June 25 (Reuters) - More than 40% of agentic artificial

intelligence projects will be canceled by the end of 2027 due to

escalating costs and unclear business value, according to a

report by Gartner ( IT ).

WHY IT'S IMPORTANT

Tech giants such as Salesforce ( CRM ) and Oracle

have embraced AI agents, systems that can autonomously complete

goals and take action, pouring billions into the technology in

the hopes of boosting margins and optimizing costs.

Many vendors are engaging in "agent washing" - the

rebranding of products such as AI assistants and chatbots

without significant agentic capabilities, Gartner ( IT ) says,

estimating that only about 130 of the thousands of agentic AI

vendors are real.

KEY QUOTES

"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 ( IT ).

"Most agentic AI propositions lack significant value or

return on investment, as current models do not have the maturity

and agency to autonomously achieve complex business goals or

follow nuanced instructions over time," Verma said.

BY THE NUMBERS

Gartner ( IT ) predicts at least 15% of day-to-day work decisions

will be made autonomously through agentic AI by 2028, up from 0%

in 2024.

Additionally, 33% of enterprise software applications will

include agentic AI by 2028, up from less than 1% in 2024.