RECENT STORIES:

Addressing digital sovereignty in a data-driven world
Webull Launches Webull Connect, a Next-Gen Platform for Australian Fin...
Marvion Inc. Announces Two New Investors, Further Strengthening Capita...
Lufax Announces Filing of Its Annual Report on Form 20-F
Lufax Announces Changes of Directors and Senior Management
Parcel Perform Launches First AI Visibility Index for E-Commerce Brand...
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

      Data analysis suggests tech layoffs surpassed 30,000 globally in early 2026

      Data analysis suggests tech layoffs surpassed 30,000 globally in early 2026

      Monday, February 16, 2026, 9:03 AM Asia/Singapore | News, Newsletter
    • Featured

      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

      Friday, February 13, 2026, 4:04 PM Asia/Singapore | Case Studies, News, Newsletter
    • Featured

      Light‑powered optical computing prototype could someday reduce AI power consumption

      Light‑powered optical computing prototype could someday reduce AI power consumption

      Friday, February 13, 2026, 10:18 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

Regional online marketplace adopts cloud solution for better security and efficiency

Regional online marketplace adopts cloud solution for better security and efficiency

September 8, 2020

Malaysia to upgrade to multi-model biometrics for immigration checkpoints

Malaysia to upgrade to multi-model biometrics for immigration checkpoints

October 25, 2022

Will psychologists be replaced by AI chatbots or androids anytime soon?

Will psychologists be replaced by AI chatbots or androids anytime soon?

August 2, 2024

When the Cloud gets too complex, can unified monitoring boost ROI?

When the Cloud gets too complex, can unified monitoring boost ROI?

December 15, 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

  • 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
  • Grab Finance automates eligibility and risk checks across six markets using in‑app transaction signals and localized compliance workflows.

    Grab Finance automates eligibility and risk checks across six markets using in‑app transaction signals and localized compliance workflows.

    Grab Finance automates eligibility and …Read More
  • Maritime passenger terminal unifies operations through real-time data and event-driven architecture

    Maritime passenger terminal unifies operations through real-time data and event-driven architecture

    The Singapore Cruise Centre is …Read More
  • US hotel group streamlines operations, unifies management across multiple properties

    US hotel group streamlines operations, unifies management across multiple properties

    CN Hotels deploys centralized platform …Read More

Bottom Sidebar

Other News

  • Webull Launches Webull Connect, a Next-Gen Platform for Australian Financial Advisers

    February 18, 2026
    Webull Connect is designed to …Read More »
  • Marvion Inc. Announces Two New Investors, Further Strengthening Capital Base and Advancing Strategic Growth

    February 17, 2026
    HONG KONG, Feb. 17, 2026 …Read More »
  • Lufax Announces Changes of Directors and Senior Management

    February 17, 2026
    SHANGHAI, Feb. 17, 2026 /PRNewswire/ …Read More »
  • Lufax Announces Filing of Its Annual Report on Form 20-F

    February 17, 2026
    SHANGHAI, Feb. 17, 2026 /PRNewswire/ …Read More »
  • Parcel Perform Launches First AI Visibility Index for E-Commerce Brands

    February 17, 2026
    Public Ranking Reveals Which Retailers …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.