RECENT STORIES:

Addressing digital sovereignty in a data-driven world
One-Stop Access to the Full China-U.S. Tech Landscape — Harvest ...
One-Stop Access to the Full China-U.S. Tech Landscape — Harvest ...
Elong Power Holding Limited Announces the Change of Effective Date of ...
“Standards Going Global”: GAC Chairman Feng Xingya Promote...
Startek® wins ‘Excellence in Change Transformation’ at The...
LOGIN REGISTER
DigiconAsia
  • Features
    • Featured

      How AI is reshaping dating in Asia

      How AI is reshaping dating in Asia

      Monday, February 9, 2026, 5:00 AM Asia/Singapore | Features, Newsletter
    • Featured

      What’s next for augmented reality?

      What’s next for augmented reality?

      Wednesday, February 4, 2026, 8:41 AM Asia/Singapore | Features
    • Featured

      How non‑IT startups can plan secure, scalable IT infrastructure

      How non‑IT startups can plan secure, scalable IT infrastructure

      Monday, February 2, 2026, 8:00 PM Asia/Singapore | Features, Newsletter
  • News
    • Featured

      Seven Western governments set shared 6G security and resilience principles

      Seven Western governments set shared 6G security and resilience principles

      Friday, March 6, 2026, 10:33 AM Asia/Singapore | News, Newsletter
    • Featured

      AI slop floods kids’ video feeds, alarming child-development experts

      AI slop floods kids’ video feeds, alarming child-development experts

      Thursday, March 5, 2026, 8:00 AM Asia/Singapore | News, Newsletter
    • Featured

      AI shift seen erasing many traditional white‑collar roles: big tech CEO

      AI shift seen erasing many traditional white‑collar roles: big tech CEO

      Wednesday, March 4, 2026, 9:37 AM Asia/Singapore | Future of Work, News, Newsletter
  • Perspectives
  • Tips & Strategies
  • Whitepapers
  • Awards 2023
  • 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

Olam Agri injects AI into core infrastructure to boost business intelligence

Olam Agri injects AI into core infrastructure to boost business intelligence

September 19, 2024

Eco start-up launches carbon-absorbing bricks  to boost construction sustainability

Eco start-up launches carbon-absorbing bricks  to boost construction sustainability

August 5, 2025

Financial consortium in the Philippines embraces DX for greater challenges ahead

Financial consortium in the Philippines embraces DX for greater challenges ahead

October 27, 2021

Your newly-bought Japanese car was probably designed via VDI

Your newly-bought Japanese car was probably designed via VDI

June 17, 2021

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

  • Nokia integrates all-flash data infrastructure into telco cloud for network modernization

    Nokia integrates all-flash data infrastructure into telco cloud for network modernization

    Its December 2025 upgrade supports …Read More
  • Overcoming workforce challenges in Japan’s healthcare sector with generative AI: JCHO Osaka Hospital

    Overcoming workforce challenges in Japan’s healthcare sector with generative AI: JCHO Osaka Hospital

    A digitalization initiative launching by …Read More
  • Kingspan Insulation unifies 90‑site corporate network for enhanced agility and control

    Kingspan Insulation unifies 90‑site corporate network for enhanced agility and control

    Kingspan Insulation, Expereo, global network, …Read More
  • Genspark adopts AI-driven voice automation platform to boost global communication for customers

    Genspark adopts AI-driven voice automation platform to boost global communication for customers

    Genspark, Twilio, AI voice automation, …Read More

Bottom Sidebar

Other News

  • One-Stop Access to the Full China-U.S. Tech Landscape — Harvest Global Investments’ G2 Tech 50 ETF Commences Trading

    March 8, 2026
    HONG KONG, March 7, 2026 …Read More »
  • One-Stop Access to the Full China-U.S. Tech Landscape — Harvest Global Investments’ G2 Tech 50 ETF Commences Trading

    March 7, 2026
    HONG KONG, March 7, 2026 …Read More »
  • Elong Power Holding Limited Announces the Change of Effective Date of its 1 for 80 Share Consolidations

    March 7, 2026
    BEIJING, March 7, 2026 /PRNewswire/ …Read More »
  • “Standards Going Global”: GAC Chairman Feng Xingya Promotes China’s Auto Industry Global Competitiveness

    March 6, 2026
    BEIJING, March 6, 2026 /PRNewswire/ …Read More »
  • Startek® wins ‘Excellence in Change Transformation’ at The Economic Times Human Capital Awards 2026

    March 6, 2026
    – Recognized as the only BPO …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.