Agentic AI adoption surges despite high project failure risks
KPMG reports rapid agentic AI deployment growth as Gartner predicts over 40% of projects will fail by 2027 due to cost and complexity issues.
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Key Findings:
- 33% of organizations have reached full-scale agentic AI deployment - a 3× increase from previous quarters (KPMG)
- 57% are piloting agents (down from 65%), while 10% are exploring adoption
- 40% of projects predicted to fail by 2027 (Gartner) due to costs, unclear value, and risk control issues
Implementation Challenges:
- Top barriers: Technical skills gaps (32%), workforce resistance (28%), system complexity (22%)
- "Agent washing" concerns: Vendors rebranding existing products as agentic AI without substantial upgrades
- Major players like Microsoft, Salesforce, and Oracle entered the market in 2024
Strategic Approaches:
- 46% of leaders focus equally on efficiency and revenue growth
- Rising concerns about data privacy (38%), regulatory issues (29%), and data quality (33%)
- Accounting firms like KPMG and Deloitte developing proprietary solutions
Expert Warnings:
"Most projects are early experiments driven by hype... Organizations need strategic decisions about where and how to apply this technology" - Anushree Verma, Gartner
Survey based on 130 U.S. business leaders from $1B+ revenue companies
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About the Author
Alex Thompson
AI Technology Editor
Senior technology editor specializing in AI and machine learning content creation for 8 years. Former technical editor at AI Magazine, now provides technical documentation and content strategy services for multiple AI companies. Excels at transforming complex AI technical concepts into accessible content.