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

by THEFUTURE.TEAM

June 29, 2025

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.

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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.

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Google Escalates Capital Outlay Amid Surge in Cloud Demand

by THEFUTURE.TEAM

July 25, 2025

Robust Investment Strategy To Power AI Innovation

Alphabet Inc. has significantly revised its capital spending forecast for 2025, allocating an additional $10 billion to accommodate the burgeoning demand for its Cloud services. This strategic move reflects the company’s proactive approach to expanding its infrastructure, particularly in light of the accelerated adoption of AI-powered solutions.

Expanding Infrastructure To Meet Unprecedented Demand

In its second quarter earnings report, Alphabet highlighted a sharp increase in cloud revenues—up 32% to $13.6 billion. This surge has precipitated a $106 billion service backlog, as noted by Finance Chief Anat Ashkenazi during the post-earnings call. The majority of the additional capital expenditure is earmarked for enhancing technical infrastructure, with investments focused on servers and data center networking equipment. The company’s renewed forecast now stands at approximately $85 billion in capital expenditures for 2025, up from the previously projected $75 billion.

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Strategic Expansion Amid A Tight Supply Environment

Ashkenazi pointed out the challenges posed by a tight supply environment, emphasizing that the accelerated pace of server deployments and data center construction is essential to keeping pace with client demand. As Google continues to enhance capacity quarter-by-quarter, further increased capital spending is anticipated in 2026 to capitalize on emerging growth opportunities across the organization.

Implications For Future Profitability

While these significant investments will position Google at the forefront of AI and Cloud technology, they also imply a measurable increase in expenses, potentially affecting short-term profitability. Nevertheless, this forward-looking expansion underscores Alphabet’s commitment to sustaining its competitive edge in a rapidly evolving technological landscape.