
Gartner says 40% of agentic AI projects will be canceled by 2027. The technology works. The governance, infrastructure, and measurement don't.

The AI industry stopped asking 'what can it do?' and started asking 'does it work in production?' The hype hangover is here, and pragmatism is what survives it.

Enterprises average 3.7 failed agent pilots before their first successful production deployment. The pattern of failure is predictable, and so is the path to getting it right.

The biggest shift in enterprise AI isn't a new frontier model. It's organizations discovering that smaller, cheaper models running on their own hardware solve most of the problems they actually have. The SLM market is projected to hit $20.7B by 2030, and the deployments are already happening.

The enterprise AI market is very good at spending and very bad at deploying. 86% are increasing budgets. Only 6% have shipped agentic AI to production.

The dangerous failure mode is not AI doing something wrong loudly. It is AI doing something subtly wrong and nobody catching it for weeks.