RECENT STORIES:

Addressing digital sovereignty in a data-driven world
Xinhua Silk Road: Guotai Haitong Securities leverages AI fintech to bo...
AI ambitions in APAC at risk, with poor infrastructure stalling AI gro...
Study finds 13-sided “ein Stein” hat shape may have important practica...
Weichai unveils microgrid solutions for Southeast Asia’s power m...
The HKMA 58th Distinguished Salesperson Award (DSA) Presentation Cerem...
LOGIN REGISTER
DigiconAsia
  • Features
    • Featured

      Creating value with AI upskilling

      Creating value with AI upskilling

      Wednesday, July 1, 2026, 3:55 PM Asia/Singapore | Features
    • Featured

      Sovereign AI – a competitive advantage

      Sovereign AI – a competitive advantage

      Wednesday, June 24, 2026, 10:01 AM Asia/Singapore | Features
    • Featured

      Deployment outpacing validation in digital experience

      Deployment outpacing validation in digital experience

      Friday, June 12, 2026, 9:26 AM Asia/Singapore | Features
  • News
    • Featured

      AI ambitions in APAC at risk, with poor infrastructure stalling AI growth

      AI ambitions in APAC at risk, with poor infrastructure stalling AI growth

      Friday, July 31, 2026, 2:07 PM Asia/Singapore | News, Newsletter
    • Featured

      Study finds 13-sided “ein Stein” hat shape may have important practical applications

      Study finds 13-sided “ein Stein” hat shape may have important practical applications

      Friday, July 31, 2026, 11:52 AM Asia/Singapore | News
    • Featured

      Getting on with RAMageddon: How the AI bubble is impacting electronics industries

      Getting on with RAMageddon: How the AI bubble is impacting electronics industries

      Thursday, July 30, 2026, 4:14 PM Asia/Singapore | News, Newsletter
  • Perspectives
  • Tips & Strategies
  • Whitepapers
  • Directory
  • E-Learning

Select Page

News

Agentic AI projects face high cancellation risk as experts urge caution over hype and costs

By DigiconAsia Editors | Tuesday, July 1, 2025, 4:52 PM Asia/Singapore

Agentic AI projects face high cancellation risk as experts urge caution over hype and costs

With current real-world deployments struggling to meet business expectations, market analysts warn most agentic AI initiatives may remain experimental beyond 2028.

Warnings about the future of agentic AI are reverberating in some regions, as new forecasts suggest that more than 40% of such projects could be abandoned by the end of 2027.

The prediction, released by technology advisory firm Gartner, is drawing attention not just for its scale but for the underlying reasons: escalating costs, unclear business value, and inadequate risk controls — that threaten to derail the next wave of AI innovation.

However, a closer look at Gartner’s forecast reveals that these are not certainties grounded in broad, industry-wide data. Rather, the firm’s projection is based on a combination of its own market analysis and a January 2025 poll of 3,412 webinar attendees. In that poll, 19% of respondents had indicated plans to make significant investments in agentic AI, while 42% had cited a more cautious approach. Some 31% were either undecided or waiting to see how the technology evolves. These figures suggest that, despite the hype, most respondents remain tentative, with a minority committing substantial resources to agentic AI at this stage.

According to the firm’s Senior Director Analyst, Anushree Verma: “Most agentic AI projects right now are early stage experiments or ‘proof-of-concept’s that are mostly driven by hype and are often misapplied.” The firm cautions that organizations risk underestimating the complexity and cost of deploying AI agents at scale, which could ultimately lead to a wave of cancellations and failed initiatives.

Beware of predictions and hype
Complicating the picture is “agent washing”: the rebranding of existing AI assistants, robotic process automation tools, and chatbots as agentic AI, even when they lack genuine autonomous capabilities. Only about vendors out of thousands truly offer agentic AI solutions, according to the firm.

Elsewhere, reports are noting that real-world deployments of agentic AI have frequently struggled to deliver on their promises. Technical immaturity, integration challenges, and a lack of robust risk controls have contributed to a high rate of project failures. In practice, many organizations have found that agentic AI systems are not yet capable of autonomously achieving nuanced business goals, or reliably following complex instructions over time.

