Generative AI Loses Its Shine as Marketers Turn to Data and Agents

Generative AI has entered a new phase in Gartner’s 2025 Hype Cycle for Artificial Intelligence. Once touted as the most transformative technology in decades, GenAI is now sliding into what Gartner calls the Trough of Disillusionment. The shift highlights a critical moment for marketers and communicators, who must recalibrate how they position AI inside their organizations.

The Hype Cycle shows that after a year of heavy spending, the enthusiasm surrounding GenAI is giving way to skepticism. Gartner reports that companies invested an average of $1.9 million in GenAI initiatives in 2024, yet fewer than 30 percent of AI leaders say their CEOs are satisfied with the returns. Many organizations entered projects with unclear goals or unrealistic expectations. More advanced teams struggled to find talent and build literacy among employees who lacked a full understanding of the technology.

Marketers face the challenge of balancing opportunity with realism. GenAI is powerful, but its business impact requires the right use cases, clean and structured data, and an informed workforce. Communicators need to help executives, boards and employees understand that value comes through integration and governance, not one-off experiments or viral outputs.