Gartner Forecasts Over 40% of Agentic AI Projects Will Be Canceled by 2027 Amid Rising Costs and Misapplication

According to Gartner, Inc., more than 40% of agentic AI projects are expected to be canceled by the end of 2027, largely due to unclear business value, rising costs, and inadequate risk controls. The global research and advisory firm warns that while agentic AI presents immense potential, most current initiatives are still in experimental or proof-of-concept stages, often driven by hype rather than strategic need.

“Most agentic AI projects right now are early-stage experiments or proofs of concept that are mostly driven by hype and are often misapplied,” said Anushree Verma, Senior Director Analyst at Gartner. “This can blind organizations to the real cost and complexity of deploying AI agents at scale.”

Survey Reveals Conservative Investment Approach

In a January 2025 Gartner poll of 3,412 webinar participants, the findings revealed:

• 19% of organizations had made significant investments in agentic AI

• 42% had invested conservatively

• 8% reported no investment

• 31% were either waiting to act or unsure of future plans

This data reflects a cautious yet curious approach, as many enterprises navigate the fine line between innovation and practical application.

“Agent Washing” and Vendor Hype

A major concern raised by Gartner is the growing phenomenon of “agent washing”—the superficial rebranding of traditional AI assistants, RPA tools, and chatbots as “agentic AI” despite lacking the underlying capabilities. Verma notes that only around 130 out of thousands of so-called agentic AI vendors offer truly autonomous agentic functions.

“Most agentic AI propositions lack significant value or return on investment (ROI), as current models don’t have the maturity and agency to autonomously achieve complex business goals or follow nuanced instructions over time,” Verma added.

Long-Term Outlook Remains Promising

Despite early implementation hurdles, Gartner projects that:

• 15% of daily work decisions will be autonomously made by agentic AI by 2028, up from 0% in 2024

• 33% of enterprise software applications will include agentic AI by 2028, compared to less than 1% today

Agentic AI is expected to transform enterprise productivity by automating complex decisions, enhancing resource efficiency, and introducing innovative business models.

Strategic Recommendations for Early Adoption

Gartner advises organizations to apply agentic AI selectively—only in scenarios where tangible ROI and business value can be demonstrated. Attempting to retrofit agents into legacy systems may disrupt workflows and lead to unnecessary expenses. In many cases, redesigning workflows with agentic principles from the ground up offers a more viable route.

“To get real value from agentic AI, organizations must focus on enterprise productivity, rather than just individual task augmentation,” said Verma. “They can start by using AI agents when decisions are needed, automation for routine workflows, and assistants for simple retrieval.”

The report serves as both a cautionary alert and a strategic guide for enterprises looking to invest in agentic AI amid evolving market dynamics.