In today's Cloud Wars Minute, I explore why Gartner expects many agentic AI projects to disappear as enterprises get more serious about measurable business value.

Highlights

00:14 — We're starting to see some interesting analysis coming out of organizations like Gartner. Gartner is saying that 40% of agentic AI projects die by 2027. There are a lot of projects that are going on within organizations that don't actually have good business value or good return on investment.

00:52 — And we already started to see a lot of pilots that were just failing over and over and over because people were trying to implement technology just for technology's sake. So, I think we're going to definitely see an improvement across organizations around the world.

01:33 — And so, what we want to see is a separation between organizations that are just basically doing what we refer to as agent washing, which is just taking and putting in an agent, whether that agent is actually doing anything of value or not within their organization or as a product. They're just following that trend.

02:02 — Agents or AI technology that's coming in to actually solve new problems, not just put a fancy UI on top of an existing API. So, those types of things, we should continue to see organizations getting better at this, but it will mean we will see a reduction in the number of players in this space over time.

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Agentic AI Faces a Reckoning as Enterprises Demand Real Business Value

Cloud Wars Live with Bob Evans

Agentic AI Faces a Reckoning as Enterprises Demand Real Business Value