In a market flooded with AI jargon, lasting advantage comes to those who cut through the noise and offer real value, and real solutions.
As CEO of a company processing billions of documents for 67% of the Fortune 500, I’m lucky to have a front-row seat to enterprise artificial intelligence (AI) adoption at scale. While AI’s potential is real, the market has become challenging to navigate, with business leaders struggling to identify which tools deliver genuine value and when to deploy them.
This challenge is amplified by the rise of AI-washing: vendors rushing to rebrand existing features as “AI-powered” without meaningful innovation behind the label. It’s even more crucial to identify real AI capabilities when enterprises require clarity about how AI handles their sensitive information. Questions about data usage, storage and model training have moved from hypothetical concerns to fundamental requirements.
If the AI market is expected to grow at over 26% annually and hit over $1 trillion by 2031, enterprise leaders need a clear framework for evaluating AI tools now. But if we don’t address the credibility gap now, we risk wasting this opportunity for real innovation and instead investing in tools that lead nowhere. Like any tool or application, AI must prove itself with real and tangible benefits and outcomes to businesses.
The real cost of AI-washing
AI-washing isn’t just costly to the bottom line — it’s actively counterproductive. When companies label shallow features as “AI-powered” or wrap basic business logic in buzzwords, they mislead customers, distort expectations and erode trust in the category.
This directly impacts the enterprise requirements I mentioned earlier. When vendors can’t clearly explain how they handle sensitive data or whether they’re using customer documents for training, it reveals that they haven’t built with enterprise needs in mind.
The result is a difficult landscape for decision-makers. Buyers have become skeptical. And the true value of AI gets obscured by marketing noise. Just ask any CIO what they think about “vibe coding” amongst their user population and the risk it poses to data in their business!
AI as an implementation detail, not the headline
Here’s the mindset shift I believe the industry needs: AI isn’t the story. It’s an instrument. This is how the companies leading that trillion-dollar market growth will differentiate themselves. The best approach starts with the customer’s problem.
Consider how document-heavy workflows have evolved. Whether it’s legal teams reviewing contracts, finance departments processing invoices or HR teams handling applications, the transformation isn’t about the natural language processing models under the hood. What matters is that professionals can now understand a 50-page contract in 30 seconds instead of 30 minutes. AI is the implementation detail, but the value is the time saved, insights gained and the outcome delivered.
This represents a more mature phase of AI adoption, one where technology is deployed not just for novelty but for real-world impact. It’s about enhancing workflows and skillsets, not replacing them. It’s about automating drudgery so humans can focus on work that requires judgment and expertise.
What pragmatic AI looks like in practice
From experience serving Fortune 500 companies, we’ve identified key characteristics of effective AI:
- Solves real problems: Clear before-and-after improvements users can quantify, such as extracting data from complex documents in seconds.
- Security-first design: Built with respect for enterprise data standards, compliance and privacy from day one.
- Augments vs. replaces: AI is best used to complement human decision-making rather than trying to replace it. The most effective implementations keep people in the loop.
The questions that separate signal from noise
Given the AI-washing problem and the critical enterprise requirements around data handling, how do you separate signal from noise? Here are practical questions every leader should ask when evaluating AI tools:
- What is the outcome we are trying to achieve?
- How exactly does your solution use AI?
- Are you using third-party models or training your own?
- How do you ensure data security and compliance?
- Do you store user documents or interactions?
- What safeguards are in place to avoid misuse or bias?
These questions probe the foundation of the product and the ethics behind its development. They often reveal whether a company has thought through the responsibility that comes with building AI.
Building AI talent, not just buying AI tools
Identifying the right AI tools is only half the battle. While tools and technologies continue to evolve, many companies are discovering their biggest challenge isn’t about software, it’s about people.
According to a recent McKinsey report, 92% of companies plan to increase their AI investments over the next three years, but only 1% of leaders consider their companies “mature” in AI deployment. Meanwhile, 48% of employees rank training as the most important factor for AI adoption, yet nearly half feel they’re receiving moderate or less support.
The companies that will succeed are those building AI-literate workforces alongside AI tools. This requires investing in AI education across the entire organization, not just engineering teams. Customer-facing teams need to understand AI capabilities to guide implementations. Sales teams must articulate real value beyond buzzwords. Finance and operations teams benefit from using AI tools in their daily work. When AI literacy becomes part of company culture rather than confined to technical teams, real transformation becomes possible.
The mindset shift we need
The AI revolution brought capabilities that seemed distant suddenly within reach. But it also created the perfect conditions for AI-washing: inflated expectations, rushed deployments and confusion about where AI truly adds value in enterprise workflows.
The path forward is clear. Start with the problem, not the technology. Ask the hard questions about data security and implementation. Build AI literacy across your organization, not just in IT. Recognize that effective AI enhances human intelligence rather than replacing it.
As leaders navigating this trillion-dollar market opportunity, we must cut through the noise. The companies that will succeed won’t be those with the most AI features, but those who deploy AI thoughtfully to solve real problems. In an era where every vendor claims to be “AI-powered,” competitive advantage belongs to those who can identify innovations that are worth the investment and act on that knowledge.
This article is published as part of the Foundry Expert Contributor Network.
Want to join?
