Amid the ever-accelerating digital transformation underway across industries, AI-based innovation holds great allure for firms looking to secure future competitive advantage. We identify seven pitfalls that companies need to steer clear of to effectively leverage this novel technology, and present a framework to help them gauge their readiness to deploy AI. This white paper will also help decision-makers in recognizing what unique competencies they can utilize and what capabilities they need to develop to take advantage of this opportunity today.