Not a tech problem: 3 traps that stall AI transformation

According to a 2025 MIT report, 95% of AI projects fail. Not because the technology doesn’t work, but because adoption fizzles out when the initial excitement fades — wasting millions in investment and eroding trust in the process.

Quote from Guillermo Miranda: ‘If people start using something, it doesn't mean they are ready. You need to ensure there's a mindshet behind that adoption to sustain it.'Includes call to watch on demand: From exploration to execution: Your AI adoption HR playbook.

In our recent BetterUp conversation, three leaders came together to unpack why organizations get stuck — and what it takes to move from AI exploration to execution:

  • Jolen Anderson, Chief People and Community Officer at BetterUp
  • Guillermo Miranda, Global AI transformation leader and BetterUp advisor
  • Mercedes (Meche) Escala, SVP of Talent Development at Genesys

The result? A candid, practical discussion of what’s required of people to make AI transformation succeed.

The three traps of AI readiness

1: Believing adoption equals readiness

“If people start using something, it doesn’t mean they are ready. You need to ensure there’s a mindset behind that adoption to sustain it.” — Guillermo Miranda

Early enthusiasm can quickly stall without the right mindset and confidence to sustain change.

2: Relying too heavily on reskilling

Technical skills matter — but adaptive performance is what really enables people to thrive in volatile, AI-powered environments

3: Assuming restructuring equals rewiring

New org charts don’t transform culture. Organizations must “unlearn” old habits and embed new ways of working if they want to make AI stick.


Quote from Guillermo Miranda: ‘The third trap is thinking that redesigning the job is good enough, and we are not requiring the brain and instinct of our workforce.’ Includes call to watch on demand: From exploration to execution: Your AI adoption HR playbook."

Putting people at the center

Mercedes Escala illustrated what it looks like to avoid these pitfalls at Genesys:

“Start with the people, not the tool. Build trust, give employees the courage to experiment, and the rest will follow.”

That means cultivating skills like critical thinking, creativity, and a growth mindset — and creating communities of practice where employees can experiment and learn together.

Quote from Mercedes Escala: ‘Start with the people, not the tool. Build trust, give employees the courage to experiment, and the rest will follow.’ Includes call to watch on demand: From exploration to execution: Your AI adoption HR playbook.

The path forward

As Jolen Anderson framed it, BetterUp calls this the AI realization curve — essentially the antidote to the traps above:

  • Refuel: your workforce with the right energy and mindset
  • Reskill: employees for adaptability, not just technical skills
  • Rewire: culture so AI becomes part of daily collaboration and innovation

Graph showing BetterUp’s AI realization curve with three stages: Refuel (motivation and mindset), Reskill (AI + human redesign), and Rewire (responsive workforce and organization).

The message is clear: AI may be the catalyst, but people determine the outcome.


Watch the full conversation for frameworks, real-world examples, and leadership practices you can use to build an AI-ready organization.

The Human Transformation Platform

Process doesn't change your business. People do. Our platform removes the guesswork from developing your people at scale and delivers growth that's proven, predictable, and precise.

The Human Transformation Platform

Process doesn't change your business. People do. Our platform removes the guesswork from developing your people at scale and delivers growth that's proven, predictable, and precise.

About the author

Elizabeth Perry, ACC
Elizabeth Perry is a Coach Community Manager at BetterUp. She uses strategic engagement strategies to cultivate a learning community across a global network of Coaches through in-person and virtual experiences, technology-enabled platforms, and strategic coaching industry partnerships.

With over 3 years of coaching experience and a certification in transformative leadership and life coaching from Sofia University, Elizabeth leverages transpersonal psychology expertise to help coaches and clients gain awareness of their behavioral and thought patterns, discover their purpose and passions, and elevate their potential. She is a lifelong student of psychology, personal growth, and human potential as well as an ICF-certified ACC transpersonal life and leadership Coach.

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