A third of all Gen AI projects will be abandoned, says Gartner
Summary
Companies are "struggling" to find value in the generative artificial intelligence (Gen AI) projects they have undertaken and one-third of initiatives will end up getting abandoned, according to a recent report by analyst Gartner. "After last years hype, executives are impatient to see returns on Gen AI investments, yet organizations are struggling to prove and realize value. As the scope of initiatives widen, the financial burden of developing and deploying Gen AI models is increasingly felt," stated Gartners distinguished analyst Rita Sallam in a press release summarizing the research findings. Aside from costs, Gartner said factors that could doom AI projects include "inadequate risk controls" and "poor data". For example, a recent Bloomberg Intelligence survey indicated the percentage of companies "working on" deploying Gen AI "co-pilot" programs doubled between December last year and July 2024.