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All issuesVolume 317, Issue 2IT NewsAI

New Rand Research - Why Do AI Projects Fail?

inside AI NEWS, Wednesday, August 14th, 2024

By some estimates, 80% of AI projects fail - more than double the rate of non-AI IT projects - but why?

A group of RAND researchers investigated this issue and found five key problems leading to failure:

  • Misunderstanding or miscommunicating the problem the AI needs to solve
  • A lack of data need to adequately train an effective AI model
  • A bias toward the latest and greatest technology, rather than focusing on solving real problems for their users
  • A lack of adequate infrastructure to manage data and deploy completed AI models
  • Applying the technology to problems too difficult for AI to solve

To avoid the same pitfalls, the authors offer a handful of recommendations for both industry and academia including choosing enduring problems; focusing on the problems instead of the technology; investing in infrastructure up front; understanding AI's limitations and creating partnerships between academia and government.

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