Gartner: Many Businesses Are Going to Abandon their AI Projects Because of too Much Data and Financial Risks

According to Gartner, a research and consulting firm, 30% of the companies who have started AI projects will abandon them by the end of next year. This is because working with AI is harder for many businesses and they lack data quality and do not have enough budgets to work with AI. Some of these businesses also do not have any idea how to manage risk controls and some of them do not have enough business value to adapt to AI.

Right now, many businesses are using AI for a number of tasks. Some are using it for coding assistance, some are taking help from AI for content creation and many are utilizing AI for document research. Some businesses are also using AI as virtual assistants while some are using LLMs for financial services. Among all these AI tasks, AI coding assistants require the least amount of cost which ranges from $100k to $200k. AI costs a fortune if you are building it from scratch for your business. If you are creating a medical or financial services LLM, it can cost from $8 million to $20 million with a recurring cost of minimum $11k to maximum $21k.

Gartner says that there was too much hype around generative AI so many companies started implementing AI last year. But most of them have realized that AI costs them a lot and they do not have enough budget to organize and develop LLMs. There are just too many risks about implementing AI in your business as compared to not implementing it at all. So, there is no wonder why many businesses are totally going to abandon this idea by the end of 2025.

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by Arooj Ahmed via Digital Information World