https://techmonitor.ai/technology/ai-and-automation/generative-ai-lost-2025

Almost a third of generative AI projects will be discontinued after proof of concept by the end of 2025, according to a new study by Gartner. The primary reasons for the abandonment, said the US-based technological research and consulting firm, include substandard data quality, insufficient risk controls, increasing costs, and uncertain business value. In light of these factors, said Gartner, many organisations are struggling to justify the significant outlays required for GenAI projects, particularly as they relate to productivity improvements.

"After last year's hype, executives are impatient to see returns on GenAI investments, yet organizations are struggling to prove and realize value," said Gartner distinguished VP analyst, Rita Sallam. "As the scope of initiatives widen, the financial burden of developing and deploying GenAI models is increasingly felt."