IT & AI series · Episode 4

The POC syndrome: why 80% of AI projects fail

How to cross the gap between an AI prototype and secure production.

By Fakhri Essedik · · 2 min read

"The demo in a controlled environment wowed the executive committee, but scaling it on our legacy systems has turned into a financial wall."

The illusion of the "magic demo"

When a customer service AI assistant was launched, the POC was built in 3 weeks on a cleaned dataset. But when it was rolled out at scale on production systems, the project hit a dead end.

The POC "wow" effect. Instant success in a test environment with artificially prepared data.

The wall of reality. The model could not handle real production data: heterogeneous, unstructured and outdated.

Exploding hidden costs. The budget for data cleansing and access security spiraled.

The 4 forgotten pillars of AI industrialization

  1. Data quality and governance. A powerful model never makes up for fragmented or outdated production databases.
  2. Architecture & legacy systems. Connecting an AI component to legacy systems creates underestimated integration debt.
  3. Cybersecurity & compliance. Confidentiality, LLM data leakage and strict compliance with GDPR / the EU AI Act.
  4. Change management (FinOps). Controlling the cost of queries (API/GPU) and supporting business transformation.
80%

of artificial intelligence projects never reach industrial production (Gartner).

x5

average cost factor between building a POC and its secure industrialization.

"Building an AI POC takes 20% of the budget. The remaining 80% goes to systems integration, data quality and governance."

Over to you: what is the main barrier to industrialization in your organization?

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Fakhri Essedik

Fakhri Essedik

Founder of EDX Advisory

For more than 25 years, Fakhri Essedik has helped executive teams and CIOs steer major Digital, Data & AI programs across Europe, Africa and the Middle East.

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