Nearly half of new business artificial intelligence projects are abandoned midway, a study conducted by international law firm DLA Piper finds. The study of 600 executives suggests that although more than 40 percent of organizations fear that their core business models will become obsolete unless they adopt AI technologies, 48 percent of the companies that embarked on AI projects have been forced to pause or rollback them.
The primary reasons for these setbacks include concerns over data privacy (48 percent), issues related to data ownership and inadequate regulatory frameworks (37 percent), customer apprehensions (35 percent), the emergence of new technologies (33 percent), and employee concerns (29 percent).
That statistic will seem congruent with other estimates that as many as 70 percent of information technology projects fail.
Study/Report | Key Findings |
Standish Group’s Annual CHAOS Report (2020) | 66% of technology projects end in partial or total failure. Large projects are successful less than 10% of the time. |
McKinsey (2020) | 17% of large IT projects go so badly that they threaten the very existence of the company. |
Boston Consulting Group (BCG) (2020) | 70% of digital transformation efforts fall short of meeting their targets. |
Consortium for IT Software Quality (CISQ) (2020) | The total cost of unsuccessful development projects among US firms is estimated at $260 billion, with operational failures caused by poor quality software costing $1.56 trillion. |
KPMG Technology Survey (2023) | 51% of US technology executives reported no increase in performance or profitability from their digital transformation investments in the past two years. |
Soren Lauesen (2020) | Identified 37 root causes and 22 potential cures for IT project failures, emphasizing poor project management, cost estimation, and requirements. |
No comments:
Post a Comment