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95% of AI Pilots Fail: New Marlabs White Paper Reveals How Top 5% Achieve Sustained ROI

ByEthan Lin

Feb 17, 2026

Marlabs, a leading AI transformation provider, today announced the availability of a new white paper, The AI Divide: Why Most AI Initiatives Fail and How the Top 5% Succeed. The paper addresses a growing enterprise challenge: rushed AI adoption leads to persistent yet avoidable pitfalls.

Download the white paper here.

Despite unprecedented investment in AI, most organizations remain trapped in what Marlabs calls the pilot trap, which is a cycle of building demos and proofs of concept that never scale or generate sustained business value. In 2025, 42% of companies abandoned most AI initiatives, up dramatically from 17% in 2024, according to S&P Global Market Intelligence.

“AI failure is rarely about the technology itself,” said Gavin Macomber, chief marketing officer at Marlabs. “Most initiatives break down because organizations rush into pilots without the right strategy, data foundations, or operating model. This paper is designed to give leaders clarity and confidence about what actually works, and how to avoid mistakes that can save time, money, and competitive advantage.”

The white paper identifies eight common, preventable reasons why AI projects fail:

1. Poor data quality and lack of AI-ready data

2. No clear strategy and hype-driven initiatives

3. Lack of clear business goals and expected ROI

4. Ownership gaps and organizational misalignment

5. Weak change management and AI readiness

6. Poor integration into workflows and systems

7. Governance, risk, and control failures

8. Talent and capability gaps

The white paper addresses a specific business crisis: “AI pilot fatigue.” The recent State of AI in Business 2025 study from MIT finds that while $40 billion has flowed into generative AI pilots and AI consulting, 95% of AI pilots fail to deliver significant impact on P&L. Companies are stuck between the pressure to innovate and the reality of failing projects.

The white paper shows that AI leaders succeed in four critical areas:

  • Align AI with Core Business Outcomes: Every initiative must deliver measurable business value with a clear path to scale
  • Build a Data-Ready AI Foundation: Treat data as a product with clear governance, quality standards, and accessibility
  • Operationalize AI Across the Enterprise: Design for production from day one using MLOps and shared infrastructure
  • Build Organizational Readiness and AI Literacy: Invest in change management, upskilling, and cross-functional governance

Availability

The AI Divide: Why Most AI Initiatives Fail and How the Top 5% Succeed is available for immediate download here. For more information, visit Marlabs AgilityAI or book a meeting with a Marlabs AI expert today.

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Ethan Lin

One of the founding members of DMR, Ethan, expertly juggles his dual roles as the chief editor and the tech guru. Since the inception of the site, he has been the driving force behind its technological advancement while ensuring editorial excellence. When he finally steps away from his trusty laptop, he spend his time on the badminton court polishing his not-so-impressive shuttlecock game.

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