Dr Michael Kollo, Director of AI at ADAPT, shares AI adoption insights at CIO Edge, revealing why strategic alignment—not just investment—drives real business impact.

He explores the key factors that contribute to AI success, drawing on ADAPT’s research, which surveyed 200 CIOs across Australia.

One of the most significant findings is that AI has rapidly evolved from a niche discussion to a strategic priority, with 70% of respondents planning to increase their investment in generative AI.

However, despite growing budgets, only 25% of organisations have automated workflows, highlighting a gap between AI readiness and actual implementation.

The primary driver for AI adoption remains economic return on investment (ROI), though intangible advantages such as workforce empowerment and operational efficiency are also recognised.

A critical challenge identified is the difficulty in tracking AI’s long-term value, with 50% of CIOs admitting they struggle to measure ongoing benefits.

While initial investment costs are relatively straightforward to calculate, long-term ROI is harder to quantify, making it difficult to justify AI expenditure to CFOs.

This scepticism is further reinforced by the fact that 40% of CFOs believe deployed technology often goes unused or fails to deliver expected value.

The disconnect between AI enthusiasm and financial justification underscores the need for more robust tracking and measurement frameworks to ensure AI investments translate into meaningful business outcomes.

Interestingly, only 13% of CIOs consider themselves successful in AI deployment, with the most common use cases centred on employee enablement, such as AI-powered knowledge management and policy automation.

Despite widespread AI piloting, the factors that distinguish successful AI adopters do not align with common assumptions, such as the number of data engineers, workflow automation, or executive ownership.

Instead, the data suggests that organisations excelling in AI are those that strategically align AI with business needs and embed it effectively into operations.

This insight highlights the importance of a structured approach to AI integration, beyond mere experimentation, to ensure sustainable and measurable impact.

 

Key Takeaways:

  • AI investment is growing, but implementation lags – AI has shifted from a side discussion to a strategic priority, with 70% of CIOs increasing their investment in generative AI. However, only 25% have automated workflows, exposing a gap between AI readiness and real-world application.
  • Measuring AI’s value remains a challenge – While return on investment (ROI) is the top metric for AI success, 50% of CIOs struggle to track ongoing benefits, and 40% of CFOs believe AI deployments often fail to deliver value. This highlights the need for improved measurement frameworks to justify AI expenditure.
  • Successful AI adoption requires strategic alignment – AI pilots are common, but only 13% of CIOs report achieving real value. Success is not necessarily linked to the number of data engineers, automation levels, or executive ownership but rather to aligning AI initiatives with business needs and integrating them effectively into operations.
Contributors
Dr. Michael G. Kollo Director of AI at ADAPT
Dr. Michael G. Kollo is recognised as an accomplished executive leader and educator within the realm of artificial intelligence’s significance in business... More

Dr. Michael G. Kollo is recognised as an accomplished executive leader and educator within the realm of artificial intelligence’s significance in business strategy and product development across various sectors including financial services, technology, and public services. Holding a portfolio of leadership roles, Michael has contributed his expertise to renowned institutional investors such as Blackrock, Fidelity, Renaissance Asset Management, Axa Investment Managers, and HESTA. Additionally, he served as a non-executive director for Clime Investment Managers, an ASX-listed entity.

In the entrepreneurial sphere, Michael has been involved with AI and software companies, notably as a key figure at Faethm Pty, an Australian AI software company that was acquired by Pearsons in 2021, and at the Blockchain company Clanz. Beyond entrepreneurship, he actively participates in mentoring and supporting fintech and cybertech startup ecosystems in London and Australia.

In the realm of academia, Michael boasts a PhD in Finance from the London School of Economics, coupled with extensive lecturing experience at esteemed institutions such as the LSE and Imperial College. He has also been invited as a speaker at TedX events, focusing on the responsible utilisation of AI. With publications addressing machine learning’s application in investment management and contributions to the World Economic Forum’s AI/Fintech panel, Michael’s expertise is widely recognised. Moreover, he has cultivated a global audience through educational podcasts like “Curious Quant.”

As well as Director of AI at ADAPT, Michael is also the CEO of Evolved AI, a distinguished executive education and software development firm dedicated to empowering individuals through effective and responsible AI usage, thereby fostering resilient, transparent, and rapidly evolving enterprises.

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