Forrester says AI hype ends with 25% budget cuts and massive agent project fails - devs, time to prove ROI or bust.
Buckle up, because Forrester just dropped the bomb: 2026 is the ‘AI hype period ends,’ with enterprises slashing 25% of planned AI spend due to zero ROI. Only 15% of decision-makers saw real EBITDA gains last year, and Gartner’s calling 40% of agentic AI projects canceled by 2027 over costs and vague value. As a dev who’s shipped a few agents, this hits home - we’ve been chasing shiny multi-step autonomy, but if it doesn’t pay bills, it’s toast.[3]
The shift to agents is real though: Thomson Reuters’ CoCounsel launching legal agent workflows, LexisNexis deploying orchestrator agents for research. Enterprises are adopting faster than law firms (52% vs lagging counsel), flipping power dynamics. For us? Means more demand for robust, cost-effective agents - but prove they save time or watch budgets evaporate.[3]
Honest opinion: Hype correction is healthy. Focus on narrow, measurable wins like doc review agents before going full autonomous. Legal patchwork with Colorado AI Act and Illinois employment rules adds compliance headaches too. Devs, what’s your killer agent use case that actually moves the needle? Share in comments.
Source: Jones Walker AI Law Blog