Most AI projects don't fail because of a bad model, but because of a missing path to production. Companies underestimate what it takes in terms of data quality, governance and internal ownership to turn a working prototype into a reliable system.
Based on interviews with 65 experienced data scientists and engineers, RAND concluded in 2024 that more than 80% of AI projects fail. That's not an incident. That's a pattern.
"The 95% failure rate for enterprise AI solutions represents the clearest manifestation of the GenAI Divide", according to the MIT report. What stands out: companies that buy AI tools and partner with specialized vendors have a 67% success rate according to the same research, versus 33% for building everything in-house. Wanting to build it all yourself sounds ambitious. In practice, it's mostly expensive and slow.