At least 30% of generative AI (GenAI) projects currently underway will be dropped by 2025, according to new projections by Gartner.
Poor quality of data and inadequate risk controls are among the reasons organizations are scrambling to identify value of GenAI projects to shareholders, and “the financial burden of developing and deploying GenAI models is increasingly felt,” Gartner VP Analyst Rita Sallam said at a summit last month.
The unpredictability of GenAI costs, as well as the intangible and long-term nature of returns on investment, are both contributing to “impatient” executives who may pull the plug on projects after proof of concept, Gartner stated in a press release.
