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Gartner Warns 40% of Agentic AI Projects Will Be Canceled by 2027

High development expenses coupled with unclear ROI metrics threaten to derail early-stage autonomous software initiatives.

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Overview

  • More than 40% of agentic AI initiatives face cancellation by the end of 2027 as high costs and immature governance undercut expected gains.
  • Most deployments remain early-stage proofs of concept driven by hype rather than clear operational goals.
  • Only 19% of surveyed organizations made significant investments by January 2025, with 42% investing conservatively and 31% undecided.
  • Gartner identifies about 130 vendors that meet true autonomous agent criteria, leaving many buyers confused by inflated claims.
  • Despite current setbacks, analysts expect autonomous agents to make 15% of routine business decisions and feature in one-third of enterprise software by 2028.