• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
AIFailure

‘AI fatigue’ is settling in as companies’ proofs of concept increasingly fail. Here’s how to prevent it 

Sage Lazzaro
By
Sage Lazzaro
Sage Lazzaro
Contributing writer
Down Arrow Button Icon
Sage Lazzaro
By
Sage Lazzaro
Sage Lazzaro
Contributing writer
Down Arrow Button Icon
June 11, 2025, 6:00 AM ET
Illustration by Simon Landrein

AI experimentation inside companies has been moving swiftly, but it’s not always going smoothly. The share of companies that scrapped the majority of their AI initiatives jumped from 17% in 2024 to 42% so far this year, according to analysis from S&P Global Market Intelligence based on a survey of over 1,000 respondents. Overall, the average company abandoned 46% of its AI proofs of concept rather than deploying them, according to the data. 

Against the backdrop of more than two years of rapid AI development and the pressure that has come with it, some company leaders facing repeated AI failures are starting to feel fatigued. Employees are feeling it, too: According to a study from Quantum Workplace, employees who consider themselves frequent AI users reported higher levels of burnout (45%) compared to those who infrequently (38%) or never (35%) use AI at work. 

Failure is of course a natural part of R&D and any technology adoption, but many leaders describe feeling a heightened sense of pressure surrounding AI compared to other technology shifts. At the same time, weighty conversations about AI are unfolding far beyond the workplace as AI takes center stage everywhere from schools to geopolitics. 

“Anytime [that] a market, and everyone around you, is beating you over the head with a message on a trending technology, it’s human nature—you just get sick of hearing about it,” said Erik Brown, the AI and emerging tech lead at consulting firm West Monroe.

Failure and pressure drive “AI fatigue”

In his work supporting clients as they explore implementing AI, Brown has observed a significant trend of clients feeling “AI fatigue” and becoming increasingly frustrated with AI proof of concept projects that fail to deliver tangible results. He attributes a lot of the failures to businesses exploring the wrong use cases or misunderstanding the various subsets of AI that are relevant for a job—for example, jumping on large language models (LLMs) to solve a problem because they’ve become popular, when machine learning or another approach would actually be a better fit. The field itself is also evolving so rapidly and is so complex that it creates an environment ripe for fatigue. 

In other cases, the pressure and even excitement about the possibilities can cause companies to take too-big swings without fully thinking them through. Brown describes how one of his clients, a massive global organization, corralled a dozen of its top data scientists into a new “innovation group” tasked with figuring out how to use AI to drive innovation in their products. They built a lot of really cool AI-driven technology, he said, but struggled to get it adopted because it didn’t really solve core business issues, causing a lot of frustration around wasted effort, time, and resources.

“I think it’s so easy with any new technology, especially one that’s getting the attention of AI, to just lead with the tech first,” said Brown. “That’s where I think a lot of this fatigue and initial failures are coming from.”

Eoin Hinchy, cofounder and CEO of workflow automation company Tines, said his team had 70 failures with an AI initiative they were working on over the course of a year before finally landing on a successful iteration. The main technical challenge was around ensuring the environment they were building for the company’s clients to deploy LLMs would be sufficiently secure and private, so they absolutely had to get it right.

“There were certainly moments when we felt like we’d cracked it and, yes, this is it. This is the feature that we need. This is going to be the big-step change—only for us to realize, actually, no, we need to go back to the drawing board,” he said.

Aside from the team that was actually working out the technical solutions, Hinchy said other parts of the organization were also fatigued by the ups and downs. The go-to-market team in particular was trying to do its job in a competitive sales environment where other vendors were releasing similar offerings, yet the pace of getting to the finalized product was out of their hands. Aligning the product and sales team turned out to be the biggest challenge from an organizational standpoint, said Hinchy. 

“There had to be a lot of pep talks, dialogue, and reassurance with the engineers, product team, and our sales folks saying all this blood, sweat, and tears up front in this unglamorous work will be worth it in the end,” he said.

Let functional teams take charge

At cybersecurity company Netskope, chief information security officer James Robinson has felt his fair share of disappointment, describing feeling underwhelmed by agents that failed to deliver on various technical tasks and other investments that didn’t deliver after he got his hopes up. But while he and his engineers have largely stayed motivated by their own inner desires to build and experiment, the company’s governance team is really feeling the fatigue. Their to-do lists often read like work that’s already been completed as they have to race to keep up with approving new efforts, the latest AI tool a team wants to adopt, and everything in between. 

In this case, the solution was all in the process. The company is removing some of the burden by asking specific business units to handle the initial governance steps and setting clear expectations for what needs to be done before approaching the AI governance committee. 

