A Third Of Gen AI Projects May Be Abandoned After Proof-Of-Concept By 2025: Gartner

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A Third Of Gen AI Projects May Be Abandoned After Proof-Of-Concept By 2025: Gartner

At least 30% of generative artificial intelligence projects are predicted to be abandoned after proof-of-concept by the end of 2025 due to various reasons such as poor data quality, inadequate risk controls, escalating costs, or unclear business value, as per Gartner, Inc. Organizations are facing challenges in proving and realizing value from their gen AI investments as the financial burden of developing and deploying gen AI models increases. Justifying the significant investment in gen AI for productivity enhancement is a major obstacle for organizations.

Gen AI deployment approaches come with substantial costs ranging from $5 million to $20 million, including upfront and recurring costs. Rita Sallam, a vice president-analyst at Gartner, highlighted the variability in costs based on use cases, deployment approaches, and strategic impact. Gartner research suggests that gen AI requires a higher tolerance for indirect, future financial investment criteria compared to immediate return on investment.

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