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Why 95% of AI Projects Fail (And How We're Part of the 5% That Doesn't)
November 3, 2025

Why 95% of AI Projects Fail (And How We're Part of the 5% That Doesn't)

I just read that MIT found 95% of AI investments are producing zero returns. Yes, zero. That's a shocking number, but honestly, it doesn't surprise me.
Daniel Kamau Image
SketchDeck.ai Team

Here's what's happening: too many companies are stuck in what Harvard Business Review calls the "AI experimentation trap." They're running endless pilots, building fancy demos, and chasing the latest AI trends. But they're not solving real problems for real people.

We took a different path at SketchDeck.ai, and our customers are seeing the results every single day.

The Problem With AI Experiments

Most AI projects fail because they start with the technology, not the problem. Companies ask "What can we do with AI?" instead of "What problem needs solving?"

In the steel fabrication industry, the problem was crystal clear to me. Our customers were spending thousands of hours on manual takeoffs. Not because they wanted to, but because they had no choice. Troy Ernst from King Steel told us his team was spending four days on what should be a two-day job. That's not a technology problem. That's a business problem that costs real money.

How We Built AI That Actually Works

We didn't start with AI. We started with estimators.

We spent months talking to steel fabricators, watching them work, understanding their workflows. We learned that manual counting isn't just slow. It's error-prone. It limits how many bids you can submit. It keeps talented estimators stuck doing repetitive work instead of strategic thinking.

Only then did we build LIFT. And here's the key: we built it specifically for structural steel takeoffs in the fabrication industry. Not generic construction. Not general purpose AI. We focused on one industry, one problem, one solution.

The results speak for themselves:

  • King Steel cut their four-day process to two days
  • Ennis Steel nearly doubled their bid output and has completed over $1 billion in bids through LIFT
  • Steelworks of the Carolinas tripled their throughput and completely transformed how they work
  • FabArc's estimator says what used to take two days now takes minutes
  • Over $25 billion has been bid through LIFT so far

These aren't experiments. These are transformations.

Why Industry-Specific AI Wins

Generic AI tools are like Swiss Army knives. They can do a little bit of everything, but nothing particularly well.

LIFT is different. It knows the difference between a W8x10 beam and a column. It understands camber and copes. It integrates with Tekla, Strumis, and other tools fabricators and erectors actually use. We didn't just apply AI to construction. We built AI for the steel fabrication and erection industry, by learning from the people who do the work every day.

Mason Carragher from MSE nailed it: "It's the first software that is actually geared towards estimators in a meaningful way." That's because we didn't build a generic tool and try to force it on the industry. We built exactly what estimators told us they needed.

Moving Beyond the Experimentation Trap

The companies succeeding with AI share three things:

1. They solve specific problems. Not "improve productivity" but "reduce steel takeoff time by 80%."

2. They measure real results. Not engagement metrics or usage stats, but actual business outcomes like bids completed and revenue generated.

3. They partner with their customers. Every feature in LIFT came from real fabricators and erectors telling us what they needed.

The Future Is Already Here

While 95% of companies are stuck experimenting, our customers are winning more work. JP Martinez from Metals Fabrication told us: "Using LIFT gave us an advantage to getting more jobs than what we were used to."

That's not an experiment. That's competitive advantage.

The steel fabrication and erection industry is at a crossroads. Labor shortages are real. Project complexity is increasing. Margins are tightening. Companies that embrace the right technology will thrive. Those that don't will struggle to keep up.

Don't Let the Noise Fool You

We're entering what some call the "post-enthusiasm wave of AI." The hype is dying down. The headlines are getting skeptical. And here's the danger: many leaders are misinterpreting the challenges of implementing AI as a signal that AI can't create value.

This is exactly what happened with digital transformation. Companies that dismissed the internet in 2001 after the dot-com crash spent the next decade playing catch up. The same thing is happening right now with AI.

The truth is simple: AI creates massive value when it solves real problems for real customers. Nathan Whitley from FabArc said it best: "What used to take an estimator two days to do, it does it within a few minutes. I've been amazed at every step of the process."

That's not hype. That's a customer whose business is transformed. And while others are pulling back on AI investments, our customers are doubling down because they see the results every single day.

What This Means for You

If you're in the steel fabrication and erection industry still doing manual takeoffs, you're not just losing time. You're losing opportunities. Every hour your estimator spends counting beams is an hour they're not working on the next bid.

But here's the good news: you don't need to experiment. The technology is proven. The results are real. Our customers have bid over $25 billion through LIFT, and they're not looking back.

Innovation in construction isn't about chasing the latest AI trend. It's about solving real problems with proven technology. That's what we do every day, and that's why we're part of the 5% that actually delivers results.

Want to see the difference? Book a demo and we'll analyze one of your own project drawings. No experiments. No pilots. Just results you can measure in minutes saved and bids won.

Because at the end of the day, AI that doesn't save you time and money isn't intelligence at all. It's just expensive experimentation.

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