8 MIN READ
Blog
AAIS 2026 011
8 MIN READ
Blog

Running the AI race: Why readiness matters more than speed

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By: Milen Mahadevan, Chief Data and AI Officer, Kroger Co., President at 84.51°
Subject Matter Expert
AAIS 2026 011

The hype around artificial intelligence is real. But here's what's more real: the impact.

Seeing AI acceleration, new value creation, investment from everyone, yet despite all this news and momentum, many leaders are asking a question quietly in their boardrooms: If I'm not seeing millions in value from AI yet, am I behind?

The honest answer is more nuanced than yes or no. For most organizations, the real issue isn't that they're behind. It's that they're unprepared. And that distinction matters enormously.

The Difference Between Behind and Unprepared

"Behind" sounds like you've already lost the race. It feels like a dead end—a moment you've missed that won't come around again.

"Unprepared" is something entirely different. Unprepared is fixable. Unprepared is a starting point. Unprepared means you can still get ready.

If you're feeling behind on AI, you haven't missed the moment. You're simply seeing the cost of unpreparedness. This isn't a train you've missed. It's a race you need to enter—and the good news is that the race is still wide open.

The organizations pulling ahead aren't necessarily the ones with the most advanced technology.

  • They're the ones that have built real capacity.

  • They're learning fast.

  • They're moving beyond pilots.

  • They're turning experimentation into enterprise capability.

  • And most importantly, they've figured out what readiness actually means.

The Trap: Activity Without Readiness

Here's where many organizations get stuck. The urgency around AI is real, so they jump straight to "go."

  • They turn on a few tools—Copilot, ChatGPT, available to everyone.

  • They enable agents in some software.

  • They build a proprietary agent or two.

  • They launch a pilot to reinvent workflows.

  • Teams get excited about the potential.

But then reality shows up.

The data you need isn't ready. You have tools, but no clear priorities. Governance is unclear. You have energy, but no alignment. ROI is difficult to prove. Those agents are siloed and disconnected. You have pilots, but no pathway to scale.

This is the trap: companies want speed, but speed without readiness is just expensive chaos.

Let me be clear about what I'm saying: the message is not to slow down. The message is to move fast but get ready first.

  • You cannot outrun fragmented data.

  • You cannot scale through unclear governance.

  • You cannot create enterprise value if the business isn't leading the work.

Readiness is not the enemy of speed. Readiness is what makes speed productive. Readiness doesn't mean perfection. It doesn't mean waiting for ideal conditions or endless planning. In fact, perfection is often just delay wearing a suit. Readiness means something much more practical:

  • Good enough data

  • Clear direction

  • Guardrails on how work gets done

  • A path to take one use case from idea to launch to measurable outcome

That's not delay. That's what makes acceleration possible.

The Six Building Blocks of AI Readiness

After years of building AI capability at scale, we've identified six foundational elements that separate organizations that realize AI value from those that stay stuck in pilot purgatory.

1. Fix the Fuel: Make Data AI-Ready

Data feeds AI. AI drives growth. No data, no growth.

This is the most critical building block, and it's fundamentally a business problem, not a technology problem. Ask yourself: If I asked an AI agent tomorrow to answer the ten most important questions in my business, could it? Would it have the right data? Would it know which version of the truth to trust? Would it have access to what matters? Would anyone believe the answer?

If the answer is no, then the issue isn't the intelligence. The issue is readiness.

AI creates value when enterprise data is trusted, accessible, and consistently managed. But here's what makes this a flywheel: AI doesn't just consume data—it enriches it. It generates new data. It creates a feedback loop that compounds over time. But that flywheel only works if the underlying data is trusted and accessible across the enterprise.

When leaders ask why AI isn't delivering more value, data readiness is often the first place to look. Many assume they need another tool, another model, or another pilot. But the model and technology are rarely the issue. The data is.

AI readiness is fundamentally data readiness.

If your data is fragmented, poorly defined, inaccessible or untrusted, AI won't rescue you. In fact, AI amplifies the problem. The practical move isn't to fix all data everywhere—that's just another form of delay. Start with 2-3 business cases that matter most. Identify the data each one needs. Move it from "stored" to "usable." Add metadata. Define what it means in business context. Make it machine-readable.

Data is the difference between an expensive experiment and a competitive edge.

2. Set the Pace: Leadership Must Lead

AI success starts with leadership, not tool choice.

This is where many organizations fail. They delegate AI downward. They make it an IT initiative. Only innovation teams or digital teams worry about it. That's exactly how you end up with smart technology chasing shallow problems.

On one path, AI stays tool and tech-focused: limited adoption, isolated pilots, late governance, low impact. On the other path, leaders define business priorities first. They decide where value will come from, what risks are acceptable, what to build, and what to buy.

This is not a technology rollout. It's a business transformation. And business transformations don't happen because tools are made available. They happen because leaders make the future visible before it's obvious to everyone else.

