Project Management

Why do AI Projects Fail?

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Technology offers an incredible opportunity to improve project performance. This blog shares the latest research and how organizations are implementing AI into their project methodology. Come with an open mind, increase your knowledge, share your concerns, and become a project manager with new skills to offer an organization.

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There is a widely circulated claim that a Gartner report stated 85% of AI projects fail. In fact, the original Gartner press release was a forecast that from 2018 through to 2022, 85% of AI projects would deliver erroneous outcomes due to bias in the data, misaligned algorithms, or project team implementation.

Setting aside the misinterpretation, organizations that succeed in deploying AI tend to do four things differently:
· Redesign processes instead of automating bad workflows
· Provide training that explains what makes AI successful
· Establish governance to realize benefits and avoid pitfalls
· Lead change intentionally through structured change management

In my view, the most significant factor is that AI projects fail because organizations don’t incorporate AI into their project processes. It is inconsistent to expect successful AI deployment without integrating AI into the very processes that manage its implementation. AI projects do not fail because of the technology, but because organizations don’t embed AI into their project management methodology. For AI projects to succeed, organizations need to redesign project processes, provide targeted training, and reinforce governance and change management to sustain adoption.

Reference
Gartner. (2018, February 13). Gartner says nearly half of CIOs are planning to deploy artificial intelligence. Gartner Newsroom. https://www.gartner.com/en/newsroom/press-releases/2018-02-13-gartner-says-nearly-half-of-cios-are-planning-to-deploy-artificial-intelligence
Posted on: November 07, 2025 10:43 AM | Permalink

Comments (6)

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AFOLABI KAMORUDEEN AJIBOLA Lagos, LA, Nigeria
I agree that for AI projects to succeed, organizations need to redesign project processes, provide targeted training, and reinforce governance and change management to sustain adoption

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Luis Branco CEO| Business Insight, Consultores de Gestão, Ldª Carcavelos, Lisboa, Portugal
This article gets it exactly right
The 85% failure claim was never about projects collapsing, but about erroneous outcomes caused by bias and weak governance, as Gartners 2018 forecast clearly stated.

The authors central insight is crucial: AI projects fail not because of AI, but because organizations dont embed AI into the very processes that manage AI.

This aligns perfectly with todays evolution toward AI-augmented project ecosystems, where cognitive tools are integrated into planning, risk, learning, and ethical decision-making cycles.

The future of project management isnt AI managing projects, its projects that manage with AI, coherently and regeneratively.

As the Gartner report and modern frameworks (PMI, WEF, regenerative leadership models) all converge to show: technology succeeds only when culture, governance, and learning evolve with it.

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Aaron Porter
Community Champion
IT Director| Blade HQ Payson, UT, United States
While I've said similar things about agile, back when there was a lot more hype about agile (if you can't complete an agile transformation using agile, how can you say it's the best approach for everything?), and can see the logic in your statement about main factor in the failure of AI projects, I still go with the following as the top reasons for any kind of project failure:

- It's trying to solve the wrong problem or opportunity
- The timing is wrong
- You don't have the right people involved

Lump these together and it becomes a problem with decision-making.

In a more recent article:

https://www.gartner.com/en/newsroom/press-releases/2025-06-25-gartner-predicts-over-40-percent-of-agentic-ai-projects-will-be-canceled-by-end-of-2027

Gartner predicts that over 40% of agentic AI projects will be canceled by the end of 2027 "due to escalating costs, unclear business value or inadequate risk controls", again pointing to a problem with decision-making.

I do agree that using AI tools will help with the adoption of AI tools, but you still need to ask "Is this the right tool, for the right purpose, at the right time?" before you ask "How do we implement it?"

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Paul Boudreau President| Stonemeadow Consulting Kanata, Ontario, Canada
@Aaron. Thank you. Great observation. AI does not absolve people from taking the proper steps such as identifying areas for improvement, creating a business case, and selecting the right solution.

As for the Gartner article I hope this does not become another misinterpreted story where I get asked why 40% of Agentic AI projects fail. Its a prediction not a fact. Sometimes people confuse the two. I see a lot of movement on implementing Agentic AI for operations but not so much for projects yet.

McKinsey & Company. (2025). The state of AI: How organizations are rewiring to capture value. https://www.mckinsey.com/~/media/mckinsey/business functions/quantumblack/our insights/the state of ai/2025/the-state-of-ai-how-organizations-are-rewiring-to-capture-value_final.pdf

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Aaron Porter
Community Champion
IT Director| Blade HQ Payson, UT, United States
@Paul, I'm sure someone will ask the question - most ROM estimates for projects seem to get treated as fact, why would predictions be any different ;-). Personally, I think Gartner is being optimistic, but I don't have my own prediction or statistics to back up my opinion.

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Abolfazl Yousefi Darestani Manager, Quality and Continuous Improvement| Hörmann-TNR Industrial Doors Newmarket, Ontario, Canada
Thank you for sharing your insights.

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