{"id":14502,"date":"2025-08-17T08:00:00","date_gmt":"2025-08-17T06:00:00","guid":{"rendered":"https:\/\/holistic.news\/en\/?p=14502"},"modified":"2025-08-14T13:48:51","modified_gmt":"2025-08-14T11:48:51","slug":"ai-in-a-company-initial-losses-future-gains-whatresearch-shows","status":"publish","type":"post","link":"https:\/\/holistic.news\/en\/ai-in-a-company-initial-losses-future-gains-whatresearch-shows\/","title":{"rendered":"Thinking of Implementing AI in Your Company? Prepare for an Initial Drop in Productivity"},"content":{"rendered":"\n

Prepare for Chaos<\/h2>\n\n\n\n

For years, artificial intelligence has been promoted as a silver bullet for all business problems. AI in a company<\/strong> increases efficiency, lowers costs, and provides a competitive advantage. This perspective is tempting for many entrepreneurs, but at the beginning, the opposite is often true.<\/strong> This is shown by research conducted by experts from the University of Toronto, Stanford, and Oklahoma on tens of thousands of American manufacturing companies.<\/p>\n\n\n\n

Large-scale analyses have shown that artificial intelligence often causes a drop in productivity.<\/strong> Efficiency may fall for a while before it rises.<\/p>\n\n\n\n

“Artificial intelligence doesn\u2019t work like a plug-in. You have to change the entire system, and that always means problems at the beginning,” explains Professor Kristina McElheran from the University of Toronto, co-author of the study The Rise of Industrial AI in America<\/em>, in an interview with MIT Sloan<\/a>.<\/p>\n\n\n\n

You might like to read<\/strong>:<\/em><\/strong> Gen Z and the Workplace: Why the Traditional 9-to-5 Is Dead<\/a><\/p>\n\n\n\n

Why Does AI in a Company Work with a Delay?<\/h2>\n\n\n\n

The phenomenon is linked to the “J-curve”.<\/strong> This is a chart showing that at the beginning of a new technology implementation, productivity decreases, but after some time, it grows rapidly, creating a shape that resembles the letter “J.” This reflects initial difficulties that eventually subside and lead to significant benefits.<\/p>\n\n\n\n

The study showed that after implementing artificial intelligence, companies on average record a 1.33 percent drop in productivity. And if you include the so-called selection effect (meaning that more ambitious companies are more likely to decide on AI), the actual drop can be as much as 60 percent.<\/strong> This happens because using AI requires much more work than just installing a system. It involves a complete restructuring of processes. What exactly do companies need to do when implementing artificial intelligence? Among other things, they must:<\/p>\n\n\n\n