Gartner Forecasts High Failure Rate for Agentic AI Projects Amid Rising Hype and Cost

A new report from Gartner warns that over 40% of agentic AI projects will be abandoned by 2027 due to unclear value and unsustainable costs. Despite aggressive investment by companies like Salesforce and Oracle, most current agentic AI efforts remain experimental and lack the autonomy to deliver long-term business impact.

Gartner analysts caution that many vendors are “agent-washing” basic AI tools — rebranding chatbots and assistants without real agency. Of the thousands of players in the space, only about 130 meet true agentic criteria. Still, adoption is expected to grow: Gartner predicts 15% of daily business decisions will be made autonomously via agentic AI by 2028, and 33% of enterprise software will include these capabilities.

Need Deeper Intelligence on the AI Market?

AI Insider's Market Intelligence platform tracks funding rounds, competitive landscapes, and technology trends across the global AI ecosystem in real time. Get the data and insights your organization needs to make informed decisions.

Related Articles

Robotics Infrastructure Startup XDOF Emerges from Stealth with $70M in Funding

Insider Brief XDOF emerged from stealth with $70 million in funding to develop the infrastructure for robot foundation models. The company is developing datasets, robotic

World-Models Startup Odyssey Raises $310M in Series B Funding, Valued at $1.45B

Insider Brief Odyssey has raised $310 million in a Series B funding round that values the world-models AI startup at $1.45 billion. The round was

a computer circuit board with a brain on it
AI in Business: How Companies Are Deploying AI in 2026

The question businesses spent three years debating has been settled. Whether to adopt AI is no longer a strategic choice. The conversation has moved on,

Stay Updated with AI Insider

Get the latest AI funding news, market intelligence, and industry insights delivered to your inbox weekly.

$ 0 M

Seed round tracked

Gitar — Code Validation

Get the Weekly Briefing

Funding analysis, market intelligence, and industry trends delivered to your inbox every week.

Need bespoke intelligence?

Our team combines real-time data with decades of sector experience to guide your decisions.

Subscribe today for the latest news about the AI landscape