A year-end reflection on what 2025 taught us about responsible AI adoption 

As we close out 2025, one statistic from an MIT report should stop every leader in their tracks:  

95% of organizations fail to turn AI pilots into real business outcomes.  

Not because the technology isn’t ready.
Because we aren’t. 

The Real AI Story of 2025 

This year, AI adoption skyrocketed but AI success didn’t. The gap is widening. 

EY and BDO surveys reveal that, in government, 64% of senior executives believe AI can lead to major efficiencies, yet only 26% have integrated it at scale. 

In nonprofits, 82% report using AI tools, but fewer than 10% have policies or governance in place.  

Teams are adopting AI faster than organizations can guide them.
Leaders are approving budgets for technologies they don’t fully understand.
And staff are quietly using unapproved tools because the official ones feel too complex. 

The result? AI ambition is high. AI readiness is low.  

Why AI Efforts Stall: It’s Not the Tech 

The biggest lesson of 2025: the barriers to AI adoption are human, not technical. 

Too many organizations treated AI like a software purchase rather than a transformation and they deployed powerful tools into environments that weren’t prepared for them.   

Behind every stalled pilot is a familiar pattern: 

• Leaders who champion AI but struggle to articulate its strategic value
• Staff who avoid new tools because no one has shown them how AI fits into their actual work
• Teams redesigning workflows without guidance or guardrails
• Quiet fears about job displacement that no one has addressed
• Microsoft Copilot and other AI tools going unused because training didn’t meet people where they were 

Meanwhile, the 5% of organizations succeeding with AI share a common approach: 

• They build governance early 
• They emphasize trust and transparency 
• They train leaders first 
• They redesign work, not just tools 
• They create psychological safety for experimentation 

They treat AI adoption as a human-centred change initiative, not just a technology rollout. 

The Compliance Clock Is Ticking 

2025 also brought new regulatory pressure: 

• The EU AI Act is now in effect, with strict requirements for high-risk systems 
• The U.S. Federal AI Governance and Transparency Act introduced new testing, validation and disclosure expectations 
• Procurement decisions became more complex due to vendor restrictions from specific jurisdictions 

For public-sector and nonprofit boards, AI is now a compliance and governance issue, not just an innovation one. Policies, training, and clear decision frameworks are no longer optional. 

What 2026 Requires: A Different Approach 

Next year will reward organizations that shift from technology-first to people-first AI adoption. 

That means focusing on: 

1. Clear, actionable governance 

Not lengthy policy documents but practical frameworks that help employees decide when to use AI, how to check its accuracy, and what their responsibilities are. 

2. Leadership clarity 

Boards and executives don’t need to be technical experts.
They need to understand AI’s impact on their mission, people, and risk landscape. 

3. Training that moves beyond the basics

  Real impact comes from role-specific, real-world applications across finance, programs, communications, and HR. 

4. Workflows designed for AI 

Success comes not from adding AI on top of existing processes, but from rethinking how work gets done. 

5. Culture that builds trust and confidence 

AI should enhance human capacity, not threaten it.
Organizations succeed when leaders model responsible use and staff feel safe experimenting. 

Why This Matters for Mission-Driven Organizations 

For government agencies and nonprofits serving vulnerable populations, delivering essential services, and stewarding public trust, the stakes are uniquely high. How AI is used has a real impact on real people’s lives, whether supporting human decisions or shaping service delivery.   

Poor AI adoption can erode trust, introduce bias, or compromise privacy. 

Thoughtful AI adoption can:   

• Free staff from administrative burden 
• Improve service delivery 
• Reveal insights impossible to detect manually 
• Strengthen equity, consistency, and accountability 

The difference isn’t the tool, it’s the approach. 

Bridging the Divide: How Ryelle Can Help 

At Ryelle, we spent this year studying the widening AI divide and asking: What would it take for mission-driven organizations to become part of the 5%? 

Our answer builds on what we’ve always done best: putting people at the centre of transformation. 

We’re not technologists trying to learn the human side – we’re change and governance experts who understand your context, your communities, and your constraints. 

We’ve researched the emerging regulatory landscape, analyzed what separates leaders from laggards, and developed practical tools that help organizations move from experimentation to real impact. 

Most organizations don’t need another technical consultant. 

They need a trusted advisor who can translate AI complexity into strategic clarity, help develop governance that protects and enables, and build capacity across teams. 

Looking Ahead to 2026 

We’re excited to expand our work into AI governance and capacity building, including: 

• Board and leadership workshops 
• Staff training tailored to specific roles 
• Governance frameworks aligned to organizational values 
• Change management support to navigate cultural shifts 

Our goal is simple: help your organization be in the 5%. 

The 5% who scale AI responsibly, confidently, and strategically — and who use it to advance mission, not distract from it.   

If this resonates, let’s talk — to understand where you are, what you’re struggling with, and what you want AI to make possible for your team and the people you serve.