GenAI hype meets harsh reality as enterprises wrestle with business case

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Nvidia, Equinix clearly making a killing over costs, confusion, and cold feet

Enterprises are still struggling with the business case for generative AI projects more than a year after the craze started, and we may have to wait until the end of 2025 to see if they're seen through to completion.

"And they're not always easy business cases to resolve. My take is that it will be a 12 to 18-month journey before we see the significant impact of that," the formerthat at least 30 percent of GenAI projects are set to be abandoned after proof of concept by the end of 2025. Gartner warned that while many organizations are looking to GenAI to transform their business models and create new opportunities, getting into the game requires substantial investment, with upfront costs alone ranging from $5 million to $20 million.:"It is really easy to waste money on generative AI," noting that"500 to 1,000 percent errors of AI cost estimates are possible."

"Our partnership with Nvidia is playing out beautifully in the context of the enterprise space," Fox-Martin told the gathering of investors at the Citi event.

 

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