AI adoption projects keep failing, but enterprise ‘FOMO’ means investment is still rising

While investment in AI is accelerating, projects are often failing, with organizations struggling to find real value.

Analysis from software firm Orgvue found that spending on AI continues to rise sharply. Around 92% of firms in the US, UK, Canada, and Australia invested in the technology over the last year, marking three consecutive years of spending growth.

Meanwhile, 83% plan to increase their investment this year, up from 80% in 2025 and 77% in 2024, while the share of organizations that have already upped investment by 50% or more rose from 27% last year to 32%.

Their reasons are rather shaky, however. More than half (57%) said they'd deployed AI mainly because their competitors had, rather than because they actually had a strategy for it.

While 65% said they expect AI to lead to changes in the workforce in the next 12 months, 34% said they lack the expertise to manage this change, up from 39% in 2024.

More than one-quarter (26%) noted that structural issues are barriers to organizational readiness, the same as last year.

Perhaps because of this, 78% of organizations have had AI projects either fail (35%) or remain stuck in the pilot stage.

AI adoption needs a clear roadmap

Expectations are tightening, according to Orgvue. Around 84% told the firm their organization needs an AI roadmap with clear targets for return on investment.

Choosing the right tools and solutions is also a recurring pain point for IT leaders, the study found. More than one-quarter (28%) said they fear choosing the wrong solution when deploying AI, leading to wasted investment.

23% also fear their organization will be left behind if they don’t develop a better understanding of the technology, up slightly from 2025.

To address these concerns, 44% of organizations said they have increased their learning and development budgets to make sure employees have the right training, and 49% said they are reskilling employees to prepare for AI.

52% have also committed to policies covering how AI is used in the workplace, rising from 46% in 2024.

"2024 was the year of optimism for AI, while in 2025 we saw more caution from businesses that learnt the hard way that AI deployment can go badly wrong. In 2026, we see an urgency from business leaders to begin delivering value and reshape the workforce before their competitors do," said Oliver Shaw, CEO of Orgvue.

“Rising investment shows that organizations still believe in the transformative power of AI, but few businesses are taking the time to understand their workforce structure as it is today. Failed AI deployments are not a technology problem; they’re a workforce design problem."

Still no clear direction

Despite the efforts being made, Orgvue warned enterprises aren't doing well when it comes to overcoming these challenges.

In 2025, 27% said they didn't have a clearly defined roadmap for AI, and 25% admitted they didn't understand which roles and jobs would benefit from AI.

“Too many organizations are rushing into workforce automation before they understand what they’re trying to automate. They haven’t thought through how new technology and processes will change work, the roles needed to do that work, and the skills needed to perform it," said Shaw.

“AI will not deliver long-term growth on its own. But when deployed intentionally, grounded in workforce data, role clarity, and human capability, it becomes one of the most powerful tools leaders have to shape the organisation’s future.”

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