Artificial Intelligence

Why AI Projects Stall (and How to Break Through the Hype Gap)

By Anil Kundha

Despite record AI investment, most projects stall at pilot. The problem isn’t the models, it’s the foundation. See how Concord and Databricks help you scale.

Despite record investment in AI, many companies are still struggling to deliver business value from their initiatives. The promise is real, but so is the frustration.

You might have an AI use case scoped. Maybe even a model trained. But putting it into production? Scaling it? Proving ROI to leadership?

That’s where things fall apart. Industry estimates suggest that as many as 70-85% of AI projects never reach successful deployment, a failure rate considerably higher than that of traditional IT projects. Gartner likewise predicts a large chunk of experimental AI initiatives will be abandoned after proof-of-concept.

It’s common for AI projects to stall. Not because the technology isn’t ready, but because the organization isn’t. Data bottlenecks, siloed teams, governance gaps, and immature infrastructure make it difficult to move from experimentation to execution.

The good news? With the right architecture and operating model, AI doesn’t just scale, it transforms how your business works.

The AI Hype Gap Between Strategy and Execution

Nearly every organization today claims to be “doing AI.” They’re running proofs-of-concept, fine-tuning models, and launching GenAI pilots. But few are actually deploying these solutions at scale.

Why? Because most companies underestimate the complexity of operationalizing AI in the enterprise.

Consider these common blockers:

1. Data Readiness Isn’t There

AI is only as strong as the data behind it. And most enterprise data ecosystems weren’t built with AI in mind.

Teams are dealing with:

  • Fragmented sources and inconsistent formats
  • Manual data prep and wrangling
  • Outdated pipelines and poor lineage
  • Missing metadata and lack of observability

This slows everything down and undermines trust in the outputs.

2. Model Accuracy Isn’t Enough

Data science teams often optimize for accuracy. But in the real world, that’s not the only metric that matters. While model accuracy remains a key metric, the focus has shifted towards a broader concept of AI trustworthiness and reliability. An accurate model that is not trusted by users or is not resilient in the face of real-world complexities is of little

Key considerations now include models that are:

  • Deployable in production
  • Governed and auditable
  • Reliable under edge cases
  • Designed with ethical considerations and bias mitigation
  • Connected to live business processes

An accurate model that never makes it into production delivers zero business value.

3. Governance Is an Afterthought

AI introduces new layers of risk: regulatory compliance, IP leakage, ethical concerns, explainability gaps…

Without a governance model that covers data , models and prompts, organizations face mounting exposure – and internal resistance to AI adoption.

The key pillars of modern AI governance include:

  • Unified Governance for Data, Models, and Prompts
  • Proactive Risk Management
  • Centralized Catalogs and Lineage

4. Teams Are Out of Sync

AI projects often fail not because of bad models, but because of poor collaboration. Data scientists, IT, analysts, and business stakeholders operate on different timelines, tools, and success metrics.

This misalignment shows up as:

  • Slow handoffs
  • Failed integrations
  • Lack of accountability
  • Unclear business ownership

Smart companies fix the people problem before throwing more tech at it.

From Lab to Launch: Why Databricks Is Built for AI at Scale

At Concord, we help organizations overcome these hurdles by building AI foundations that are scalable, governed, and enterprise-ready.

That’s why we partner with Databricks.

Databricks offers a unified platform that integrates data engineering, ML development, GenAI workflows, and governance – all in one collaborative environment It solves the foundational problems that cause most AI projects to stall:

Unified Data + AI Stack

Databricks breaks down silos between data engineering, analytics, and ML by unifying them on a single lakehouse platform. This reduces latency, duplication, and complexity so teams can move faster with confidence.

  • Data Lake + Lakehouse Federation: Real-time, governed access to structured and unstructured data across cloud and on-prem systems.
  • Lakebase: An AI-native transactional engine that supports real-time apps and OLTP-style workloads, without duplicating your data.

Production-Grade ML + GenAI

Databricks simplified the full AI lifecycle, from data prep to deployment.

  • MLflow: Open-source experiment tracking, model registry, and CI/CD for machine learning.
  • Mosaic AI: Tools for building and managing LLM-based apps, including observability, chaining, and vector search.
  • Agent Bricks: Composable GenAI workflows that automate retrieval, summarization, and decision-making inside Databricks.

These capabilities help teams move beyond notebooks and prototypes and build real, reliable applications.

Governance Built for AI

Governance isn’t bolted on, it’s baked in.

This makes Databricks especially valuable for regulated industries like healthcare, finance, and retail.

Developer Experience That Scales

AI systems are software systems. And Databricks treats them that way.

  • Git-backed workflows
  • Environment branching for testing
  • Automated retraining pipelines
  • Natural language SQL for business users

This reduces friction and allows organizations to treat ML/AI like any other part of their product stack.

Concord’s Role: From Platform to Performance

Choosing the right platform is critical, but it’s only the beginning.

Concord helps enterprise teams operationalize AI by embedding the right practices, workflows, and metrics so you don’t just build models, you build momentum.

Our AI and MLOps experts help you:

  • Align use cases to real KPIs
  • Build scalable, governed data pipelines
  • Develop deployment and retraining workflows
  • Integrate ML and GenAI into production systems
  • Train your teams and bridge talent gaps

We’ve worked with some of the largest companies in retail, finance, and healthcare to move AI out of the lab and into daily decision-making.

If your team is stuck in the pilot phase, or unsure how to scale AI responsibly, you’re not alone. We’ve helped clients at every stage of the journey – from data readiness assessments to full-scale MLOps implementations.

Together with Databricks, we’ll help you unlock your AI strategy and get results you can measure.

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