Hartford Business Journal

16 HARTFORDBUSINESS.COM | NOVEMBER 17, 2025 UConn School of Business professor Wei Chen says companies are still in the early stages of adopting generative AI as they grapple with data privacy and organizational challenges. Contributed Photo Reality Check CT experts see cautious, uneven progress as companies confront AI's growing pains Data security The figures on partial adoption sound familiar to Wei Chen, a professor at UConn's School of Business who has recently published a paper on genera- tive Al and organizational structure in the knowledge economy. "Companies are still at the stage of choosing their tools," he said. And beyond the significant invest- ment in AI tools and the steep employee and organizational learning curve, there are larger structural issues for many businesses. "You just hear the same question again and again," he said. "'I have a data privacy problem. I'm a finance company, I'm a healthcare company, my data cannot go out of my company. Can I still use this technology?'" The data security question is holding many companies up from committing to fully integrating generative AI. But Chen says at the individual level, AI has proved a roaring success. "ChatGPT's annual revenue is about $15 billion, and 70% of that comes from individual users who pay $20, $25 a month," he said. "The individual adoption is here, everyone is using it. The organizational adoption is just starting." Chen said the Gartner and MIT findings represent just the first, early wave of AI business adoption, and another, more successful wave will be coming as artificial intelligence firms better tailor their products to business needs — developing custom tools that protect company data and address integration and management challenges. He believes full adoption in many industries may take five to 10 years. Running ahead Business process consultants are among those on the front lines of advising companies on this technology revolution. "In some ways, the impact of this change has similarities with earlier technology disruptions and break- throughs," said Dan Spiwack, CEO of Stamford-based busi- ness consultancy JMW, which advises corporate leaders on strategy, culture change and performance improve- ment, with clients that include Fortune 500 companies and government agencies. "(But) in my view, AI may potentially have an even greater impact in the world of business." Getting there won't be smooth. Spiwack said he frequently sees companies establishing AI teams or departments with sizable budgets but no clear strategy for how to deploy the technology — or how it will ultimately benefit their customers. In part, these moves are fueled by very human concerns — leaders either hoping to leapfrog the competition or afraid of falling behind if their competi- tion gets to those applications first. "In some ways the remarkable capabilities of AI seem to currently be running ahead of companies' abilities to apply those capabilities for differen- tiated performance," Spiwack said. He advises that there's no substitute for thoughtful, By Harriet Jones hjones@hartfordbusiness.com O ne thing that generative artificial intelligence has no difficulty producing is splashy headlines. The latest have focused on major layoffs, as tech companies prune their workforce, in part, to reflect AI-driven productivity gains. By some counts, the tech sector has announced as many as 1 million job cuts in 2025, including recent reductions of 14,000 at Amazon and 24,000 at Intel. Yet, these developments contrast sharply with surveys by leading universities and research firms showing widespread caution — and even confusion — among business leaders about how to actually implement AI. Experts describe this as a field that's changing month to month and quarter to quarter, generating a lot of speculation about how profoundly AI may reshape business organization and employment. Learning gap Stamford-based Gartner, a business and technology insights company, produces a series of reports on tech- nology adoption called Hype Cycles. Its 2025 report on procurement and sourcing solutions places generative AI squarely in what it calls the "trough of disillusionment" — the phase when early excitement gives way to disap- pointment as companies struggle with underperformance, poor integra- tion and unmet expectations. Another Gartner survey found that 88% of human resources profes- sionals said their organizations have yet to realize significant busi- ness value from AI tools. Only 8% of those respondents believe their managers have the skills to use the technology effectively. Meanwhile, a widely cited MIT study found that 95% of corporate genera- tive AI pilot projects have failed. "The 95% failure rate for enter- prise AI solutions represents the clearest manifestation of the GenAI Divide," the report stated, pointing to a "learning gap" affecting both the makers of AI tools and the organiza- tions trying to adopt them. That learning gap is evident in Connecticut as well. A recent survey by the Connecticut Business & Industry Association found that only 36% of companies have begun using artificial intelligence in their operations, while 64% have yet to adopt it. Among non-users, 73% said they were unsure how to integrate the technology, 20% cited data privacy concerns and 7% pointed to liability risks. Among Connecticut firms that are using AI, applications include research, data analysis, project management, customer service, marketing, sales, human resources, accounting and communications. Some companies said they are using AI tools to help write emails, improve operational safety, support building design or enhance internal processes through platforms such as Microsoft Copilot. Why CT companies aren't adopting AI The CBIA's "2025 Survey of Connecticut Businesses" found that 64% of companies have not yet integrated AI into their operations. Here's why: 73% Unsure how to incorporate it 20% Privacy concerns 7% Liability concerns Dan Spiwack

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