The AI Washing Epidemic: Drowning in Data, Starving for Insights

How Contrarian Leaders Turn AI Chaos Into Strategic Advantage

First Things First: Straight Talk

Welcome to the revamped Potentiate OS newsletter—launching during the most chaotic week for global supply chains since COVID. Talk about timing!

Your inbox is drowning in panic over market reactions to Trump's tariffs. I'm taking a slightly different approach to cut through all that noise.

These tariffs aren't just disruptive—they're reshaping global supply networks entirely. Some chains break. Others strengthen. And now leaders are lunging at AI as their savior, only to join the 60% of companies that have already learned the hard truth: bolting AI onto broken processes isn't transformation.

Operations or brand—doesn't matter. Fundamentals beat forecasts. Resilient systems thrive. Fragile ones shatter. Let's explore the difference...

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-IN TODAY’S EDITION-

  • The AI Washing Epidemic: 
    Why companies are rewriting their playbooks mid-game

  • Three Critical Blind Spots: 
    Holding back your supply chain operations

  • The CAP Framework:
    Turning disruption into strategic advantage

  • Real-World Success Stories:
    How Wesco, Mars, and IKEA are out-thinking their competition

-THE AI CRISIS: BY THE NUMBERS-

The difference between those drowning in data and those thriving isn't budget or tech stack—it's the ability to see past three critical blind spots I've uncovered working with dozens of supply chain leaders like you.

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-CONTRARIAN CORNER: THE BLIND SPOTS HOLDING YOU BACK-

Blind Spot #1: Mistaking AI for a Bolt-On Upgrade

Wesco International's Journey:

  • Initial AI rollout underwhelmed

  • Success came after redesigning workflows around AI

  • Analysts now start their day with insights, not data collection

"Adopting AI isn't just about upgrading technology; it's about building a system that evolves with market conditions." ~ Akash Khurana, EVP and Chief Information and Digital Officer

-My Take:-

  • Most leaders slap AI onto outdated processes and call it transformation

  • Real value demands a contrarian rethink

  • Focus on rearchitecting operations to amplify AI's potential

Blind Spot #2: Chasing Yesterday's Metrics

Mars Incorporated's Breakthrough:

  • Ditched hundreds of disconnected spreadsheets

  • Built one integrated supply chain model across all markets globally

  • Implemented AI-driven demand sensing with real-time sales data

-My Take:-

  • The best AI tools won't help if they're optimizing last year's KPIs

  • Winners redefine their inputs to align with what matters in an AI era

Blind Spot #3: Automating Out the Human Edge

IKEA's Approach:

  • Trained 30,000 employees in basic AI since summer 2024

  • Blended algorithmic precision with human judgment

  • Created a supply chain that's smarter, not just faster

"The algorithms were technically correct but contextually wrong."
~ Francesco Marzoni, Chief Data and Analytics Officer at Ingka (The parent company of IKEA)

-My Take:-

  • Automation is seductive, but augmentation wins

  • AI crunches numbers; humans spot nuances

  • Avoid trading short-term gains for long-term fragility

-TURNING BLIND SPOTS INTO BREAKTHROUGHS-

After witnessing supply chain leaders hemorrhage both capital and confidence on what I'll politely call "suboptimal AI implementations," I've developed a framework that consistently transforms blind spots into competitive advantages—without requiring a computer science degree or unlimited budget.

THE CAP FRAMEWORK

[C] Competency

  • Separate hype (expensive labeled spreadsheets) from reality (genuine AI solutions)

  • Vet AI tools for true machine learning, not rebranded dashboards

  • Equip teams to analyze, not just collect

-Quick Win:- Draft an "AI Qualification Checklist" for your next vendor pitch—demand proof of adaptability versus more of the same.

[A] Accessibility

  • Bridge the talent gap with what you've got

  • Simplify AI insights into decision frameworks your team can own

  • Establish feedback mechanisms for frontline workers

-Quick Win:- Pick your top three KPIs and create a one-page AI insight dashboard this week.

[P] Potentiation

  • Scale smart, not broke

  • Train teams to wield AI's strengths and spot its limits

  • Start small, targeting high-ROI, low/no-cost wins before going all-in

-Quick Win:- Workshop one process with your team and test out easy/simple/free AI solutions that could avert your next crisis.

Want the full playbook? 

-STRATEGIC TRANSFORMATION : PUTTING IT ALL TOGETHER-

The Data Backs This Up:

  • McKinsey's 2025 research: companies tackling these blind spots see 3.2x higher ROI on AI investments

  • 99% of leaders still see their AI efforts as "immature"

What This Means For You:

  • For Founders: A supply chain that runs autonomously, freeing you to scale or court investors

  • For Operators: Turn your expertise into a strategic asset—new roles, revenue streams, or career capital

This isn't incremental improvement; it's contrarian reinvention.

Which blind spot stings most in your world? Reply with your thoughts—I read every one.

Here's to seeing around corners 🥂

~Allison

P.S. Found this valuable? Forward it to a colleague wrestling with AI chaos.

Want to apply CAP to your operation? Book a 30-minute consultation here!

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