AI brings a new dimension to the complexities of transforming organizations.

Change is universally challenging, and this difficulty escalates in large organizations. Over the past 15 years, we’ve witnessed major companies struggle repeatedly as they attempted to adopt mobile technology, Big Data, cloud computing, and digital transformation. Today, AI is the force compelling companies and their employees to adapt, whether they want to or not.

One significant hurdle is technical debt—the idea that an organization’s technology infrastructure must evolve to leverage new technologies fully, rather than relying on systems built for a previous era. Transforming something so integral to business operations is risky; it’s no small feat to change without disrupting what already works. Many managers are understandably hesitant to embrace such substantial change due to the high risks and potential rewards involved.

Another challenge is institutional inertia. Changing established workflows is tough. Years ago, as a technical writer, I helped implement a computer system in a small-town register of deeds office, where deeds were manually filed in cabinets—a cumbersome process that could take weeks. The new computer system was a clear improvement, but the front-desk workers were resistant. Their identity and sense of authority were tied to the physical act of stamping documents, a ritual they had performed with pride for decades. To gain their buy-in, the system architect ultimately allowed them to keep their stamps, even though the new system rendered them unnecessary.

This leads to the core issue: change management. The toughest part of implementing new technology isn’t purchasing or deploying it—it’s getting people to use it. Sometimes, you have to allow people to keep their “stamps,” or they might undermine even the best-intentioned plans.

Considering the scale of change that AI introduces, the challenge becomes even more significant. Those accustomed to holding the “stamps” see their influence waning, and it’s crucial to manage this transition carefully to avoid wasting resources.

Ultimately, organizations are made up of people, and people are complex. To truly transform a business with new technology, you need to look beyond the technical aspects and focus on the human element.

AI represents a whole new way of working. Technological shifts within organizations are not new—the arrival of PCs in the 1980s and the spread of the internet were transformative. However, AI may surpass these previous waves of change.

AI is fundamentally different from past technological advancements. It reduces the cost of expertise, shifting the dynamics of how work is performed. This technology enables computers to make judgment calls and process data similarly to humans, prompting companies to rethink the role of computing within their operations.

This shift requires new frameworks and paradigms to address issues like accuracy, data security, and model training. Companies must navigate a complex landscape of vendors and solutions, each promising to add value but often complicating the decision-making process.

A major challenge is determining whether generative AI truly enhances productivity. Without clear metrics, it’s difficult to convince skeptical employees of its benefits. Yet, some employees will demand these tools, creating tension as organizations work to integrate AI across varying perspectives.

Despite these challenges, some experts argue that embracing AI is essential to staying competitive. The technology is transformative, and failing to adopt it could result in losing market share and becoming obsolete.

The real value of AI lies in its ability to fundamentally change how work is done. Like the advent of word processors, which revolutionized the way people managed information, AI holds the potential to unlock new levels of innovation and efficiency.

Executive buy-in has always been critical in driving technological change. Unlike previous technologies, AI’s impact is readily apparent to CEOs and board members, which may accelerate its adoption.

However, overcoming the human element remains the most significant obstacle. As organizations embrace AI, they must carefully manage the transition, ensuring that employees feel empowered rather than threatened by the changes.

The road ahead won’t be easy. Companies vary in their technological readiness and ability to adapt. But AI will challenge organizational flexibility more than any previous technology, and how well companies navigate this shift may determine their future success or failure.