Nearly half of all agentic artificial intelligence projects will be cancelled within two years, according to a new report by Gartner.
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AI agents help to automate tasks and remove human involvement, such as in the autonomous vehicles being made by Tesla (TSLA) and robotics in manufacturing.
AI Washing
Tech giants such as Salesforce (CRM) and Oracle (ORCL) have also embraced AI agents across a number of business sectors to help companies boost margins, and optimize costs and services such as procurement and sustainability. There has also been a growth in the number of retailers and banks using AI chatbots.
However, Gartner warned that many vendors were engaging in “agent washing.” This means the rebranding of products such as AI assistants and chatbots without significant agentic capabilities.
“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.”
It predicts that more than 40% of agentic AI projects will be cancelled by the end of 2027, due to increasing costs, uncertain business value and insufficient risk controls.
Growth Forecast
However, it still sees growth in demand for AI agents as the technology develops and they are embraced more by employees, customers, and clients.
Indeed, Gartner predicts that at least 15% of day-to-day work decisions will be made autonomously through agentic AI by 2028, up from zero in 2024.
Additionally, 33% of enterprise software applications will include agentic AI by 2028, up from less than 1% in 2024.
“To get real value from agentic AI, organizations must focus on enterprise productivity, rather than just individual task augmentation,” Verma added. “They can start by using AI agents when decisions are needed, automation for routine workflows, and assistants for simple retrieval.”
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