AI BriefingWhy Companies Struggle with AI Integration
Key point
The core barrier to AI integration isn't cost or hallucination, but a knowledge gap and a lack of product creativity.
Details
Since the advent of ChatGPT and Copilot, AI technology has advanced dramatically, but the pace at which AI is being deeply integrated into everyday software is slower than expected. Many point to cost issues or hallucination as the cause, but these are not the core barriers.
The operating cost of LLMs is already at a very cheap level, and thanks to technologies like RAG (Retrieval-Augmented Generation), the hallucination problem has also come within a manageable range.
The major barriers companies actually face in the AI adoption process are as follows:
- Knowledge Gap: There are many cases of overestimating AI's capabilities or unnecessarily obsessing over finetuning. In reality, sophisticated prompt engineering and building an appropriate application layer are far more efficient.
- Lack of product creativity: There is a tendency to try to solve every feature with a chat interface. For services like Excel that need an intuitive GUI, a chat-based approach can actually undermine the user experience.
- Data Privacy Concerns: Concerns about data privacy are also one of the major barriers.
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