AI project failure rates are on the rise: report [Yahoo! Finance]

S&P Global Inc. (SPGI)
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Source: Yahoo! Finance
More enterprises reported AI project failures this year compared to 2024, according to analysis from S&P Global Market Intelligence . The findings are based on a survey of more than 1,000 respondents in North America and Europe. The share of companies abandoning most of their AI initiatives jumped to , up from last year. The average organization scrapped of AI proof-of-concepts before they reached production. Companies cited cost, data privacy and security risks as the top obstacles, S&P found. So far, AI adoption is predominantly found in IT operations, followed by customer experience workflows and marketing processes. Dive Insight: Enterprises are grappling with a long list of persistent roadblocks and speed bumps related to their AI initiatives.
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