Why most AI projects fail before they launch
The failure rate for enterprise AI initiatives hovers around 70–80 percent depending on which survey you read. That number sounds alarming, but the causes are surprisingly mundane. They are not technical.
The most common cause is misaligned expectations. A board hears about a competitor's chatbot, requests "something like that," and a team spends three months building a prototype with no clear success metric. When the prototype works but doesn't move any business number, the project gets shelved.
Second on the list: data quality. Organisations assume their data is ready because it exists in a database. In practice, records are incomplete, labels are inconsistent, and the schema was designed for reporting, not for training a model. Cleaning this up takes longer than building the model itself.
Third: underestimating ongoing cost. A model in production needs monitoring, retraining, and infrastructure. The compute bill alone can surprise teams who budgeted only for the initial build.
Our advisory process addresses all three of these before any code is written. We run a structured readiness assessment, define measurable outcomes, and build a cost model that covers the first 18 months of operation.