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Gartner predicts 40% of agentic AI projects will fail by 2027

June 26, 2025•The Hindu Bureau•Original Link•2 minutes
AgenticAI
Gartner
AIProjects

A Gartner report forecasts over 40% of agentic AI projects will be cancelled by 2027 due to high costs, unclear ROI, and security concerns.

FILE PHOTO: Gartner predicts high failure rate for agentic AI projects A new Gartner report warns of significant project failures in the agentic AI space.

Key Findings

  • 40% failure rate: Gartner predicts more than 40% of agentic AI projects will be cancelled by 2027
  • Primary reasons: Growing costs, elusive business value, and insufficient security
  • Survey data: Based on January 2025 poll of 3,412 webinar attendees

Current Investment Landscape

  • 19% of organizations made significant investments
  • 42% took conservative approaches
  • 8% have no investments
  • 31% are adopting wait-and-see strategies

Expert Commentary

"Most agentic AI projects are early-stage experiments driven by hype," said Anushree Verma, Senior Director Analyst at Gartner. "Organizations need to make strategic decisions about where and how to apply this technology."

Vendor Challenges

  • Agent washing: Many vendors rebrand existing products as AI agents
  • Market reality: Only about 130 of thousands of agentic AI vendors have substantial offerings

Future Outlook

Despite current challenges, Gartner forecasts:

  • 15% of daily work decisions will be autonomous by 2028 (up from 0% in 2024)
  • 33% of enterprise software will include agentic AI by 2028 (up from <1% in 2024)

Published: June 25, 2025 | Read more about Oracle's AI developments

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Master Agentic AI with Python in This 4-Hour Video Tutorial

Learn agentic AI engineering in Python through a comprehensive four-hour video workshop by Jon Krohn and Edward Donner, covering frameworks, workflows, and hands-on coding.

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About the Author

Michael Rodriguez

Michael Rodriguez

AI Technology Journalist

Veteran technology journalist with 12 years of focus on AI industry reporting. Former AI section editor at TechCrunch, now freelance writer contributing in-depth AI industry analysis to renowned media outlets like Wired and The Verge. Has keen insights into AI startups and emerging technology trends.

Expertise

AI Industry Analysis
Startup Ecosystem
Technology Trends
Product Reviews
Experience
12 years
Publications
800+
Credentials
2
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