Providers and deployers of AI systems: You only have a couple of weeks left until you must explicitly inform users when they are interacting with AI content.

To assist in the effort, the European Commission (Commission) has published guidelines to help AI deployers get in line with the AI Act’s transparency obligations, which will begin to go into effect on August 2.

After that, companies providing AI systems must alert users when they are interacting with AI. They must also tell users when they have been exposed to deepfakes, “emotion recognition,” or biometric categorization systems, or when they are given AI-manipulated content in matters of “public interests without human review or editorial control.”

Henna Virkkunen, the Commission’s executive VP for tech sovereignty, security and democracy, said in a statement, “with today’s guidelines, the Commission supports the smooth and effective application of the AI Act to make AI systems interacting with people such as chatbots and AI agents and AI content more transparent and trustworthy. These guidelines support providers and deployers in meeting their obligations under the AI Act, while helping citizens know when they are interacting with AI.”

Systems must include machine-readable markers to reveal such content, to reduce “the risk of deception and manipulation” and build public trust in AI.

“Generative systems have collapsed the cost of producing convincing content while the cost of judging it stands where it always stood,” said Sanchit Vir Gogia, chief analyst at Greyhound Research. This requirement is “an attempt to restore friction to that imbalance.”

A company’s non-compliance could result in fines anywhere from €750K (about $856K) to €15M (about $17 million), or even up to 3% of its total worldwide annual revenue.

Transparency requirements

The EU AI Act’s transparency requirements apply to “natural or legal persons,” public authorities, agencies, or other bodies that develop AI systems, or have them developed, and place them on the EU market or into use under their name or trademark. This means all companies, regardless of whether or not they are EU-based.

“Systems placed on the European market, put into service there, or producing outputs used there are inside the field, wherever the developer sits,” Gogia noted.

Applicable systems must be intended to interact directly with “natural persons”; these systems include AI-enabled chatbots or conversational agents, AI companions, or coding agents. However, AI-enabled tools like recommender systems, spam filters, authentication, search and retrieval, transcription, text and code auto-completion, or predictive maintenance do not fall under the rule.

Specific outputs such as AI-generated text, images, video, and audio must contain a machine-readable mark. Deepfakes and public interest-related text created by AI without human review or control must be clearly labeled, however, deepfake content that is “artistic, creative, satirical, or fictional” is largely exempt.

AI content must be marked with one of three labels: “AI,” “Fully AI-generated,” or “Partially AI-modified.” For instance, “Fully AI-generated” applies when news summaries, music, art, or videos have been created without any human oversight (apart from prompting), while “partially AI-modified” could mean a person’s face is swapped into an authentic photograph to create a deepfake.

The three icons are publicly available for free use; enterprises can download zip files in PNG and SVG formats.

Most of the Act’s transparency rules begin to go into effect on August 2. But AI systems placed on the market before then will have some leeway; they must be in compliance by December 2.

However, a four-month allowance “on one obligation, for one population of systems, contingent on one procedural step, is not a strategy,” Gogia emphasized. Enterprises should plan to comply by August 2 and “treat any relief that arrives as margin.”

A consistent code of practice

Along with the transparency guidelines, the Commission has introduced a code of practice that essentially serves as a gesture of good faith. When signed, it can provide “legal certainty” and a “simple and practical” way to demonstrate compliance with the AI Act, according to the Commission. Signatories can also collaborate through the ‘Signatory Taskforce,’ which will share practices and advance technologies around marking and labeling practices.

Providers that choose not to sign must comply through other methods and demonstrate that those methods are “adequate” through assessment by surveillance authorities, according to the Commission.

Non-signatories “keep their flexibility, and will face more case-by-case scrutiny for it,” said Gogia.

Criteria for compliance

Shashi Bellamkonda, principal research director at Info-Tech Research Group, pointed out that the transparency requirements apply to content only when three criteria are met: It has been published, is informative to the public, or is on matters of public interest.

B2B business content or blogs may not need an AI disclosure if they do not meet these criteria, he noted. Also, published text that has undergone human review or is under editorial control does not need to be labeled. Editorial control means that a person must hold the ultimate legal responsibility for the publication of the content.

Many companies like Google, Adobe, and LinkedIn have already established ways to identify images marked as AI-generated. Meta has made it a requirement, but the creator has to add the AI-generated label, Bellamkonda said.

“This is a good move for guardrails around public information, and companies with good compliance and ethical oversight may not have to worry about this,” he noted. But as a general practice, companies should disclose AI-generated content and state whether it has been human reviewed.

Creating a transparency pipeline

Establishing full transparency means identifying who carries the responsibility for the content, whether the marking survives real use, not just testing, and what evidence will defend the decision, Gogia said.

Concerns cluster around responsibility, durability and evidence. Several organizations usually touch one piece of content, and none controls the whole chain, which is why contracts become the “pressure point,” he said. Most current agreements were written to deliver software and say “almost nothing” about provenance persistence, verification access, or evidence retention.

The durability concern is the most difficult, Gogia noted, because marking performs well in controlled settings but “badly in ordinary life.” Meta, for one, said its invisible watermark was designed to survive cropping; a published test, however, found the company’s preview detector missed 55% of cropped images.

“CIOs should ask which platform can actually provide evidence before believing its dashboard,” said Gogia.

Disclosure of AI use must be “clear, distinguishable and accessible,” he emphasized. “A notice buried in lengthy terms, or reachable only through determined clicking, satisfies nobody, least of all a market surveillance authority.”

Sustained compliance is a “living control” requiring a central record of systems, duties and evidence; testing taking place where the user meets the control rather than where the developer built it; and continuous supplier assurance. Enforcement will vary by country, so keep one common baseline with local overlays, Gogia said.

His advice: Inventory every system that talks to people, generates content, or gauges sentiment; classify provider and deployer roles; place disclosures at first interaction; define substantive human review; keep the evidence.

Marks and provenance signals should be tested after content undergoes cropping, compression, translation, transcription, and other editing, Gogia said. A useful audit starts from a real output and follows its “pulse” through generation, editing and publication, identifying at “each beat” the responsible party, the surviving mark, and evidence for exceptions. Missed labels should also be traced for root cause and recurrence.

To ensure compliance, before August 2, enterprises need a prioritized inventory, live disclosures on the highest-risk use cases, and a “named owner for every control,” he noted. In the first 30 days, they should stabilize and test; in the first 90 days, push requirements into procurement processes as a standing discipline. Procurement must secure commitments on marking methods, known failure modes, and evidence access, with explicit notice if/when any of them change.

“The sensible architecture is a common transparency baseline carrying traceability, responsibility, and evidence, with jurisdictional overlays for language, sector rules, and local practice,” Gogia said.

This article originally appeared on CIO.com.

Healthy software companies typically don’t suddenly eliminate one-fifth of their workforce, but monday.com is doing just that as it bets on flatter teams, AI agents, and customer implementation expertise as the winning combination in the AI era.

Monday.com co-founder and co-CEO Eran Zinman today announced the “very difficult decision” to reduce the AI work platform company’s global workforce by about 20%, or 620 people.

The move has nothing to do with increasing margins or replacing humans with AI, he insisted in his post on LinkedIn; rather, it’s a calculated decision to trim down and hone the company’s focus as AI becomes integral to day-to-day workflows.

“This is not a distress signal; it is a deliberate reset, disclosed with its price attached,” said Sanchit Vir Gogia, chief analyst at Greyhound Research. “The industry has quietly swapped the meaning of productivity, and this filing is the clearest exhibit yet.”

A ‘significant opportunity’ in technology

In a SEC filing this week, monday.com said its restructuring plan reflects the “ongoing transformation of its product, marketing, and go-to-market strategy.” The move is intended to support a “leaner, more focused operating model” as the company continues to invest in its AI-driven strategy.

Zinman noted in his post that the company has shifted to “doing the work with AI and not just managing it,” and is focused on building environments where “people and AI agents [work] together in one workspace.”

In recent months, monday.com has evolved its products, strategy, and the way it serves its customers, and Zinman contended that “the organization we built for our previous chapter is not the organization that fits the new AI era.” Monday.com needs to “execute more decisively,” take on new challenges, and quickly respond to market changes, he said.

“We have never seen such a significant opportunity in software, driven by such exciting technology,” Zinman noted. He emphasized that the reduction is not to replace people with AI, nor to improve margins; the “vast majority” of savings will be reinvested into talent, products, and AI.

The restructuring will result in a “flatter organization” with fewer management layers and smaller, more autonomous teams, and monday.com also has a new go-to-market model, Zinman explained. Customers expect “deeper implementation support” as they deploy AI, and the company will work more closely with customers, increase its on-site presence, create new roles, and “adapt many existing ones.” In its SEC filing, the company said it expects to continue hiring in “key strategic areas” throughout 2026.

Workers will be expected to work better, “not harder,” Zinman noted. He pointed to several past examples where work could have been done in a few days, but instead took many months with “multiple meetings and endless friction.”

“This wasn’t people’s fault and everyone was frustrated by this,” he said. “Our new org changes ownership to allow people to make decisions and move fast.”

A spokesperson for monday.com declined to comment further on the staff reductions.

Monday.com’s key market advantages

Monday.com certainly isn’t struggling; the company expects 19% to 20% year-over-year growth in 2026.

“Companies in that position do not restructure because they must,” Greyhound’s Gogia noted. “They restructure because they have decided to become something else.”

Melody Brue, VP and principal analyst at Moor Insights & Strategy, pointed out that organizational redesign is important for real AI transformation, but while it can signal confidence to the market, it can still be “devastating” to humans.

While the company looks as though it’s trying to do right, that ultimately remains to be seen, she said. “There are often hidden internal bruises that can surface long after layoffs.”

Monday.com’s advantage is in its “structured substrate,” Gogia noted; its boards, permissions and typed workflows give agents something firmer to act on than just documents and chat history. The company highlights its natively built agents that can be configured by any team member, as well as connectors with Claude, Microsoft Copilot, and ChatGPT, and dedicated routes for external agents to authenticate and operate.

“For some time, the sharper enterprise question has been shifting from who has an agent to who owns the governed runtime in which an agent can safely act,” he said. “Structured work is a serious claim on that runtime.”

But parts of monday.com’s agent estate remain in staged release, and its product is ultimately “mid-transition,” Gogia pointed out; its agent builder carried a beta label as recently as March,. Also, the company’s pricing model changed in May to a hybrid model charging for seats as well as mandatory AI credits. And, while its AI-powered no-code builder monday vibe passed $1 million in annual recurring revenue within two and a half months, monday.com has not released subsequent outcomes, usage volumes, or attach rates.

Further, there’s an element of “gravity” with its competitors, he observed. Asana is reorganizing teams around agents, Atlassian is wiring agents into the developer estate, and others are simply bundling them into their offerings: Microsoft is doing so across the productivity stack, and ServiceNow across enterprise operations, each with identity and procurement built in.

“Their pull is strongest exactly where monday.com wants to grow, in the largest accounts, where control-plane depth and administrative reach decide the deal,” said Gogia.

Actions for the near-term

Going forward, buyers should focus on operating risk, not headline risk, Moor’s Brue noted. In practice, that’s continuity of service, roadmap consistency, and strength of enterprise support. Productivity should be valued as better outcomes per unit of organizational effort, not mere activity.

“It should be a measure of how much smoother, faster, and more effective the operating model becomes when AI is built into the work,” said Brue.

