Gartner Predicts Abandoned AI Projects
It’s not like the AI bandwagon will come to a complete halt. Gartner says, however, that those who made early bets on AI may be up for major disappointment.
Organizations that made significant early bets on AI may be in for a letdown, Gartner warned in a recent report. Gartner is forecasting that there may be a ghost town of failed AI business projects.
“At least 30% of GenAI projects will be abandoned after proof of concept by the end of 2025, due to poor data quality, inadequate risk controls, escalating costs or unclear business value,” Gartner said in a news release. “Vendors and end users of these services have experienced problems with service capacity, reliability, model update frequency and cost fluctuation, which may, however, be considered growing pains.”
The AI negativity is increasing as organizations struggle to have the technology successfully commercialized. Large and continued investments into generative AI will not provide a good ROI rapidly, given the $5 million to $20 million it takes.
Gartner published its “Calculating the ROI on GenAI Business Model Innovation” report along with a webinar, “What Mature Organizations Do Differently for AI Success.”
Today’s global economic climate will make matters even more difficult.
