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AI Setbacks Spread From Startups to Apple, OpenAI and Microsoft as Projects Shut Down or Reset

  • AI Agents
  • Sales & Business

AI's product shakeout is no longer confined to small apps: startups are closing, consumer devices are being written off, and large platforms are reworking ambitious AI launches after users found them confusing, delayed, or too risky. The pressure point is broad: S&P Global Market Intelligence says the share of companies abandoning most AI initiatives before production rose from 17% to 42%, while the average organization scraps 46% of proof-of-concept projects before they reach production.

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