Gogia noted that strain surfaces first in customer service, and monday.com’s attention is being redistributed. The company’s annual report disclosed that its focus is now concentrated on the largest accounts, with support for medium-sized clients moved to an AI-first and human-supported model.

During the first month of the transition, buyers should track named account continuity and escalation times, he advised. By the first quarter, keep an eye on whether credit governance and admin controls mature on schedule, and if the roadmap beyond the AI estate keeps pace. By the half-year mark, determine whether promised implementation depth is producing outcomes or “simply more billable engagement.”

Support tiers should be enumerated in writing before renewal, and buyers should contract for “side exits,” Gogia emphasized, with overage pricing fixed in advance, the right to pause consumption, and portability for workflows and agent configuration “if the relationship sours.” Finance should also insist on monthly consumption reporting by capability. Further, integration efforts, partner dependency, and change management should be considered first-class costs of the agent era, “not as afterthoughts to a license.”

“A license was a known cost,” said Gogia. “A meter is a behavior, and behavior is harder to forecast than headcount.”

This article originally appeared on CIO.com.

Just in time for the iPhone’s 20th anniversary, Apple is moving closer to becoming a service company. It is set to launch its new deal with Klarna next week and when it does, Apple enthusiasts in the US will effectively be able to subscribe to their favorite Apple hardware, with the cost spread across up to three years.

This matters because when combined with Apple One and Apple’s Creator Studio subscriptions, the Klarna arrangement brings Apple closer to offering a full subscription model for hardware, software, and services. The only thing you don’t get under the new arrangement is AppleCare, for which you’ll allegedly need to pay extra.

Moving closer to hardware-as-a-service

Apple has slowly been transitioning toward hardware-as-a-service for almost a decade. Back then, Forrester analyst Frank Gillet predicted the company would eventually offer bundles of services and products for a monthly, all-in, fee. 

This isn’t quite where we are yet; you still need at least three subscriptions to get close. But, after the better part of a decade, Apple has moved much nearer to the hardware-as-a-service idea.

There are some products reportedly excluded from the arrangement, including MacBook Neo, Apple Watch SE, the entry-level iPad, and iPhone 16. Clearly, Apple sees those products as sufficiently affordable. 

Easy payments for RAM-ageddon

The new Klarna arrangement comes as Apple is forced to increase product prices as AI-driven memory price inflation becomes widely felt across every economy. In theory, I assume, Apple hopes to make its products available to cash-strapped consumers who need new hardware, while also navigating a time of deep economic tumult and uncertainty. It’s thought the company has previously rejected these plans to protect normal hardware sales, but normality is a kingdom we no longer seem to possess. Interesting times. Probable inflation incoming.

“Apple Upgrade lands at precisely the moment Apple needs it,” IDC analyst Francisco Jeronimo wrote in a note seen by Computerworld. “Having just pushed Mac and iPad prices up on the back of the memory shortage, with iPhone increases widely expected in September — as well as the new iPhone foldable expected at $2,500 — Apple’s real risk is that rising prices even further can impact the upgrade cycle.” 

New age, new shopping habits

The introduction of the scheme gives consumers a way to purchase the company’s popular high-end devices when they are introduced — no doubt,at higher cost — this fall. Plus, of course, if it’s good enough for GM, it’s good enough for Apple.

It’s all about attitude, too. From Apple’s perspective, it has done plenty of the groundwork required to convince its customers that subscription payments for things you value are no bad thing. 

Reluctance to embrace “Access Not Ownership’”purchasing models has dropped dramatically since Apple — and CEO Tim Cook — first began banging the drum for services income. Apple’s services stream has now become its second-biggest revenue driver after the iPhone. It has over 1 billion paid subscriptions, and an active hardware installed base of more than 2.5 billion devices globally.

A combination of changed customer habits and external threat means the stars are now aligned for hardware-as-a-service models. “Reframing a device as a low monthly payment protects that [upgrade] cadence and allows Apple to start marketing their products as device-as-a-service to consumers, which no other vendor was ever able to do,” Jeronimo wrote to me. 

There is a one-more-thing aspect to this: the products are effectively being leased, a new approach that will give Apple a stronger grip on EOL devices, helping it grab more of them for refurbishment, resale, and recycling. Over time, this will give the company a much stronger grip on the lucrative second-user market that exists around Apple equipment, even while for almost every consumer product we find the life we want is something we can rent, but probably can’t afford to own.

Managing future risk

The other solid reason to take a partnership approach is risk management. Apple had intended to develop its own buy-now, pay-later scheme via Apple Pay Later, but abandoned that plan as it became riskier with rising bank rates. “Also, by backing the program with Klarna rather than reviving the in-house subscription plan it shelved in 2024, Apple captures the demand upside without taking the credit risk onto its own balance sheet,” Jeronimo said.

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OpenAI has launched Presence, an enterprise service for deploying voice and chat agents that can resolve customer and employee requests, potentially automating some work now handled by frontline support teams.

The agents can answer questions and operate IT systems, and enterprises can decide what actions the agents may take and when they should seek human approval for actions or transfer a case to a human.

OpenAI is already using Presence internally for its English-language phone support channel, where it verifies callers and uses account information to complete approved actions. The company said the system resolves 75% of inbound issues without human assistance.

Another OpenAI service, Codex, can be used to monitor agents and suggest updates or improvements to processes. In OpenAI’s own tests, suggestions from Codex helped reduce handoffs to humans by 15 percentage points over 10 days, it said. Presence also includes simulation and evaluation tools that allow companies to test an agent before deployment. The tests assess whether it reaches the correct outcome, follows company policy, and hands a case to an employee when required.

OpenAI intends each Presence deployment to deal with one kind of task, for example billing issues, insurance claims, or employee IT service requests, with agents getting only the knowledge and system access required for that task.

Presence is not a self-service product: Enterprises will have to sign up for the limited availability program, with integration performed by OpenAI or selected global systems integrators.

Companies exploring or testing Presence include Spanish bank BBVA, which is evaluating the service for everyday banking support in Mexico, and Japanese technology group SoftBank, which is using it in trials involving Japanese-language customer interactions. Australian insurer IAG is assessing whether the technology can help it respond to surges in customer demand during severe weather events.

Workforce impact

OpenAI’s announcement did not address the potential effect of Presence on employment. But its claimed automation rate raises questions about how the technology could affect staffing in customer service and other support functions.

Pareekh Jain, CEO of Pareekh Consulting, said CIOs should regard the 75% figure as evidence that the technology can work, rather than as a benchmark that every enterprise can expect to reach.

Jain said OpenAI’s deployment benefits from being built around the company’s own products and data. Large enterprises may achieve lower automation rates because they must contend with fragmented legacy systems, uneven knowledge bases and more complex compliance demands.

“Most organizations should expect lower initial automation levels that improve over time as the AI agent is refined,” Jain said.

The first workforce effect is more likely to be slower hiring than immediate layoffs, according to Tulika Sheel, senior vice president at Kadence International.

“The roles most exposed are likely to be repetitive, high-volume functions such as frontline customer support and routine back-office processing,” Sheel said. “However, I would expect the first impact to be on hiring and team growth rather than immediate large-scale job cuts. Over time, enterprises may redesign roles around AI-assisted workflows, with humans focusing more on complex cases, escalation, and relationship management.”

Jain said Tier-1 support agents handling predictable queries would face the most exposure. Broader reductions would become more likely only after companies reorganize their operations around the technology.

However, Lian Jye Su, chief analyst at Omdia, said Presence is unlikely to increase the threat of job displacement because companies have used similar customer-support automation from vendors such as Genesys, NiCE, Five9 and AWS for years.

Enterprises are more likely to use Presence alongside employees, with AI handling routine requests while people remain responsible for work requiring judgment and empathy, Su said.

Cost and operational risks

Analysts said CIOs should examine whether Presence can maintain resolution quality as usage grows, since fewer human handoffs could leave employees dealing with a more difficult mix of cases.

“The key question is not simply how many tasks AI can handle, but whether it can handle them reliably at scale,” Sheel said.

The financial case will depend partly on the cost of connecting Presence to existing systems and maintaining the controls needed to govern its use, according to Jain. “Often the biggest cost of enterprise AI is not tokens but integration and governance,” Jain added.

Companies will need to determine what systems and data the agents can access, monitor their performance, and audit the actions they take. Those investments could offset early savings.

Su said the complexity of enterprise IT will make it difficult for OpenAI to automate entire workflows on its own. Enterprises will still need to work with other technology providers and human employees, while CIOs will favor systems that can be audited and integrated with existing infrastructure.

Jain said the economics could improve if companies use the same integrations and governance controls across additional workflows.

This article first appeared on CIO.

Among a range of factors leading to a wave of tech sector layoffs in 2026 is the rapid rise of artificial intelligence and automation. Companies are reconfiguring their workforces to leverage AI for increased efficiency and reduced operating costs. This realignment and reduction is implemented even by companies reporting strong financial performance.

But it’s not just AI leading to workforce cuts. Complementing this technological shift are ongoing economic uncertainty, inflation, and higher interest rates, compounded by a chip shortage and rising energy costs. This mix is driving companies to cut costs and streamline operations for increased efficiency.

According to data compiled by Layoffs.fyi, an online tracker that keep tabs on job losses in the technology sector, 123,941 tech employees were laid off at 269 companies in 2025. The site also reports that 71,981 government employees were laid off by DOGE alone, with 182,528 total federal workers laid off.

Here is a list — to be updated regularly — of some of the most prominent technology layoffs the industry has experienced recently.

Notable tech layoffs in 2026

• Monday.com
• Microsoft
• Meta
• Cisco
• Cloudflare
• Oracle
• Atlassian
• Salesforce
• Amazon
• Ericsson

July 22, 2026: Monday.com cuts 20% of its workforce to restructure for the AI era

The company says the decision to cut 620 jobs isn’t about margins, but about creating a flatter organization built around AI agents, autonomous teams, and deeper customer engagement.

July 6, 2026: Microsoft cuts 4,800 jobs, primarily in sales and Xbox teams

As the company trims thousands of jobs, it’s also investing in embedded engineering teams and AI infrastructure. The layoffs come several weeks after the company offered 8,750 US employees voluntary retirement buyouts.

June 5, 2026: Tech industry cut 38,242 jobs in May, worst since 2024

AI was blamed for 40% of the job cuts in May, up from 7% in January, according to research by employment placement company Challenger, Gray & Christmas.

May 20, 2026: Meta cuts 8,000 jobs, around 10% of workforce

The cuts are expected to expected to hit Meta’s engineering and product teams the hardest, arriving as Meta pivots toward AI to boost efficiency across its organization, according to Yahoo Tech.

May 13, 2026: Cisco to cut nearly 4,000 jobs despite strong growth in AI, enterprise networking

Despite reporting positive financial news — including record third-quarter revenue of $15.8 billion, a 12% year-over-year increase — Cisco said it will eliminate almost 4,000 jobs.

May 7, 2026: Cloudflare to cut 1,100 jobs in AI-focused restructuring

About 20% of Cloudflare’s global workforce will be culled as the company pivots for the agentic AI era, Reuters reported.

April 1, 2026: Oracle to cut up to 30,000 jobs globally, putting enterprise support and roadmaps at risk

Oracle began laying off employees on March 31 in what could be the largest workforce reduction in the company’s history. Employees received termination emails at 6 a.m. local time with immediate system lockouts and no prior warning. (Note: in June, CNBC put the final layoff tally at 21,000.)

