Almost a third of genAI initiatives are set to be terminated

“Following the buzz from last year, top-level executives are becoming increasingly eager to witness the results from their genAI investments, but organizations are encountering challenges in demonstrating and achieving value,” conveyed Rita Sallam, an esteemed vice president analyst at Gartner. “With the expansion of projects, the financial strain associated with creating and implementing genAI models is being significantly felt.”

The deployment of AI can incur substantial costs, ranging between $5 million to $20 million. Gartner predicts that by 2028, over 50% of enterprises that have constructed LLMs from scratch will relinquish them due to high expenses, intricacy, and technical liabilities in their implementations.

Nonetheless, in certain instances, genAI tools are proving to be beneficial for initial adopters. Companies across various sectors and operational procedures are disclosing a variety of enhancements that hinge on the application scenario, job role, and worker proficiency level. As per a Gartner survey of business leaders, an average 15.8% rise in revenue, 15.2% in cost reductions, and a 22.6% increase in productivity has been reported.

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AndyC

Andy Curtis is an award-winning security consultant, researcher and public speaker. He has been working in the computer security industry since the early 1990s, having been employed by state and federal government, leading healthcare and banking providers across three continents. He has given talks about computer security for some of the world’s largest companies, worked with law enforcement agencies on investigations into hacking groups, and is a regular voice on TV and radio explaining IT security threats.

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