According to a report by Gartner, at least 30 per cent of generative artificial intelligence (GenAI) projects will be abandoned after proof of concept by the end of 2025.
The report noted that poor data quality, inadequate risk controls, escalating costs or unclear business value are some of the reasons that will impede these pilots.
It added that justifying the significant investment in GenAI for productivity improvements poses a major challenge for organisations, as the benefits are often difficult to quantify in financial terms. While many companies are utilising GenAI to innovate their business models and exploring new opportunities, the costs associated with these implementations can be substantial, ranging from $5 million to $20 million.
As per the report, this comes at a time when many IT services firms such as Accenture, TCS, Infosys, Cognizant and Capgemini are ramping up GenAI pilot projects to open new revenue streams by taking them to production stage.
