Gartner states that Agentic AI is currently just hype

Gartner warns 40% of agentic AI projects could fail by 2027 due to cost and practicality hurdles.

: Gartner indicates significant skepticism surrounding agentic AI, labeling it as largely speculative and highlighting that many projects may fail by 2027 due to high costs and uncertain value. Although marketed as intelligent bots capable of autonomous decisions, real implementations are rare and often misrepresented through 'agent washing'—rebranding existing technologies. Despite the hype, Gartner's survey reveals only 19% of companies are making major investments, with 42% taking cautious approaches. However, Gartner predicts that by 2028, AI agents could still play a role in decision-making, aligning this technology with enterprise software tools.

Gartner has issued a warning that agentic AI, which refers to autonomous systems capable of making decisions aligned with user goals, is currently more hype than reality. Despite being promoted as the next major leap in artificial intelligence, most implementations lack maturity, clear value, and practical use cases. Gartner predicts that over 40 percent of these projects will be canceled by the end of 2027 due to high costs, unclear ROI, and technical complexity.

Many companies are engaging in what Gartner calls "agent washing"—relabeling traditional tools like chatbots and automation software as agentic AI to ride the wave of enthusiasm. In a survey of over 3,400 professionals, only 19 percent reported significant investment in agentic AI, while most adopted a cautious or wait-and-see stance. Only about 130 agentic systems assessed by Gartner demonstrated genuine autonomous capabilities.

The hype is being fueled by large tech companies promising AI agents that can browse the web, configure software, or act on behalf of users. However, most current deployments are limited to demos and early-stage experiments, often struggling to function in real-world scenarios. These systems frequently become a burden rather than a benefit due to high implementation demands and a lack of strategic fit.

Despite the skepticism, Gartner maintains that agentic AI could eventually deliver real value. They forecast that by 2028, such AI will be responsible for at least 15 percent of daily business decisions and integrated into a third of enterprise software, up from just one percent in 2024. The key lies in careful deployment, strategic alignment, and avoiding rushed adoption.

Leaders are advised to critically evaluate agentic AI proposals, ensuring alignment with business goals and preparing teams for change. Success depends on reengineering workflows and realistically assessing the capabilities of current AI tools instead of over-relying on marketing claims.

Sources: TechSpot, Reuters, Gartner, SD Times, The Stack

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