Over 40% Of Agentic AI Projects Could Be Canceled by 2027

Businesses continue to spend money on agentic AI systems, however new research argues that many of these initiatives face an uncertain future.

A new report from research firm Gartner predicts that over 40% agentic AI projects will likely be cancelled by 2027, given the high costs, combined with unclear benefits and inadequate risk management.

“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, as reported by Forbes.

Agentic AI differs from traditional automation or chatbots by aiming to work independently, learn from experience, and perform complex tasks without constant human supervision. However, the Gartner survey revealed that although 19% of companies actively invest in this technology, 31% still remain uncertain or are waiting to see what happens.

Gartner also identifies the new phenomenon of “agent washing.” The researchers explain that through this practice, organizations label traditional technologies like RPA or virtual assistants as agentic AI, without adding real autonomous capabilities. Indeed, Gartner noted that of thousands of vendors, only around 130 meet the actual definition of agentic AI.

One recent example of “agent washing” was Builder.ai, a Microsoft-backed startup that claimed its platform built apps using AI. In reality, 700 human engineers in India performed most of the work.

Additionally, the financial expenses needed to construct and sustain these systems present another major challenge to organizations. The implementation of agents into outdated systems, together with workflow redesign, and staff training expenses, may prove overly costly for companies.

Still, Gartner sees long-term potential. By 2028, 15% of everyday business decisions could be made autonomously by AI agents, and one-third of enterprise software could include agentic functions.

For this implementation to succeed, Verma suggested to Forbes, “To get real value from agentic AI, organizations must focus on enterprise productivity, rather than just individual task augmentation.”

“They can start by using AI agents when decisions are needed, automation for routine workflows and assistants for simple retrieval. It’s about driving business value through cost, quality, speed and scale,” Verma concluded.