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.

Comments

New This Week

The Psychology Behind Back-to-School Shopping
Podcast

The Psychology Behind Back-to-School Shopping

August 4, 202613 min listen

Patti Williams, Wharton associate professor of marketing, explains how back-to-school shopping blends family decisions, identity, nostalgia, budgets, and retail strategy.

How Credit Risk Is Factored in Corporate Bond Spreads

How Credit Risk Is Factored in Corporate Bond Spreads

August 3, 20267 min read

Recent Wharton research explains a long-standing puzzle in bond pricing to provide a more reliable foundation for evaluating corporate credit risk.

How Negotiation Skills Empower Girls

How Negotiation Skills Empower Girls

August 3, 20265 min read

A decade-long Wharton study in Zambia found that a short course helped girls stay in school, delay marriage, and deliver strong returns on public funding at low cost.