17. AI at Scale: Susan C. McLeod on Pilots, People, and Knowing the Problem

Season 2, Episode 6 of Kinwise Conversations · Hit play or read the transcript

Susan C. McLeod on Enterprise AI Adoption, Leadership, and Why 95% of Pilots Fail

Episode Summary: The Shift in Enterprise AI

As organizations rush to adopt artificial intelligence, a staggering 95% of AI pilots fail. Why? The gap isn't technology—it's strategy. In this conversation, Susan C. McLeod, a tech leader with over 20 years of experience and the current VP of Data Center Market Development at Hitachi Energy, provides a leader’s playbook for navigating this complex landscape. She moves beyond the hype to address the core challenges of institutional change, from securing buy-in through clear communication to future-proofing the workforce. For superintendents, executives, and mission-driven leaders, this episode offers a practical framework for preparing your people, data, and systems not just to use AI, but to succeed with it. Susan shares invaluable insights on building a culture that values human expertise,

Key Takeaways for K-12 & Mission-Driven Leaders

  • Strategy Over Hype: Successful AI adoption begins not with a tool, but with a clearly defined institutional problem. Leaders must resist the pressure to innovate for innovation's sake and instead identify specific, high-impact use cases.

  • Communication is the Engine of Change: In any major technology rollout, a leader's message must be communicated at least seven times. Consistent, clear, and multi-channel communication is essential to align teams, address fears, and drive real transformation.

  • Bridge the Knowledge Gap: Organizations face a dual challenge: upskilling teams for future AI tools while simultaneously capturing the irreplaceable knowledge of retiring experts. A forward-thinking strategy must address both.

  • Champion Critical Thinking: As AI automates routine tasks, the most valuable human skill becomes critical thinking. Educational and organizational leaders have a responsibility to create systems that encourage people to question, validate, and improve upon AI-generated output.

  • Focus on Augmentation, Not Abdication: Frame AI as a tool that gets your team "70% of the way there," freeing them to apply their unique expertise to the final, most valuable 30%. This approach protects and elevates human experience.

The Readiness Gap: Why 95% of AI Pilots Fail

Lydia Kumar: AI in general over the past few years has changed and moved so fast. So you had some foresight to be able to say, 'How do we prepare ourselves to be able to take advantage of the new technology?' I think recently there was a report that came out about how 95% of AI pilots are failing. And so I think part of this failure rate has to do with probably the preparation that underlies it. I'm curious, as you were at Hitachi and deciding to take advantage of this technology, what kind of preparation did you have to do as an organization to make that happen?

Susan C. McLeod: That's a great question, and I read that article as well. I believe what's happening in the space is everyone is just moving so quickly and there's a lot of pressure to take advantage of and roll out generative AI within enterprises because it's just the hot topic right now and it's so new. Companies and corporations still have to do their due diligence in understanding, 'What is the problem we're trying to solve? What is the right use case for our business where we can have success?' and bite it off in small chunks. Don't just go out and say, 'We're gonna invest X dollars in generative AI,' and just start developing and testing. You still have to go through the process like you do in any solution, which is understanding the problem you're trying to solve. Understand, is it gonna bring financial savings? Is it gonna bring just time management savings? What is the return on investment gonna look like so that you can plan for it correctly and be successful?

Identifying a High-Impact, Low-Risk Use Case

Susan C. McLeod: I would say with our team and the team at Hitachi Vantara, they did a really good job at identifying use cases that we could be successful in, attacking those small use cases first versus trying to be everything to everyone. I think a lot of companies are trying to reel it back now to say, 'All right, we've invested in these tools, we've invested in this licensing. Now how do we actually use them to create value and efficiencies for our organization?'

Lydia Kumar: Right. There's been so much hype and pressure to take advantage of this technology because it seems like it can create a tremendous amount of value at the organizational level. I think, in part, this is because as individuals, it's very easy to adapt and create individual value, but at an organizational level, there's a lot more data and many more challenges in terms of identifying the right use cases, ensuring that you have the right data in place to use the technology effectively, and navigating the legal or policy components.

Leading the Change: Communication as a Strategic Tool

Susan C. McLeod: As a leader, you have to be able to communicate and have that strong communication tool mindset so that you can ensure that everyone on your team or the people that you're working with, that you're influencing, you're all really marching to the same drum. You're marching to the same path of the solution versus everyone being out there trying to do really good things and with good intent, but not being in sync on how they're rolling it out. And that's how a lot of companies get into trouble.

Lydia Kumar: The communication piece makes me think... a couple of years ago when I first started my career, I was a teacher. And something that teachers say a lot is, 'Just because you taught it doesn't mean students learned it.' And I think there's some tie-in in communication in general. Just because you say something doesn't mean your team is on board.

The "Say It Seven Times" Rule for Leaders

Susan C. McLeod: Absolutely. And I'm not sure where I heard this throughout my career, it was in one training years ago, but it's, you know, you have to say it and reinforce it seven times. Say it, say it, say it again, seven times quite often before people truly absorb it, understand it, and then can echo it back to you. And I think as leaders, that is something we have to remember. Everyone is wired a bit differently. Everyone absorbs information differently. So as you're talking to your teams and readying your teams, especially for change management and transformation, you have to be very crystal clear in setting the direction or the North Star of the organization.

The Human Element: Bridging the Knowledge and Skills Gap

Susan C. McLeod: It is a balance and it's a challenging balance, especially today because the industry is changing and moving so quickly. I think leaders just have to find a way to ensure that they're taking advantage of the technologies and the tools, but don't lose sight of your people and ensuring that you protect the human capital and the IP, which you can't get back—that knowledge that is in people's brains.

