Betaworks bets AI agents will create new problems, not just save time
Venture firm Betaworks, fresh off closing a $66 million fund, is deliberately investing in startups that fix the messes agents leave behind — not the agents themselves.
Why it matters & what to do
General partner Jordan Crook highlights a growing "gap between individual and organizational gains" in AI, with many projects failing to deliver measurable ROI despite individual usage. That gap is backed by hard numbers: Gartner predicts more than 40% of agentic AI projects will be canceled by the end of 2027 over rising costs, unclear business value, and weak risk controls, and a separate MIT study found 95% of generative AI pilots at large organizations produced no measurable profit-and-loss impact, even as individual workers say they use the tools constantly.
Betaworks believes AI agents will generate significant new technical and human challenges rather than simply saving time, and is betting that agents will create a fresh wave of problems it wants to fund the fix for first.
Managers: The real work ahead isn't adopting agents — it's redesigning a job, a team, or a whole organization around AI instead of just bolting tools onto the old one, exactly where Crook expects the next wave of problems to surface.
Do this: If your team has deployed agents without touching workflows or roles, expect the "individual usage, no organizational payoff" gap to show up in your own numbers — flag it before leadership asks why ROI is invisible.