← Back to Blog

Why 85% of AI Projects Fail and How Clean Data Can Ensure Your Success

Author(s):
No items found.
Updated on:
January 21, 2025

Table of contents

stack mentioned

No items found.

Despite considerable investment, a surprisingly large number of AI projects never make it beyond the pilot phase. 

Why do so many AI initiatives fail, and what can organizations do to bridge the gap from potential to success?

Common Failure Points in AI Initiatives

Most failures in AI projects are because of these foundational missteps rather than technical limitations. 

The following are some of the most common issues organizations face: 

Misaligned Business Objectives 

An AI effort without a well-defined problem to be solved or measurable objectives can easily falter. Many business leaders push AI projects without having a sense of what specific outcome they are trying to achieve.

Low-quality data is the bane of AI models. 

The incomplete, inconsistent, biased data all undermine AI’s effectiveness and lead to untrustworthy or even harmful results.

Over-reliance on Tools like Point Solutions

Yes, the new AI tools have a hype factor in the market, but when they’re not aligned with business objectives, these point solutions fail to deliver any meaningful output.

Talent Gaps Delay AI Initiatives

With supply so low and demand for skilled AI professionals so high, it's not a surprise that organizations are barely managing to implement and sustain their AI initiatives.

Cultural Resistance

AI is often also seen as threatening to employees, creating resistance and slowing adoption at an organizational level.

Building a Strong Foundation for AI Success

To get past these hurdles, it is time for organizations to go back to the basics of deploying AI: 

1. Align AI with the Business Strategy

Every AI project should begin with an explicit statement of goals - objectives linked to measurable business outcomes. Teams must understand how AI will solve very specific problems or unlock an opportunity.

To learn how your organization can obtain the maximum ROI for its AI initiative/s, check out our blog on cutting AI project costs.

2. Invest in Data Governance and Quality

Data is the lifeblood of AI. It requires a key focus on cleaning and validation for accuracy and consistency, besides developing governance policies to ensure security and privacy of data.

3. Foster Cross-functional Collaboration

The best AI projects require collaboration between technical and non-technical teams. Bringing together data scientists, engineers, business leaders, and domain experts helps ensure AI solutions solve real-world problems.

4. Adopt Agile Development Cycles

AI requires iterative experimentation and adaptation. Agile methodologies let teams quickly refine models, rapidly resolve issues, and easily pivot to meet emerging business needs.

5. Establish Scalable Infrastructure

Robust data infrastructure–cloud systems, data lakes, and real-time processing capabilities--is what would provide the needed scaling of AI with success.

6. Overcome Cultural Resistance

Organizations need to demystify AI and focus on how it augments rather than replaces human capabilities. Transparency and employee training can help foster trust and buy-in.

Clean Data is the Key to AI Deployment

One point that the recent CDW Executive SummIT drove home was that clean and quality data is at the heart of successful AI deployments.

In the absence of good data governance practices, AI fails to work. It has been causing instances of AI hallucinations among other errors and unreliable outcomes, said Paul Zajdel, Vice President and General Manager of Data and Analytics at CDW.

Organizations often face different issues with data quality and integration when it comes to deploying AI use cases, added Brent Blawat, AI Strategist at CDW. 

These insights underscore that, regardless of industry, the success of AI initiatives heavily depends on the integrity and cleanliness of the underlying data. Organizations must prioritize data governance and invest in processes that ensure data quality to fully leverage AI's potential and achieve meaningful, reliable results.

Next Steps for Successful AI Adoption 

AI success isn’t about having the latest tools; it’s about leveraging them intelligently to deliver measurable value.

To effectively manage and maintain clean data, consider utilizing Shakudo, an AI-powered operating system for data and AI that serves as the operating layer on top of your data infrastructure. 

Shakudo enables data teams to focus on delivering business value by simplifying data stack management and providing a fully automated DevOps experience. This ensures that your AI initiatives are built on a solid foundation of high-quality data, facilitating successful deployment and scalability.

Interested in seeing how Shakudo can streamline your data operations and enhance your AI projects? Connect with one of our experts now to see how Shakudo can scale your data and AI operations.

