CSIRO, Australia’s national science agency, has released a guide to help organisations plan and invest in the right artificial intelligence (AI) projects to avoid costly failures.
Evaluating and prioritising artificial intelligence projects: A guide for better decision making and investment outcomes, helps decision-makers identify AI projects that are more likely to succeed and deliver value.
Organisations are under pressure to do ‘something with AI’, with global investment in the technology projected to reach $980 billion by 2028, said Dr Stefan Hajkowicz, Chief Research Consultant at CSIRO’s Data61 and lead author of the guide.
“Many organisations are investing in the wrong projects, with up to 80 per cent of AI projects failing,” Dr Hajkowicz said.
“This guide helps organisations evaluate options with a clearer view of the risks, strategic alignment, data requirements and implementation challenges.”
The guide includes a practical checklist that blends financial analysis with ethical, strategic and systems-level thinking.
It prompts leaders to weigh both financial and non-financial factors, like ethics, integration and long-term value, using globally recognised tools including Return on Investment, Net Present Value, and Real Options Analysis, alongside qualitative insights.
Professor Elanor Huntington, CSIRO’s Digital, National Facilities and Collections Executive Director, said the guide encourages a portfolio mindset, treating AI projects as part of a broader strategy rather than isolated experiments.
“With the right evaluation frameworks in place, we can reduce the number of failed projects and direct investment where it will have the most impact,” Professor Huntington said.
The guide draws on real-world examples of AI projects that fell short of expectations.
One involved a predictive maintenance system that failed because it hadn’t been tested on the specific vehicles it was meant to monitor.
In another, a custom-built AI tool was soon outpaced by faster, cheaper commercial AI alternatives.
The guide helps public and private sector organisations at every stage of AI maturity plan and deliver smarter AI investments.
Watch Dr Hajkowicz and Professor Huntington share key insights from the guide.
