effectively.
- They create a culture of experimentation. They’re not afraid to try new things and fail. They know that the only way to learn is by doing. And they encourage their employees to experiment with different AI tools and techniques to see what works best for them.
- They lead from the top. The CEO and other senior leaders are fully committed to the company’s AI initiatives. They’re not just paying lip service to it. They’re actively involved in the process, and they’re setting an example for the rest of the company to follow.
My Controversial Opinion
Here’s where I might lose some of you. I think the key to unlocking massive productivity with AI is actually doing less. It sounds crazy, but hear me out.
Instead of trying to boil the ocean and implement a dozen different AI tools at once, you should start with one or two small, high-impact projects. Get a quick win under your belt, and then use that momentum to build on your success.
I call this the “snowball” approach. You start with a small snowball at the top of a hill, and as it rolls down, it gets bigger and bigger. The same is true for AI. You start with a small project, and as you get more experience and expertise, you can take on bigger and more ambitious challenges.
The Takeaway
Building a successful AI culture is not about having the best technology. It’s about having the right people, the right mindset, and the right approach. So if you’re one of the 33% of companies that are failing at AI, don’t despair. It’s not too late to turn things around.
Stop focusing on the tools and start focusing on your people. Invest in training, create a culture of experimentation, and lead from the top. And most importantly, start small. Find a quick win, and then build on that success. If you do that, I guarantee you’ll be well on your way to becoming an AI powerhouse.
Frequently Asked Questions
How has this view evolved over time?
My thinking on most topics has changed significantly over the years. Early in my career, I held many conventional views that experience proved wrong. I try to update my beliefs when the evidence changes.
Do all experts agree with this view?
No, and that's fine. The best ideas in business are often contrarian. I share my perspective based on my experience and data, but I encourage you to seek out opposing viewpoints and form your own conclusions.
What experience informs this perspective?
This perspective comes from over a decade of building companies in Silicon Valley, two successful exits (RemoteTeam to Gusto, MovieLaLa to Gfycat), and investing in 200+ startups including Anthropic, OpenAI, and Scale AI. I write about what I've lived.