Preserving Institutional Knowledge from a Retiring Workforce

Susan C. McLeod: One of the challenges the energy sector has is the loss of individual knowledge. So many people that have run these power generation substations are of retirement age, and they've got a big gap in the sector. It's something leaders have to think about. As these individuals retire, if you lose that IP to a competitor or they retire, do you have that backfill? Is there someone shadowing them, learning from them before they retire so you can pass that knowledge on? And that's really important that companies have to think about.

Championing the Next Generation of Critical Thinkers

Lydia Kumar: What do you recommend prioritizing to help educators upskill students for the changing world?

Susan C. McLeod: That's a great question. I believe it's gonna be even more important for the teachers to find ways to delineate between the technology and the tools, 'cause it's a tool, and keep focus on overall human critical thinking. How do you ensure that they continue to focus on critical thinking and how to think through different options, decision making, and validating the data that's presented to them. That's the big thing. Have you checked the sources? How do you vet the data? How do you know the data is correct? And for me, I think that's something teachers are really gonna have to think through: how to ingrain that into this generation, that what's coming out of these tools is not just solid truth. You have to vet it.

Redefining the Workforce: AI as Augmentation, Not Abdication

Susan C. McLeod: Why start from scratch in creating a document when you can feed the prompts to your enterprise AI tool and ask it to create something for you? It'll get that individual 70% of the way there, which is great. And then you just take it and you customize it. You put your own message and tone, make sure it reflects your goals, and then you've saved tremendous time.

Lydia Kumar: It is sort of seductive to see something created so fast with no obvious errors.

Susan C. McLeod: We should never devalue our experience and our expertise. Use the tool if you have questions... but it is concerning that individuals with incredible experience and IP are gonna start devaluing that. And then you've got the younger generation who are just coming up and they're so used to it being there. Are they going to even be able to learn how to critically think?

The Future of Jobs is Evolving, Not Disappearing

Susan C. McLeod: The jobs are gonna change. The roles are changing. And if you're in certain roles that can be done now through tools that are being rolled out within organizations, you probably do need to really think about how you evolve and adapt. AI is a tool. As that is evolving, individuals need to think about how they modify or adapt to these new roles. Where people before were so excited about being coders, I think those individuals need to really think about how you put more of a business lens, a finance lens, a communication lens around the technology to ensure that you have flexibility and agility.

Prompts Inspired by Susan

1. The "Pilot Project" Scoping Prompt

Act as an AI adoption strategist. My company wants to use AI to improve [insert business area, e.g., our marketing content creation]. Based on the principle that most AI pilots fail from being too broad, guide me through a series of questions to identify a single, high-impact, low-risk use case. Start by asking me about our biggest pain points, then help me define a clear problem statement and a measurable goal for a 90-day pilot project.

2. The "Knowledge Transfer" Prompt

Act as a knowledge management consultant. A key expert on our team, who has 30 years of institutional knowledge about [insert specific domain, e.g., our supply chain logistics], is retiring in six months. Design a structured plan to capture their expertise using AI. Your plan should include:

  • A list of 15 targeted interview questions about undocumented processes and critical decision-making.

  • A process for using AI to transcribe the interviews.

  • A strategy for organizing the insights into a searchable, interactive knowledge base for new team members.

3. The "Leadership Communication" Prompt

I am a leader rolling out a new internal AI tool for my team of [e.g., 50 sales representatives]. The goal is to [e.g., automate lead qualification]. Following the "say it seven times" principle for effective change management, generate a multi-channel communication plan that introduces the tool, explains the benefits for the team, and addresses potential fears. The plan should span two weeks and include an email announcement, talking points for a team meeting, a one-page FAQ, and two follow-up messages to reinforce the key information.

4. The "Critical Thinking" Educational Prompt

Generate a learning exercise for [e.g., high school history students] designed to improve critical thinking and media literacy. First, write a one-paragraph summary of [e.g., the causes of the American Revolution] that is well-written but contains three subtle factual inaccuracies or biased statements. Then, create a worksheet with five questions that guide students to identify the flaws, question the source, and use their own knowledge to correct the AI-generated text. The goal is to teach them not to trust AI output blindly.

5. The "AI Readiness" Assessment Prompt

Create a simple AI Readiness Checklist for a non-technical business leader. Organize the checklist into three sections:

  1. Problem & Use Case (Are we solving a real, specific problem?)

  2. People & Process (Is our team culturally ready for this change?)

  3. Data & Tools (Is our data accessible, clean, and secure?)

For each section, provide 4-5 key questions the leader should ask to assess their organization's readiness before investing in an AI solution.

Connect and Resources

Susan C. McLeod on LinkedInConnect with Susan professionally to follow her latest work at the intersection of AI strategy, enterprise technology, and the energy sector. 

Susan C. McLeod's WebsiteExplore Susan’s writing, including her insightful blog series on enterprise AI readiness and collaborations with other female tech leaders. 

WAKE International Discover the Women's Alliance for Knowledge Exchange, an organization Susan works with that empowers female entrepreneurs through mentorship and guidance from experienced industry leaders. https://www.wakeinternational.org/

Hitachi Energy Read the press release on Hitachi’s historic investment in America’s energy infrastructure, highlighting the critical work Susan is now helping to lead.

About the Guest

Susan C. McLeod is the VP of Data Center Market Development at Hitachi Energy and a seasoned technology leader with over two decades of experience in enterprise IT. She specializes in data applications, AI strategy, and large-scale service delivery. Susan is passionate about translating complex technological capabilities into real-world value and is a dedicated advocate for women in technology, working with organizations like WAKE International to mentor the next generation of female entrepreneurs.

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16. Unmasking AI: Angeline Corvaglia on Bias, Emotional Design, and Protecting Your Unique Voice