Over 40% of agentic AI projects forecast to be scrapped by 2027 due to lack of value
More than 40 per cent of agentic
artificial intelligence (AI) projects will be cancelled by the end of 2027 because of escalating costs and unclear business value, according to a report by Gartner.
Tech giants such as Salesforce and Oracle have embraced
AI agents , systems that can autonomously complete goals and take action, pouring billions into the technology in the hopes of boosting margins and optimising costs.
Many vendors were engaging in 'agent washing' – the rebranding of products such as AI assistants and chatbots without significant agentic capabilities, Gartner said, estimating that only about 130 of the thousands of agentic AI vendors were real.
'Most agentic AI projects right now are early stage experiments or proofs of concept that are mostly driven by hype and are often misapplied,' said Anushree Verma, senior director analyst at Gartner.
'Most agentic AI propositions lack significant value or return on investment, as current models do not have the maturity and agency to autonomously achieve complex business goals or follow nuanced instructions over time,' Verma said.
Gartner predicted at least 15 per cent of day-to-day work decisions would be made autonomously through agentic AI by 2028, up from 0 per cent in 2024.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
South China Morning Post
26 minutes ago
- South China Morning Post
China, US finalise trade deal as Beijing confirms breakthrough in talks
China said on Friday that it would review and approve export applications for controlled items while the US would also remove some limits – confirming a breakthrough in trade talks centred on export controls. Beijing and Washington have been in close communication since trade talks in London earlier this month, with the two sides further confirming details of the framework, China's Ministry of Commerce said on Friday afternoon. 'China will review and approve export applications for controlled items in line with laws and regulations, while the US side will correspondingly lift a series of restrictive measures against China,' according to a statement from the ministry. More to follow Play Advertisement
South China Morning Post
29 minutes ago
- South China Morning Post
What's ahead for US-China tariffs, trade talks? Top experts weigh in
After months of chest-thumping, accusations and threats, look for US-China trade relations to weather an uneasy pause as the giants retreat from extremist positions, guard against backtracking and alter the negotiating dynamic toward an eventual agreement, analysts and former US officials say. The breather follows this month's London sit-down after the two engaged in a high-stakes tariff battle then went for each other's jugulars, with China blocking rare earth exports and Washington choking off jet engines and semiconductor software. 'Absolutely the trend lines point in the direction of a truce, a pause, a respite in US-China tensions,' said Jeremy Chan, a senior analyst at Eurasia Group. 'We're seeing signs of short-term stability that weren't there even a month ago.' The pause, which went into effect on May 12, is set to last three months if it is not extended. That is likely to result in US tariffs being capped at 55 per cent and China's at 10 per cent, according to analysts, with Washington using the hiatus to ensure that Beijing resumes rare earths exports and Beijing seeking more organised negotiations to moderate Trump's unpredictable approach. 05:19 How are Chinese citizens feeling the effects of the US-China tariff war? How are Chinese citizens feeling the effects of the US-China tariff war?
South China Morning Post
3 hours ago
- South China Morning Post
US-China rare earth agreement, Xi set to miss Brics summit: SCMP's 7 highlights
We have selected seven stories from the SCMP's coverage over the past week that resonated with our readers and shed light on topical issues. If you would like to see more of our reporting, please consider subscribing The United States and China reached a 'framework' agreement on how to facilitate rare earth shipments, implementing a deal based on bilateral trade talks that started last month in Geneva, Switzerland, the White House said. Confirmation of the agreement came shortly after US President Donald Trump said the US had signed a trade deal with Beijing a day earlier, offering no further details. People celebrate the ceasefire between Iran and Israel at Enghelab Square in Tehran, Iran, on June 24. The ceasefire was declared on Tuesday. Photo: Xinhua A frustrated US President Donald Trump insisted on Tuesday that the ceasefire between Iran and Israel remains 'in effect', even as he rebuked both nations for violating it. This public warning followed his earlier castigation of Iran, but particularly close US ally Israel, for launching attacks after the ceasefire, which he had originally announced late Monday. Chinese President Xi Jinping will not attend next week's Brics summit in Rio de Janeiro, marking his first-ever absence from the gathering of leading emerging economies, the Post learned from multiple sources on Tuesday.
