If failure is the norm, a 95% failure rate for AI projects isn’t so shocking.

Suppose that 95% of enterprise AI transformations fail. How does that compare to the failure rate of normal enterprise IT projects?

This might seem like a silly question for those unfamiliar with enterprise AI projects – whatever the failure rate, surely it can’t be close to 95%! Well. In 2016, Forbes interviewed the author of another study very much like the NANDA report, except about IT transformations in general, and found an 84% failure rate. McKinsey has only one in 200 IT projects coming in on time and within budget. The infamous 2015 CHAOS report found an 61% failure rate, going up to 98% for “large, complex projects”. Most enterprise IT projects are at least partial failures.

Also, he says the survey is a touch weird.

🔗 Is it worrying that 95% of AI enterprise projects fail?