March 12, 2026: Atlassian cuts 1,600 jobs to fund AI and enterprise expansion

Atlassian will reduce its global workforce by approximately 10%, eliminating around 1,600 roles, as the collaboration software maker redirects capital toward artificial intelligence development and enterprise sales.

March 11, 2026: Tech layoffs surpass 45,000 in early 2026

A recent analysis by RationalFX found 45,363 job cuts globally so far this year—with roughly 68% or more than 30,000 occurring in the U.S. — highlighting ongoing workforce cuts even as many tech companies report strong revenue growth.

February 10, 2026: Salesforce lays off staffers as executive leadership churn continues

Salesforce has reduced close to 1,000 roles earlier this month across teams, including marketing, product management, data analytics, and its Agentforce AI unit, Business Insider reported, quoting employees familiar with the matter.

January 23, 2026: Amazon layoffs expected to disproportionately hit AWS and tech talent

As the market slows down, AWS and other Amazon units are preparing for another round of layoffs, which is expected to overwhelmingly impact tech talent. An email from HR leader Beth Galetti on Jan. 28 confirmed 16,000 job cuts.

January 15, 2026: Ericsson plans to shed 1,600 jobs in Sweden

 Ericsson lans to cut some 1,600 jobs in Sweden, the telecommunications equipment maker said doubling down on recent cost-saving measures that have helped it weather a prolonged downturn in telecoms spending, Reuters reports.

January 13, 2026: Meta plans to cut around 10% of employees in Reality Labs business

Meta plans to cut around 10% of the employees in its Reality Labs division who work on products including the metaverse, according to three people with knowledge of the discussions, according to The New York Times.

Layoffs in 2025

• Cisco
• Oracle
• Windsurf
• Intel
• Microsoft
• Crowdstrike
• HPE
• Autodesk
• HPE
• CISA
• Workday
• Salesforce
• Meta

Global tech-sector layoffs surpass 244,000 in 2025

Economic uncertainty, elevated interest rates, and AI adoption have driven workforce reductions across tech companies worldwide, according to a RationalFX report.

October 28, 2025: Amazon to cut 14,000 jobs across company

Amazon will reduce its overall workforce by 14,000, cutting layers of management across the company and hiring in some areas to support its “biggest bets”.

August 18, 2025: Cisco and Oracle to cut hundreds of Bay Area jobs

Tech companies Cisco and Oracle are cutting hundreds of jobs across the Bay Area. Cisco will eliminate 221 positions at its Milpitas and San Francisco offices, effective Oct. 13. Oracle is reducing 101 positions in Santa Clara on the same date 

August 5, 2025: 3 weeks after acquiring Windsurf, Cognition offers staff the exit door

Cognition, the AI coding startup that acquired rival company Windsurf three weeks ago, laid off 30 employees last week and is offering buyouts to the roughly 200 remaining employees on the team, reports The Information.

July 25, 2025, Intel to lay off 22% of workforce, CEO Tan signals ‘no more blank checks’

Intel will reduce its workforce to 75,000 employees by the end of 2025 as new CEO Lip-Bu Tan implements sweeping changes designed to transform the struggling chipmaker

July 8, 2025, Intel layoffs begin: Chipmaker is cutting many thousands of jobs

Intel has begun laying off employees across the company. CEO Lip-Bu Tan told workers back in April to expect major layoffs at Intel in the coming months as the chipmaker slashes costs and overhauls its organization after years of technical setbacks and falling sales.

July 2, 2025: Microsoft will cut 9,000 workers

Microsoft will lay off about 9,000 employees, a source familiar with the workforce cut told CNBC.  The cuts will reportedly affect less than 4% of Microsoft’s global workforce and will impact different teams, geographies and levels of experience. This is the latest in a string of cuts the tech giant has made this year.

June 17, 2025: Intel looks to factory layoffs to return to profitability

Intel will lay off up to 20% of its manufacturing sector employees starting in July, according to media reports, as the company looks for options as it seeks a return to profitability. The cuts reportedly will be made around the world, but some of the layoffs will be closer to home, according to a report in The Oregonian citing an internal company memo from Intel manufacturing Vice President Naga Chandrasekaran.

May 7, 2025: CrowdStrike to lay off 5% of staff

CrowdStrike announced a plan to cut about 500 roles, roughly 5% of its workforce, to streamline operations and reduce costs. The cybersecurity company will incur about $36 million to $53 million in charges related to the layoffs

March 6, 2025: HPE cuts 2,500 jobs, remains committed to Juniper buy

CEO Antonio Neri told Wall Street analysts that HPE would begin implementing a cost-cutting program involving layoffs of about 2,500 employees over the next 18 months. HPE employs about 61,000 people worldwide.

Feb. 27, 2025: Autodesk to lay off 9% of workforce

Software maker Autodesk is laying off 1,350 staff. With the rise of subscription and multi-year contracts billed annually, and self-service enablement, it finds it needs fewer sales staff, CEO Andrew Anagnost said in a message to employees. And with its cloud, platform, and AI products proving most profitable, it’s concentrating its staff and investments there.

Feb. 27, 2025: HP to lay off 2,000 more

As part of an ongoing restructuring, HP plans to lay off up to another 2,000 workers. In recent weeks, the company has tried — unsuccessfully — to do away with telephone support staff by forcing callers to wait for at least 15 minutes if they refuse to use self-service support resources online. The company swiftly backtracked, but wider job cuts are still on.

Feb. 21, 2025: CISA lays off 130

Government employees get laid off too: In this case, 130 workers at the US Cybersecurity and Infrastructure Security Agency are being shown the door as a result of a DOGE decision. Cybersecurity experts are concerned that the cuts will harm the international collaborations that CISA has fostered, quite apart from their concerns about the security of the DOGE layoff process itself.

Feb. 5, 2025: Workday lays off 1,750

As it moves to invest more in AI and international growth, Workday is laying off 8.5% of its workforce and disposing of unused office space. Some analysts fear the cutbacks will affect the company’s customer service — unless AI can pick up the slack.

Feb. 4, 2025: Salesforce lays off over 1,000

At the same time as it’s hiring sales staff for its new artificial intelligence products, Salesforce is laying off over 1,000 workers across the company, according to Bloomberg. As of June, 2024, the company had over 72,000 employees, according to its website. Salesforce did not comment on the report. In 2024 the company reportedly laid off around 1,000 staff too, in two waves: January and July.

Jan. 14, 2025: Meta will lay off 5% of workforce

Mark Zuckerberg told Meta employees he intended to “move out the low performers faster” in an internal memo reported by Bloomberg. The memo announced that the company will lay off 5% of its staff, or around 3,600 staff, beginning Feb. 10. The company had already reduced its headcount by 5% in 2024 through natural attrition, the memo said. Among those leaving the company will be staff previously responsible for fact checking of posts on its social media platforms in the US, as the company begins relying on its users to police content.

Tech layoffs in 2024

• Equinix
• AMD
• Freshworks
• Cisco
• General Motors
• Intel
• OpenText
• Microsoft
• AWS
• Dell

Nov. 26, 2024: Equinix to cut 3% of staff

Despite intense demand for its data center capacity, Equinix is planning to lay off 3% of its workforce, or around 400 employees. The announcement followed the appointment of Adaire Fox-Martin to replace Charles Meyers as CEO and the departures of two other senior executives, CIO Milind Wagle and CISO Michael Montoya.

Nov. 13, 2024: AMD to cut 4% of workforce

AMD will lay off around 1,000 employees as it pivots towards developing AI-focused chips, it said. The move came as a surprise to staff, as the company also reported strong quarterly earnings.

Nov. 7, 2024: Freshworks lays off 660

Enterprise software vendor Freshworks laid off around 660 staff, or around 13% of its headcount, despite reporting increased revenue and profits in its fourth fiscal quarter. The company described the layoffs as a realignment of its global workforce.

Sept. 17, 2024: Cisco lays off 6,000

After laying off around 4,200 staff in February, Cisco is at it again, laying off another 6,000 or around 7% of its workforce. Among the divisions affected were its threat intelligence unit, Talos Security.

Aug. 20, 2024: General Motors lays off 1,000 software staff

More than 1,000 software and services staff are on the way out at General Motors, signalling that it could be rethinking its digital transformation strategy. In an internal memo, the company said that it was moving resources to its highest-priority work and flattening hierarchies.

August 1, 2024: Intel removes 15,000 roles

Intel plans to cut its workforce by around 15% to reduce costs after a disastrous second quarter. Revenue for the three months to June 29 stagnated at around $12.8 billion, but net income fell 85% to $83 million, prompting CEO Pat Gelsinger to bring forward a company-wide meeting in order to announce that 15,000 staff would lose their jobs. “This is an incredibly hard day for Intel as we are making some of the most consequential changes in our company’s history,” Gelsinger wrote in an email to staff, continuing: “Our revenues have not grown as expected — and we’ve yet to fully benefit from powerful trends, like AI. Our costs are too high, our margins are too low. We need bolder actions to address both — particularly given our financial results and outlook for the second half of 2024, which is tougher than previously expected.”

July 4, 2024: OpenText to lay off 1,200

OpenText said it will lay off 1,200 staff, or about 1.7% of its workforce, in a bid to save around $100 million annually. It plans to hire new sales and engineering staff in other areas in 2025, it said.

June 4, 2024: Microsoft lays off staff in Azure division

Microsoft laid off staff in several teams supporting its cloud services, including Azure for Operations and Mission Engineering. The company didn’t say exactly how many staff were leaving.

April 4, 2024: Amazon downsizes AWS in a fresh cost-cutting round

Amazon announced hundreds of layoffs in the sales and marketing teams of its AWS cloud services division — and also in the technology development teams for its physical retail stores, as it stepped back from efforts to generalize the “Just Walk Out” technology built for its Amazon Fresh grocery stores.

April 1, 2024: Dell acknowledges 13,000 job cuts

Dell Technologies’ latest 10K filing with the US Securities and Exchange Commission disclosed that the company had laid off 13,000 employees over the course of the 2023 fiscal year; it characterized the layoffs and other reorganizational moves as cost-cutting measures. “These actions resulted in a reduction in our overall headcount,” the company said. A comparison to the previous year’s 10K filing, performed by The Register, found that Dell employed 133,000 people at that point, compared to 120,000 as of February 2024. Dell announced layoffs of 6,650 staffers on Feb. 6, but it is unclear whether those cuts were reflected in the numbers from this year’s 10K statement.

See news of earlier layoffs.

AMD executives took to the stage at its Advancing AI 2026 event in San Francisco today to detail the company’s next generation of AI infrastructure solutions, from Instinct MI455X AI accelerator GPUs and 6th Gen EPYC “Venice” CPUs, to Pensando networking, ROCm.AI software and its Helios rack-scale platform that ties it all together.

AMD has been working towards rack-scale AI system solutions for years. Its ZT Systems acquisition last year added valuable engineering talent and intellectual property that is now finally bearing the real fruits. Its Helios AI platform is a major platform evolution for AMD, with shipments scheduled to begin in the second half of this year (which is here and now).

The announcements at Advancing AI show how the company has engineered its AI platform solutions for large reasoning models, sustained inference and agentic workflows. These workloads pressure memory capacity, data movement, networking and CPU orchestration. AMD’s approach is to keep as much data close to the compute engines as possible and move it more efficiently throughout the system, but there’s deeper nuance here that’s obvious versus AMD’s chief rival, NVIDIA.  

