AI StrategyFailure AnalysisManagement
Why 80% of AI Projects Fail (And How to Fix It)
2026-01-07•Yash Rawat
Gartner predicts 80% of AI projects will fail to deliver ROI. Why? Because companies treat AI as a "feature" to plug in, rather than an "operations layer" to architect.
The "Toy Demo" Trap
It is easy to make an LLM write a poem. It is hard to make it reliably process 1,000 invoices without hallucinating. The gap between a demo and production is Architectural Governance.
Successful implementation requires moving beyond "Prompt Engineering" to "Flow Engineering"designing deterministic state machines where AI is just one node in a verified robust graph.