Why AI Readiness Is an Organizational Learning Problem, Not a Technology Purchase

arXiv:2604.16369v2 Announce Type: replace-cross
Abstract: Global corporate AI investment reached $252.3 billion in 2024, yet only 6% of firms report significant earnings impact. This article argues that AI project failure is fundamentally an organizational learning problem rather than a technology deficit. Drawing on a systematic synthesis of 19 large-scale industry and academic sources, including surveys of nearly 10,000 organizational leaders, we identify two categories of failure: organizational (culture, leadership alignment, governance, and human-AI learning deficits) and technical (semantic bottlenecks and output management challenges). We introduce the Siloed-Integrated-Orchestrated (SIO) progression model, which maps enterprise AI capability across five pillars — Culture & Leadership, Human Capital & Operations, Data Architecture, Systems Infrastructure, and Governance & Regulatory Compliance — and provides prescriptive guidance for advancing between stages. The implications challenge organizations to reframe AI investment as capability development rather than technology procurement.