Leadership has to do more than approve budgets.

  • Leadership has to set the pace.

  • Use AI personally.

  • Learn publicly.

  • Share the "aha" moments.

  • Model the behavior.

When leadership treats AI as core to the business, the business responds.

3. Decide Your Operating Model

Your operating model will determine your speed. Not your aspiration. Not your press release. Your operating model determines your speed.

A distributed model can increase speed and domain expertise. But it also raises the risk of duplication and disconnected use cases. A centralized model can drive consistency and reduce silos. But it often comes at the cost of speed and domain intimacy.

For many organizations, a hub-and-spoke model is the most practical answer. It creates common infrastructure, shared governance, and reusable capabilities while keeping domain expertise close to the customer, the operator and the decision. It balances reuse with business ownership.

The key is to choose deliberately and communicate clearly. Don't leave people guessing. Scale doesn't happen through enthusiasm alone. Be explicit about how an idea becomes a pilot, a product, and eventually a standard at scale. Your teams need clarity, not a riddle. Ambiguity is not agility.

No organization scales AI by accident.

4. Build Trust In, Not On

Everyone can launch a pilot. Very few can scale one. Why? Because scaling requires trust.

If users don't trust the output, they ignore it. If leaders don't trust it, approvals slow down or stop. If trust is addressed too late, the organization pays for it in delay, rework, loss of confidence, and sometimes loss of brand equity.

Trust is not soft. Trust is operational.

Privacy, security, transparency, fairness and explainability cannot be bolted on at the end. If you do that, you're not scaling AI. You're retrofitting regret. Trust must be built in from the start. Instrument quality and feedback into your development approach. Ensure outputs have explainability and show the sources. Create the evidence for trust.

Not all processes are the same, so use human-in-the-loop for higher-risk decisions. When trust is integrated early, it fuels adoption and gives leaders permission to move faster. When trust is absent, scale stalls.

5. Ready the Workforce: Build Confidence, Not Just Capability

If your people aren't using AI, you don't have an AI strategy. You have a tool deployment.

Tools don't create transformation. People do. Right now, most workforces are mixed. Some employees are energized. Some are cautious. Some are intimidated. Many are all three, depending on the day. That's normal.

But here's what's not normal: approving a tool and telling employees to "go use AI." That's not enablement. That's abandonment.

The real work is building a shared foundation for AI literacy.

At 84.51°, we've developed an AI Driver's License—foundational learning that helps associates use AI confidently, thoughtfully, and responsibly. It's not about making everyone a data scientist. It's about creating a common baseline where human judgment and accountability scale alongside innovation.

Here's why this matters:

What it is: Shared learning that gives everyone the same footing for using AI in everyday work.

Why it works: AI is becoming an operating layer across modern work. Benefits don't come automatically. They require learning, judgment, and shared standards.

How we do it responsibly: We lead with transparency and explainability. AI supports decisions, but people remain responsible for outcomes.

The other path is practical adoption.

  • AI integration into daily work.

  • Leadership encouragement.

  • Learning through doing.

  • Create the conditions for adoption.

  • Provide training tied to real workflows.

  • Help build confidence.

  • Give permission.

Momentum comes when teams start using AI in simple, meaningful ways and then build from there.

6. Redesign the Work, Don't Just Automate Tasks

This may be the most important strategic point of all.

Most organizations begin by asking: Where can we add AI? Tasks are easy to pilot and easy to measure, so that's where they start. But bolt-on AI only gets you so far. It makes flawed work faster—but leaves it flawed. That's not transformation. That's faster dysfunction.

The better question is: How should this work change now that AI exists?

That's where the real value is. In workflow redesign. In faster decisions. In new service models. In fundamentally changing how value gets created. That's the shift from automation to reinvention.

A practical way to start:

  • Choose 2 to 3 business outcomes that matter most.

  • Identify the highest-friction steps and design them out of existence.

  • Identify the highest-value steps and ask yourself how you can do them differently—not just faster, but fundamentally different.

AI should not just make the old system faster. Real transformation comes from rethinking the system altogether.

The Real Question Isn't Whether AI Matters

The question is whether you're going to lead through this moment or study it while others pull ahead.

The winners in the AI race won't be the organizations with perfect plans. They'll be the ones that move with urgency and clarity. The ones that understand what readiness means. The ones that have built the foundation to scale.

Start now. Fix the fuel. Set the pace. Build the foundation. Create momentum. Keep adapting. Because there is no finish line—only the next mile.

AI will not wait for any of us. The question is: Will you be ready when it arrives?

8451 SME Profile Headshots 385 X 400 Milen M 2 X
Milen Mahadevan, Chief Data and AI Officer, Kroger Co., President at 84.51°
Subject Matter Expert
Milen Mahadevan was named president in July 2020 after serving as Chief Operating Officer of 84.51°. Mahadevan is responsible for the day-to-day leadership, management and vision for 84.51° to deliver best-in-class re...learn more

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