Why AI Projects Fail: Lessons From New Product Development

The majority of artificial intelligence (AI) projects in business do not succeed. Despite numerous opinion pieces on the causes of these failures, there is a notable scarcity of solid research on the subject. Analysis of the available data shows that the reasons for AI failures are strikingly similar to those identified in the extensively studied field of new product development (NPD). Furthermore, effective strategies from NPD can be adapted to address AI project failures. This article identifies seven primary reasons for AI failures in business, primarily stemming from poor business practices, and offers corresponding recommendations for improvement.