90% of AI projects fail - here are 3 ways to ensure yours doesn't (www.zdnet.com)

A recent analysis reveals that approximately 90% of AI projects fail to deliver value, prompting organizations to reassess their investments as global spending on AI is projected to soar to $2.52 trillion by 2026. John-David Lovelock, a VP analyst at Gartner, advocates for a strategic shift in the AI landscape, particularly during what he terms the "Trough of Disillusionment." He suggests that companies should prioritize capacity building, foster strong partnerships with tech providers, and avoid indiscriminate exploration of generative AI solutions. By focusing on these areas, organizations can more effectively navigate the complexities of AI and improve their return on investment. Lovelock emphasizes the importance of building robust AI infrastructure, which is expected to account for a significant portion of AI spending, as companies invest in AI-optimized servers to support future innovations. Strong partnerships with established technology providers are also crucial, as they can offer reliable tech solutions and support instead of risking the fate of moonshot projects. Finally, he advocates for a focused approach to exploratory projects, emphasizing the need for alignment with business outcomes, stakeholder engagement, and incentive-based pricing to foster successful collaborations. This strategic realignment can help ensure that AI initiatives transition from ambitious ideas into valuable, productivity-enhancing services.