AS Watson CEO: Why AI Fails When Left to IT Departments

Ngai challenged the traditional cascade model, which funnels AI initiatives from the executive suite down through IT and training departments. She described this process as too sluggish for modern retail, advocating instead for a horizontal approach where all functions adopt new technologies simultaneously. By embedding AI into performance management and daily decision-making, companies can move beyond isolated pilot projects toward compounding value.

At AS Watson, the strategy centers on a three-stage cycle: identifying high-impact use cases, embedding them into workflows, and scaling across geographies to fuel further innovation. Ngai defined organizational agility through the formula of acceleration minus friction. While many firms focus exclusively on technological investment to drive acceleration, she noted that most fail by neglecting to remove the systemic silos, slow decision rights, and misaligned incentives that create friction. Ultimately, Ngai framed the shift as a leadership test, asserting that the true return on AI arises from the courage to fundamentally alter how teams work together rather than merely purchasing sophisticated tools.