For many organizations, AI still promises a lot but delivers too little. Even though investments in AI continue to grow, extracting business value remains a struggle. Projects stall in the pilot phase, infrastructures are unfit for scaling, and concerns over data security and compliance block progress. The outcome? High costs, low impact, and AI remains a promise rather than a catalyst for business value. In this report, Enterprise Strategy Group (ESG) examines why so many AI initiatives slow down or falter, and which architectural choices are essential to making AI both successful and economically sustainable.

