Illustration of generative AI models transitioning from lab testing to real-world business environments

No More Pilots: Why Generative AI Needs to Leave the Sandbox

May 20, 20253 min read

Let’s get straight to it:
If you’re still ONLY running “pilot projects” with generative AI in 2025, you’re already losing ground.

The pilot-only phase was acceptable in 2023. It was borderline in 2024. But in 2025, it’s just inertia in a suit.

Companies that win with AI aren’t simply experimenting with it anymore - they’re building with it. GenAI has moved from novelty to necessity – if you are still stuck in the sandbox, sorry to tell you that your competitors are already rewiring how they operate, engage, and grow.

The Problem with Pilots

Although necessary, pilots are not meant to last forever. They’re designed to reduce risk, test feasibility, and validate value - then scale. But here’s the harsh reality:

Too many companies have gotten addicted to experimenting because it feels safer than committing.

According to McKinsey, only 21% of companies that have tested AI at scale have fully embedded it into multiple business units. That means nearly 80% are still dabbling while the leaders are re-architecting. And guess what? The gap is widening, not shrinking.

In sectors like healthcare and financial services, where regulatory complexity and risk aversion are high, the temptation to stay in perpetual pilot mode is real. But with AI, it’s a trap. The reality is your competitors aren’t waiting.

  • Health systems like UPMC and Mayo Clinic have moved past pilots and are using GenAI for administrative automation, clinical documentation, and patient communication at scale.

  • Banks and credit unions are deploying GenAI to speed up underwriting, streamline compliance checks, and drive hyper-personalized financial services.

  • Marketing agencies are building GenAI directly into their service models, reducing time-to-campaign by up to 40% and delivering more tailored client experiences. 

Why Pilots Die on the Vine

Let’s unpack the 3 reasons most GenAI pilots stall out:

  1. They’re disconnected from strategy. No clear business outcome = no traction.

  2. They’re siloed in innovation teams or IT. Which means no buy-in from the people who actually need to use the tools.

  3. They lack aligned executive commitment. If AI doesn’t have a seat at the leadership table, it won’t scale - period.

This isn’t a technology issue - it’s a leadership issue.

From Pilot to Power Move: What the Bold Are Doing Now

The companies that are winning with GenAI in 2025 aren’t smarter. They’re just braver. Here’s what they’re doing differently:

✅ 1. They’re starting with Strategy.

 ✅ 2. They’re assigning ownership.

✅ 3. They’re realigning and reimagining their teams.

✅ 4. They’re shifting from pilots to platforms.

Now, don’t get me wrong. There aren’t many companies making these moves – yet. According to PwC, 73% of executives say they’re confident that AI will help them make better decisions, but only 36% have fully integrated it into daily operations in some manner.

That delta? It’s where competitive advantage lives – and more and more leaders are getting comfortable with AI, and making their moves.

It’s Time to Lead.

If your GenAI program hasn’t outgrown its “test” phase, you don’t have an AI strategy. You have an expensive sandbox.

Now is the time to move from:

  • Experimentation → Execution

  • Curiosity → Capability

  • Pilot → Platform

  • Dabbling → Strategic Player

Treat GenAI as the business transformation lever that it is, not a tech trend. Oh, and stop asking what can we test? Start asking: what should we reinvent?

AI is the revolution that everyone is touting.  It is not just a new tool you need to learn. AI is a whole new way of doing business. And you get the opportunity to decide how that looks. 

The future belongs to those companies that make precision-timed, high-impact moves - the moves that others don’t even see coming.

Want to know how to get there? That’s where the AI Strategy Brief comes into play. It’s built to help leadership teams move past the pilot trap and identify what to scale, where to prioritize, and how to embed GenAI strategically across the business.

If you are ready to lead past AI pilot purgatory, check it out.


Kristi Perdue, CEO, CAIO, AlterBridge Strategies

Kristi Perdue

Kristi Perdue, CEO, CAIO, AlterBridge Strategies

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