Why 95% of All AI Projects Fail - Boris Scharinger | Podcast #174

Boris Scharinger, Industrial AI Strategist at Siemens and author of "Industrial AI: From Pilot to Profit," discusses why 95% of AI proofs of concept fail in industrial settings. He highlights the 5-10x cost multiplier from pilot to production, the critical role of the "harness" around AI models, and the unique challenges of data access and legacy systems in physical environments. Scharinger advocates for a two-tiered investment strategy, separating foundational data capabilities from use-case-specific ROI, and addresses cultural resistances from engineers. He provides guidance on differentiating commodity from strategic AI applications and how to effectively scale industrial AI for profit.