The AI execution gap: Why 80% of projects don’t reach production

Despite significant global investment in artificial intelligence, a substantial majority of AI projects fail to move beyond the development phase and into production. Industry projections indicate a doubling of AI and GenAI spending to over $630 billion by 2028, highlighting the immense financial commitment from enterprises. However, a significant disconnect exists between the enthusiasm and budget allocated for AI initiatives and their actual implementation and operational success. This gap suggests that many organizations face considerable hurdles in bringing their AI ambitions to fruition.

This matters because the failure to operationalize AI projects represents a significant waste of resources and a missed opportunity for businesses to gain a competitive advantage through advanced technology.