Headline: 42% of companies abandon AI initiatives by mid-2025 – exposure to unexamined AI decisions sharpens for healthcare, insurance, and financial services executives
What is happening: A staggering percentage of organisations in regulated sectors have already abandoned their most ambitious artificial intelligence (AI) projects by the middle of 2025. This failure rate is a stark reminder that investing in AI without proper validation can lead to costly errors.
Why it demands action now: The lack of proper validation sharpens the risk for healthcare, insurance, and financial services executives. First, capability risk arises when technology fails to meet the promised claims – a situation that puts lives at stake in healthcare and financial security at risk in other sectors. Second, governance risk emerges as decision-makers struggle to defend AI choices before regulatory bodies or courts. Finally, liability risks loom as organisations are accountable for AI-generated errors.
The action: A prudent organisation would first assess its existing AI projects against the development’s concerns and then take strategic steps to ensure validation of future investments. This may involve reviewing vendor claims, conducting internal assessments of governance exposure, and implementing independent testing of AI capabilities by mid-2025 at the latest.
How Straven helps: As a trusted independent validation firm, Straven & Co stands between organisations and the vendor’s claims, protecting them from buying technology that does not do what was promised. It tests proposed solutions against real operations, people, governance obligations, legal exposure, and regulatory requirements – delivering a plain verdict of proceed, proceed with conditions, or do not. This independent validation is essential in ensuring organisations make informed AI decisions that align with their risk tolerance and regulatory compliance needs.
Straven & Co examines AI decisions before they are acted on: stravenandco.com