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Why AI Projects Fail and How to Fix Them: Avoiding the Proof-of-Concept Graveyard

Arpine Kozmanyan, Tamara Babaian, Chinar Movsisyan

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Source: Crossref

Published: Jan 1, 2026

DOI: 10.2139/ssrn.7662838

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Source abstract

A large share of AI/ML projects fail to progress from pilot to successful production deployment. We analyzed root causes of setbacks in reaching successful productionization across over 150 projects. We identify and discuss four systemic risks: overlooking key requirements and costs, missing the business objective in the problem definition, setting up model development misaligned with production conditions, and ignoring post-deployment monitoring. Recommended strategies for overcoming these risks are guided by a Risk Mitigation Checklist validated on end-to-end project trajectories. 

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