RECENT STORIES:

Addressing digital sovereignty in a data-driven world
Data analysis finds emerging markets could outpace developed in digita...
Guo Guangchang’s Letter to Shareholders: “Repair the Roof ...
Fosun International: Total Revenue in 2025 Reaches RMB173.43 Billion, ...
SF Intra-city Reports Record-high Revenue of RMB 22.9 Billion in 2025
Thunes Empowers the Global Economy with Instant Cross-Border Payouts f...
LOGIN REGISTER
DigiconAsia
  • Features
    • Featured

      Is educational technology in Asian primary schools evolving with the AI impact?

      Is educational technology in Asian primary schools evolving with the AI impact?

      Thursday, March 26, 2026, 2:02 PM Asia/Singapore | Features
    • Featured

      The rise of situational intelligence

      The rise of situational intelligence

      Thursday, March 19, 2026, 10:55 AM Asia/Singapore | Features
    • Featured

      Balancing brand heritage and modern service with AI-powered customer experience

      Balancing brand heritage and modern service with AI-powered customer experience

      Wednesday, March 18, 2026, 9:51 AM Asia/Singapore | Case Studies, Customer Experience, Features
  • News
    • Featured

      Data analysis finds emerging markets could outpace developed in digital spending shares

      Data analysis finds emerging markets could outpace developed in digital spending shares

      Tuesday, March 31, 2026, 11:02 AM Asia/Singapore | News, Newsletter
    • Featured

      Global tech firms cut 59,121 jobs in early 2026 amid AI-driven layoffs: reports

      Global tech firms cut 59,121 jobs in early 2026 amid AI-driven layoffs: reports

      Friday, March 27, 2026, 11:46 AM Asia/Singapore | Future of Work, News, Newsletter
    • Featured

      EU broadcasters push regulators to rein-in smart TV and virtual assistant gatekeepers

      EU broadcasters push regulators to rein-in smart TV and virtual assistant gatekeepers

      Thursday, March 26, 2026, 11:07 AM Asia/Singapore | 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

Indonesia, Malaysia and other countries clamp down on chatbot’s deepfake fiasco

Indonesia, Malaysia and other countries clamp down on chatbot’s deepfake fiasco

January 12, 2026

Should digital transformation start with automating Accounts Payable?

Should digital transformation start with automating Accounts Payable?

August 17, 2020

COVID-19 business continuity and cybersecurity: what we can learn from banks

COVID-19 business continuity and cybersecurity: what we can learn from banks

April 13, 2020

Preparing the workplace for the ‘new normal’

Preparing the workplace for the ‘new normal’

July 27, 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

  • Balancing brand heritage and modern service with AI-powered customer experience

    Balancing brand heritage and modern service with AI-powered customer experience

    Balancing brand heritage and modern …Read More
  • Overhauling IT boosts business sustainability, efficiency amid motorsport carbon pressures: McLaren

    Overhauling IT boosts business sustainability, efficiency amid motorsport carbon pressures: McLaren

    The firm’s global IT team …Read More
  • 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

Bottom Sidebar

Other News

  • Guo Guangchang’s Letter to Shareholders: “Repair the Roof While the Sun Is Shining” — Fosun Aims to Go Further with Greater Stability

    March 30, 2026
    HONG KONG, March 30, 2026 …Read More »
  • Fosun International: Total Revenue in 2025 Reaches RMB173.43 Billion, with Overseas Revenue Accounting for 54.7%, Aiming to Achieve”RMB10 Billion in Profit”

    March 30, 2026
    HONG KONG, March 30, 2026 …Read More »
  • SF Intra-city Reports Record-high Revenue of RMB 22.9 Billion in 2025

    March 30, 2026
    Adjusted Net Profit Reaches RMB414.7 …Read More »
  • Thunes Empowers the Global Economy with Instant Cross-Border Payouts for Gig and Remote Workers

    March 30, 2026
    SINGAPORE, March 30, 2026 /PRNewswire/ …Read More »
  • SIHL Focuses on Environmental Health Sector, Asset Optimisation Generates Approximately RMB5.2 Billion in Cash Proceeds

    March 30, 2026
    Proposed a Special Dividend of …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.