According to Fortune, Alphabet and Google’s President and Chief Investment Officer Ruth Porat highlighted a critical disconnect in AI adoption during a panel at the Fortune Global Forum in Riyadh, Saudi Arabia. Porat described “two speeds” in the current AI landscape: rapid technological breakthroughs versus slow adoption that prevents organizations from experiencing AI’s economic benefits. She emphasized that unlocking AI’s upside requires “a fundamental rethink of every process” beyond just implementing chatbots. Barclays Group CEO C.S. Venkatakrishnan echoed this sentiment, noting that while his bank sees AI benefits in customer service and document management, they’re still at “the tip of the spear” with much more transformation needed. The discussion also featured Saudi Arabia’s Minister of Investment Khalid Al-Falih, who stressed the importance of trusted partnerships and balancing technology investment with talent development.
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The Innovation-Adoption Paradox
What Porat identifies represents a fundamental challenge in technology adoption cycles that extends far beyond artificial intelligence. Throughout history, from electricity to the internet, we’ve seen that technological capability often outpaces organizational ability to integrate it effectively. The current AI landscape is particularly challenging because the technology is evolving so rapidly that by the time companies develop implementation strategies, the underlying capabilities have already advanced. This creates a perpetual catch-up scenario where organizations are always deploying yesterday’s AI solutions rather than building for tomorrow’s capabilities.
Moving Beyond the Chatbot Trap
Porat’s warning that chatbot implementation “shouldn’t stop there” speaks to a widespread corporate tendency to treat AI as a point solution rather than a transformative force. Many organizations are making the same mistake they made with previous technologies—applying new tools to old processes rather than reimagining workflows from the ground up. True AI transformation requires what McKinsey describes as serial building and AI integration across entire business ecosystems. The companies that will succeed are those treating AI not as a technology project but as a core business strategy that touches every function and process.
The Hidden Infrastructure Challenge
Porat’s mention of 2,500 gigawatts of energy waiting to connect to the U.S. grid reveals a critical bottleneck that many AI discussions overlook. The computational demands of advanced AI systems require massive energy infrastructure that simply doesn’t exist at scale today. Google’s investments in carbon capture technology and nuclear energy represent necessary but insufficient steps toward solving this challenge. The energy requirements for widespread AI adoption could strain global power grids and create new environmental pressures, potentially limiting which organizations can afford to participate in the AI revolution.
The Human Capital Imperative
The emphasis from both Porat and Al-Falih on training and talent development highlights a crucial reality: AI success depends as much on people as on technology. Google’s electrician training program represents exactly the kind of workforce development needed, but it’s merely a drop in the bucket compared to the scale of retraining required across industries. The transition to AI-enhanced workflows will create massive displacement in some roles while generating entirely new categories of jobs that don’t exist today. Organizations that treat AI implementation as purely a technology challenge rather than a human capital transformation will inevitably fail to achieve the promised benefits.
Strategic Implications for Business Leaders
The insights from Porat and other leaders point toward several critical strategic considerations. First, companies must approach AI with what I call “process-first thinking”—starting with desired business outcomes and working backward to determine how AI can enable entirely new ways of operating. Second, organizations need to build AI literacy at all levels, from the C-suite to frontline employees. Third, as Alphabet has demonstrated through Porat’s transition from CFO to president and chief investment officer, leadership structures must evolve to reflect AI’s strategic importance. The companies that will thrive in this new era are those that treat AI not as another IT project but as the foundation for their entire operating model.
