Over 40% of agentic AI projects forecast to be scrapped by 2027 due to lack of value

Many current models do not have the maturity and agency to autonomously achieve complex business goals, Gartner analysts say

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More than 40 per cent of agentic AI products will be scrapped by 2027, according to Gartner. Photo: Reuters

Published: 11:30am, 27 Jun 2025

More than 40 per cent of agentic artificial intelligence (AI) projects will be cancelled by the end of 2027 because of escalating costs and unclear business value, according to a report by Gartner.

Tech giants such as Salesforce and Oracle have embraced AI agents, systems that can autonomously complete goals and take action, pouring billions into the technology in the hopes of boosting margins and optimising costs.

Many vendors were engaging in “agent washing” – the rebranding of products such as AI assistants and chatbots without significant agentic capabilities, Gartner said, estimating that only about 130 of the thousands of agentic AI vendors were real.

“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,” Verma said.

Gartner predicted at least 15 per cent of day-to-day work decisions would be made autonomously through agentic AI by 2028, up from 0 per cent in 2024.