The Human Capability Equation: Why 85% of AI Projects Fail

Most organisations treat AI as a software installation. They buy the license, train a few users, and wait for the productivity miracle. It never comes.

According to BCG, 74% of enterprises fail to scale AI pilots. The reason is rarely the technology itself. Modern LLMs work exceptionally well. The failure point is almost always human.

What is the Human Capability Equation?

We developed the Human Capability Equation to explain why some businesses thrive with AI while others stall. It is not an additive list of nice-to-haves. It is a multiplicative formula.

Because this is a multiplication equation, if any single factor is zero, the total result is zero.

You can have world-class Skills (10/10) and perfect Direction (10/10), but if your Governance creates a culture of fear (0/10), your total AI output will be zero.

The 6 Factors Explained

• 1. Leadership Gravity: If executives don't use AI visibly, nobody else will.
• 2. Cultural Resilience: Does your culture punish failure? AI requires experimentation.
• 3. Skill Visibility: Do you know who your internal experts are? Usually, they aren't in IT.
• 4. Champion Density: You need "builders" within teams who spread enthusiasm.
• 5. Governance Confidence: When employees don't know what is allowed, they freeze.
• 6. Capacity Direction: If AI saves you 10 hours a week, what do you do with it?