“One of the things that we’re really pushing on and exploring is ways we can put this into business units,” said Robinson. “For instance, with marketing or engineering productivity teams, let them actually do the first round of review. They’re more interested and more motivated for it, honestly, so let them take that review. And then once it gets to the governance team, they can just do some specific deep-dive questions and we can make sure the documentation is done.”

The approach mirrors what West Monroe’s Brown said ultimately helped his client recover from its failed “innovation lab” effort. His team suggested going back to the business units to identify some key challenges and then seeing which might be best suited for an AI solution. Then they broke into smaller teams that included input from the relevant business unit throughout the process, and they were able to experiment and build a prototype that proved AI could help solve one of those problems within a month. Another month and a half later, the first release of that solution was deployed.

Overall, his advice for preventing and overcoming AI fatigue is to start small. 

“There are two things you can do that are counterproductive: One is to just succumb to the fear and do nothing at all, and then eventually your competitors will overtake you. Or you can try to do too much at once or not be focused enough in how you experiment [with] embedding AI in various parts of your business, and that’s going to be overwhelming as well,” he said. “So take a step back, think through in what types of scenarios you can experiment with AI, break into smaller teams in those functional areas, and work in small chunks with some guidance.”

The point of AI, after all, is to help you work smarter, not harder.

Explore more stories from Fortune AIQ, a new series chronicling how companies at the front lines of the AI revolution are navigating the technology’s real-world impact.

About the Author
Sage Lazzaro
By Sage LazzaroContributing writer

Sage Lazzaro is a technology writer and editor focused on artificial intelligence, data, cloud, digital culture, and technology’s impact on our society and culture.

See full bioRight Arrow Button Icon

Latest in AI

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Leadership
  • Success
  • Tech
  • Asia
  • Europe
  • Environment
  • Fortune Crypto
  • Health
  • Retail
  • Lifestyle
  • Politics
  • Newsletters
  • Magazine
  • Features
  • Commentary
  • Mpw
  • CEO Initiative
  • Conferences
  • Personal Finance
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Most Popular

placeholder alt text
North America
Gates Foundation plans to give away $9 billion in 2026 to prepare for the 2045 closure while slashing hundreds of jobs
By Sydney LakeJanuary 23, 2026
2 days ago
placeholder alt text
Europe
Denmark offered to trade Greenland to the U.S. in 1910—and America thought it was crazy
By Steven Lamy and The ConversationJanuary 22, 2026
4 days ago
placeholder alt text
Success
Apple cofounder Ronald Wayne sold his 10% stake for $800 in 1976—today it’d be worth up to $400 billion
By Preston ForeJanuary 23, 2026
2 days ago
placeholder alt text
Personal Finance
Sweden abolished its wealth tax 20 years ago. Then it became a 'paradise for the super-rich'
By Miranda Sheild Johansson and The ConversationJanuary 22, 2026
4 days ago
placeholder alt text
C-Suite
Jamie Dimon’s reality check for ambitious workers: ‘There’s going to be a grunt part to every part of a job. Get over it’
By Jake AngeloJanuary 23, 2026
2 days ago
placeholder alt text
Success
Nvidia CEO Jensen Huang says ‘a lot’ of six-figure jobs in plumbing and construction are about to be unlocked because someone needs to build all these new AI centers
By Preston ForeJanuary 21, 2026
5 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.


Latest in AI

AIRecruiting
Silicon Valley talent keeps getting recycled, so this CEO uses a ‘moneyball’ approach for uncovering hidden AI geniuses in the new era
By Sydney LakeJanuary 25, 2026
13 hours ago
AIthe future of work
Meet a 70-year-old Home Depot store associate who uses AI on his phone about once an hour: ‘I think my job would suffer if I couldn’t’
By Matt O'Brien, Linley Sanders and The Associated PressJanuary 25, 2026
14 hours ago
lakehouse
AIConsulting
Inside KPMG’s Orlando Lakehouse: the $450 million Covid boondoggle that’s becoming a secret weapon for the AI revolution
By Nick LichtenbergJanuary 25, 2026
17 hours ago
Meta CEO Mark Zuckerberg in Menlo Park, California on Sept. 17, 2025. (Photo: David Paul Morris/Bloomberg/Getty Images)
AIData centers
Why Meta is positioning itself as an AI infrastructure giant—and doubling down on a costly new path
By Sharon GoldmanJanuary 24, 2026
2 days ago
IMF managing director Kristalina Georgieva speaks to reporters outside during the 2026 World Economic Forum in Davos, Switzerland.
LawEconomics
AI productivity gains are making the rich richer, and they’ll wipe out jobs—but the IMF chief sees a silver lining for low-wage workers
By Tristan BoveJanuary 24, 2026
2 days ago
Dario Amodei looking up
AIAnthropic
Anthropic’s head of Claude Code on how the tool won over non-coders—and kickstarted a new era for software engineers
By Beatrice NolanJanuary 24, 2026
2 days ago