Wednesday, August 13, 2025

KPI or AI??

 


Artificial Intelligence and KPIs... The same poison in two different bottles?
The manager who says, "AI will help us work faster"...
He is the same manager who once said, "KPIs improve the performance of the company."
hashtaKPIs were supposed to improve performance, but in reality they destroyed companies and wasted billions.
Documented examples:
1. Wells Fargo – Fake Accounts Scandal (2016)
Banks have set KPIs to open as many new accounts as possible.
The result: employees opened millions of accounts without customers' permission, just to get the number.
The bottom line: $3 billion in fines + the company's reputation collapsed.
2. Nokia –
Collapse of the telephone market (2010–2013)
The benchmarking indicator measured "the number of new phones released per year" rather than the quality of innovation.
Many products were launched with lower quality, losing the market to Apple and Samsung.
 Gallup Study:
85% of employees globally are not engaged in their work, although most of them work under strict KPI systems.
 Harvard Business Review:
23% of companies that have fully adopted KPIs... Then there was manipulation of numbers and exaggeration of imaginary achievements.
McKinsey Report 2024:
40% of administrative tasks will disappear within 3 years due to artificial intelligence.
The Real Problem:
The KPI converts the employee to a machine that runs after a number, even if the number has nothing to do with the actual value.
AI can repeat the same disaster: speed and formal achievements... But it has no real impact on the final goal.
Artificial intelligence can repeat the same disaster... Formal achievements with no real value.
Documented examples:
1. CNET –
AI-Generated News Scandal (2023)
The site started publishing entire AI-written articles to increase productivity.
The result: articles full of errors and inaccuracies, forcing them to withdraw them publicly.
2. Amazon –
AI Recruitment Tool (2018)
The AI was evaluating resumes based on historical data, and they discovered that it was biased against women in tech jobs.
The project was halted after causing a global debate about algorithmic discrimination.
Imagine a fire brigade measuring its success by the number of hoses it opened... Not as many fires as he put out.
AI will be the same game... If we measure achievement by the number of reports it has produced, it is not by the number of problems it has solved.
Common denominator between KPIs and AI:
Focus on the number instead of the value = disaster.
Whether it's "Number of Accounts," "Number of Articles," or "Amount of Code Written."
Question:
Are we learning from KPI failures? Or do we repeat the same mistake with AI?
If you have a real example of a KPI or AI, waste the company's time instead of developing it... Write it down, because this is the discussion that will determine the future of management and jobs.


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