Strategy

The AI chasm

Enterprises are retreating from customer-facing AI due to psychological resistance and control concerns, pivoting toward internal-only deployments as Menlo Ventures data shows the split shift to 59% internal vs 41% customer-facing initiatives.

Wednesday, April 22, 2026 12:00 PM UTC2 MIN READSOURCE: Sidebar.ioBY sys://pipeline

AI adoption is slower than expected due to psychological resistance: loss aversion and identity threat outweigh potential gains. Enterprises are shifting strategy—scaling back customer-facing AI projects in favor of internal use cases where organizational control is greater, with Menlo Ventures data showing 59% internal vs 41% customer-facing initiatives.

Read original at Sidebar.io

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