Whitepaper

Despite considerable investment, a surprisingly large number of AI projects never make it beyond the pilot phase. 

Why do so many AI initiatives fail, and what can organizations do to bridge the gap from potential to success?

Common Failure Points in AI Initiatives

Most failures in AI projects are because of these foundational missteps rather than technical limitations. 

The following are some of the most common issues organizations face: 

Misaligned Business Objectives 

An AI effort without a well-defined problem to be solved or measurable objectives can easily falter. Many business leaders push AI projects without having a sense of what specific outcome they are trying to achieve.

Low-quality data is the bane of AI models. 

The incomplete, inconsistent, biased data all undermine AI’s effectiveness and lead to untrustworthy or even harmful results.

Over-reliance on Tools like Point Solutions

Yes, the new AI tools have a hype factor in the market, but when they’re not aligned with business objectives, these point solutions fail to deliver any meaningful output.

Talent Gaps Delay AI Initiatives

With supply so low and demand for skilled AI professionals so high, it's not a surprise that organizations are barely managing to implement and sustain their AI initiatives.

Cultural Resistance

AI is often also seen as threatening to employees, creating resistance and slowing adoption at an organizational level.

Building a Strong Foundation for AI Success

To get past these hurdles, it is time for organizations to go back to the basics of deploying AI: 

1. Align AI with the Business Strategy

Every AI project should begin with an explicit statement of goals - objectives linked to measurable business outcomes. Teams must understand how AI will solve very specific problems or unlock an opportunity.

To learn how your organization can obtain the maximum ROI for its AI initiative/s, check out our blog on cutting AI project costs.

2. Invest in Data Governance and Quality

Data is the lifeblood of AI. It requires a key focus on cleaning and validation for accuracy and consistency, besides developing governance policies to ensure security and privacy of data.

3. Foster Cross-functional Collaboration

The best AI projects require collaboration between technical and non-technical teams. Bringing together data scientists, engineers, business leaders, and domain experts helps ensure AI solutions solve real-world problems.

4. Adopt Agile Development Cycles

AI requires iterative experimentation and adaptation. Agile methodologies let teams quickly refine models, rapidly resolve issues, and easily pivot to meet emerging business needs.

5. Establish Scalable Infrastructure

Robust data infrastructure–cloud systems, data lakes, and real-time processing capabilities--is what would provide the needed scaling of AI with success.

6. Overcome Cultural Resistance

Organizations need to demystify AI and focus on how it augments rather than replaces human capabilities. Transparency and employee training can help foster trust and buy-in.

Clean Data is the Key to AI Deployment

One point that the recent CDW Executive SummIT drove home was that clean and quality data is at the heart of successful AI deployments.

In the absence of good data governance practices, AI fails to work. It has been causing instances of AI hallucinations among other errors and unreliable outcomes, said Paul Zajdel, Vice President and General Manager of Data and Analytics at CDW.

Organizations often face different issues with data quality and integration when it comes to deploying AI use cases, added Brent Blawat, AI Strategist at CDW. 

These insights underscore that, regardless of industry, the success of AI initiatives heavily depends on the integrity and cleanliness of the underlying data. Organizations must prioritize data governance and invest in processes that ensure data quality to fully leverage AI's potential and achieve meaningful, reliable results.

Next Steps for Successful AI Adoption 

AI success isn’t about having the latest tools; it’s about leveraging them intelligently to deliver measurable value.

To effectively manage and maintain clean data, consider utilizing Shakudo, an AI-powered operating system for data and AI that serves as the operating layer on top of your data infrastructure. 

Shakudo enables data teams to focus on delivering business value by simplifying data stack management and providing a fully automated DevOps experience. This ensures that your AI initiatives are built on a solid foundation of high-quality data, facilitating successful deployment and scalability.

Interested in seeing how Shakudo can streamline your data operations and enhance your AI projects? Connect with one of our experts now to see how Shakudo can scale your data and AI operations.

Why 85% of AI Projects Fail and How Clean Data Can Ensure Your Success

Here’s why most AI projects falter and how clean data, with platforms like Shakudo, can drive your AI success.
| Case Study
Why 85% of AI Projects Fail and How Clean Data Can Ensure Your Success

Key results

About

industry

Tech Stack

No items found.

