Venture capital investments in artificial intelligence reached $131.5 billion in 2024, a notable increase of 52 percent from the previous year. AI agents, designed to perform complex tasks, have captivated the tech market. However, research demonstrates substantial shortcomings, with Google's Gemini 2.5 Pro failing to accomplish tasks 70 percent of the time. Other AI agents like OpenAI's GPT-4o and Meta's Llama-3.1-405b fared even worse, showing failure rates of over 90 percent. Projections suggest that over 40 percent of AI agent initiatives will be canceled by 2027 due to issues such as high costs and unclear benefits.
Since ChatGPT emerged in November 2022, venture capitalist investments in AI have skyrocketed, rising to $131.5 billion in 2024, an increase of 52 percent compared to 2023.
Researchers at Carnegie Mellon University released a paper showing that even the best-performing AI agent, Google's Gemini 2.5 Pro, failed to complete real-world office tasks 70 percent of the time.
OpenAI's GPT-4o, for example, had a failure rate of 91.4 percent, while Meta's Llama-3.1-405b had a failure rate of 92.6 percent.
A recent report by Gartner predicts that over 40 percent of AI agent projects initiated by businesses will be cancelled by 2027 due to out-of-control costs and vague business value.
Collection
[
|
...
]