Based on limited data, the firm predicts that by 2028, agentic systems could autonomously handle at least 15% of day-to-day work decisions and be embedded in a third of enterprise software applications. What is more certain is that industry experts and analysts alike would urge organizations to approach agentic AI with caution, focusing on clear business needs, realistic outcomes, and strategic fit before making significant investments.

Share:

PreviousWeichai’s high-end marine power has been deeply cultivating the Southeast Asian maritime market
NextJinkoSolar’s EAGLE® G6R Residential PV Module Named Sustainable Product of the Year by Green Builder® Media

Related Posts

Goodbye to long commutes, expensive office space and 9-to-5 work hours

Goodbye to long commutes, expensive office space and 9-to-5 work hours

July 30, 2020

Smartphone technology boosts climate emergency preparedness in more ways than one

Smartphone technology boosts climate emergency preparedness in more ways than one

January 28, 2022

First achieve digital transformation (DX), then go for SX

First achieve digital transformation (DX), then go for SX

July 6, 2022

Indonesia sets trends with a sustainable data center

Indonesia sets trends with a sustainable data center

May 12, 2020

Leave a reply Cancel reply

You must be logged in to post a comment.

Awards Nomination Banner

gamification list

PARTICIPATE NOW

top placement

Whitepapers

  • Achieve Modernization Without the Complexity

    Achieve Modernization Without the Complexity

    Transforming IT infrastructure is crucial …Download Whitepaper
  • 5 Steps to Boost IT Infrastructure Reliability

    5 Steps to Boost IT Infrastructure Reliability

    In today's fast-evolving tech landscape, …Download Whitepaper
  • Simplify Payroll Setup for Your Small Business

    Simplify Payroll Setup for Your Small Business

    In our free guide, "How …Download Whitepaper
  • Overcoming the Challenges of Cost & Complexity in the Cloud-first Era.

    Overcoming the Challenges of Cost & Complexity in the Cloud-first Era.

    Download Whitepaper

Middle Placement

Case Studies

  • Bank of Maldives updates core systems to support digital and Islamic banking operations

    Bank of Maldives updates core systems to support digital and Islamic banking operations

    New platform adopted 23 July …Read More
  •  Xiaomi streamlines global payments across 18 markets

     Xiaomi streamlines global payments across 18 markets

    Continual digital transformation has reduced …Read More
  • The 48-hour lifeline: How the IRC rewrote the rules for crisis care

    The 48-hour lifeline: How the IRC rewrote the rules for crisis care

    In a world where crises …Read More
  • CALB upgrades data platform to support analytics, security, and battery lifecycle tracking

    CALB upgrades data platform to support analytics, security, and battery lifecycle tracking

    Deploying a petabyte-scale data lake …Read More

Bottom Sidebar

Other News

  • Xinhua Silk Road: Guotai Haitong Securities leverages AI fintech to boost high-quality development of capital market

    July 31, 2026
    BEIJING, July 31, 2026 /PRNewswire/ …Read More »
  • Weichai unveils microgrid solutions for Southeast Asia’s power market

    July 31, 2026
    HANOI, Vietnam, July 31, 2026 …Read More »
  • The HKMA 58th Distinguished Salesperson Award (DSA) Presentation Ceremony

    July 30, 2026
    HONG KONG, July 30, 2026 …Read More »
  • WEKA and Andromeda Partner to Power AI Workloads at Global Scale

    July 30, 2026
    Partnership delivers consistent, high-performance AI …Read More »
  • Tesollo, a Robotic Hand Specialist, Kicks Off IPO Process | Appoints KB Securities as Lead Underwriter

    July 30, 2026
    KB Securities Selected as Lead …Read More »
  • Our Brands
  • CybersecAsia
  • MartechAsia
  • Home
  • About Us
  • Contact Us
  • Sitemap
  • Privacy & Cookies
  • Terms of Use
  • Advertising & Reprint Policy
  • Media Kit
  • Subscribe
  • Manage Subscriptions
  • Newsletter

Copyright © 2026 DigiconAsia All Rights Reserved.