The 70% rule: Why your AI strategy is a people strategy

Date:
Fri, 10 Apr 2026 10:16:01 +0000

Description:
Most current AI strategies may be failing due to misallocated focus - AI has become prominent at a board level, but this isnt translating into operational impact.

FULL STORY ======================================================================Copy link Facebook X Whatsapp Reddit Pinterest Flipboard Threads Email Share this article 0 Join the conversation Follow us Add us as a preferred source on Google Newsletter Tech Radar Pro Are you a pro? Subscribe to our newsletter Sign up to the TechRadar Pro newsletter to get all the top news, opinion, features and guidance your business needs to succeed! Become a Member in Seconds Unlock instant access to exclusive member features. Contact me with news and offers from other Future brands Receive email from us on behalf of our trusted partners or sponsors By submitting your information you agree to the Terms & Conditions and Privacy Policy and are aged 16 or over. You are
now subscribed Your newsletter sign-up was successful Join the club Get full access to premium articles, exclusive features and a growing list of member rewards. Explore An account already exists for this email address, please log in. Subscribe to our newsletter Discussions about AI tools on company
earnings calls reached an all-time high last year, becoming a top five CEO topic, based on analysis by The CEO Radar (nearly 5,000 company earnings calls). It shows that leaders discussed AI largely in the context of innovation and growth.

In fact, AI, tech, innovation and growth all showed increased mentions among CEOs in Europe and globally. Jason Harvey Social Links Navigation

VP for Automation, EMEA at Zebra Technologies. While CEOs are laser-focused
on AI in earnings calls, theres a risk they (and we) misallocate focus. Tracking the latest AI model achievements and possibilities whether agentic or generative or something else - grabs attention. And getting algorithms and tech stacks in place is important. Article continues below You may like The ROI blueprint: turning AI and automation into business value Why AIs investment must materialize for the C-Suite From curiosity to culture: Advocating for AI

But unlocking value is found in redesigning business processes and empowering people. AI is less an IT project and more a new chapter in how we think
about, empower, and allocate human capital.

Yet only 21% of executives reported that their strategies passed four or more of McKinseys Ten Tests of Strategy a 40% drop from a decade and a half earlier, according to McKinsey. It's a worry in a business world with high investments and expectations about AI.

Great focus on culture is needed to encourage innovation and a strategy to drive it while a transformative vision of how AI can make work better every day is essential. Strategy needs to improve how a business serves and adds value to its customers.

AI can fix problems, but its greater value is in giving business a
competitive advantage. And this is best done with people and partners who
have the advice and experience needed. Are you a pro? Subscribe to our newsletter Sign up to the TechRadar Pro newsletter to get all the top news, opinion, features and guidance your business needs to succeed! Contact me
with news and offers from other Future brands Receive email from us on behalf of our trusted partners or sponsors By submitting your information you agree to the Terms & Conditions and Privacy Policy and are aged 16 or over. AIs 70-20-10 A powerful framework presented in new research by Boston Consulting Group argues that about 10% of value from AI comes from the algorithms themselves, 20% from the technology required to implement them, and a significant 70% from rethinking the people component.

Thats a sobering breakdown of how strategically guided transformation can succeed. Creating a culture of innovation, training and learning resources, and change management have taken on new importance as businesses chase AI
ROI.

That must include presenting AI as a board level priority for growth, not merely an IT project and bring in middle managers as a core execution lever. The same piece of research says 88% of managers role model AI use and
actively incorporate it into decision-making and daily operations. What to read next How to take AI from pilots to deliver real business value Finding stability in an age of relentless AI innovation AI projects worldwide are failing in businesses because of this simple reason

Middle managers connect senior leadership, strategy and the frontline where value is created, tasks are intelligently automated, and work is made better every day. Putting the 70-20-10 rule into practice This framework is not theoretical. Consider how a manufacturer in wood production with an 80-year track record put this into practice to generate over 500,000 in annual savings. Its leaders spotted a gap in the market for an enhanced offering to customers and leveraged AI to advance the opportunity.

Competitors were selling lots of scanners needed for visual inspection but didnt push improvements or provide upgrade packages.

This insight was coupled with the manufacturers own experience of old technology and outdated ways of working which led to false positives, increased waste and labor hours spent on manual checks and deteriorated working environments as its frontline workers processed up to 20,000 items a day.

Human insight, customer focus, and the right culture harnessed with strategy were turned into an advantage. It combined the expertise of its directors and project managers with that of partners, collaborating with a global leader in machine vision and AI solutions and a local partner for hands-on testing and implementation.

Its operations are now intelligently automated using machine vision software with deep learning and 3D sensors. The system plugs into production lines for consistent, reliable results under harsh industrial environments, and the AI continuously learns so precision and yield improve over time.

Outcomes include an eightfold improvement in precision, reduced errors, six-figure cost savings, and the confidence to expand its business into new global markets.

The benefits also extend outside the factory and into the supply chain, with much clearer visibility into each supplier's yield and quality profile when sourcing from different providers. The manufacturer has improved inventory accuracy and allocation, and shipment and production schedules run with confidence.

The system also helps overcome one of the industrys biggest challenges: a shortage of skilled workers. With the AI-powered system, new team members can simply annotate images. The model then learns to recognize characteristics consistently, without needing a more qualified operator.

The lessons above and the 70-20-10 rule are clear: strategy without execution is a hallucination. But in the age of AI, execution is not simply about algorithms, but a workplace culture that empowers its people.

The critical questions for leaders are What is our AI strategy? and Who is leading our business process transformation? Get that execution answer right, and AI moves from a line item on an earnings call to the core engine of competitive advantage. We've featured the best AI chatbot for business. This article was produced as part of TechRadarPro's Expert Insights channel where we feature the best and brightest minds in the technology industry today. The views expressed here are those of the author and are not necessarily those of TechRadarPro or Future plc. If you are interested in contributing find out more here: https://www.techradar.com/news/submit-your-story-to-techradar-pro



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