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All issuesVolume 325, Issue 4IT NewsCxO

CIOs Increasingly Dump In-House POCs For Commercial AI

CIO, Wednesday, April 23rd, 2025

High failure rates and low returns of homegrown AI pilots are accelerating a shift to commercial, off-the-shelf solutions as software vendors roll more AI functionality into their products.

After thousands of AI proof-of-concept projects have died on the vine, many organizations are scaling back internal efforts in favor of adopting commercial, off-the-shelf AI tools.

About half of companies surveyed by Gartner in late 2023 were developing their own AI tools, but the number fell to about 20% at the end of 2024, says John-David Lovelock, a vice president and analyst at Gartner.

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