Gartner recently revealed a new report where it predicted that by the end of 2027, over 40% of agentic AI projects will be canceled. Factors contributing to this decline include escalating costs, unclear business value, and inadequate risk controls. According to the analyst firm, one trend it is seeing is that vendors are hyping up AI agents by “agent washing,” or rebranding existing products like AI assistants, RPA, or chatbots without actually adding substantial agentic capabilities. The company estimates that of the thousands of agentic AI vendors out there, only about 130 of them are real and delivering on their promises. “Most agentic AI projects right now are early stage experiments or proof of concepts that are mostly driven by hype and are often misapplied,” said Anushree Verma, senior director analyst at Gartner. “This can blind organizations to the real cost and complexity of deploying AI agents at scale, stalling projects from moving into production. They need...
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