Dive Brief:
- Nearly 9 in 10 companies are struggling to execute and scale AI initiatives, often resulting in project delays, according to a Civo report published last week.
- Budget constraints, skill gaps and computing availability represent the top roadblocks, the survey of 1,400 industry professionals found. Companies are also contending with regulatory concerns and infrastructure limitations.
- More than 4 in 5 organizations pointed to GPU shortages as the primary reason for delaying projects. More than one-third said delays lasted between three months and half a year.
Dive Insight:
Businesses have made inroads on their AI goals even as leaders run up against a variety of obstacles and rising disillusionment.
CIOs know not every failed or delayed project is a worst-case scenario. Hitting a roadblock can offer enterprises a chance to find a better, more cost-effective solution or path forward. But business must decide when it’s time to right the ship or let it sink.
Most businesses have chosen to double down on AI despite the challenges. CIOs honed their strategies last year, taking a closer look at adoption pace, compliance requirements and vendor promises. Gartner predicts double-digit year-over-year spending growth on software, data centers and devices driven primarily by AI upgrades.
Enterprises are also looking to introduce AI agents this year. The addition is set to raise the stakes for security and governance, but CIOs aren’t shying away. Two-thirds of organizations are exploring the use of AI agents already, according to Boston Consulting Group research.
