Andrew Donaher

Andrew Donaher

Vice President, Consulting Services

In my experience working with boards and leadership teams in recent years, much of the business conversation around AI has focused on awareness. Leaders have been trying to understand what AI is, what it can do, which tools matter, where competitors are moving, and which pilots are worth running. That phase is ending. The real question now isn’t whether AI is needed, but how can your organization turn it into measurable operating and business value.

Most now understand that AI matters. Most boards have heard the briefings and viewed the demonstrations. Many organizations have already run pilots or internal experiments. However, awareness doesn’t create advantage. Execution does, and execution is where the value realization gap shows up.

Understanding the current state of AI

For decades, organizations have invested heavily in ERP, CRM, data platforms, analytics, cloud, and now AI—all on their journey toward true digital transformation. While some investments created real value, many didn’t create enough value fast enough or in a form the business could absorb and sustain. Certainly, data management and cloud migration programs continue to be top priorities to enable organizations to fully benefit from newer technologies like AI.

That history matters because today’s AI conversation isn’t starting with a blank page. It’s arriving in organizations that already carry technical debt, operating-model debt, talent gaps, and, in many cases, trust debt built up over years. As executives told us in our recent Voice of Our Clients interviews, cost pressure, legacy systems, and difficulty recruiting IT talent continue to limit organizations’ ability to execute transformation priorities at scale.

This is why the real dividing line is no longer AI literacy; it’s value realization. The winners won’t be the organizations with the most pilots, the most tools, or the loudest language. They’ll be the organizations that can close the gap between technology ambition and realized value. Doing that requires a different level of leadership discipline than many firms have shown in prior waves of transformation.

The first shift is to focus on business progress and not technology activity. A tool can be deployed, a model can be built, a dashboard can go live, and a pilot can be declared successful. None of that guarantees better operating leverage, shorter cycle times, higher throughput, faster decision-making, stronger customer economics, or more resilient execution. Those outcomes emerge when technology is tied to workflow redesign, clearer ownership, better decisions, stronger talent, and tighter execution discipline.

AI for the execution and modernization agenda

For these reasons, AI should be treated primarily as an execution and modernization agenda, not as an innovation exercise. In many enterprises, the challenge isn’t inventing a new AI product suite; it’s using AI to strengthen competitive advantage for the business they already run. The practical value of AI will often come from compressing work that currently takes too long, reducing friction between functions, improving the movement from signal to action, accelerating modernization, and enabling teams to move faster with better focus. That isn’t abstract innovation; it’s operating performance.

Organizations applying AI to technical debt and data management are the ones seeing results quickly and winning. That ability to remove the barriers to innovation and modern platforms is enabling organizations to move forward after having previously been stuck.

Changing organizational behavior

Organizations also need a realistic view of what it takes to achieve value from an organizational psychology perspective. A large share of under-delivery comes from familiar problems: capability gaps in critical roles, scope that is too wide, budgets that are too low, governance that looks busy but doesn’t enable decisions, and operating models that can’t support the ambition being promised. In plain terms, many firms are trying to achieve elite outcomes with critical gaps in their operating conditions.

This isn’t a technology problem alone; it’s an organizational alignment problem. Do we know how to behaviorally support the transformation of workflows, ways of working, and roles? 

For more information on how AI accelerates the need to manage complexity properly and through a business-first lens, I invite you to read one of our executive points of view: Why the digital puzzle can’t solve itself.

Achieving economic clarity

Economic clarity matters as well. The strongest firms aren’t approaching AI as a narrow cost-cutting exercise. They’re using it to expand capacity, accelerate delivery, improve planning, reduce friction, and create new leverage in the system. The more important question isn’t where labor can be removed. It’s where measurable business value can be created faster through better execution, stronger decisions, and greater operating leverage. (This is another topic shared by our executives in how AI helps us evolve from effort-based delivery to outcome-based value: The AI economy: The case for velocity arbitrage.)

In many cases, what’s changing isn’t simply cost, but the amount of value that can be delivered with the same level of investment because time-to-production is coming down and delivery capacity is improving. In some environments, the economics are already shifting materially, with work that once required multi-year timelines and large teams now being compressed into months by smaller, AI-enabled delivery teams.

Across resource industries, transportation, utilities, retail, and industrial operations, the next wave of performance improvement is unlikely to come from more discussion alone. It’ll come from leaders who can connect AI, modernization, data, and execution to specific operating outcomes. The firms that win won’t merely talk about AI adoption. They’ll use AI to redesign how work gets done, modernize how decisions get made, and close the long-standing gap between technology investment and realized value. This is where the next competitive advantage will be built.

Five questions for executive teams:

  1. Are we treating AI as a tool conversation, or as an execution and modernization agenda?
  2. Where is the gap today between ambition and realized business value?
  3. Which workflows would create real leverage if compressed, redesigned, or accelerated?
  4. Do we have the talent, alignment, and operating discipline to realize value at scale?
  5. Are we measuring activity, or are we measuring operating and competitive outcomes?

In two follow-up blogs, I’ll look more closely at why the economics of execution are changing, the trust debt many organizations are carrying, and what leadership teams need to do to realize value from AI without falling back into the same patterns that weakened prior waves of transformation.

In the meantime, reach out to me with any questions, and learn more about CGI’s artificial intelligence work.

About this author

Andrew Donaher

Andrew Donaher

Vice President, Consulting Services

Andy is a data, analytics and digital expert who works with leading clients throughout North America to convert digital and analytics capabilities into actionable insights that drive competitive advantage.