The Five-Billion-Pound Question: Are We Asking the Right Things of AI?

Why the most elegant technical solution isn't always the right one—and what this means for your next project

What if we could improve the journey from London to Paris for a fraction of the cost of a high-speed rail line, simply by hiring supermodels to serve champagne?

It's a provocative question, and one that gets to the heart of a recent conversation we had on the Project Flux podcast with the remarkable Mike Palladino.

It challenges us to think beyond the purely technical, the engineering solution, and to consider the human experience. As project delivery professionals, we are often tasked with finding the fastest, most efficient solution. But are we always asking the right questions?

The Man Who Redefined Agile

We first met Mike, a transformational leader and adjunct professor at Columbia and Villanova University, at a conference in Athens. He made quite an entrance, performing 'the worm' across the stage to rapturous applause. It was a fitting introduction to a man who thinks differently.

His career has spanned the corporate and non-profit worlds, giving him a unique perspective on how different organisations approach change and innovation. He is an expert in project management and agile methodologies, but his real focus, the common thread in all his work, is the people.

In our view, it is this relentless focus on the human element that makes his perspective on artificial intelligence so vital.

While the industry is buzzing with the potential of AI to optimise processes and automate tasks, Mike encourages us to take a step back and consider the human impact.

"Most of what I'm seeing is just the nervousness about the future, where things are going," he told us. "The rate of change is very high compared to what it's been in the past. And that's where a lot of the anxiety comes from."

Navigating the Gartner Hype Cycle

One of the most compelling insights from our conversation was Mike's assertion that AI is currently navigating the classic Gartner Hype Cycle. He argues that we have seen these waves of technological enthusiasm before, often driven by consulting firms that create a sense of urgency around the 'next big thing'.

"They generate the issues, they generate the curiosity," Mike explained. "Now all of a sudden there's a big push. We need AI because everybody's asking about AI and that drives consulting."

The reality, he suggests, is that the promised value rarely materialises in its entirety. We are already seeing the quiet whispers of this disillusionment. "Companies that got rid of a lot of people for AI are quietly hiring people back because it didn't quite work the way they thought," Mike revealed.

This observation resonates with the 'radiologist paradox', where the introduction of AI to diagnose scans was predicted to eliminate the need for human radiologists. Instead, the number of radiologists has increased, as their role has shifted towards the human-centric tasks of patient communication and care coordination.

We feel this is a critical lesson for project delivery. The temptation to adopt new technology for its own sake is immense, but true value lies in understanding how it can augment human capabilities, not simply replace them.

The Engineering Answer vs. The People Question

Mike shared a powerful story from Rory Sutherland about the Eurostar rail line. The engineering challenge was to make the journey between London and Paris faster. The solution was a new high-speed line that cost five billion pounds and shaved 40 minutes off the travel time.

A technical marvel, certainly. But did it fundamentally change the passenger experience? Was it the best use of that investment?

Sutherland's counter-proposal was to ask a different question: how do we make the experience better? His suggestions, which included high-speed internet and, yes, champagne-serving supermodels, would have been significantly cheaper and might have made passengers wish the journey were longer.

"We asked the engineering question," Mike summarised, "but we didn't ask the people question."

This anecdote is a powerful reminder that the most elegant technical solution is not always the right one. In our rush to implement AI, are we focusing too much on the 'how' and not enough on the 'why'? Are we optimising for metrics that don't truly matter to the end user or the ultimate success of the project?

The cautionary tale of Volkswagen's initial failure in the US market because they refused to include cup holders in their cars serves as another stark example. Cup holders were a cultural necessity for American drivers, yet the engineers saw them as unnecessary.

It was only when they stopped thinking about the engineering problem and started thinking about the people that their sales improved.

Beyond Agile Theatre

This people-centric philosophy extends to Mike's views on agile methodologies. He laments what he calls "agile theatre," where organisations adopt the language of agile without embracing its core principles.

For many, 'being agile' has become a synonym for simply changing their minds frequently, without the underlying framework of a high-performing, cohesive team.

"Agile is focusing on high-performing teams of all things," Mike insists. "It's not software, it's not technology. It's forming these high-performing team cohesiveness. That's where a lot of the acceleration comes from."

The distinction matters profoundly. When managers understand agile, they love it because it frees them from micromanagement and allows them to focus on high-value work. When they don't, they see it as an excuse for chaos.

In an era of rapid technological change, a true agile mindset is more critical than ever. It provides the framework to pivot when necessary, to respond to new information, and to ensure that projects remain aligned with their ultimate goals.

However, as Mike cautions, it is not a free pass to abandon planning and discipline. It is a structured approach to navigating uncertainty, one that is deeply rooted in human collaboration and trust.

The Journey is the Destination

Our conversation with Mike Palladino was a powerful reminder that in the age of AI, the human element is not just important; it is paramount. We explored so much more than we can cover here:

• The dangers of 'model collapse' where AI systems lose their connection to reality by feeding their own outputs back into themselves

• The profound risks of allowing AI to make decisions without human oversight, particularly when we don't understand how those decisions are made

• The philosophical question of meaning and purpose in a world where work as we know it may be fundamentally redefined

• How the journey of solving a problem, not just the answer, is what builds human expertise and wisdom

We invite you to listen to the full episode of the Project Flux podcast to hear Mike's full, unvarnished insights.

It is a conversation that will challenge your assumptions, spark new ideas, and encourage you to look beyond the hype to the human heart of project delivery. It might just change the questions you ask on your next project.

All content reflects our personal views and is not intended as professional advice or to represent any organisation.