{"id":65937,"date":"2026-06-23T09:59:35","date_gmt":"2026-06-23T09:59:35","guid":{"rendered":"https:\/\/www.elixirr.com\/en-gb\/?p=65937"},"modified":"2026-06-23T09:59:38","modified_gmt":"2026-06-23T09:59:38","slug":"real-ai-execution-starts-when-leaders-redesign-the-factory","status":"publish","type":"post","link":"https:\/\/www.elixirr.com\/en-gb\/real-ai-execution-starts-when-leaders-redesign-the-factory\/","title":{"rendered":"Real AI execution starts when leaders redesign the factory"},"content":{"rendered":"<section\n    class=\"wp-block-text-block edwp-block layout--spacing-y bg--none\"\n    >\n    <div class=\"wp-block-text-block__container container fade-in\">\n        <div class=\"wp-block-text-block__content wysiwyg\">\n            <p>Artificial Intelligence\u00a0is no longer waiting patiently for organisations to catch up.<\/p>\n<p><span data-contrast=\"auto\">The pace of progress is accelerating. In Q1 2026 alone, there were more than\u00a0<\/span><a href=\"https:\/\/llm-stats.com\/llm-updates#timeline\"><span data-contrast=\"none\">255 model releases<\/span><\/a><span data-contrast=\"auto\">.\u00a0Inference prices are falling rapidly, with\u00a0<\/span><a href=\"https:\/\/epoch.ai\/data-insights\/llm-inference-price-trends\"><span data-contrast=\"none\">Epoch AI<\/span><\/a><span data-contrast=\"auto\">\u00a0finding a median decline of around 50x per year across benchmarked LLM tasks,\u00a0roughly equivalent\u00a0to prices halving every two months.\u00a0<\/span><a href=\"https:\/\/metr.org\/blog\/2025-03-19-measuring-ai-ability-to-complete-long-tasks\/\"><span data-contrast=\"none\">AI is already completing 12-hour engineering tasks 50% of the time, with capability doubling every seven\u00a0months.<\/span><\/a><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The question for leaders is no longer whether AI will become powerful enough. It is whether their organisation will become capable enough to use it.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:120,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><a href=\"https:\/\/www.elixirr.com\/en-gb\/wp-content\/uploads\/2026\/06\/Picture1.svg\"><img decoding=\"async\" class=\"alignnone wp-image-65950 lazyload\" data-src=\"https:\/\/www.elixirr.com\/en-gb\/wp-content\/uploads\/2026\/06\/Picture1.svg\" alt=\"Timeline of major AI model releases and developments in Q1 2026\" width=\"701\" height=\"403\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 701px; --smush-placeholder-aspect-ratio: 701\/403;\" \/><\/a><\/p>\n<p>&nbsp;<\/p>\n<h2>The\u00a0capability\u00a0adoption\u00a0gap<\/h2>\n<p><a href=\"https:\/\/www.forbes.com\/sites\/andreahill\/2025\/08\/21\/why-95-of-ai-pilots-fail-and-what-business-leaders-should-do-instead\/\"><span data-contrast=\"none\">This is the 95% paradox<\/span><\/a><span data-contrast=\"auto\">. AI capability is moving quickly, but adoption is\u00a0not the same as\u00a0execution. Many businesses are running pilots, launching\u00a0tools\u00a0and announcing experiments, yet very few are changing how work gets done at scale.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:120,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The issue is not ambition. It is\u00a0operating\u00a0design.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:120,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Most AI initiatives stall because they are added to the existing organisation rather than used to redesign it. AI gets layered onto old workflows, old decision\u00a0rights\u00a0and old planning cycles. The result is a\u00a0<\/span><a href=\"https:\/\/hdsr.mitpress.mit.edu\/pub\/0mrfxamu\/release\/3\"><span data-contrast=\"none\">20% gain where a 10x improvement may have been possible.<\/span><\/a><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:120,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">This is the bolt-on trap.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:120,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<h2>Why AI\u00a0initiatives\u00a0stall<\/h2>\n<p><span data-contrast=\"auto\">Organisations also fall into pilot purgatory, where dozens of experiments never reach production. They create innovation islands, where a small central AI team moves quickly while the rest of the business waits. They measure the wrong things, tracking adoption rates and tool usage rather than workflows redesigned or processes eliminated.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:120,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">They build pilots on perfect data, then find production data is too messy, too\u00a0limited\u00a0or too fragmented. They add heavy governance early, but lack the governance needed to scale safely.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:120,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The common thread is leadership. Research cited\u00a0in\u00a0Pertama\u00a0Partners shows that\u00a0<\/span><a href=\"https:\/\/www.pertamapartners.com\/insights\/80-percent-ai-failure-rate-explained\"><span data-contrast=\"none\">84% of AI project failures<\/span><\/a><span data-contrast=\"auto\">\u00a0are driven\u00a0by leadership, not technology.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:120,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">(<\/span><a href=\"https:\/\/www.rand.org\/content\/dam\/rand\/pubs\/research_reports\/RRA2600\/RRA2680-1\/RAND_RRA2680-1.pdf\"><span data-contrast=\"none\">The Root Causes of Failure for Artificial Intelligence Projects and How They Can Succeed: Avoiding the Anti-Patterns of AI<\/span><\/a><span data-contrast=\"auto\">)<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:120,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">That should change the conversation.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:120,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><a href=\"https:\/\/www.elixirr.com\/en-gb\/wp-content\/uploads\/2026\/06\/Picture2.svg\"><img decoding=\"async\" class=\"alignnone wp-image-65957 lazyload\" data-src=\"https:\/\/www.elixirr.com\/en-gb\/wp-content\/uploads\/2026\/06\/Picture2.svg\" alt=\"Diagram showing common AI failure patterns and adoption challenges\" width=\"700\" height=\"404\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 700px; --smush-placeholder-aspect-ratio: 700\/404;\" \/><\/a><\/p>\n<p>&nbsp;<\/p>\n<h2>Leaders\u00a0must\u00a0redesign the\u00a0factory<\/h2>\n<p><span data-contrast=\"auto\">If AI failure is leadership-driven, then AI execution cannot sit only with technology teams. It must sit with the leaders who own performance, operating\u00a0models\u00a0and accountability.