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90% of AI projects fail - here are 3 ways to ensure yours doesn't

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ZDNET's key takeaways

Boards are starting to ask tougher questions about money sunk into AI.

Interrogations into the value of AI projects are an opportunity to re-focus.

Concentrate on capacity building, strong partnerships, and co-development.

The amount of money that organizations invest in AI shows no signs of abating. Worldwide spending on AI is forecast to reach $2.52 trillion in 2026, a 44% year-over-year increase, according to tech analyst Gartner.

However, there's a twist in the tale. With AI slipping into the abyss in Gartner's Hype Cycle for Emerging Technologies, boards are starting to ask tougher questions about the money spent on AI explorations, and digital and business professionals will be expected to turn dollars and cents into tangible benefits.

Also: 5 ways you can stop testing AI and start scaling it responsibly in 2026

ZDNET reported last year that several areas of AI have slipped into the Trough of Disillusionment, where interest in a technology wanes because explorations fail to deliver promised returns. That's exactly where generative AI finds itself right now, with hype fading and business leaders questioning the ROI.

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