30% of genAI initiatives to fail in 2025 – Gartner

7th July 2025 |   Journal Of Sales Transformation

Gartner suggested last year that at least 30% of generative AI businesses in the testing phase would be abandoned after proof of concept by the end of 2025, according to a report in AI Business. Organisations have been struggling to justify genAI investments due to the substantial costs involved. The analyst firm found that early genAI adopters were finding that deployment costs typically ranged from $5 million to $20 million.

Meanwhile, Gartner research suggested early adopters of genAI have also been reporting patchy business improvements. A survey of 822 business leaders found that just 15.8% claimed revenue increases, 15.2% saved costs, while 22.6% reported that they’d seen productivity improvements following genAI deployments.

Gartner suggests that businesses considering deploying genAI should analyse the business value and the total costs to uncover both direct ROI and future value impact so as to make more informed investment decisions, AI Business reported.