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.