Why AI Fails on Old Processes: The $1 Billion Lesson from EY

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Why AI Fails on Old Processes: The $1 Billion Lesson from EY

Jim Harris explains why sprinkling AI on old processes fails and how EY cut a 46-hour process to 6 hours by redesigning from scratch.

AI is moving into boardrooms faster than many businesses can figure out what to do with it. For Jim Harris, the bigger risk isn't moving too slowlyβ€”it's bolting new technology onto old ways of working and expecting transformational results. A specialist in GenAI and disruptive innovation, Harris advises executive teams and has worked with organizations including American Express, Barclays, IBM, SAP, Walmart, and the UK Cabinet Office. In 2024, he was named Speaker of the Year by TEC Canada for his work on AI. In this exclusive interview with the AI Speakers Agency, Harris explains why companies need to redesign processes from scratch, how leaders can reduce employees' fear of AI, and why keeping humans involved remains critical as adoption accelerates. ### How to Introduce AI Without Scaring Your Team **Question 1: What should business leaders do to introduce AI without triggering fear or resistance among employees?** Jim Harris: "First off, it's important to create psychological safety. The majority of people in developed nations actually fear AI. They fear job loss. As adults, we tend to fear things or are uncomfortable with new ways of working. "And so an organization has to work really hard to say, 'Your jobs are safe, number one, and number two, we're going to provide you training. And three, this is going to enhance your skill set and your employability.' "So those are a few things organizations have to do." ### The $1 Billion AI Lesson from EY **Question 2: Why can applying AI to an existing business process limit the gains companies are able to achieve?** Jim Harris: "I was at the Consumer Electronics Show in Las Vegas a couple of weeks ago, and I interviewed the head of AI for Ernst & Young in the US. EY has 400,000 employees and they've spent a billion dollars on AI. "They had a 46-hour risk management process that they'd historically run for their clients and they thought, 'Okay, let's apply some AI to it.' "With the people who designed the process, they got it down to 32 hours, which is a 20% gain, which is great. "But then they said, 'Let's try something different. Let's take people who've got no experience with the process, but who are technology-first, AI-first, chomping at the bit, new individuals in our organization, and pair them with risk managers who've never been involved in this process.' "They got the process down to 15 minutes. "Then they said, 'Well, we're EY, we have to have data compliance and we have to verify everything.' So they added some steps back in and got it back to six hours. "Look at this: 46 hours, 32 hours, 15 minutes, then back to six. It highlights a couple things for me. Number one, you can't just sprinkle some AI fairy dust on your existing processes and hope to get the greatest gain. "You really need to start with a blank sheet of paper and say, if we were designing this process today from first principles, what would we do? In other words, we're not going to take a 2018 or before process and try and enhance it with AI. How do we redesign it? "Secondly, the people who have been involved in designing the process, unconsciously or consciously, are wedded to it. We need to have fresh eyes to bring in. "When you actually look at 46 hours down to six hours, that's a more than 80% reduction. That is staggering. And now you can redeploy people for more important activities." ### Beyond ChatGPT: AI's Transformational Potential **Question 3: What example best demonstrates how far AI can move beyond tools such as ChatGPT and deliver transformational gains?** Jim Harris: "There's so many, but I've had the pleasure, I'm a journalist, of being in interview sessions with Demis Hassabis, who's the founder of Google DeepMind, and he won the Nobel Prize in 2024. "Why? PhD student..." *The interview continues, but the key takeaway is clear: AI isn't a magic wand. To unlock its true potential, you need to rethink your processes from the ground up.*