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Agentic AI Projects Face Sweeping Cancellations Amid Rising Costs and Unclear Value

Recent Gartner research signals a significant industry shift: over 40 percent of agentic artificial intelligence initiatives are projected to be terminated by the close of 2027. Mounting expenses and ambiguous return on investment are driving this reassessment across the sector.

Strategic Imperatives for Tech Leaders

Industry titans, including Salesforce (CRM.N) and Oracle (ORCL.N), have embraced the potential of AI agents—autonomous systems designed to achieve goals and execute actions with minimal human intervention. These companies are investing billions to harness AI’s promise of margin expansion and cost optimization, underscoring the technology’s strategic relevance despite emerging challenges.

Clarity Amidst Agent Washing

Gartner highlights a troubling trend of “agent washing,” where providers rebrand standard AI assistants and chatbots as agentic AI solutions without delivering substantive autonomous capabilities. According to the report, a mere 130 out of thousands of agentic AI vendors truly possess the advanced functionalities expected from these systems.

Industry Voices on Early-Stage Experiments

Anushree Verma, Senior Director Analyst at Gartner, observes that many current agentic AI projects remain in the nascent stages as experiments or proofs of concept. “Most agentic AI projects right now are early stage experiments or proofs of concept that are mostly driven by hype and are often misapplied,” Verma noted. She further explained that the technology has yet to mature to a point where it can effectively autonomously manage complex business tasks or continuously follow nuanced instructions over prolonged periods.

Impact on Enterprise Operations

Forecasts indicate a significant shift in decision-making processes, with Gartner predicting that by 2028, approximately 15 percent of day-to-day work decisions will be autonomously managed by agentic AI—a leap from 0 percent in 2024. Moreover, projections suggest that 33 percent of enterprise software applications will integrate agentic AI features by 2028, up from less than 1 percent in 2024, illustrating the rapid pace of AI adoption despite the inherent challenges.

Strained Household Finances: Eurostat Data Reveals Persistent Payment Delays Across Europe and in Cyprus

Improved Financial Resilience Amid Ongoing Strains

Over the past decade, Cypriot households have significantly increased their ability to manage debts—not only bank loans but also rent and utility bills. However, recent Eurostat data indicates that Cyprus continues to lag behind the European average when it comes to covering financial obligations on time.

Household Coping Strategies and the Limits of Payment Flexibility

While many families are managing their fixed expenses with relative ease, one in three Cypriots struggles to cover unexpected costs. This delicate balancing act highlights how routine payments such as mortgage installments, rent, and utility bills are met, but precariously so, with little room for unplanned financial shocks.

Breaking Down Payment Delays Across the European Union

Eurostat reports that nearly 9.2% of the EU population experienced delays with their housing loans, rent, utility bills, or installment payments in 2024. The situation is more acute among vulnerable groups: 17.2% of individuals in single-parent households with dependent children and 16.6% in households with two adults managing three or more dependents faced payment delays. In every EU nation, single-parent households exhibited higher delay rates compared to the overall population.

Cyprus in the Crosshairs: High Rates of Financial Delays

Although Cyprus recorded a notable 19.1 percentage point improvement from 2015 to 2024 in delays related to mortgages, rent, and utility bills, the island nation still ranks among the top five countries with the highest delay rates. As of 2024, 12.5% of the Cypriot population had outstanding housing loans or rent and overdue utility bills. In contrast, Greece tops the list with 42.8%, followed by Bulgaria (18.7%), Romania (15.3%), Spain (14.2%), and other EU members. Notably, 19 out of 27 EU countries reported delay rates below 10%, with Czech Republic (3.4%) and Netherlands (3.9%) leading the pack.

Selective Improvements and Emerging Concerns

Between 2015 and 2024, the overall EU population saw a 2.6 percentage point decline in payment delays. Despite this, certain countries experienced increases: Luxembourg (+3.3 percentage points), Spain (+2.5 percentage points), and Germany (+2.0 percentage points) saw a rise in payment delays, reflecting underlying economic pressures that continue to challenge financial stability.

Economic Insecurity and the Unprepared for Emergencies

Another critical indicator explored by Eurostat is the prevalence of economic insecurity—the proportion of the population unable to handle unexpected financial expenses. In 2024, 30% of the EU population reported being unable to cover unforeseen costs, a modest improvement of 1.2 percentage points from 2023 and a significant 7.4 percentage point drop compared to a decade ago. In Cyprus, while 34.8% still report difficulty handling emergencies, this marks a drastic improvement from 2015, when the figure stood at 60.5%.

A Broader EU Perspective

Importantly, no EU country in 2024 had more than half of its population facing economic insecurity—a notable improvement from 2015, when over 50% of the population in nine countries reported such challenges. These figures underscore both progress and persistent vulnerabilities within European households, urging policymakers to consider targeted measures for enhancing financial resilience.

For further insights and detailed analysis, refer to the original reports on Philenews and Housing Loans.

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