Over 40 Per Cent Of Agentic AI Projects Likely To Be Scrapped By 2027 Amid Rising Costs And Hype, Says Report

More than 40 percent of agentic artificial intelligence (AI) projects will be abandoned by end-2027 due to rising implementation costs and unclear business value, according to a new report by US research firm Gartner, reported Indian Express.

The research firm warned that despite the surge in funding from tech giants like Salesforce and Oracle, most projects are still in early-stage experimentation and are not delivering expected returns.

Agentic AI systems are designed to independently make decisions and carry out actions to fulfil specific goals.

However, Gartner notes a trend of “agent washing”, where traditional AI tools like chatbots are being rebranded as agentic AI despite lacking true autonomous functionality.

The report estimates that only 130 out of thousands of vendors marketing agentic AI have viable, mature solutions.

“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,” said Anushree Verma, Senior Director Analyst at Gartner.

Despite current shortcomings, Gartner projects that 15 per centof everyday business decisions will be made autonomously by agentic AI by 2028, up from virtually zero in 2024.

Also, 33 per cent of enterprise software is expected to integrate agentic AI within the next three years.