Gartner predicts 30% of generative AI projects will be abandoned after proof of concept by end of 2025

Full Article

Gartner forecasts that 30% of generative AI projects will be abandoned post-proof of concept by the end of 2025. This trend is attributed to factors such as poor data quality, inadequate risk controls, and escalating costs. Executives are increasingly impatient for returns on their investments in generative AI, yet many organizations struggle to demonstrate tangible value.

The financial burden of developing generative AI models can range from $5 million to $20 million, complicating justifications for these investments. Despite the challenges, early adopters report significant improvements in revenue, cost savings, and productivity. Organizations must carefully analyze the business value and costs associated with generative AI to make informed investment decisions.

• 30% of generative AI projects may be abandoned by 2025.

• Early adopters report significant revenue and productivity improvements.

Key AI Terms Mentioned in this Article

Generative AI

The article discusses the challenges organizations face in realizing the value of generative AI investments.

Proof of Concept

The abandonment of projects often occurs after this stage due to various challenges.

Return on Investment (ROI)

The article emphasizes the need for organizations to calculate ROI to justify generative AI investments.

Companies Mentioned in this Article

Gartner

Gartner's predictions and analyses are crucial for organizations navigating the complexities of generative AI.

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