AMD’s MI455X targets the AI memory wall

The Instinct MI455X GPU is the compute engine that fuels the Helios rack, and the first GPU based on AMD’s new CDNA 5 architecture. Built with a modular mix of 2nm and 3nm chiplets, it carries 432GB of HBM4 and 23.3TB/s of peak memory bandwidth.

Compared to AMD’s current MI355X, the MI455X offers 1.5 times the memory capacity, up to 2.9 times the peak memory bandwidth and up to four times the peak matrix performance with MXFP4 and MXFP8 data types, which are lower-precision numerical formats designed to accelerate AI processing while reducing memory demands. With MXFP6 (6-bit floating point), performance is rated at up to twice that of MI355X.

AMD also shared some actual, measured internal results using production silicon. The company claims MI455X delivers 3.8 times higher FP8 decode performance, 3.5 times more measured FP4 compute performance and between 2.5 and 3.5 times more networking bandwidth than MI355X, depending on the transfer path tested. Those figures provide more context than just numerical specifications, though they remain AMD-provided comparisons that will need independent validation.

AMD

The architectural choices behind the numbers are important. Reasoning models and long context windows require sizeable KV caches for maintaining AI attention states, while mixture-of-experts models frequently move large amounts of data across accelerators. MI455X should let more model data, activation states and cache remain local. New dedicated IP in hardware can transfer data while the GPU continues processing, and expanded cache and multicast capabilities are designed to reduce redundant data movement to further improve efficiency.

The aforementioned lower-precision formats can also raise throughput and reduce memory use, but model developers still have to determine where they can be applied without unacceptable accuracy loss.

AMD’s Helios rack takes aim at Vera Rubin

Dave Altavilla

Helios is AMD’s primary rack-scale competitor to NVIDIA’s Vera Rubin platform. Each liquid-cooled rack combines 72 MI455X GPUs, 18 single-socket Venice host CPUs and Pensando networking technologies.

In its most complete, premium configuration, AMD rates Helios for 2.9 exaflops of low-precision AI compute, with 31TB of aggregate HBM4 capacity, 1.7PB/s of memory bandwidth, 260TB/s of bidirectional scale-up bandwidth and 43TB/s of scale-out bandwidth.

These are formidable figures, but they are technical specifications rather than actual application benchmarks. The more consequential development is AMD’s move from collections of eight-GPU servers to a 72-GPU shared-memory domain. Models too large for one node can operate across the rack without treating every exchange as a scale-out networking transaction, which benefits large-model inference as well as training.

AMD uses UALink over Ethernet, or UALoE, for an open standard scale-up fabric. Each MI455X provides 3.6TB/s of bidirectional scale-up bandwidth, while the complete rack delivers all-to-all connectivity through a single switch layer. AMD also claims six times more scale-out bandwidth per GPU than MI355X when MI455X is configured with three Pensando Vulcano 800 AI NICs.

While open standards give cloud providers more control over suppliers and system design, AMD and its partners now have to prove those components can deliver the predictable performance, reliability and deployment experience customers expect from a tightly controlled, more vertically integrated platform.

Finally, AMD designed Helios with automatic rerouting around failed links, virtual rack partitions, tray-level serviceability and rack-wide power, cooling and health monitoring. Major hyperscalers and potentially large-scale enterprise customers will likely key in on these capabilities, which can affect the availability, total cost and consistency of the AI services they consume.

Kind of like cowbell, AMD Venice gives agentic AI more CPU

AMD

AMD’s agentic CPU messaging regarding its upcoming Venice-based EPYC processors is mostly marketing speak, but the underlying requirement is very real. An AI agent can invoke retrieval, databases, security checks, code execution and other tools before a GPU generates a response. Running many agents concurrently increases the amount of conventional compute requirements surrounding the accelerators.

Venice scales to 256 Zen 6 cores with support for 512 threads, 16 memory channels, up to 1GB of L3 cache per socket, along with PCIe 6.0 and CXL 3.1 connectivity. AMD is also offering several Venice configurations for other applications, including general-purpose servers, high-frequency workloads, GPU hosts and high-density CPU sandbox systems used to execute agent tools.

Treating the CPU solely as a GPU host understates its role. Gateways, tokenization, vector search, databases and short-lived code execution stress different mixes of per-core performance, thread count, memory bandwidth and I/O. Specifically, AMD’s internal testing shows Venice significantly outperforming its current EPYC 9965 Turin CPU across five parts of the agentic AI pipeline, including gateway processing, context assembly, vector search, enterprise applications and short-lived tool execution. Individual gains vary by workload, but AMD details the overall generational improvement at up to a 1.7 times lift. As with the MI455X figures though, these comparisons come from AMD and will require independent validation.

Pensando networking and ROCm software advance

Keeping GPUs fed with data and coordinating traffic across racks directly affects utilization and operating costs. In fact, GPU utilization is a pretty sad state of affairs currently for some of the major frontier model providers.

As such, Pensando networking has become central to AMD’s roadmap. Helios can connect each MI455X to as many as three 800Gbps Vulcano AI NICs, while Salina DPUs handle front-end networking and infrastructure services.

On the software side, which is an equally critical component, AMD also introduced ROCm.AI, an AI-assisted development layer due to arrive in August. It includes reusable skills for coding agents, simplified management and Hyperloom, which can profile workloads, tune serving configurations, modify kernels and validate results.

These tools address two persistent AMD challenges: developer efficiency and ease of use, and software tuning. Automated optimization still has to produce repeatable gains without creating hard-to-maintain code, however. And while ROCm has progressed significantly over the last few years, NVIDIA’s CUDA retains an advantage in maturity, tooling and developer familiarity.

Customer commitments underscore rack-scale confidence

AMD now has commitments that give its MI450 generation and Helios considerably more weight. Meta and OpenAI have announced multi-generation agreements composed of up to 6GW of AMD compute capacity, with initial 1GW deployments planned for the second half of 2026.

Oracle plans a 50,000-GPU public cloud cluster beginning in the third quarter, while Microsoft will deploy Helios for Azure AI inference. Finally, just before the AMD event, Anthropic announced a strategic partnership for up to 2 Gigawatts of AMD-fueled AI compute, with its first gigawatt expected online in the first half of 2027.

Commitments of this scale reflect confidence in more than just MI455X performance. These customers are evaluating the complete architecture, including Venice CPUs, Pensando networking, ROCm software, rack integration, serviceability and AMD’s ability to deliver and execute across multiple product generations.

There is some financial alignment behind the agreements as well. AMD issued OpenAI performance-based warrants and committed to investing up to $5 billion in Anthropic. That context matters when evaluating these deals as market validation, but these planned deployments are substantial nonetheless and put Helios on a much stronger foundation as it begins shipping.

AMD expands its robotics and embedded foundation

AMD also expanded its physical AI portfolio, building on credible traction from its Xilinx-derived Kria adaptive system-on-modules and embedded technologies that are already powering robotics, machine vision and industrial automation applications.

The new Ryzen AI Embedded X100 combines up to 16 Zen 5 CPU cores, integrated Radeon graphics, a second-generation NPU and as much as 128GB of unified LPDDR5X memory shared across its compute engines. To me this looks a lot like a repackaging and optimization of the company’s Strix Halo platform, but with specific optimizations for the embedded space. Regardless, AMD is pairing X100 with the Kria AI Robotics Developer Platform, which includes a System Module or SOM, and a new Robotics Partner Network spanning hardware, software and platform providers.

Samples began shipping in June, with full production expected in the fourth quarter. This broader objective is to give developers a path across AMD x86 CPUs, GPUs, NPUs and FPGAs for real-time autonomous systems, rather than requiring them to assemble those hardware engines and software components independently.

Execution for AMD is now the test

AMD has assembled a credible platform for the burgeoning agentic AI market that’s blowing up currently with no signs of stopping. MI455X addresses memory and data movement, Venice handles dense agentic CPU workloads, Pensando networking connects global system resources, and ROCm.AI addresses software complexity. Finally, Helios assembles these components into a true competitive threat for NVIDIA’s latest Vera Rubin platform.

AMD’s open architecture may appeal to customers seeking supplier choice, but openness must also translate into reliable deployments, competitive total cost and software that does not require a significant rip-up. NVIDIA enters this cycle with a stronger ecosystem and far more rack-scale deployment experience. The true test will be how easily and reliably customers can integrate, operate and maintain these AMD solutions at scale.

As it stands, AMD now has major customers and a clearly defined architecture with systems engineering expertise behind it. Delivering Helios on schedule and showing that its performance claims translate into a real production workload throughput advantage and total cost of ownership gains will determine how much the competitive gap narrows. And of course, this is in a market that is clamoring for ever-more compute resources with a seemingly insatiable demand for AI services and capacity. That’s an environment for big iron success. Now AMD just has to deliver optimized, turnkey AI platforms. This is far easier said than done, but time will soon tell as deployments take shape this year.

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In public-sector and regulated-cloud work, I learned that sovereignty rarely starts as a national strategy. It starts as an auditor’s question: Who can prove where the data went, which system made the decision and what changes when the vendor or infrastructure does? That question is now moving into AI, and most sovereign-AI debates answer the wrong version of it.

They ask whether a country can build its own model on domestic data and hardware. For the United States and China, which together hold more than 90% of global AI data-center capacity, per a January 2026 Tony Blair Institute analysis, that question is worth asking. However, for almost every other government, it is the wrong place to start. The operative question is narrower: Once AI is embedded in public services, who controls the stack?

The 5 layers of public-sector control

For a CIO, sovereign AI means enforceable control across the AI lifecycle; model ownership is a separate question. Control has five layers:

• Data control: Where sensitive public data sits, and whether it can train a vendor’s model.
• Model control: Which models clear which workloads, and under what validation.
• Infrastructure control: Whether critical workloads run in approved environments.
• Operational control: Whether AI-assisted actions are logged, monitored and reversible.
• Vendor control: Whether the agency keeps portability, audit rights and a real exit.

Those five layers are the control plane for public-service AI. Floyd Dcosta recently made the enterprise case in “AI without sovereignty is just outsourced intelligence”: capability is what a tool can do; authority over how and when it does it is something a buyer can quietly lose. For public services, losing that authority plays out in the public eye.

Public-sector AI risk differs from enterprise risk. A retailer’s bad recommendation costs a sale; a government’s AI touches benefits, tax enforcement, policing and emergency response, raising the bar to due process, records retention and continuity of operations. A government that cannot reconstruct an AI-assisted decision lacks operational sovereignty, even in a domestic data center.

Evaluating risk: Concentration, jurisdiction and shadow AI

Foreign dependency is a real risk, but the exposure that matters is a sudden cutoff: A model you cannot audit, switch or exit, shut off by someone else’s order. A vendor’s nationality is a poor guide to that risk; control is.  Two markers matter. The first is concentration. In July 2024, a single faulty CrowdStrike update crashed about 8.5 million Windows machines, disrupting airlines, hospitals, banks and governments worldwide. No attacker was involved; one homogeneous dependency failed everywhere at once. The lesson points away from vendor nationality and toward uniformity as the fault line, making portability and provider diversity resilience controls.

