How Behavioral Science Can Improve the Return on AI Investments | David De Cremer, Shane Schweitzer, Jack J. McGuire & Devesh Narayanan, Harvard Business Review
Why do so many AI projects flop? After years of hearing how AI will revolutionize business, recent studies have shown that companies are still consistently struggling to wring value from their investments in AI. MIT’s NANDA initiative, for one, estimated that 95% of AI initiatives fail to deliver their intended value. A global survey from Boston Consulting Group found that only 26% of companies have seen tangible ROI from AI. Now, leaders are asking: What’s going wrong?
One big reason for this is that leaders don’t think enough about how people will actually use AI tools. Instead, many default to technosolutionism—the belief that technological improvements alone will produce solutions to organizational problems. When leaders embrace a technosolutionist mindset, they end up viewing AI adoption purely as an engineering exercise. For instance, focusing primarily on acquiring the most sophisticated, cutting-edge AI systems and believing that issues such as employee resistance and distrust will eventually sort themselves.
The problem is that integrating new AI tools is fundamentally a behavioral challenge. Getting it right is a question of changing how people interact with and think about AI in their work practices and routines. When implementation ignores basic human needs and biases, this means employees will resist or distrust new AI tools.
To align AI with how people actually think and work, leaders need an approach that applies behavioral science and change management principles. In our recent research, we offer exactly that, which we call Behavioral Human-Centered AI. The crux of it is that the success of AI adoption does not so much depend on the deployment of the most sophisticated and advanced technology, but rather on leadership decisions being fueled by behavioral insights about people’s flaws, biases, and habits across the entire change cycle—including the design, adoption, and management stages. Below, we offer recommendations on how to apply this idea to create real business value with AI.
AI Fails When It Ignores Human Behavior Across the Full Change-Management Cycle
Many leaders assume that well-designed AI systems will be unequivocally embraced. However, even if your AI solution perfectly addresses business needs and improves the work lives of your employees, decades of behavioral research show that humans are far from rational. For instance, when facing change, people fear losses more than they value equivalent gains, and they cling to familiar ways of working, even when they’re inefficient. This was shown in clinical decision-support tools in hospitals. Despite being embedded in electronic health records and having demonstrable benefits, clinicians often under-utilized or worked around them when alerts disrupted work routines or added verification time. The perceived workflow and time “losses” thus loomed larger than the opportunities to improve patient care.
Research shows two biases that lead people to reject the use of AI. First, people often abandon an algorithm after seeing it make a mistake, even when it outperforms humans over time. Second, they tend to overestimate how well they understand human decision-making, leading them to dismiss AI tools by comparison. In this research, patients believed they grasped a human doctor’s reasoning better than an AI’s, which made them reluctant to follow AI advice, even though medical AI often outperforms human providers.
These biases aren’t necessarily flaws; they’re fundamental to how humans think about and process change.
Yet companies often don’t directly account for such quirks of human processing when it comes to AI adoption. Consider, for instance, the responses from the 23rd annual “state of the CIO” survey by Foundry: While 71% of CIOs—the role regarded to be responsible for tech infrastructure, data security, and tech initiatives—saw themselves as responsible for accelerating AI-driven innovation and applications, less than a third (32%) believed they were also responsible for driving broader organizational transformations. Again, the technosolutionist mindset rears its head.
In the rare cases where companies do consider behavioral perspectives for AI change programs, they often fixate on driving adoption of a tool. Workers might be surveyed about preferences and needs for an AI application only after the system is already built—or purchased—and the rollout becomes a marketing exercise rather than a management one. Yet ignoring how the AI tool was designed or how it will be managed after adoption still sets the effort up to fail.
Applying a Behavioral Approach Across Three Stages of AI Implementation
To ensure successful AI implementation, companies need to adopt a behavioral approach at the design, adoption, and ongoing management stages. Here’s how.
Design: Build for cognitive shortcuts, not just technical specs.
Taking behavioral insights into account during the design stage can create better, more useful products that create more value for their users—and will therefore be used more. Unfortunately, this isn’t how most AI tools are built. Rather, they’re often designed to meet technical benchmarks that don’t necessarily align with how people will use a tool.
Consider building an AI transcription tool. It would be reasonable for designers to assume that the most seamless interface is always best. But behavioral research shows that intentionally adding a little friction—e.g., displaying words in harder-to-read font—actually helps people scrutinize the text more closely, which helps them find and correct errors.
Recognizing and applying such insights in designers’ workflows can help them build systems that align with how humans really think and work.
