What happens when companies move AI from a promising experiment into everyday operations and the technology starts making costly mistakes?

Santiago Gallino, Associate Professor of Operations, Information and Decisions and Associate Professor of Marketing at the Wharton School, examines why companies such as Starbucks and Ford have reconsidered AI-driven processes after accuracy and quality problems exposed the technology’s limitations.

Gallino explains how unreliable systems can erode employee trust, why human judgment remains essential, and how implementation failures can affect customers and brand reputation. He also discusses the risks of scaling AI too quickly and why companies must determine whether their technology investments deliver meaningful customer value and measurable returns.

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