Despite AI's potential to enhance employee output, many companies struggle to translate these improvements into meaningful organisational success, as they focus on visible tech demos rather than systemic change, according to a Hana Institute of Finance report.

Artificial intelligence is making individual employees faster, sharper and more productive, but many firms are still struggling to turn that personal gain into stronger corporate results, according to a recent Hana Institute of Finance report. The institute described this gap as an "AI productivity paradox", arguing that enthusiasm for the technology has often outpaced the hard work of reshaping how businesses actually operate.

The problem, the report says, is not that AI lacks promise. In areas such as software development, legal work and marketing, it is already helping workers produce better output in less time. PwC has gone further, estimating that AI could lift global GDP by as much as 15% by 2035, a figure that underlines why companies and investors are treating the technology as a strategic priority.

But the Hana analysis says many organisations are still approaching AI as a visible add-on rather than a structural change. Executives often focus on quick demonstrations of success that are easy to present to shareholders, while leaving workflows, decision-making systems and operating models largely intact. That leaves AI tools poorly matched to day-to-day work and limits how widely employees adopt them. The report also warns that weak oversight can encourage "Shadow AI", as staff turn to unauthorised external tools without company approval.

Even when AI does improve efficiency, the benefits may not show up in company accounts if the time saved is not redirected into higher-value work. Hana argues that unlocking the next stage of AI value will require more than software purchases: firms will need to redesign processes, strengthen infrastructure, reorganise teams, upgrade skills and secure active leadership from the top. In the institute's view, AI should be treated not as a one-off technology project but as a long-term overhaul of how a business functions.

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Source: Noah Wire Services