The second is jurisdiction. In June 2025, Microsoft’s legal director for France told a Senate inquiry, under oath, that it could not guarantee that French public-sector data, even in French data centers, would be protected against US demands under the 2018 CLOUD Act. No such request had been made, and EU data has stayed in the EU since January 2025; senators called the assurance purely declarative. For the most sensitive data, residency does not equal control; the parent’s jurisdiction can matter as much as the server’s. Three US hyperscalers hold about 70% of the European cloud market, while European providers’ share fell from 29% in 2017 to roughly 15%. Concentration plus jurisdiction is the exposure a CIO must price. I have watched teams treat vendor selection as the moment risk was solved; it rarely was.

The wrong response is self-isolation. Most countries will never build frontier models, advanced chips, hyperscale clouds and talent pipelines at once; the Tony Blair Institute calls full self-sufficiency “too expensive, too slow and, for most countries, simply impossible.” The better test is workload sensitivity. Low-risk uses, such as drafting, translation and summarization, can run on commercial platforms with controls; high-risk uses, such as benefits eligibility, fraud investigation and healthcare triage, demand stricter control over data, model behavior and auditability.

Mandating domestic-only provision before a competitive option exists inverts sovereignty. Europe 2031, a five-year scenario from June 2026 by European technologists and policy researchers, illustrates the failure mode: A 2027 “buy European” mandate lands as offensive cyber capability spreads, and agencies that switched to weaker providers are locked out and paying ransoms. The scenario is fiction; the mechanism is not. Leverage comes from being indispensable, not half-hearted self-sufficiency. The closer-to-home effect is shadow AI: Mandate an inferior sanctioned tool and staff bypass it, the way shadow IT grows up around tools people find too slow. A rule that pushes sensitive work into ungoverned shadow AI reduces control instead of adding it.

Regulation and data-residency rules belong in any serious strategy, but carry failure modes. Blanket localization raises hosting costs and slows adoption without guaranteeing control, and a “sovereign cloud” on a foreign parent’s stack can amount to sovereignty theater. The more useful pattern tiers requirements by sensitivity. India’s BHASHINI shows the application layer done well: A public platform serving 100 million-plus inferences a month across 22-plus languages on a vendor- and cloud-agnostic design that keeps data and switching rights public. Sovereignty resides in the portability, not in a national model.

Building an operational sovereignty strategy

Public trust is the constraint sovereignty rhetoric tends to skip. The OECD’s 2025 review of government AI warns that opaque systems make AI-assisted decisions hard to explain and can give public servants false confidence in tools that fail quietly. State-controlled AI is the same problem from the other side: A government that deploys models against its own citizens without audit or record has gained control and lost accountability. An agency that can log, explain and reverse an AI-assisted action can defend it to citizens, courts, auditors and elected officials. If it cannot, it has bought access and called it sovereignty.

None of this is new. AI sovereignty repeats earlier fights over cloud, telecom, semiconductors and cybersecurity. Europe’s flagship cloud project, GAIA-X, became a cautionary tale; the Dutch technologist Bert Hubert called it an “expensive distraction” that produced no European cloud, the familiar result of ambition without absorptive capacity. Cloud taught governments that outsourcing infrastructure does not outsource accountability; telecom, that vendor dependency becomes strategic exposure; chips, that supply chains matter before a crisis; cybersecurity, that trust must be verified continuously. AI inherits all four at once.

Over the next five to ten years, some countries will build national platforms, more will build trusted cloud and trusted model regimes, and most will run hybrids that pair domestic data control with global model access. Trade policy will harden those choices: Export controls on compute and data-localization rules will pull the vendor market into blocs that track alliances more than open markets. For a CIO, that turns a vendor and hosting decision into a five-year bet on whose rules and supply chains will still hold. The ones that succeed will treat sovereignty as an operating requirement, backed by leverage, not a slogan. Start with the control plane before the model: Most agencies will never own the model, and the controls are what decide whether the AI they do run stays accountable. Even when procurement policy is dictated from above, these questions remain within the CIO’s authority:

1. Can we classify AI workloads by public-service risk?
2. Can we prove where sensitive data goes across training, retrieval, inference, logging and retention?
3. Can we restrict which models are approved for which data classes and functions?
4. Can we reconstruct an AI-assisted action in enough detail to explain it?
5. Can we change providers without losing continuity or institutional knowledge?
6. Can we explain the system to citizens, regulators, auditors and elected officials?

A “no” to any of these does not mean the agency lacks AI. It means the agency has access it does not yet control. Public institutions can use global innovation without surrendering public authority, but only once they know what to hold, what to rent and where dependency turns into risk.

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I haven’t slept much in the past few weeks. Not because of some theoretical cyber risk that keeps many executives awake, but because reality just delivered a real wake-up call to our industry — a call that every executive must answer, now.

Imagine this: A major global enterprise, a company most of us interact with indirectly every single day, wakes up to find its entire digital environment obliterated. Thousands of employees in dozens of offices and remote locations are suddenly offline. Customers are cut off, supply chains grind to a halt and regulators are notified with a chilling admission: “We have no idea when we’ll be back.”

This wasn’t ransomware. There was no negotiation, no decryption key to buy, no easy way out. It was destruction — deliberate, coordinated and geopolitically motivated — not monetary.

As a chief customer officer who’s worked with countless customers on cyberattack risks, my perspective hits a bit differently than a CISO or a CTO. I see the aftermath, not just the attack surface. I see the faces behind the tickets, the operations team locked out of their own systems, the support agent answering panicked calls at dawn. And I ask: How many organizations have actually stress-tested their response to this scenario — not a hypothetical, but this very real, lights-out event? Here’s what every leader needs to confront today:

Recovery is not just a technical exercise

The first assumption to break during a real crisis is the belief that recovery is purely technical.

Many organizations have done tabletop exercises and have a backup and recovery playbook, so they feel prepared. They can point to backup windows, retention schedules and immutability controls. The moment a true blackout happens, a different reality surfaces. The people who own the recovery steps either do not know each other, lack the authority to make decisions without supervisor approval or need guidance from offline systems.

The reality is that technical infrastructure almost always holds up better than human infrastructure. Organizations have built their recovery strategy around the assumption that someone competent will be awake, available and empowered when a cyber event happens.

Still, backups are only as good as their independence. Let’s be blunt: If your recovery infrastructure shares identity, authentication or network trust with your Microsoft tenant (such as Azure, Microsoft 365 or Teams), you don’t actually have a recovery plan; you have a false sense of one — and a liability. A recent survey found that while 90% of organizations express confidence in their ability to recover from a cyber incident, fewer than one in three ransomware victims fully recovered their data.

True resilience means immutable, air-gapped backups, untouchable by the same compromise. Anything less is an illusion. I talk to customers about their recovery plans constantly. The customers who have rehearsed all scenarios sleep soundly. Those who haven’t? They’re rolling the dice.

Most business continuity plans ignore ‘total blackout’

I’ve reviewed hundreds of business continuity plans. Almost all assume partial failures — a region, an application, a data center. But what if every system, in every country, goes dark simultaneously? That’s an entirely different playbook. If your team hasn’t run a drill for a global, simultaneous outage, you’re not prepared. The probability is low, but the cost of being unready is existential.

Connected devices, OT systems, field hardware, partner integrations — they all plug into your enterprise network. When the core collapses, it’s not just IT at risk. It’s operational technology, physical safety systems and in regulated sectors, potentially human lives. Understanding and testing those interdependencies is non-negotiable.

This is also where boards need to change the conversation. A study found that only 5% of companies have cybersecurity experts on their board of directors. Recovery time objectives (RTOs) should not be buried in technical appendices. It’s all jargon to boards. That makes translation essential. RTOs must be explained in terms of business impact. “We can recover in four hours” is a technical statement. “Every hour of downtime costs us $2.3M and creates regulatory exposure in three jurisdictions” is a board statement.

That is the level of clarity leaders need.

The most prepared organizations do not wait for an incident to educate the board. They bring the conversation forward proactively. They frame recovery in business terms: revenue, regulatory standing, customer trust and brand reputation.

The most effective framing is often simple. Show the most critical systems. Show what happens if each one is down for one hour, four hours, 24 hours and 72 hours. Show the current recovery capability against each and then show the gap.

If your board is not demanding real answers, your business continuity strategy is likely underfunded and your business is exposed. This is a risk conversation worth forcing because the consequences do not stay inside IT. They can show up in customer churn or missed revenue and ruin an organization’s reputation.

Threat intelligence must be actionable, not archived

Geopolitical attacks, hacktivist campaigns and nation-state targeting aren’t abstract threats. They are active risks, and that intelligence cannot languish in the security team’s inbox. Executive leadership must be looped in — and immediately — so gaps can be closed before they’re exploited. Too often, intelligence enters the security operations function and never reaches the teams responsible for recovery infrastructure or executive decision-making.

If a threat actor is targeting a specific class of backup agents, the team responsible for those agents needs to know now, not two weeks from now. If intelligence suggests destructive activity against a sector, recovery owners need to validate isolation, access paths and restoration procedures immediately. If geopolitical tension increases the likelihood of targeting, executive leadership needs to understand what exposure exists and what actions are being taken. The organizations that survive aren’t just the best at incident response. They’re the ones who anticipated, rehearsed and invested before the attack.

Part of investing in a recovery strategy requires closing the loop between signal and action. The most prepared organizations have already mapped their critical recovery dependencies to specific threat categories. When intelligence touches one of those categories, there is a named owner and a clear set of actions. No guessing or forwarding emails into the void is needed because the distance between the warning and the employees’ ability to do something is shortened.

Looking ahead, the conversation will continue to evolve beyond traditional cyber response. Because in an AI-enabled enterprise, the new question is whether the data within those systems can still be trusted. When AI systems make decisions based on enterprise data, the attack surface becomes the data’s accuracy. A threat actor who quietly corrupts a dataset over 90 days before a recovery event has done more damage than just downtime. They can poison the inputs driving decisions across the business.

Regardless of how AI will change threat intelligence and cyber response, these principles remain the same. Know your problem, whether structural or technological. Ensure your human infrastructure keeps pace with your technical infrastructure, with clear cross-functional ownership and the tools and knowledge to act autonomously. Communicate with your boards often — and correctly.

Let’s not wait for the next headline to ask, “Are we ready?” Have those conversations now. Test your assumptions. Close your gaps. Because in today’s threat landscape, resilience isn’t IT’s job — it’s everyone’s mandate.

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When it comes to building an effective AI stack, context is king and power isn’t everything it’s cracked up to be.

“Smaller, smarter, safer — this is a bet our company has taken in how we deploy AI internally,” said Ricky Thakrar, head of sales and account management at Zoho, provider of a suite of popular cloud-based software solutions for sales, marketing, and finance.

“I’m on the business side, and so decisions made by our CIO and IT folks affect me directly, and my teams’ workflows and processes,” he added.

Speaking to a room of tech leaders at the CIO 100 Leadership Live New York event last week, Thakrar explained that every company wants the speed of AI-generated work wedded to the quality of human work, even though these two are diametrically opposed. No amount of model upgrades or spend will close that gap, so the only way forward is to architect your way out. Thakrar encapsulated this idea in a simple formula:

• Smaller: Stop deploying maximum firepower on every task. Many tasks don’t need it.
• Smarter: The system around the model decides more than the model does.
• Safer: Verify at the point a mistake gets locked in, not just downstream of it.

He noted that organizations that win with AI won’t be those deploying the biggest, most powerful models or the most sophisticated architecture, but the ones that figure out that the model is the easy part and the right architecture is harder. That means understanding the hardest element, and the biggest differentiator, is building a human system that learns and compounds alongside agentic systems.

