In Brief

The Problem

Cognitive technologies are increasingly being used to solve business problems, but many of the most ambitious AI projects encounter setbacks or fail.

The Approach

Companies should take an incremental rather than a transformative approach and focus on augmenting rather than replacing human capabilities.

The Process

To get the most out of AI, firms must understand which technologies perform what types of tasks, create a prioritized portfolio of projects based on business needs, and develop plans to scale up across the company.

In 2013, the MD Anderson Cancer Center launched a “moon shot” project: diagnose and recommend treatment plans for certain forms of cancer using IBM’s Watson cognitive system. But in 2017, the project was put on hold after costs topped $62 million—and the system had yet to be used on patients. At the same time, the cancer center’s IT group was experimenting with using cognitive technologies to do much less ambitious jobs, such as making hotel and restaurant recommendations for patients’ families, determining which patients needed help paying bills, and addressing staff IT problems. The results of these projects have been much more promising: The new systems have contributed to increased patient satisfaction, improved financial performance, and a decline in time spent on tedious data entry by the hospital’s care managers. Despite the setback on the moon shot, MD Anderson remains committed to using cognitive technology—that is, next-generation artificial intelligence—to enhance cancer treatment, and is currently developing a variety of new projects at its center of competency for cognitive computing.

A version of this article appeared in the January–February 2018 issue of Harvard Business Review.