Gartner: One-Third of GenAI Projects Will Be Abandoned by End of 2025

According to Gartner's report, by the end of 2025, at least 30 percent of general-purpose artificial intelligence (GenAI) projects will be abandoned after the initial phase due to reasons including poor data quality, inadequate risk controls, rising costs, and uncertain business value. Rita Sallam notes that despite high expectations, companies are failing to see tangible returns on their investments. However, some early adopters have reported business improvements including revenue increases of 15.8 percent and cost savings of 15.2 percent.

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Key Takeaways:

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1. GenAI projects carry risks due to high initial costs and uncertain business value.

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2. Companies are struggling to convert indirect financial returns from investments into direct financial benefits.

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3. Some early adopters are reporting significant improvements in revenue and productivity.

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News Link: https://www.thescxchange.com/articles/10727-one-third-of-generative-ai-projects-will-be-abandoned-by-2025-gartner-says