Why is Gartner suggesting AI is in the "Trough of Disillusionment"?

Gartner indicates that many generative AI projects are currently in the "Trough of Disillusionment" because they are failing to deliver the expected returns, leading to waning interest.

What are the three key areas Gartner recommends for AI investment through 2026?

Gartner recommends focusing on capacity building, strong partnerships, and co-development to ensure AI investments yield tangible benefits and improve ROI.

How can organizations improve their AI ROI according to Gartner?

Organizations can improve AI ROI by focusing on defined business outcomes, leveraging technology partner capabilities, and exploring value-based or outcome-based pricing models, including co-development.

Home / Technology / AI's Trough of Disillusionment: A Chance for Smarter Spending

AI's Trough of Disillusionment: A Chance for Smarter Spending

18 Feb

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Summary

Organizations must shift focus from exploratory AI to tangible benefits.
Gartner suggests capacity building, partnerships, and co-development are key.
Gen AI projects often fail to deliver value, necessitating a strategic approach.

AI's Trough of Disillusionment: A Chance for Smarter Spending

Worldwide AI spending is projected to reach $2.52 trillion in 2026, yet many generative AI projects are currently in Gartner's "Trough of Disillusionment," failing to deliver expected returns. This phase, characterized by waning interest, presents an opportunity for businesses to re-evaluate their AI investments and focus on practical outcomes.

Experts like John-David Lovelock from Gartner advocate for a more grounded approach. He suggests that AI "slipping into the ditch" allows for careful consideration of investments, moving away from "moonshot projects" that often fail. Indeed, MIT research indicates 95% of generative AI projects do not deliver value.