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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.

FinTech’s Dominance In MENA: Three Strategic Drivers Behind Unyielding VC Success

Despite facing tightening global liquidity and macroeconomic headwinds, the FinTech sector continues to assert its leadership in the MENA region. In the first half of 2025, FinTech emerged as the most resilient and appealing arena for venture capital investments, proving its worth as a catalyst for financial innovation and inclusion.

Addressing Structural Financial Gaps

In many parts of MENA, a significant proportion of the population remains underbanked and underserved by traditional financial institutions. FinTech companies are uniquely positioned to address these persistent challenges by bridging critical access gaps and driving financial inclusion. With the proliferation of payment apps, digital wallets, and micro-lending platforms, investors have witnessed firsthand how these solutions pave the way for scalable growth and eventual exits. Early-stage momentum in the region is underscored by a doubling of pre-seed deals year-over-year, reinforcing the sector’s capacity for rapid innovation and sustainable expansion.

Highly Scalable and Replicable Business Models

One of the key factors behind FinTech’s dominance is the inherent scalability of its business models. Once the necessary infrastructure and regulatory approvals are in place, these models have demonstrated robust performance across borders. The first half of 2025 saw a marked acceleration in deal activity, with payment solutions leading the charge with 28 deals in MENA—a significant increase over the previous year. Lending platforms, in particular, experienced a meteoric 500% year-over-year increase in funding, emerging as the fastest-growing subindustry. Such replicability makes FinTech an attractive proposition for investors seeking high-growth opportunities in diverse markets.

Supportive Regulatory And Government Backing

The strategic support offered by key government initiatives in the UAE and Saudi Arabia has been instrumental in propelling the FinTech sector forward. Progressive frameworks, such as the UAE’s open finance and digital asset directives, coupled with Saudi Arabia’s live-testing sandboxes, have materially lowered entry barriers for startups. These measures not only foster innovation but also streamline the path to commercialization. Consequently, the combined efforts of these regulatory bodies have enabled the UAE and Saudi Arabia to account for 86% of MENA’s total FinTech funding in H1 2025.

The resilience of FinTech in MENA is not merely a reflection of contemporary market trends—it signals a fundamental shift in the region’s economic fabric. With an unwavering commitment to addressing real financial challenges, scalable and replicable business practices, and robust regulatory support, FinTech is setting the benchmark for sustainable innovation. As capital markets become increasingly discerning, this sector stands out as a beacon of long-term growth and transformative impact.

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