AI

How Legacy Companies Are Rebranding Themselves as AI-First (and Failing)

Tatevik Kyurkchyan, Content Strategy Lead, WX Digital Agency

Over the past year,ย more and moreย companies have started calling themselves โ€œAI-first.โ€ From banks to retailers, everyone wants to signalย theyโ€™reย ready for the next era of innovation. The problem is that most are not.ย ย 

Aย 2024 PwC surveyย found that 73% of large companies plan to integrate AI across key functions, but what are theย real resultsย of these eye-catching figures? For many legacy players, AI adoption starts and ends with mostly marketing slogans. The AI-first label has become a branding exercise rather than a business transformation.ย Letโ€™sย look closer at how the current landscape looks and whyย itโ€™sย the case for many global companies.ย 

The AI-First Rushย 

If it feels likeย youโ€™reย seeing the words โ€œAI-driven,โ€ โ€œArtificial Intelligence,โ€ or โ€œGenAIโ€ everywhere,ย youโ€™reย not imagining it. Pew Research Center found that by early 2025,ย seven percent of all page visits in their studyย included at least one AI-related term. The term itself has saturated online language, from press releases to marketing copy to thought-leadership articles. Everyone wants to sound future-ready, which meansย nearly everyย piece of content youย encounterย today has some flavor of AI in it.ย 

Why? Because putting โ€œAI-firstโ€ in the marketing copy is certainlyย low risk. But the risk piles up when internal expectations are raised and not met. While most leaders recognize AIโ€™s potential,ย 76% find implementing it within their organizations challenging. According toย Ventionโ€™s 2025 AI Adoption Statistics report, success often depends on aย well-defined strategy, clear KPIs, strong data foundations, and dependable cross-functional teams.ย 

Yet barriersย remain. Many companies struggle with defining an AI operational model, ensuring data quality (a concern forย 56% of companies), and securing employee buy-in. Other challenges include limited budgets (19%), lack of strategy (18%), and regulatory hurdles (15%).ย 

From a business perspective,ย thatโ€™sย the heart of the problem: leadership declares โ€œweโ€™re AI-firstโ€ but keeps the same old three-year roadmap, same legacy platforms, and same data silos.ย ย 

The PR-Tech Loopย 

The same rebranding effect is fueled by pressure from the market. Public companies want toย demonstrateย AI progress to shareholders, even if it is limited. Gartner analysts warn that “AI washing”, overstating AI capability to attract investors or talent, is becoming a growing problem.ย 

These efforts follow a familiar loop:ย 

  • Make a public announcement of an AI strategic pivot.ย 
  • Launch some proof-of-concept projects.ย 
  • Hype AI capabilities through PR.ย 
  • Stall through inner friction or data jams.ย 

This loop erodes trust. Workers lose faith, customers perceive inconsistencies, and leadership must devote more time to managing the message than driving the change.ย 

The Missing Middle Groundย 

The majority ofย companies overestimate the effort it takes to bring AIย out ofย prototypes into business operations. The middle layer, such as the people, processes, and governance that connect technology to outcomes, is absent. AI labs run experiments that never make it into core business systems, while IT teams continue toย maintainย legacy CRMs and ERP platforms thatย can’tย handle real-time data integration.ย 

Transformation comes to recognize that, in most cases, it is notย poorย technology but poorly aligned incentives that cause it to stall. Marketing wants the AIย storyย out fast. Engineering needs time toย validateย models. Compliance would prefer to review each dataset for privacy risk. With no single point of responsibility, AI becomes everyone’s priority and no one’s responsibility.ย 

McKinsey’s 2024 State of AI reportย brings into context that less than one out of four firms have embedded AI in multiple business functions. These companies cited having clearer alignment between leadership, product, and data organizations as the most important driver of success. AI maturity, in other words, develops from governance, not slogans.ย 

Legacy players can takeย note. Before making an AI-first proclamation, clarify who controls AI outcomes, what metrics are important, and how success will be measured over time. Getting incentives aligned early on can helpย maintainย the momentum after the hypeย dies down.ย 

Rebrand Last, Transform Firstย 

From where I sit, here is the strategic advice I can give to the modern-day brand:ย 

  1. Use โ€œAI-firstโ€ internally, but on the marketing side, wait until you have a tried-and-true system in place that serves the company well.
  2. Raise the conversation beyond tools and hype: map workflows, data, and decision rights.
  3. Measure early what matters: pipeline latency, insight-to-action time, clean-data ratio, not just โ€œAI pilots launched.โ€
  4. If you feel the need to announce โ€œweโ€™re AI-firstโ€ before December this year, ask yourself: What will weย point toย in six months when the slides need proof?ย 

The rush to call yourself โ€œAI-firstโ€ has become the new corporate arms race. But for legacy companies, achieving the badge only matters if something of note has changed. If the narrative outruns the capability, youย donโ€™tย look like a leader, but rather, a promise unkept.ย 

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