The AI Investment Paradox: Why Corporate Transformation Stalls

The Kearney Transformation Study 2026, which surveyed 102 senior executives, highlights a widening gap between strategy and execution. While companies have mastered the art of designing complex change programs, they struggle to secure organizational buy-in. Data reveals that resistance to change remains the top-cited barrier to implementation, consistently outpacing concerns over budgets, timelines, or technology.

Jennifer McGee, a partner at Kearney and lead author of the report, notes that the rush to integrate AI often compounds existing failure patterns. More than 80 percent of executives report that less than half of their AI initiatives are yielding measurable financial impact. The research suggests that the next competitive advantage will not stem from superior strategy alone, but from a 'human-shaped' approach that prioritizes motivation and capacity-building. Organizations that embed these capabilities from day one are nearly three times more likely to realize expected value, yet only 12 percent of leaders intentionally slow their transformation processes to ensure organizational readiness. Bryan Arcati, co-author of the study, emphasizes that digital tools cannot substitute for human judgment, warning that leaders must equip employees with the confidence to navigate new workflows rather than simply deploying software.