Skip to main content
Orion Five Engineering
Book a scoping call

10 Jalan Kilang #04-05, Singapore 159410
+65 6100 5505

Systems integration

The productivity gap is a systems problem, not a technology one

McKinsey's November 2025 survey found 78 percent of companies using AI regularly, but only 33 percent scaling it across the organisation. MIT NANDA put the share of pilots reaching lasting financial gain at around 5 percent.

Terence Kok · 2026-07-27 · 5 min read

Several modular matte white machined blocks interlocked into one assembly, joined by a single red alignment pin.

Getting an organisation to try AI is no longer the hard part. The distance between trying it and running it across the business is where the value is either captured or quietly lost.

The two figures above describe the same gap from different ends. Adoption is near-universal; scaling is rare. That pattern does not point at the technology, which is identical in both groups. It points at what surrounds it.

What separates the two groups

Stuck at pilotScaled
Use case chosen for how impressive it demonstratesUse case chosen for where the operational friction actually is
Data assembled specially for the pilotData available on the same terms the production system will have
Success measured against the demoSuccess measured against a baseline established before go-live
Ownership ends with the project teamOwnership named for month thirteen, and priced

Why waiting costs more

Every pilot that stalls leaves behind an integration that half-exists: a connector nobody maintains, a copy of the data that has begun to diverge, a process with a manual step reinserted to work around it.

That residue is not free. It is the estate the next project has to work through, and it is why the second attempt is usually more expensive than the first rather than less.

All insights