40% of Agentic AI Projects Predicted to Fail by 2027
Title: Gartner: Agentic AI Faces High Failure Rate
Summary:
According to a report by Gartner, more than 40% of agentic artificial intelligence projects will be canceled by the end of 2027 due to escalating costs and unclear business value. 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 hoping to boost margins and optimize costs. Many vendors are engaging in "agent washing" - the rebranding of products such as AI assistants and chatbots without significant agentic capabilities. Gartner estimates that only about 130 of the thousands of agentic AI vendors are real.
Significance:
"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. This analysis suggests that despite significant investment, many companies are struggling to find practical applications for autonomous AI systems that deliver clear business value.
Date: June 25, 2025 (published, with coverage continuing through June 27-28)