WorkThe story, in brief

Most AI Products Fail Before They’re Built

Most AI projects fail to tie to revenue or outcomes. The problem isn't building—it's choosing what to build.

Illustration of two anonymous hands arranging task cards around an amber tool on a shared desk.
People, judgement and the changing nature of work.AI illustration by KeyNews
The KeyNews take

Why it matters

As AI tooling commoditizes, the bottleneck shifts from engineering to strategy: teams measuring success by releases rather than business impact are guaranteed to fail. Practitioners need to rethink how they justify and measure AI investments.

The key facts

8 to know
  1. Most organizations deploy predictive, generative, and agentic AI but struggle to connect investments to revenue or customer outcomes

  2. Quality of problem selection is now the primary determinant of AI product value

  3. Teams relying on release/feature/utilization metrics as success measures are at risk

  4. AI commoditization means engineering velocity is no longer a competitive differentiator

  5. Most organizations deploy predictive, generative, and agentic AI but cannot connect investments to revenue or profitability

  6. Quality of problem being solved is now the primary determinant of AI product value

  7. Teams measuring success by releases, features, or utilization are at risk of failure

  8. Source: Forrester analyst perspective (not original research with quantified failure rates)

Go to the source

Forrester Blogforrester.com

Publisher excerpt: While most organisations are deploying predictive, generative, and agentic AI, few can directly connect those investments to revenue, customer outcomes, or profitability. As AI becomes cheaper and easier to build, the quality of the problem being solved becomes the primary determinant of value.…
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