A Survey of AI Project Failure Rates
When you think how much time, effort and money has gone into introducing artificial intelligence, how many of these projects have failed? Back in late 2017, Gartner analyst Nick Heudecker estimated that the failure rate of analytics projects was 85%. Move the calendar forward two years and there's no solid evidence proving that the failure rate has improved in any meaningful way.
Most organizations reported failures among their AI projects, with a quarter of them reporting up to a 50% failure rate.
Of the projects that didn't fail outright...
- didn't meet their goals,
exceeded their initial budgets, and
Changing project objectives are to blame for 36 percent of failed projects, but changes in the plan don't have to lead to failure.
After billions of dollars invested, IBM explores the sale of Watson Health.
But There are Successes!
What about the 20% that succeed? Well, 92% of AI success stories involved multi-disciplinary teams led by Chief AI, data, or analytics officers, and comprised of specialists such as...
- business, use case experts
- data scientists & machine learning modelers
- data engineers
- machine learning
- visualization experts (UX)
- data quality, training, and communications specialists
DecisionIQ, with an 80% success rate, has produced $16 million is savings for our clients over the last three years.
We help your company achieve a competitive advantage through AI-enabled decision-making. We help out clients choose and execute the use cases that will meet business objectives. The result is improved financial performance through upgraded operational execution. We have helped our clients achieve over $16M in wins from cost savings and increased product output in just the last three years.
Our experienced consulting will accelerate your company's AI adoption with strategic and tactical solutions built on our extensive real-world experience in the challenging world of industrial IoT. Get documented strategic plans and implementation SOWs based on the realities of your organization's data maturity and internal AI skills. We also provide technical AI services and proprietary AI technology that can be used to fill in gaps in your analytics program.