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    Home»Artificial Intelligence»Why AI Projects Fail | Towards Data Science
    Artificial Intelligence

    Why AI Projects Fail | Towards Data Science

    FinanceStarGateBy FinanceStarGateJune 7, 2025No Comments7 Mins Read
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    are notoriously troublesome to design and implement. Regardless of the hype and the flood of latest frameworks, particularly within the generative AI house, turning these tasks into actual, tangible worth stays a severe problem in enterpriss.

    Everybody’s enthusiastic about AI: boards need it, execs pitch it, and devs love the expertise. However right here’s the very arduous fact: AI tasks don’t simply fail like conventional IT tasks, they fail worse. Why? As a result of they inherit all of the messiness of standard software program tasks plus a layer of probabilistic uncertainty that almost all orgs aren’t able to deal with.

    If you run an AI course of, there’s a sure degree of randomness concerned, which implies it could not produce the identical outcomes every time. This provides an additional layer of complexity that some organizations aren’t prepared for.

    When you’ve labored in any IT challenge, you’ll keep in mind the most typical points: unclear necessities, scope creep, silos or misaligned incentives.

    For AI tasks, you possibly can add to the record: “We’re not even certain this factor works the identical method each time” and also you’ve bought an ideal storm for failure.

    On this weblog publish, I’ll share a few of the most typical failures we’ve encountered over the previous 5 years at DareData, and how one can keep away from these frequent pitfalls in AI tasks.


    1. No Clear Success Metric (Or Too Many)

    When you ask, “What does success appear to be for this challenge?” and get ten completely different solutions, or worse, a shrug, that’s an issue.

    A machine studying challenge with no sharp success metric is simply costly endeavor. And no, “make a course of smarter” shouldn’t be a metric.

    Some of the frequent errors I see in AI tasks is making an attempt to optimize for accuracy (or different technical metric) whereas making an attempt to optimize for price (decrease price attainable, for instance in infrastructure). Sooner or later within the challenge, you could want to extend prices, whether or not by buying extra knowledge, utilizing extra highly effective machines, or for different causes — and this have to be executed to enhance mannequin efficiency. That is clearly not an instance of price optimization.

    In actual fact, you often want one (perhaps two) key metrics that map tightly to Business influence. And in case you have multiple success metric, ensure you have a precedence between them.

    Find out how to keep away from it:

    • Set a transparent hierarchy of success metrics earlier than the challenge begins, agreed by all stakeholders concerned
    • If stakeholders can’t agree on the aforementioned hierarchy, don’t begin the challenge.

    2. Too Many Cooks

    Too many success metrics are usually tied with the “too many cooks” downside.

    AI tasks appeal to stakeholders, and that’s cool! It simply exhibits that persons are enthusiastic about working with these applied sciences.

    However, advertising and marketing desires one factor, product desires one other, engineering desires one thing else fully, and management simply desires a demo to indicate buyers or show-off to opponents.

    Ideally, you must determine and map the important thing stakeholders early within the challenge. Most profitable tasks have one or two champion stakeholders, people who’re deeply invested within the end result and may drive the initiative ahead.

    Having greater than that may result in:

    • conflicting priorities or
    • diluted accountability

    and none of these situations are constructive.

    With out a sturdy single proprietor or decision-maker, the challenge turns right into a Frankenstein’s monster, stitched collectively on final minute requests or options that aren’t related for the massive purpose.

    Find out how to keep away from it:

    • Map the related determination stakeholders and customers.
    • Nominate a challenge champion that has the flexibility to have a final name on challenge choices.
    • Map the interior politics of the group and their potential influence on decision-making authority within the challenge.

    3. Caught in Pocket book La-La Land

    A Python pocket book shouldn’t be a product. It’s a analysis / training instrument.

    A Jupyter proof-of-concept operating on somebody’s pc shouldn’t be a manufacturing degree structure. You possibly can construct an attractive mannequin in isolation, but when nobody is aware of methods to deploy it, you then’ve constructed shelfware.

    Actual worth comes when fashions are half of a bigger system: examined, deployed, monitored, up to date.

    Fashions which might be constructed beneath MLops frameworks and which might be built-in with the present firms methods are necessary for reaching profitable outcomes. That is specifically essential in enterprises, which have tons of legacy methods with completely different capabilities and options.

    Find out how to keep away from it:

    • Be sure you have engineering capabilities for correct deployment within the group.
    • Contain the IT division from the beginning (however don’t allow them to be a blocker).

    4. Expectations Are a Mess (AI Tasks At all times “Fail”)

    Most AI fashions will likely be “incorrect” a part of the time. That’s why these fashions are probabilistic. But when stakeholders predict magic (for instance, 100% accuracy, real-time efficiency, instantaneous ROI) each respectable mannequin will really feel like a letdown.

    Though the present “conversational” facet of most AI fashions appeared to have improved customers confidence in AI (if incorrect data is handed by way of textual content, individuals appear pleased with it 😊), the overexpectation of fashions efficiency is a major explanation for failure of AI tasks.

    Corporations creating these methods share accountability. It’s important to speak clearly that every one AI fashions have inherent limitations and a margin of error. It’s specifically essential to speak what AI can do, what it will probably’t, and what success truly means. With out that, the notion will all the time be failure, even when technically it’s a win.

    Find out how to keep away from it:

    • Don’t oversell AI’s capabilities
    • Set real looking expectations early.
    • Outline success collaboratively. Agree with stakeholders on what “ok” appears to be like like for the precise context.
    • Use benchmarks fastidiously. Spotlight comparative enhancements (e.g., “20% higher than present course of”) moderately than absolute metrics.
    • Educate non-technical groups. Assist decision-makers perceive the character of AI—its strengths, limitations, and the place it provides worth.

    5. AI Hammer, Meet Each Nail

    Simply because you possibly can slap AI on one thing doesn’t imply you must. Some groups attempt to drive machine studying into each product function, even when a rule-based system or a easy heuristic could be sooner, cheaper, higher. And it might most likely encourage extra confidence from customers.

    When you overcomplicate issues by layering AI the place it’s not wanted, you’ll possible contribute to a bloated, fragile system that’s more durable to take care of, more durable to elucidate, and finally underdelivers. Worse, you would possibly erode belief in your product when customers don’t perceive or belief the AI-driven choices.

    Find out how to keep away from it:

    • Begin with the only resolution. If a rule-based system works, use it. AI needs to be an speculation, not the default.
    • Prioritize explainability. Easier methods are sometimes extra clear, and that may be a function.
    • Validate the worth of AI. Ask: Does including AI considerably enhance the result for customers?
    • Design for maintainability. Each new mannequin provides complexity. Be sure you have the assets wanted to take care of the answer.

    Remaining Thought

    AI tasks usually are not simply one other taste of IT, they’re a unique beast fully. They mix software program engineering with statistics, human habits, and organizational dynamics. That’s why they have a tendency to fail extra spectacularly than conventional tech tasks.

    If there’s one takeaway, it’s this: success in AI isn’t concerning the algorithms. It’s about readability, alignment, and execution. You could know what you’re aiming for, who’s accountable, what success appears to be like like, and methods to transfer from a cool demo to one thing that really runs within the wild and delivers worth.

    So earlier than you begin constructing, take a breath. Ask the robust questions. Do we actually want AI right here? What does success appear to be? Who’s making the ultimate name? How will we measure influence?

    Getting these solutions early gained’t assure success, however it should make failure loads much less possible.

    Let me know if you understand some other frequent the reason why AI tasks fail! If you wish to focus on these subjects be happy to electronic mail @ [email protected]



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