To get it right, organizations need to prioritize the context layer. The size of frontier models like the GPT series, Claude, and Gemini mostly exist to compensate for missing context, Thakrar explained. Without enough context, models need to be able to reason harder and infer more about what a user actually means because it doesn’t know the user’s account, process, or history. A rich context layer makes it possible for enterprises to run workloads on much smaller, lower-power models.

“The intelligence moves from the model into the architecture around it,” he said.

A steep learning curve

One of Zoho’s earliest AI agents was a churn management agent to help the account management team detect churn in customer subscriptions. So when a subscription became inactive, the agent would collect context from notes, meeting recordings, and Zoho’s data enrichment tool, then create a summary of reasons the account might have churned, and schedule a call.

“What happened was I got this churn agent a couple months later, already embedded in our CRM, and within a week my team no longer trusted that agent,” Thakrar said. “The reason is we forgot to collect one very key point.”

In Zoho’s CRM, when a customer buys a bundle of products, that bundle is represented as a single line item. That means the status of any products the customer may have previously purchased individually changes to inactive as they’re moved to the bundle. That’s not churn, but it was interpreted it that way. Zoho fixed it in the second version of the agent.

Then a new problem arose. Many potential customers first purchase Zoho products as pilots or sandboxes. As those customers move from pilot to live instance, they close down the pilot versions. And again, the CRM would record that as subscriptions going inactive.

“The trust deteriorates again because everyone got excited for version 2,” Thakrar said.

Sometimes, a certain product might not be the best fit for a customer and Thakrar’s team will suggest the customer move to another product. That’s deliberate churn, not a churn risk.

“You may have a similar story like this where the agent sounds so good, it’s going to do something quick and add value, but it’s missing context from the account managers, and there are so many more pieces we’re still building out,” Thakrar said. “It’s been almost a year and the problem I have is my team still doesn’t trust it. They’ll see [a message from the agent] and go out and do all the research anyway to make sure it gave the correct answer.”

The team is more on top of potential churn, though, but the promised productivity gains have yet to materialize because the agent has to earn back lost trust due to a lack of context.

“My goal for this year is having an AI-assisted customer journey from sales to account management where the handoff is clean, the context flows, and every piece of information we gather about a customer is weighed, identified, and coached so the sales team can close more deals,” he said.

Zoho’s early experience with agents has led to the idea that constrained, context-rich, deterministic architectures consistently outperform expensive models bolted onto fragmented systems. It all comes down to three pillars: routing, harness, and specialization.

Routing

Routing is about sending workloads to the proper model for the job, which entails providing enough context to a given task that a small, cheap model can handle it without the need for spare reasoning capacity to fill gaps.

Frontier models are expensive and companies can burn through a year’s budget worth of tokens in months. But most tasks can be handled by much smaller, more constrained models at a fraction of the cost.

“You don’t always have to pay the frontier guys for every task,” he said. “We’ve observed with some clients that we could save them 95% with a 3 billion parameter model.”

Harness

An AI agent harness is the software infrastructure scaffolding around an LLM that differentiates an agent from a chatbot. It’s what enables an agent to act on tasks rather than simply respond to prompts. A model reasons through a problem and decides what to do about it. The harness connects the model to the tools, systems, memory, guardrails, and execution environments required to perform the actions determined by the model. The term is frequently used more or less interchangeably with orchestration layer.

“It’s the process around the model, which matters way more than the model itself,” Thakrar said.

In benchmark tests, a superior harness on a less powerful model produces better results than an inferior harness on a much bigger model.

For the best results, Thakrar said, it’s essential to understand the deterministic and non-deterministic elements of a given workload, and build that into the architecture. Machines can read, organize, and validate, and they excel at deterministic tasks. Humans, on the other hand, are exceptional at non-deterministic tasks like judging, synthesizing, and deciding.

Those non-deterministic tasks in a process are the ideal point for AI agents to incorporate a human in the loop, what Thakrar calls human harness. He pointed to a stakeholder mapping agent Zoho built for sales as an example, which takes the context of an initial meeting and third-party enriched data like a LinkedIn profile, weighs probabilities, and makes an educated guess about the stakeholder map.

“The initial goal was just to eliminate that task completely from the human workflow,” he said. “The stakeholder map is done, it’s in the folder, and you can look at it.”

But the agent would struggle to capture nuance. The meanings of titles in organizations always vary, and the politics and dynamics of any given meeting can be difficult for an AI agent to discern. Rather than keep feeding the agent data to try to make it intelligent enough to make those determinations, it was simpler and more efficient for the agent to create a proposed stakeholder map and hand it over to a human who could make changes and explain why those changes were necessary.

Ultimately, Thakrar said the agent still saved human team members time because the stakeholder map was usually pretty close, and the corrections also helped the model grow smarter by adding richer context.

Specialization

Specialization is transitioning a process from testing on a frontier model to production on a much narrower, smaller model. Once you’ve proven that an agent can do a job well, you want to stop paying master-craftsman rates to keep doing that one job well.

Specialization is all about capturing your subject matter experts’ best judgement and pattern recognition to build an open-weight, open source, trained, and fine-tuned model that can be deployed in your own data center.

“The true enterprise bet is to keep that orchestration layer, which is your IP and knowledge, in house,” Thakrar said. “You don’t want to host that on someone else’s model. The goal of everyone in enterprise should be to run, train, and host their own models.”

The traditional methods of measuring success no longer tell the full story. Here’s what should replace them — and why.

In brief:

• AI is transforming software as a service (SaaS), and the old ways of keeping score no longer apply.
• Smart companies are evolving new metrics that provide deeper insight into how AI-native software is performing in a new marketplace.
• These changes impact everything from pricing to valuations.

The transformation of the software-as-a-service (SaaS) industry toward AI-native operating companies is rapidly changing the unit of value across the industry.

The traditional metric of seats — which measured access — is rapidly giving way to credits designed to measure work performed. This evolution is upending the industry in multiple ways, impacting everything from pricing to enterprise valuations.

While many companies still cling to seat-based metrics to measure growth, efficiency and durability, the future is likely to be one in which companies utilize a credit-centric metrics framework, with seats and outcomes as the bookends of a spectrum.

Why do software companies need new metrics?

Why the rethink, and why now? There are five major forces that are driving this shift:

1. The unit of value is changing. Seats measured who could access software, and credits measure what the software actually does. But in an AI-native world, agents don’t have seats; they have workloads. Over the past 18 months, every major SaaS platform has moved to some forms of credit or consumption unit.
2. The cost of goods sold (COGS) is exploding. AI inference adds real per-unit costs that scale with usage. In an AI-native world, software companies can’t scale to infinite users at near‑zero marginal cost as before.
3. Buying is moving up the org chart. AI-native applications shift purchasing to higher-level operators — such as line-of-business leaders or chief operating officers — which expands the market from software budgets to labor budgets. And because AI agents replace services as well as software, the total market opportunity is 3x to 10x larger than traditional SaaS.
4. Time to value (TTV) is collapsing. With AI-native tools, customers start seeing meaningful results in weeks rather than quarters. Onboarding and setup are fast, workflows are pre-built, and there’s no need for extensive customer success or professional services — dramatically reducing implementation time and costs.
5. Retention is bifurcating. AI forces clarity in a way that traditional SaaS couldn’t. Products that can provide value become even “stickier” and retain customers. Those that don’t churn faster. In an AI-native marketplace, the middle disappears.

How this shift is impacting pricing

Given how AI-native software is transforming the market, the shift to more variable pricing options is inevitable.

Seats won’t go away completely. Subscription pricing based on the number of users is stable and predictable and will continue to work for some customers. Tokens — the use of pass-through pricing for underlying compute — will fit those customers where the AI feature is commoditized or the buyer wants transparency into costs.

Credits will likely become the dominant architecture because they provide a simple metric for both customers and providers. The vendor sets the conversation ratio between credits and underlying compute, shielding the customer from inference cost details. Credits are easy to understand and can be packaged into annual contracts for multiple features and products.

Finally, the industry will likely see some move toward outcome-based pricing for results such as resolved tickets, recovered revenue or qualified leads. This strategy will mostly be limited to verticals where it is easy to prove AI impacted the result.

Where a software vendor sits on this spectrum is a signal of differentiation and pricing power. Credits are where most defensible AI-native businesses are landing because they balance customer predictability with vendor margin control.

How AI upends classic SaaS metrics

When SaaS was in its infancy, companies settled on key metrics designed to answer a small set of core questions. Are we growing? Are customers using the product? Are we retaining and expanding accounts?

But as AI upends software itself, it is also requiring companies to adopt new metrics to track success. These new metrics fall into three primary buckets, rebuilt around the pricing spectrum described earlier and the trend toward credits as the primary frame:

Revenue composition

• Committed credit annual recurring revenue (ARR) vs. burndown ARR: Measuring the credits sold on annual commitment vs. those consumed and replenished. This is the single most important split for valuation. Committed credits behave like subscription and burndown behaves like usage.
• Credit utilization rate: The percentage of purchased credits consumed per period. This is a leading indicator of renewal sizing.
• Credit burn velocity: How fast is a customer consuming their credits, and is that consumption increasing or decreasing quarter over quarter? This metric predicts expansion or contraction before it shows up in ARR.
• Effective price per credit: The real revenue per credit after discounts, overage and rollover, which can detect revenue leakage and help companies set smarter guide rails.

Margin reality

• Credit margin: The gross profit the company earns per credit after subtracting inference costs. This is the core economic unit for AI-native, usage-based businesses — the replacement for gross margin per seat used in SaaS.
• Inference-adjusted gross margin: By carving out AI inference costs separately in the P&L statement, you can see true AI margins, avoid hiding deterioration inside blended SaaS margins, and clearly distinguish AI economics from legacy SaaS economics.
• Compute leverage ratio: This metric measures how efficiently the business converts compute spend into revenue. It shows whether your AI margins are improving as you scale.
• AI-adjusted “Rule of 40”: This updated metric recalibrates the traditional growth and profitability benchmark to account for AI’s lower gross margins and variable inference costs, giving a more accurate picture of business health for AI-native companies.

Behavioral and value signals

• Time-to-first outcome: Replaces traditional onboarding metrics. Tracks how fast a customer reaches their first measurable result.
• Adoption: AI-native adoption is measured by workflow penetration and active agent density, not seat count. As AI replaces human-driven usage, the unit of adoption shifts from people to automated workflows and agents.
• Net credit retention (NCR): Credit-volume retention across the customer base, tracked separately from net recurring revenue to avoid price-change impact.

Along with these new metrics, the industry’s transformation is prompting companies to retire or recalibrate old SaaS measures, including per-seat ARR as a primary key performance indicator (KPI), traditional magic number calibrated to subscription dynamics, unadjusted Rule of 40, customer success metrics tied to human touchpoints, and blended gross margin without AI COGS carve-outs.

What does this mean for enterprise value calculations?

As the internal metrics of success change, so do the ways the investment community measures growth and long-term viability.

Increasingly, a company’s valuation multiple depends on whether its revenue behaves like committed subscription ARR or volatile usage ARR, and the commit‑to‑burndown ratio is the metric investors use to decide where the company fits.

For example, a business with 80% committed credit ARR could trade closer to subscription comps and one with 80% burndown could trade closer to usage comps even though both have the same types of customers. Being able to proactively explain the commit‑to‑burndown mix can help companies avoid undervaluation.

In addition, utilization is expected to replace net promoter scores and seat usage as the primary predictor of churn or expansion. Low utilization guarantees downsizing at renewal, so companies must track utilization cohorts the same way SaaS tracks logo retention cohorts today.

