Written by Gowtham Raj, Director at TartLabs, who leads AI development services and custom software engagements for manufacturing, logistics, and enterprise clients.
The Short Answer
Choose the partner who can answer twelve plain questions about problem definition, data, delivery, risk and ownership with specifics instead of slogans. The research on failed AI projects points to the same place. RAND's interviews with 65 experienced data scientists and engineers most often pointed to organisational causes rather than the model itself, starting with stakeholders who misunderstand or miscommunicate what problem AI is meant to solve. A good partner pushes on that before they quote.
The twelve questions below are the ones we would want a buyer to ask us. Each comes with what a strong answer sounds like and what should make you wary.
Key Takeaways
- RAND's 2024 report cites estimates that more than 80 percent of AI projects fail, twice the failure rate of non-AI IT projects, and names five root causes, most of them organisational.
- Gartner predicts over 40% of agentic AI projects will be canceled by the end of 2027 because of escalating costs, unclear business value or inadequate risk controls.
- Gartner also estimates only about 130 of the thousands of agentic AI vendors are real, because many rebrand chatbots and RPA as "agents."
- MIT's NANDA report, as reported by Fortune in August 2025, found purchased or partnered AI tools succeeded about 67% of the time, while internal builds succeeded "only one-third as often" (the report's own wording, on different bases).
- Ask for specifics. A partner who cannot name a metric, a data source and a handover plan has not scoped your project yet.
Every figure above is sourced in the sections below. Our own opinions are labelled as such.
Why the Choice of Partner Matters
Three sources frame the risk, and they measure different things, so read them side by side rather than averaging them.
| Source | Finding | What it measures |
|---|---|---|
| RAND (13 August 2024) | "More than 80 percent of AI projects fail" by some estimates |




