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


Posted June 3, 2025 by eGainCorporation

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.

 
SUNNYVALE, Calif. – June 3, 2025 – 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, when it comes to 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
o eGain.com link
o 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
[email protected]
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Contact Email [email protected]
Issued By Ashutosh Roy, eGain’s co-founder.
Phone 408-636-4500
Business Address St Catherine’s House, Oxford Street
Country United States
Categories Software
Tags knowledge , ai , customer service , customer support
Last Updated June 3, 2025