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Reframing Enterprise GenAI: Cutting through Hype, Avoiding GenAI Risks, and Building an AI-First Culture

As the enterprise world races to embrace generative AI, many organizations are discovering that the road to success with enterprise GenAI is neither straightforward nor guaranteed. While 2023 was marked by experimentation and hype, 2025 signals a turning point – one defined by strategic reassessment, clearer expectations, and a growing demand for results.

To look into the real value from enterprise GenAI, companies must move beyond buzzwords and begin addressing the practical realities: GenAI risks, GenAI hallucinations, and the cultural shifts needed to thrive in an AI-first world.

Cutting through the Noise: What Enterprise GenAI Is – and Isn’t

One of the biggest challenges in today’s AI landscape is separating genuine innovation from overmarketed analytics. Many tools labelled as “AI” are simply glorified automation or data dashboards. Worse, enterprise leaders are often unclear on the distinction between general AI and enterprise GenAI.

Enterprise GenAI is a powerful but narrow tool – a subset of artificial intelligence designed to create text, images, and code based on patterns. When adopting enterprise GenAI, it’s critical to recognize that not all AI capabilities are created equal. Setting the right expectations is step one in building a credible and sustainable enterprise AI strategy.

GenAI Risks: From GenAI Hallucinations to High Stakes

A key risk with GenAI systems is GenAI hallucinations – a term that describes outputs where the AI generates convincing but factually false information. These GenAI hallucinations aren’t just minor errors; they can have serious legal and reputational consequences.

In one startling example discussed in GLG’s recent webcast, a man with a unique name asked ChatGPT to generate information about himself. The system falsely stated that he had killed his children – a complete fabrication with no basis in fact. This kind of nondeterministic output is a stark reminder that enterprise GenAI carries real GenAI risks when used in mission-critical settings.

Beyond GenAI hallucinations, other GenAI risks include:

  • Poor data quality: Garbage in, garbage out. Without clean, well-structured data, even the best models will fail.
  • Overpromising: Many vendors sell GenAI as a silver bullet. In reality, ROI is slow and depends heavily on execution.
  • Lack of transparency: These models often function like black boxes, making governance and compliance difficult.

 

Recognizing these GenAI risks is essential to building trust in GenAI and avoiding costly missteps.

Building an AI-First Culture: A Strategic Shift for Long-Term Success

For GenAI to work in the enterprise, technology alone isn’t enough. A successful AI-first organization must embrace cultural change, rethink workflows, and invest in people as much as platforms.

That starts with a mindset shift. Think of GenAI not as artificial intelligence, but as additional intelligence – a tool that accelerates and amplifies human capabilities, not replaces them. In this way, AI becomes a partner in productivity, not a threat to it.

Effective enterprise AI strategy also focuses on:

  • Outcomes, not just outputs: Align GenAI efforts with specific business problems and KPIs.
  • Incremental progress: Avoid the “all-in” trap. Treat adoption as a series of manageable sprints – not a marathon.
  • Upskilling and human oversight: Success comes from empowering teams, not replacing them.

 

As GLG Network Member, Neil S. Mann, put it during the webcast: “The future is not something that just happens to us. The future is something that we do.” By taking ownership of AI strategy and culture, one can turn enterprise GenAI into a lasting competitive advantage.

From Hype to Maturity: The Next Phase of Enterprise GenAI

Enterprise GenAI is entering a new era – one where strategic clarity matters more than experimentation. Organizations must cut through inflated expectations, mitigate GenAI risks like GenAI hallucinations, and cultivate an AI-first mindset across people, processes, and technology.

It’s no longer about adopting AI for AI’s sake. It’s about embedding it meaningfully into the core of your enterprise AI strategy. Those who succeed will be the ones who pair optimistic pragmatism with relentless execution – not just chasing the future, but building it.

About Mr. Neil S. Mann
Neil is a digital strategist and business transformation adviser with over 20 years of leadership experience across Asia Pacific, Europe, the Middle East, and Africa, and North America. He has held senior global roles at leading companies including Kearney, Rio Tinto, Morgan Stanley, UBS, BHP, Marina Bay Sands, and Gartner. Now based in Singapore, Neil also serves as a Board Advisor and Company Director and is an active angel investor in over 20 start-ups.

This article is adapted from the GLG complimentary webcast “From Hype to Impact: The Enterprise GenAI Adoption Playbook,” hosted on July 25, 2025. Watch the full webcast replay to hear Neil’s insights in his own words. If you would like to speak with experts like Neil, please contact us below.

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