Despite considerable investment, a surprisingly large number of AI projects never make it beyond the pilot phase. 

Why do so many AI initiatives fail, and what can organizations do to bridge the gap from potential to success?

Common Failure Points in AI Initiatives

Most failures in AI projects are because of these foundational missteps rather than technical limitations. 

The following are some of the most common issues organizations face: 

Misaligned Business Objectives 

An AI effort without a well-defined problem to be solved or measurable objectives can easily falter. Many business leaders push AI projects without having a sense of what specific outcome they are trying to achieve.

Low-quality data is the bane of AI models. 

The incomplete, inconsistent, biased data all undermine AI’s effectiveness and lead to untrustworthy or even harmful results.

Over-reliance on Tools like Point Solutions

Yes, the new AI tools have a hype factor in the market, but when they’re not aligned with business objectives, these point solutions fail to deliver any meaningful output.

Talent Gaps Delay AI Initiatives

With supply so low and demand for skilled AI professionals so high, it's not a surprise that organizations are barely managing to implement and sustain their AI initiatives.

Cultural Resistance

AI is often also seen as threatening to employees, creating resistance and slowing adoption at an organizational level.

Building a Strong Foundation for AI Success

To get past these hurdles, it is time for organizations to go back to the basics of deploying AI: 

1. Align AI with the Business Strategy

Every AI project should begin with an explicit statement of goals - objectives linked to measurable business outcomes. Teams must understand how AI will solve very specific problems or unlock an opportunity.

To learn how your organization can obtain the maximum ROI for its AI initiative/s, check out our blog on cutting AI project costs.

2. Invest in Data Governance and Quality

Data is the lifeblood of AI. It requires a key focus on cleaning and validation for accuracy and consistency, besides developing governance policies to ensure security and privacy of data.

3. Foster Cross-functional Collaboration

The best AI projects require collaboration between technical and non-technical teams. Bringing together data scientists, engineers, business leaders, and domain experts helps ensure AI solutions solve real-world problems.

4. Adopt Agile Development Cycles

AI requires iterative experimentation and adaptation. Agile methodologies let teams quickly refine models, rapidly resolve issues, and easily pivot to meet emerging business needs.

5. Establish Scalable Infrastructure

Robust data infrastructure–cloud systems, data lakes, and real-time processing capabilities--is what would provide the needed scaling of AI with success.

6. Overcome Cultural Resistance

Organizations need to demystify AI and focus on how it augments rather than replaces human capabilities. Transparency and employee training can help foster trust and buy-in.

Clean Data is the Key to AI Deployment

One point that the recent CDW Executive SummIT drove home was that clean and quality data is at the heart of successful AI deployments.

In the absence of good data governance practices, AI fails to work. It has been causing instances of AI hallucinations among other errors and unreliable outcomes, said Paul Zajdel, Vice President and General Manager of Data and Analytics at CDW.

Organizations often face different issues with data quality and integration when it comes to deploying AI use cases, added Brent Blawat, AI Strategist at CDW. 

These insights underscore that, regardless of industry, the success of AI initiatives heavily depends on the integrity and cleanliness of the underlying data. Organizations must prioritize data governance and invest in processes that ensure data quality to fully leverage AI's potential and achieve meaningful, reliable results.

Next Steps for Successful AI Adoption 

AI success isn’t about having the latest tools; it’s about leveraging them intelligently to deliver measurable value.

To effectively manage and maintain clean data, consider utilizing Shakudo, an AI-powered operating system for data and AI that serves as the operating layer on top of your data infrastructure. 

Shakudo enables data teams to focus on delivering business value by simplifying data stack management and providing a fully automated DevOps experience. This ensures that your AI initiatives are built on a solid foundation of high-quality data, facilitating successful deployment and scalability.

Interested in seeing how Shakudo can streamline your data operations and enhance your AI projects? Connect with one of our experts now to see how Shakudo can scale your data and AI operations.

Request a Demo

Neal Gilmore
Get Started