Why AI Projects Fail: Groundbreaking Survey Uncovers Crisis of Trust in Underlying Content

Rhea-AI Summary

eGain (NASDAQ: EGAN) released findings from a groundbreaking survey on AI adoption in 2025, conducted by Enterprise AI/KMWorld with 316 global respondents. The study revealed that 61% of respondents cite erroneous or inconsistent answers as the primary barrier to AI adoption. Gartner warns that all generative AI virtual customer assistant projects lacking modern Knowledge Management (KM) integration will fail to meet CX and cost-reduction goals. The eGain AI Knowledge Hub has demonstrated success with Fortune 500 clients, as evidenced by Rogue Credit Union's impressive results: 24% reduction in Average Handle Time, 57% decrease in Average Wait Time, and a 22% increase in agent satisfaction scores. The survey emphasizes the critical role of trusted content in successful AI implementations.

Positive

• Survey reveals clear understanding of AI adoption barriers, positioning eGain as a thought leader
• Validation from Gartner supports eGain's knowledge-first approach to AI
• Concrete success metrics from Rogue Credit Union showcase product effectiveness (24% AHT reduction, 57% AWT reduction)
• Strong market positioning in Fortune 500 client base across multiple industries

Negative

• High failure rate of AI projects without proper knowledge management integration could slow adoption
• 61% of respondents expressing concerns about AI accuracy indicates significant market hesitation

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SUNNYVALE, Calif., June 03, 2025 (GLOBE NEWSWIRE) -- eGain (NASDAQ: EGAN), the leader in AI knowledge platform for service, today announced the findings of a first-of-its-kind survey on the state of AI in 2025. Conducted by Enterprise AI/KMWorld in Spring 2025, the findings were compiled from the responses of 316 executives, knowledge managers and practitioners worldwide.

The survey revealed a make-or-break barrier to AI success with a whopping 61% of respondents pointing to erroneous or inconsistent answers as the top concern for broad AI adoption. In fact, Gartner warns that 100% of generative AI virtual customer assistant and virtual agent assistant projects that lack integration with modern KM systems will fail to meet their CX and operational cost-reduction goals.

“It is trusted content or bust when it comes to moving the needle with AI applications,” said Ashu Roy, eGain CEO.

“At a time when so many organizations are looking to AI to solve problems, it’s important to stress that, with AI and knowledge, you need both to thrive,” said Marydee Ojala, Editor-in-Chief for KMWorld. “The hard numbers from this study reveal how vital trusted content is to successful AI initiatives.”

With the eGain AI Knowledge Hub, Fortune 500 clients across industries such as banking, insurance, healthcare, and utilities have taken this trust-centric, knowledge-powered approach to accelerate AI initiatives.

“With trusted knowledge created and curated in the eGain AI knowledge Hub, we have been able to reduce AHT (Average Handle Time) by 24% and AWT (Average Wait Time) by 57% for member calls,” said Amy Durst, Assistant VP of Internal Support at Rogue Credit Union. “At the same time, our agent satisfaction scores went up by 22%.”

More information

• State of AI 2025: Mid-Year Report
  • eGain link
  • KMWorld link
• eGain AI Knowledge Hub™
• eGain webinar with KMWorld: “AI Initiatives for CX: Why They Fail and How to Succeed,” June 26, 2025, 11 am – 12 noon Pacific Time
• Solve London 2025, the premier conference for AI-powered CX transformation

About eGain
eGain AI Knowledge Hub helps businesses improve customer experience and reduce cost by delivering trusted, consumable answers.

Contact
eGain Media Relations
press@egain.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What are the main findings of eGain's 2025 AI survey?

The survey found that 61% of respondents identified erroneous or inconsistent answers as the top concern for AI adoption, highlighting the critical importance of trusted content in AI implementations.

How has eGain's AI Knowledge Hub improved Rogue Credit Union's performance?

Rogue Credit Union achieved a 24% reduction in Average Handle Time, 57% decrease in Average Wait Time, and 22% increase in agent satisfaction scores using eGain's AI Knowledge Hub.

What does Gartner predict about AI virtual assistant projects without KM integration?

Gartner predicts that 100% of generative AI virtual customer assistant projects lacking modern Knowledge Management integration will fail to meet CX and cost-reduction goals.

Which industries are using eGain's AI Knowledge Hub?

Fortune 500 companies across banking, insurance, healthcare, and utilities industries are implementing eGain's AI Knowledge Hub.

How many executives participated in eGain's 2025 AI survey?

The survey included responses from 316 executives, knowledge managers, and practitioners worldwide.