Over 40% of Agentic AI Projects Expected to Fail
Title: Gartner Predicts Massive Failure Rate for Agentic AI
Summary:
According to a recent 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.
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. "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, adding that "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."
Significance:
This report comes as 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.
The high predicted failure rate suggests a significant gap between AI hype and practical implementation.
Date: July 2, 2025 (Referenced in search results from July 2)