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:120,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Productive individuals do not automatically create productive firms. A person using AI may move faster, but if the workflow around them stays the same, the organisation simply creates new bottlenecks.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:120,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">This is why leaders must redesign the factory.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:120,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The factory is the way work is structured, governed,\u00a0measured\u00a0and improved. It includes the workflows people follow, the decisions they make, the data they use, the handoffs they tolerate and the planning rhythms that shape what gets funded.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:120,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">If that factory was built for a world where human effort was the constraint, it will not capture the full value of AI.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:120,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<h2>Four\u00a0shifts\u00a0to\u00a0make\u00a0this\u00a0quarter<\/h2>\n<p><span data-contrast=\"auto\">Real execution requires\u00a0the following\u00a0four shifts.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:120,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<ol>\n<li><span data-contrast=\"auto\">AI\u00a0has to\u00a0move from a project to an operating principle. It cannot be treated as a side initiative, owned by a small\u00a0team\u00a0and measured by activity. It\u00a0has to\u00a0shape how the organisation chooses\u00a0priorities,\u00a0redesigns work and creates value.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:120,&quot;335559740&quot;:240}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">The model of work\u00a0has to\u00a0change from humans doing work with AI help, to AI doing work with human oversight. That does not remove human judgement. It changes where judgement is applied. Leaders need to decide which work should be automated, which work should be supervised and where people create the most value.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:120,&quot;335559740&quot;:240}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">Organisations need to stop simply improving processes and start\u00a0eliminating\u00a0them. If AI is used only to speed up existing steps, the business keeps the same complexity at a faster pace. The greater value comes from asking which steps no longer need to exist.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:120,&quot;335559740&quot;:240}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">Annual planning cycles need to give way to continuous adaptation. AI capability is changing too quickly for static plans. In 12 months, AI may be 10x more capable. The organisation needs a way to keep learning,\u00a0redesigning\u00a0and scaling as the technology changes.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:120,&quot;335559740&quot;:240}\">\u00a0<\/span><\/li>\n<\/ol>\n<h2>The\u00a0execution\u00a0question\u00a0<span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:120,&quot;335559740&quot;:240}\">\u00a0<\/span><\/h2>\n<p><span data-contrast=\"auto\">This is the real secret to AI execution. It is not more pilots. It is not more tools. It is not waiting for perfect data or perfect clarity.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:120,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">It is building an operating system for AI transformation: one that gives leaders the ability to prioritise the right work, redesign workflows, govern at scale and measure what\u00a0actually changed.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:120,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The organisations\u00a0creating competitive advantage\u00a0aren\u2019t\u00a0the ones with the most experiments. They are the ones turning AI into an execution engine inside the enterprise.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:120,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><a href=\"https:\/\/hdsr.mitpress.mit.edu\/pub\/0mrfxamu\/release\/3\"><span data-contrast=\"none\">In 12 months, AI will be 10x more capable.<\/span><\/a><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:120,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The leadership question is simple:<\/span><span data-contrast=\"auto\">\u00a0what will it take for your organisation to be too?<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:120,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n        <\/div>\n            <\/div>\n<\/section>\n\n\n<section\n    class=\"wp-block-call-to-action edwp-block js-wp-block-call-to-action layout--none bg--none\"\n    >\n    <div class=\"container\">\n        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24.0295 34.238 24.3555 34.0812 24.6454C33.9244 24.9353 33.6981 25.1798 33.4237 25.3558L20.2527 33.421C19.9604 33.6017 19.6256 33.6979 19.2841 33.6992Z\" fill=\"currentColor\"\/>\n<\/g>\n<\/svg>\n<\/span>            <\/div>\n                        <\/figure>\n        <div class=\"wp-component-card__content edwp-row-load\">\n                                    <p class=\"wp-component-card__eyebrow\">\n                Articles            <\/p>\n                <a href='https:\/\/www.elixirr.com\/en-gb\/real-ai-execution-starts-when-leaders-redesign-the-factory\/' class='wp-component-card__title'>\n            <h2>\n                Real AI execution starts when leaders redesign the factory\n            <\/h2>\n        <\/a>                                                            <div class=\"wp-component-card__meta\">\n                                            <p class=\"wp-component-card__date\">\n                            23 June 2026                        <\/p>\n                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