To capture this behavioral complexity, designers should therefore be encouraged by leaders to invite a diverse group of end-users to pilot and beta-test new tools to get their input on features and iterate based on their actual needs. This collaborative approach not only fine-tunes the AI to what users really need, it will also reveal AI solutions that are more intuitive to use and provide end-users with a stronger sense of ownership. When end-users have a hand in creating a solution, they are far more invested in putting it to good and efficient use, and as such providing a foundation to turn an AI adoption project into a successful one. Of course, the findings revealed by these tests also need to be interpreted and applied, and leadership as such needs to ensure that teams include behavioral experts to work together with the designers in translating the obtained behavioral insights into the actual design process.
Developers also need to think about how they work. Designers are vulnerable to the “inventor’s bias,” or the tendency to be overly optimistic about one’s own systems and to overlook unintended consequences. Optimizing beta-testing with users can help this. Research in 2020 found that automated speech recognition systems from major vendors—Amazon, Apple, Google, IBM, and Microsoft—made roughly twice as many errors for Black speakers as for white speakers. This gap could have been avoided if the vendors would have used strategies for their beta-testing that included more linguistically diverse users and reported subgroup results (e.g., word-error rates by dialect and accent) to their product development teams before launching.
Adoption: Tackle trust, effort, and perceived control.
Even well-designed AI tools face resistance if adoption isn’t managed behaviorally. Employees may fixate on vivid but rare AI failures (availability heuristic: the tendency for people to judge the likelihood or frequency of an event based on how easily they can recall examples) or fear losing autonomy (loss aversion). To counter this, organizations must:
- Frame AI as an augmenter, not a replacer. Highlight how AI handles repetitive and complementary tasks, freeing employees for higher-value work that can lead to innovation and make the organization more competitive.
- Make AI’s mistakes relatable. Show that AI errs just like we do, and position it as a learning partner rather than an infallible authority that has absolute control over the workflow.
- Provide transparency. Use explainable AI to reduce anxiety. For example, give the user feedback on how the AI arrived at its decision or prediction. This will demystify how decisions are made, in what way, and why the organization supports it.
Take healthcare as an example. Research has shown that when providers proactively disclosed an AI tool’s limitations, potential biases, and the safeguards in place—rather than offering minimal, passive information—patients’ trust and willingness to use the service increased. The message is clear: being upfront about imperfections made people more willing to adopt the AI.
Management: Avoid overconfidence and escalation of commitment.
Leaders themselves are not immune to bias. Many underestimate the behavioral complexity of AI adoption and assume that employees will “figure it out” and hence feel confident to skip pilot testing. Others double down on failing projects (escalation of commitment), pouring vast resources into tools that employees reject. These behavioral biases can be very costly if leaders continue to invest capital—sometimes on the scale of millions of dollars—into failing AI initiatives.
Instead, leaders must:
- Acknowledge their own biases. Many executives without AI expertise often overestimate their ability to manage these projects. They should, first of all, invest in educating themselves and adhere to the philosophy of lifelong learning. Next, they should surround themselves with both trusted experts within the organization who understand the importance, opportunities and relevance of AI to address specific company problems and challenges—if you don’t have those, get the necessary budgets to hire them—and outside experts who can bring in the consultancy skills needed to align the use of AI with the workflow and habits of the human workforce. Doing so will equip them to become AI-savvy leaders who recognize the advantages and disadvantages of using AI for specific business and workforce challenges.
- Train themselves in behavioral change. Organizational leaders need to learn to identify and address resistance, communicate transparently, invite feedback regularly, and model AI adoption by walking the talk (e.g., initiate the use of LLMs by showing how you use it, as such setting the norm that it’s ok to use AI). A proactive and objective approach will help diagnose problems before they get out of hand and derail change efforts. In short, make “leading change” a core competency in your AI initiative.
- Measure what matters. In uncharted territory like AI, you can’t rely on gut instincts or industry experience alone. Establish clear metrics for success—not just technical performance or efficiency but also employee trust, adoption, and perceived fairness. For example, take ‘temperature checks’ of employee opinion, not just in terms of whether they are using the AI but how fair they believe it is, the extent they believe other people in the organization are using it, and even simply how much they like the AI. All of these questions, measured through interviews or surveys, can be powerful indicators of success or failure. Monitor these factors closely to know if the change is truly working.
- Stay agile and adaptive. If an AI initiative isn’t delivering, be willing to course-correct or pull the plug. Don’t keep investing just because you’ve started. The goal is to learn and improve, not to defend a pet project. Leaders who approach AI with a test-and-learn mindset will course-correct faster and avoid large-scale failures.
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AI’s potential is far too great to be derailed by avoidable human missteps. By treating AI adoption as a behavioral challenge—not just a technical one—organizations can move beyond the current high failure rate. Our approach provides the framework to make this shift. Design for real human biases, adopt with trust and transparency, and manage with humility and empathy. The result? AI that works with humans, not against them.
hbr.org/2025/11/how-behavior…