We’re also seeing an inversion of the operating model, with R&D and COGS moving up the P&L and sales and marketing (S&M) and customer success (CS) moving down or sideways. The net operating leverage profile is structurally different from classical SaaS, and the cost-to-scale curve looks different too.

Finally, credit margin engineering is a hidden value-creation lever. The gap between price per credit and cost per credit is set by the software vendor and can be optimized. Most operators have barely started managing this rigorously, and the ones who do will pull away on margin.

What this means for leaders, boards and investors

The shift from classic SaaS metrics to new AI‑native measures isn’t cosmetic. It represents the seismic change the industry is experiencing as AI matures and transforms products and organizations.

While these metrics — and perhaps others yet to be determined — may evolve over time, there is no doubt they are already changing how AI companies allocate capital, price products, incent sales teams, evaluate performance and communicate with investors.

It’s important to remember that SaaS metrics were practical tools for a specific era of software. As that era draws to a close, winning companies will choose new metrics that shape behavior and drive smart decision-making.

The views reflected in this article are the views of the author and do not necessarily reflect the views of Ernst & Young LLP or other members of the global EY organization.

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Over the past few years, I have learned that basic prompts produce inconsistent, hallucination-prone results that no executive would trust in production. What turned the tide was my move to advanced prompting techniques. These weren’t theoretical experiments; they became a practical foundation for reliable, measurable outcomes. I want to share the techniques that consistently delivered the biggest gains in my projects, complete with real before-and-after examples, copy-paste templates, lessons from failures and guidance on when to evolve beyond prompting to agentic systems.

Why advanced prompting still matters in enterprise settings

Sophisticated prompting remains essential for control, reliability and compliance. If you “ask nicely” and hope for the best, you need deterministic behavior, auditable reasoning and minimal risk of hallucination. Here’s what worked for me.

1. Chain-of-Thought (CoT) and its variants: Unlocking step-by-step reasoning

The problem: Models would jump to conclusions on complex analysis tasks, especially involving data interpretation or multi-step logic.

What I did: I started explicitly instructing the model to “think step by step” and show its reasoning.

Before (basic prompt): “Analyze last quarter’s sales data and recommend three actions.”

After (CoT prompt):

“You’re a senior business analyst. Analyze the following sales data step by step: [data]. First, identify the key trends. Second, calculate the rates and anomalies. Third, link findings to business context. Finally, recommend the three prioritized actions with expected impact. Explain your reasoning at each step.”  

Results: Accuracy and depth improved dramatically.

Variants that worked well: Self-consistency. I ran the same CoT prompt multiple times and took the majority consensus. This reduced variability significantly.

Template you can use:

You are [expert role]. Solve this problem by thinking step by step.

[Task or question]

For each step:

1. State your observation or calculation.

2. Explain the implication.

3. Proceed only when confident.

Final answer in this format: [structured output]

2. Tree-of-Thoughts (ToT): Exploring multiple reasoning paths

For truly complex decisions such as resource allocation or risk assessment, linear CoT isn’t enough. Tree-of-Thoughts lets the model generate and evaluate multiple branches.

Example: I was helping a client evaluate three potential vendor platforms for an AI deployment. A standard prompt gave a superficial comparison. With ToT

Prompt Snippet:

Explore three different reasoning paths for selecting the best vendor platform:

Path 1: Focus on cost and scalability.

Path 2: Focus on security, compliance and integration.

Path 3: Focus on innovation and long-term roadmap.

For each path, evaluate pros/cons against our requirements [list].

Then, compare the paths and recommend the strongest overall option with justification.

Outcome: The model surfaced nuanced trade-offs (e.g., one vendor had superior security, but higher integration cost).

When to use: Strategic planning, troubleshooting or scenarios with high uncertainty and multiple viable approaches.

3. ReAct (Reason+ Act) and prompt chaining: Moving toward agentic behavior

One of the biggest leaps I have noticed comes from combining reasoning with tool use and chaining prompts.

ReAct example: (used in data analytics workflow)

You are an AI analyst with access to tools. For the query below:

1. Reason about what information you need.

2. Choose the appropriate tool or action.

3. Observe the result.

4. Repeat until you can answer confidently.

Query: [user request]

In practice, I chained this with retrieval tools. One automated quarterly compliance reporting; the system reasoned about required data, pulled relevant records, validated them, and generated the reports.

4. Meta-prompting and self-reflection: Letting the model improve itself

Use the model to refine its own prompt. This is a huge time-saver.

You are an expert prompt engineer. Improve the following prompt for clarity, structure and effectiveness with [target model]. Make it more precise while preserving intent.

Original prompt: [paste]

Provide the improved version and explain your changes.

Self-reflection loops (asking the model to critique its own output and revise) are a game-changer for content generation and code-review tasks.

5. Multimodal and structured output techniques

With vision-enabled models, I started combining text with images (e.g., uploading architecture diagrams or dashboards).

Tip from experience: Be extremely specific in describing what the models should focus on.

Best practices I learned the hard way

• Start simple, then layer complexity: Over-engineered prompts from Day One usually backfire.
• Model specific tuning: Some models respond better to XML delimiters; others to explicit reasoning.
• Evaluation and versioning: Treat prompts like code if you track versions and run automated evals.
• Security guardrails: Always include instructions against prompt injections and respect data boundaries.
• When to stop prompting: For repetitive, high-stakes workflows, move to full agents or an orchestration framework.

Final takeaways for technical leaders

Advanced prompt engineering has now become a core competency for anyone responsible for enterprise AI outcomes. Start by picking one technique and apply it rigorously to a real business problem. Document before/ after and you will notice why it’s worth mastering.

The field continues evolving towards more automated and agentic systems, but the ability to precisely direct AI reasoning remains foundational.

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Google CEO Sundar Pichai has sought to allay concerns over the delayed release of the Gemini 3.5 Pro large language model. He dodged questions about it in Google’s quarterly earnings call on Wednesday by focusing on the company’s next frontier AI model, Gemini 4, and plans to release subsequent LLMs at an almost monthly cadence.

His comments came a day after Google unveiled Gemini 3.6 Flash and 3.5 Flash Cyber but offered no update on the release of Gemini 3.5 Pro, the company’s delayed flagship reasoning model that many developers had expected to arrive weeks earlier.

Google introduced the Gemini 3.5 family at its annual I/O conference, promising to release the Pro model in June. That timeline has since slipped, with Bloomberg suggesting Gemini 3.5 Pro is months late because the model’s coding performance is falling short of internal expectations, especially when compared to better performance by similar models from OpenAI and Anthropic.

Instead of revisiting the Gemini 3.5 Pro timeline, Pichai used the earnings call to shift the discussion toward Gemini 4, when asked about how his company planned to navigate an increasingly competitive race to release frontier AI models by to Barclays Investment Bank analyst Ross Sandler.

“We are creating a baseline on top of which you will see us rapidly iterate on subsequent model releases. And so picking up pace and releasing models almost at a monthly cadence is part of our road map as we are building Gemini 4 as well,” Pichai said during the call.

Sandler’s question followed one from JPMorgan Chase & Co analyst Douglas Anmuth, who asked Pichai if Google was releasing frontier AI models frequently enough to keep pace with rivals OpenAI and Anthropic.

Pichai had responded to Anmuth’s question that Google remained confident of competing at the frontier and was investing heavily in a larger Gemini 4 base model.

Analysts, though, aren’t as confident as Pichai.

While delays to Google’s frontier model roadmap have not triggered an exodus of existing customers, either because of high switching costs or because many enterprises already running multi-model architectures, they have made CIOs evaluating AI platforms more cautious about making new commitments, said Bhupendra Chopra, chief revenue officer at IT consulting firm Kanerika.

A monthly model release cadence could prove to be a double-edged sword for enterprises and their CIOs.

While a monthly release cadence could help enterprises gain faster access to improvements in model performance, cost and capabilities, it will also require CIOs to invest more heavily in testing, governance and version management to safely adopt those updates, said Sanchit Vir Gogia, chief analyst at Greyhound Research.

Similarly, Pareekh Jain, principal analyst at Pareekh Consulting, said enterprises will embrace a faster release cadence only if each successive model delivers measurable improvements in performance, cost or safety, rather than simply changing version number.

The challenge for CIOs, Jain said, is not just keeping up with model releases; it’s deciding whether each new version is worth the cost of validating it.

This article first appeared on InfoWorld.

OpenAI has launched Presence, an enterprise service for deploying voice and chat agents that can resolve customer and employee requests, potentially automating some work now handled by frontline support teams.

The agents can answer questions and operate IT systems, and enterprises can decide what actions the agents may take and when they should seek human approval for actions or transfer a case to a human.

OpenAI is already using Presence internally for its English-language phone support channel, where it verifies callers and uses account information to complete approved actions. The company said the system resolves 75% of inbound issues without human assistance.

Another OpenAI service, Codex, can be used to monitor agents and suggest updates or improvements to processes. In OpenAI’s own tests, suggestions from Codex helped reduce handoffs to humans by 15 percentage points over 10 days, it said. Presence also includes simulation and evaluation tools that allow companies to test an agent before deployment. The tests assess whether it reaches the correct outcome, follows company policy, and hands a case to an employee when required.

OpenAI intends each Presence deployment to deal with one kind of task, for example billing issues, insurance claims, or employee IT service requests, with agents getting only the knowledge and system access required for that task.

Presence is not a self-service product: Enterprises will have to sign up for the limited availability program, with integration performed by OpenAI or selected global systems integrators.

Companies exploring or testing Presence include Spanish bank BBVA, which is evaluating the service for everyday banking support in Mexico, and Japanese technology group SoftBank, which is using it in trials involving Japanese-language customer interactions. Australian insurer IAG is assessing whether the technology can help it respond to surges in customer demand during severe weather events.

Workforce impact

OpenAI’s announcement did not address the potential effect of Presence on employment. But its claimed automation rate raises questions about how the technology could affect staffing in customer service and other support functions.

Pareekh Jain, CEO of Pareekh Consulting, said CIOs should regard the 75% figure as evidence that the technology can work, rather than as a benchmark that every enterprise can expect to reach.

Jain said OpenAI’s deployment benefits from being built around the company’s own products and data. Large enterprises may achieve lower automation rates because they must contend with fragmented legacy systems, uneven knowledge bases and more complex compliance demands.

“Most organizations should expect lower initial automation levels that improve over time as the AI agent is refined,” Jain said.

The first workforce effect is more likely to be slower hiring than immediate layoffs, according to Tulika Sheel, senior vice president at Kadence International.

“The roles most exposed are likely to be repetitive, high-volume functions such as frontline customer support and routine back-office processing,” Sheel said. “However, I would expect the first impact to be on hiring and team growth rather than immediate large-scale job cuts. Over time, enterprises may redesign roles around AI-assisted workflows, with humans focusing more on complex cases, escalation, and relationship management.”

Jain said Tier-1 support agents handling predictable queries would face the most exposure. Broader reductions would become more likely only after companies reorganize their operations around the technology.

However, Lian Jye Su, chief analyst at Omdia, said Presence is unlikely to increase the threat of job displacement because companies have used similar customer-support automation from vendors such as Genesys, NiCE, Five9 and AWS for years.

Enterprises are more likely to use Presence alongside employees, with AI handling routine requests while people remain responsible for work requiring judgment and empathy, Su said.

