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The Endless Pilot: How to Tell You Are Burning Money on a POC With No End Date

RAND found that 80.3% of AI initiatives deliver no measurable value and Forrester expects 25% of AI budgets to be cut in 2026 - six signs you are stuck in POC Purgatory, and how to get out.

Written by
Avner Lubman
Published
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4 min
The Endless Pilot: How to Tell You Are Burning Money on a POC With No End Date

The endless AI pilot already has a name in the industry: POC Purgatory, the waiting room pilots check into and never leave. A RAND study found that 80.3% of enterprise AI initiatives deliver no measurable business value. Forrester forecasts that 25% of enterprise AI budgets will be deferred or cut in 2026 for want of proven ROI. In Israel, the State Comptroller's report from June 2026 puts 68% of projects stuck in pilot.

An endless pilot never fails loudly. That is exactly the problem. It looks like progress: status meetings, a demo for every important visitor, a slide in the quarterly deck. Nobody gets fired over a pilot. And the money goes out quietly, every month.

I have run companies for 25 years, and I recognize this pattern from across the room. It is not an AI problem. It happens to any project without a definition of done. Here is how to diagnose it in fifteen minutes.

Six signs you are in an endless pilot

Run this list against every AI initiative live in your organization right now. Three or more and you have a problem.

  • No decision date. The pilot has a start date, but nobody can tell you when someone decides whether it worked. A healthy pilot lives for one quarter. Past that, it is a lifestyle.
  • Nobody measured a baseline. If you never measured what the process costs today - time, shekels, errors - you can never prove it improved. Which suits anyone who would rather not be graded.
  • The users are the innovation team. If the system has not yet touched a real employee doing real work, you do not have a pilot, you have a toy. The gap between a demo and production is the gap between a scrimmage and a league game.
  • Success is defined as "learning." "We learned a great deal" is what a project says when it has no number. Learning is a by-product, not a target. A target is measured in shekels, in hours, or in percent.
  • No budget and no plan for production. Industry benchmarks put the move from pilot to production at 2.5 to 4 times the cost of the pilot itself. If nobody has set that money aside and nobody has planned the integration with your systems of record, the pilot was born to stay a pilot.
  • The demo only works on demo data. A system that has never met your real data, messy and incomplete as it is, has not begun to be tested.

Why it happens: a pilot has no enemies

The cause is not technical. A pilot suits everybody. The vendor keeps billing. The head of innovation keeps showing progress. The executive team feels the organization is in motion. And nobody carries the risk of an actual launch. Production, by contrast, is dangerous. It touches people's jobs, it can fail out loud, and it exposes whether the promises were real. But a project that cannot fail cannot succeed either. The skill is not avoiding failure; it is pricing failure in advance and finding it fast.

So the endless pilot is not an accident. It is an equilibrium, and an equilibrium breaks only on a management decision. The clock is running. Forrester's forecast that a quarter of AI budgets will be deferred in 2026 means that in plenty of organizations the finance people are already sharpening pencils. The pilots that survive the cut will be the ones with a number, not a story. Put your house in order now and you choose what closes. Wait, and the budget chooses for you.

The way out: a kill-or-commit decision

The protocol I recommend is simple, and every step of it sits inside a CEO's own authority.

  • Give every existing pilot 30 days and a date. On that date one of exactly two things happens: it expands to production with a budget, or it shuts down. "Let's keep testing" is not on the menu.
  • Demand one number. Baseline, target, date. Any vendor or team unwilling to commit to a number has just given you your answer.
  • Invert the order: a small production system instead of a big pilot. Rather than a broad POC in the lab, build one narrow system that runs on real data with real users from day one. A voice bot I built was answering real calls in its first week, because a recorded call in a lab teaches you nothing about a genuinely irritated customer. A reporting system I built for a large medical institution in the north replaced, on its first night, manual work that had been measured in days. That is a number nobody argues with.
  • Publish the decisions across the organization. A team that watches a pilot get shut down for missing its number learns two things: that metrics are serious, and that closing something is allowed. Those two lessons are worth more than the pilot was. They are the difference between a culture of managed experiments and a culture of open-ended bets.

One last observation from experience. The number of pilots you are running is not a measure of progress. Usually it is the inverse. An organization with eight pilots and nothing in production is behind an organization with one working system. One boring process that saves money every night beats ten spectacular demos.

That is the whole doctrine. A pilot is a question, and a question deserves an answer by a date. Everything else is a polite way to burn money.

If you want to see what a small production system in your organization would look like instead of an endless pilot, send me one process and I will come back with a demo.

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