Artificial intelligence is boosting efficiency in many organizations, but too often it reinforces functional silos rather than breaking them down. Departments adopt AI tools independently, generating fragmented gains that don’t add up to strategic impact—and can even conflict with one another. There are three common pitfalls. First, the “technology-first” trap, in which departments deploy AI solutions without linking them to enterprise goals, creating disconnected fixes. Second, duplication and contradiction: when separate data sets drive opposing conclusions, as in one bank where risk management flagged customers as too risky even as marketing targeted them for growth. Third, undershot targets: isolated AI wins don’t translate into overall customer satisfaction or competitiveness. To counter these risks, leaders should build a “hub and spoke” AI Center of Excellence, anchor AI use to shared enterprise purposes, and incentivize cross-functional collaboration with collective KPIs. Done right, AI can unify organizations and drive transformation.