Over 40% of agentic AI projects will be scrapped by 2027, Gartner says
Agencies
Synopsis
By 2027, over 40% of agentic AI projects will be canceled due to high costs and unclear value, Gartner reports. Despite big investments, most offerings lack real capabilities. “Agent washing” and hype overshadow limited real-world maturity, though usage is expected to rise significantly by 2028.
By Reuters
More than 40% of agentic artificial intelligence projects will be canceled by the end of 2027 due to escalating costs and unclear business value, according to a report by Gartner.
Tech giants such as Salesforce and Oracle have embraced AI agents, systems that can autonomously complete goals and take action, pouring billions into the technology in the hopes of boosting margins and optimizing costs.
"Most agentic AI projects right now are early stage experiments or proofs of concept that are mostly driven by hype and are often misapplied," said Anushree Verma, Senior Director Analyst at Gartner.
"Most agentic AI propositions lack significant value or return on investment, as current models do not have the maturity and agency to autonomously achieve complex business goals or follow nuanced instructions over time," Verma said.
Gartner predicts at least 15% of day-to-day work decisions will be made autonomously through agentic AI by 2028, up from 0% in 2024.
Additionally, 33% of enterprise software applications will include agentic AI by 2028, up from less than 1% in 2024.
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Why is it important?Tech giants such as Salesforce and Oracle have embraced AI agents, systems that can autonomously complete goals and take action, pouring billions into the technology in the hopes of boosting margins and optimizing costs.
"Most agentic AI projects right now are early stage experiments or proofs of concept that are mostly driven by hype and are often misapplied," said Anushree Verma, Senior Director Analyst at Gartner.
"Most agentic AI propositions lack significant value or return on investment, as current models do not have the maturity and agency to autonomously achieve complex business goals or follow nuanced instructions over time," Verma said.
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By the numbersGartner predicts at least 15% of day-to-day work decisions will be made autonomously through agentic AI by 2028, up from 0% in 2024.
Additionally, 33% of enterprise software applications will include agentic AI by 2028, up from less than 1% in 2024.
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