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Gartner warns most generative AI projects to run over budget

Gartner forecast that more than half of generative AI projects will exceed budgets because of poor architecture choices and a lack of operational know-how. It also expects most companies seeking to build their own customised models to abandon efforts due to costs, complexity and technical debt. In its 2026 Generative AI Hype Cycle report, Gartner said none of the 30 assessed AI technologies has reached the Plateau of Productivity.