Agentic AI, often described as the next phase following generative AI, has become a hot topic in the tech world. However, despite its promise, the technology faces challenges that could dampen its initial hype. A recent Gartner report sheds light on the hurdles that Agentic AI must overcome to achieve widespread adoption and business impact.
Also read: Identities Without a Face: Securing Enterprises in the Age of AI
According to Gartner, over 40% of Agentic AI projects are predicted to be canceled by the end of 2027 due to escalating costs, unclear business value, or inadequate risk controls. A January 2025 Gartner poll of 3,412 webinar attendees revealed mixed investment trends: 19% reported significant investments in AI agents, 42% made conservative investments, 8% made no investments, and 31% are either unsure or adopting a wait-and-see approach.
Also read: Top 5 Agentic AI Innovators in India Transforming Automation
Adding to the complexity, many vendors are accused of engaging in “agent washing”, which is rebranding existing products like AI assistants, robotic process automation (RPA), and chatbots as agentic solutions without delivering true agentic capabilities.
However, Sanjay Varnwal, CEO and Co-founder of Spyne has a contradictory opinion. In response to the report, he shared his perspective: “Every disruptive technology faces a hype cycle, the real winners are the ones who learn to surf it, not sit it out. While Gartner predicts cancellations, we see consolidation. Agentic AI will separate serious innovators from spectators by 2027. The belief that AI agents lack business value today completely misses its compounding impact. Early investments will define the market leaders of tomorrow. At Spyne, we’ve built our AI assistant to deliver immediate impact, not inflated costs. It’s built for second-hand auto dealerships to scale faster, respond instantly, and convert more, all without adding operational burden. This is not future tech. It’s business-critical now.”
