By the end of 2025, Gartner predicts that 30% of generative #Artificial Intelligence  projects will be abandoned due to unclear business value, poor data, high costs, or lack of risk controls.

Gartner notes businesses struggle to justify GenAI’s high costs despite its potential to transform business models.

Upfront costs for generative AI can range from $100,000 to $20M, excluding recurring expenses

https://www.gartner.com/en/newsroom/press-releases/2024-07-29-gartner-predicts-30-percent-of-generative-ai-projects-will-be-abandoned-after-proof-of-concept-by-end-of-2025

Gartner Predicts 30% of Generative AI Projects Will Be Abandoned After Proof of Concept By End of 2025

Artificial Intelligence

By the end of 2025, Gartner predicts that 30% of generative #Artificial Intelligence  projects will be abandoned due to unclear business value, poor data, high costs, or lack of risk controls.  Gartner notes businesses struggle to justify GenAI’s high costs despite its potential to transform business models.  Upfront costs for generative AI can range from $100,000 to $20M, excluding recurring expenses  https://www.gartner.com/en/newsroom/press-releases/2024-07-29-gartner-predicts-30-percent-of-generative-ai-projects-will-be-abandoned-after-proof-of-concept-by-end-of-2025

Nate

Further, AI tools have much lower profit margins than other software, thanks to their intensive computing demands and energy needs. So the cost of providing AI services scales with usage in a way that just isn’t true of (for example) Google search or Facebook.

Cyril

AI tools today absolutely are not “ready for prime time,” in the sense that you could trust them with your job or your life. AI needs close supervision, sometimes requiring more effort than it would take to simply have done the task yourself.

Nate

A group of likeminded people in Artificial Intelligence are talking about this.