In recent years, artificial intelligence (AI) has emerged as a focal point for companies eager to embrace cutting-edge technology. Businesses across industries rush to implement AI systems, hoping to dazzle investors, board members, and external stakeholders with their adoption of the latest trends. Yet, beneath the surface of this AI gold rush lies a deeper problem: many AI projects are nothing more than showpieces, lacking any meaningful contribution to business growth or strategic objectives.
Recent data underscores this troubling trend. A survey conducted by Dice.com revealed that 36% of AI professionals believe the majority of AI projects they are involved in serve primarily to demonstrate that their company is “doing something with AI” rather than providing genuine value. This statistic, while concerning, is not surprising for anyone familiar with the current AI landscape. As an entrepreneur and investor in technology-driven ventures, I have observed first-hand how companies can misallocate resources and miss opportunities in their pursuit of AI adoption for optics alone.
The Allure of Vanity AI Projects
Vanity AI projects are driven by a desire to impress, often at the expense of functionality. Executives and board members are frequently enthralled by the potential of AI, but without a clear understanding of its applications. In this context, many companies begin deploying AI as a way to signal innovation rather than solve specific problems. Unfortunately, these projects tend to be hollow, offering little more than surface-level advancements that do not align with a company’s strategic goals.
The pressure to adopt AI for public relations purposes is understandable. After all, no company wants to appear as if it is falling behind the competition in embracing transformative technologies. However, this rush often results in significant wastage of both capital and talent. The resources dedicated to AI vanity projects could be better used in initiatives that genuinely enhance operational efficiency or improve customer experiences.
The Costs of Showcasing AI for the Sake of It
The pursuit of AI for its own sake comes with a high price. First and foremost, it damages credibility within the organisation and externally. When AI professionals are asked to work on projects that lack substance, they often become disillusioned. These individuals, highly skilled and in demand, may feel that their expertise is being wasted. This can lead to higher turnover rates, as professionals seek opportunities where their skills will be valued for their strategic contribution.
Moreover, the financial impact of vanity AI projects cannot be overstated. AI initiatives are not cheap. They require significant investment in infrastructure, talent, and time. If these investments do not yield measurable returns, they become a drain on a company’s resources. It is no surprise that organisations engaging in AI projects solely for show tend to struggle with scalability and real innovation.
Another consequence of AI-for-show is the missed opportunity to use the technology where it can truly add value. When resources are tied up in projects designed to impress rather than innovate, genuine opportunities for business transformation can be overlooked. AI has the potential to drive operational improvements, reduce costs, and enhance customer experiences. Yet, to realise these benefits, organisations must approach AI with a clear and well-defined strategy.
Strategic AI: A Better Approach
What differentiates successful AI initiatives from vanity projects is their alignment with business goals. Companies must resist the temptation to adopt AI simply because it is trending. Instead, they need to focus on how AI can solve specific challenges or unlock new revenue streams. By targeting AI applications with measurable outcomes, businesses will be in a much stronger position to demonstrate real value—not just to their boards, but also to their customers and the market at large.
As an investor in AI-driven ventures through NexaTech Ventures, I have always advocated for a problem-solving approach to AI. It is not enough to incorporate AI into a business model without a clear purpose. AI projects need to be designed with tangible outcomes in mind—whether that is improving efficiency, enhancing customer experiences, or providing predictive insights that shape better decision-making.
For example, we have seen remarkable results from AI projects focused on operational automation. These projects have streamlined processes, reduced human error, and freed up employee time for more value-added activities. Such outcomes make it clear that AI can be a game-changer when applied thoughtfully. On the flip side, when AI is adopted for appearances alone, it rarely delivers a meaningful return on investment (ROI).
The Role of CIOs and CAIOs in AI Governance
At the heart of any successful AI initiative lies strong leadership from the CIO or CAIO. These roles are critical in evaluating whether an AI project has real strategic merit or if it is merely designed to tick a box. In my experience, CIOs and CAIOs need to be the gatekeepers of AI investments. They should scrutinise AI proposals with a discerning eye, focusing on initiatives that drive business value rather than superficial appeal.
A successful CIO or CAIO should ask key questions before green-lighting any AI project. What specific problem does this project aim to solve? How will it contribute to long-term growth? What measurable outcomes can we expect, and over what timeframe? Without clear answers to these questions, any AI initiative risks becoming yet another vanity project.
It is also important for CIOs and CAIOs to push back when necessary. If an AI project seems designed purely to please the board or investors, they must be prepared to challenge its strategic value. AI adoption should not be about keeping up with trends; it should be about leveraging technology in a way that drives sustainable growth and positions the company for the future.
AI as a Tool for Transformation, Not Public Relations
The potential of AI is vast, but it can only be realised when companies take a purposeful, strategy-driven approach. AI is not a magic solution to business challenges, nor is it a tool for public relations. The companies that succeed with AI are those that adopt it with intent, focusing on real-world applications that address specific pain points and deliver measurable results.
Vanity AI projects might impress in the short term, but they offer little in terms of long-term value. By contrast, AI projects rooted in strategic goals provide businesses with the opportunity to innovate, grow, and thrive in an increasingly competitive market.
It is time for companies to shift their focus away from AI as a trend to be flaunted and towards AI as a transformative tool. With thoughtful leadership from CIOs and CAIOs, organisations can harness the true power of AI—not just to show they are doing something, but to make a real impact on their bottom line and their future.
