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Enterprises Ramp Up Agentic AI Budgets as Gartner Warns of 40% Project Cancellations

Enterprise budgets for human-supervised, fully autonomous AI agents are growing rapidly highlighting the need for clear deployment priorities

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Overview

  • 62% of enterprises are piloting AI agents under human supervision with 46% testing fully autonomous systems
  • Gartner predicts more than 40% of agentic AI projects will be canceled by the end of 2027 due to rising costs, vague ROI and immature governance frameworks
  • Most current initiatives remain early-stage experiments driven by hype and often misapplied, slowing deployments and eroding stakeholder confidence
  • Only about 130 of thousands of so-called agentic AI providers meet the true definition of autonomous agency, creating market confusion
  • By 2028, Gartner forecasts AI agents will autonomously handle 15% of routine business decisions and appear in a third of enterprise software applications