How exactly do you fail a Precise strike? When you miss or something? Or is the move so powerful that if I get under the AC, I do half damage?
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Confident Finish is a Finisher, meaning using it ends your state of Panache, and it only does half of your Precise Strike damage on a miss, not half your full damage (so, 1d6 damage at 1st level)...but yes, when they say it does something on a miss they mean that if you roll a total of 15 and they have AC 17, you do that 1d6 damage anyway.
Note that this is only failures, not critical failures, so getting a 7 to hit or rolling a 1 vs. that AC 17 enemy you won't do any damage at all.