Cost and operational risks

Analysts said CIOs should examine whether Presence can maintain resolution quality as usage grows, since fewer human handoffs could leave employees dealing with a more difficult mix of cases.

“The key question is not simply how many tasks AI can handle, but whether it can handle them reliably at scale,” Sheel said.

The financial case will depend partly on the cost of connecting Presence to existing systems and maintaining the controls needed to govern its use, according to Jain. “Often the biggest cost of enterprise AI is not tokens but integration and governance,” Jain added.

Companies will need to determine what systems and data the agents can access, monitor their performance, and audit the actions they take. Those investments could offset early savings.

Su said the complexity of enterprise IT will make it difficult for OpenAI to automate entire workflows on its own. Enterprises will still need to work with other technology providers and human employees, while CIOs will favor systems that can be audited and integrated with existing infrastructure.

Jain said the economics could improve if companies use the same integrations and governance controls across additional workflows.

Cloudflare recently beat Q1 2026 earnings. Revenue up 34% year over year. EPS ahead of consensus. Full-year guidance raised. Then, in the same breath, they announced 1,100 layoffs, 20% of the company. CEO Matthew Prince’s explanation: “The way we work at Cloudflare has fundamentally changed.”

Block did the same thing. Beat guidance, raised outlook, cut 4,000+ jobs. Both framed it as architecting for the AI era.

This is not a contradiction. This is the new math boards are running. And if you’re a CIO who hasn’t started running it yourself, you’re behind.

The benchmark has moved

AI-native companies have quietly reset what “efficient” means for a technology organization. Midjourney generates over $500M in revenue with roughly 160 employees, over $3M per head. Anthropic hit a $14B annualized run rate in early 2026 with fewer than 3,000 employees. Across the top AI-native startups, the average revenue per employee is $3.48M, nearly twelve times the traditional SaaS benchmark of $300K.

Boards aren’t comparing you to your 2019 self anymore. They’re comparing you to Anthropic.

This is the pressure Cloudflare and Block are responding to. They’re not cutting people because the business is struggling. They’re cutting because investors have internalized a new denominator. Headcount is no longer a proxy for capacity; it’s a liability on the efficiency ratio.

For CIOs, this creates a hiring problem that looks nothing like the cloud or mobile talent gaps of the past decade. Those gaps were about volume: hire 100 cloud engineers, absorb the cost, build the capability… This one is about density; you’re not looking for 100 people. You’re looking for 10 who can deliver what 100 couldn’t, and justify $1M or more in value per seat.

Finding bodies to fill seats has never been easier. Finding people who operate at that level of leverage is a different problem entirely.

‘Acqui-hires’ are a shortcut with a hidden cost

Companies have figured out that recruiting AI-native talent one by one is too slow and that it’s faster to buy a team. Google’s acquisition of the Windsurf founders, Meta bringing in the Scale AI team, Accenture’s string of AI-focused acquisitions: these are acqui-hires dressed up as M&A. The premium on experienced AI talent is high enough, and the urgency real enough, that organizations are skipping traditional hiring loops entirely and buying their way in.

I’ve been on the other side of this. My company, MadKudu, was acquired by HG Insights specifically to bring AI-native capability into an established enterprise business. HG needed change agents who had already figured out how to build and ship in this new era, not just people who’d read about it. That’s the thesis behind most of these deals.

But there’s a cost that doesn’t show up in the acquisition price.

AI-native teams are fast because they operate with a different set of defaults: full access to tools, minimal governance layers, the ability to experiment and ship without a six-week approval cycle. That operating model is not a perk; it’s the fundamental mechanism. It’s why a team of 10 can do what an enterprise team of 100 can’t.

When you acqui-hire that team and then slot them into your existing approval processes, you’ve bought the people and killed the engine. The change agents you paid for become change-frustrated. The attrition that follows is expensive and predictable.

The harder realization: acquiring an AI-native team means accepting how they work. That requires deliberately carving out space for them to operate differently, not just tolerating it but institutionalizing it. The acquisition is an organizational change program, not just a hiring event.

The CIO’s real problem

The governance stack most enterprise organizations run was designed for a headcount world. Every tool vetting cycle, every vendor review, every security approval was calibrated assuming you were managing a large team where consistency and control were the primary objectives.

That calculus breaks when your goal is talent density. The same approval processes that protect against data leaks are now the reason your best people can’t do their best work. When it takes six weeks to approve a tool that your competitor’s team is already shipping with, you’ve traded velocity for the perception of safety.

The practical fix is structured experimentation: clear guardrails, defined boundaries, but explicit permission to try tools before deciding whether to roll them out broadly. Gating everything prevents you from ever discovering what 10x productivity looks like.

The skills inventory question is also more nuanced than it sounds. Job titles won’t tell you where the leverage is. You need to map the actual tasks within each function and assess which can be automated or augmented with AI. That’s where you find the people who, with the right tools, become your $1M/employee talent, not because you hired differently, but because you enabled better.

This is also where the build-versus-buy question gets genuinely tricky. As AI reshapes how products are built and delivered, your internal operating model — how you work, how fast you ship, how you use data — is becoming core IP. Outsourcing delivery means outsourcing the part of the organization where your competitive advantage is now being built.

Closing the gap without slowing down

The AI talent wars are not primarily a recruiting problem. They’re a rethinking of what organizations are supposed to look like.

Boards have a new benchmark. Cloudflare, Block, Amazon, Meta and others have already started restructuring to meet it, publicly, painfully, even while beating their numbers. The question for CIOs isn’t whether this pressure arrives; it’s whether you’re ahead of it or behind it when it does.

The organizations that navigate this well won’t win by outbidding competitors for a handful of elite engineers. They’ll win by designing operating systems that amplify the leverage of the talent they do have, by enabling their best people rather than constraining them, and by treating AI fluency as a core organizational capability rather than a niche specialization.

Talent density is the new headcount model. The sooner your governance, your tooling and your board conversations reflect that, the better positioned you’ll be when the next efficiency report lands.

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I have worked alongside enterprise technology for more than 30 years and watched AI evolve from a lab experiment into the modern boardroom’s core focus. However, the last few years of implementing AI alongside our customers have delivered our most profound reality checks.

The initial hype has faded, leaving CIOs to drive real enterprise value. Based on my experience implementing Google, OpenAI and Anthropic technologies, here are the fundamental, technology-agnostic lessons every leader must anchor their strategy around.

AI as a leadership multiplier

The most common tactical error we see is treating AI as an isolated technology project. What I have observed among our customers is that true success does not come from organizations that define a standalone “AI strategy,” but rather from those leaders that integrate AI into their business strategy.

When our customers isolate AI and define an AI strategy, it inevitably treats it like a “technological toy” to experiment with. This approach yields fragmented, orphaned initiatives that fail to scale because they are fundamentally disconnected from their core corporate objectives. What I learned is that AI is not the ultimate destination; it is a powerful catalyst. We have replaced “What can AI do for our customers?” with a more strategic question, “How does AI accelerate their existing business goals?”

Think of AI like electricity. No modern corporation designs a standalone “electricity strategy.” Instead, all companies route it invisibly across the entire organization to illuminate offices, power production lines and drive communication. AI must be woven into the enterprise fabric in the exact same way, acting as an underlying utility that supercharges your existing operational model.

Integrating AI into the broader business strategy also dictates how we measure success. It forces a shift away from short-term tech vanity metrics and anchors the technology into a long-term roadmap.

When AI remains trapped within the IT department of our customers, we notice that it is relegated to a mere “software experiment.” To become a true competitive advantage, we observed that AI requires intense cross-functional orchestration. This perspective does not diminish the merit of the technical team; their expertise is fundamental for establishing the architecture, data governance and tools your enterprise requires. However, while IT builds the foundational infrastructure, it lacks the organizational authority to decide what should be built on top of it. Only the CEO or the owner of the company can step in to ensure AI leaves the “toy project” phase and integrates into the DNA of the organization.

The requirement for top-down, executive ownership stems from three critical realities observed in the field:

• Silo-smashing and data collaboration: True enterprise AI is data-hungry and that data lives across disparate business lines, finance, operations, marketing and customer service. Only the CEO possesses the cross-functional authority to demand that data silos be dismantled.
• Cultural transformation and fear mitigation: AI triggers widespread anxiety over job displacement across all industries and hierarchies. When relegated to an “IT project,” resistance spikes as teams view it as a threat to their livelihoods. When I saw the CEO lead this cultural shift directly is when I noticed the best results.
• C-Suite education and strategic alignment: The mandate for AI capability cannot just be delegated downward; the transformation must begin at the very top. I have conducted more than 70 presentations for the Board of Directors and C-Level teams. These people need to be actively educated not on technical code, but on specific business use cases, return on investment (ROI) frameworks and how AI resolves core organizational bottlenecks.

PwC’s data found that only 12% of enterprises have achieved both cost and revenue benefits from AI. Those elite 12% succeeded precisely because their CEOs embedded AI extensively across strategic decision-making and cross-functional workflows. AI is simply too disruptive and too critical to be left exclusively in the hands of technical experts. If AI is not on the CEO’s weekly agenda, it is fundamentally missing from the company’s true strategy.

AI as a new operational framework

Traditional IT systems have operated on strict algorithmic certainty: if you input a specific set of data, the system executes an immutable line of code and guarantees the same, predictable output every single time.

AI completely breaks this paradigm. Because modern AI is built on probabilistic models, it does not execute static formulas; instead, it predicts the most likely correct response based on mathematical probabilities. This means that AI solutions carry an inherent, small percentage of uncertainty and variability. A prompt entered today might yield a slightly different, though contextually valid, output tomorrow.

Executive leadership and organizational cultures must be actively educated to accept and navigate this fundamental shift. Traditional quality assurance frameworks for software are designed for a 100% success rate. Applying this rigid standard to AI will paralyze your initiatives, keeping 80% of your projects trapped eternally in the pilot phase. This happened to us in a food and beverage company in Latin America a couple of years ago. After this experience, we started to include conditions in our contracts that tolerate statistical margins of error and still define the project as a success.

In terms of cost calculation, we had to teach CIOs and business managers to forget the monthly subscription model for AI and learn to manage the primary unit of exchange in modern AI: the token.

To understand AI costs, executives must understand how large language models process data. AI models do not read full words; instead, they break text, images or code down into “pieces” called tokens. As a baseline, every 100 words process as approximately 130 to 140 tokens. Because the major AI providers use the token as their currency, your business is billed dynamically based on the exact volume of tokens consumed by every query submitted (input) and every response generated (output).

Many leaders believe AI costs are fixed due to flat-rate enterprise tiers ($25–$30/user). This is a temporary illusion. These venture-capital-subsidized rates mask true operational costs and come with dynamic usage limits. Modeling long-term ROI on them guarantees a severe budget shock when true consumption pricing takes over.

The solution is not to halt AI adoption; doing so means losing your competitive edge. Instead, the cost per token must cease to be treated as a technical footnote relegated to the IT department. It must be elevated to a core business variable.

Risks in the AI adoption model

Since the beginning of the AI boom, I have seen all our customers making a critical tactical error that could cost them heavily in the medium term: they are focusing only on operational efficiency (reducing costs with AI).

I have observed that an alarmingly high percentage of companies remain trapped in pilot phases focused exclusively on short-term cost reduction. Bain & Company’s global Automation and AI Pathfinder Survey found that the largest share of companies measuring their AI initiatives (exactly 40%) realized cost reductions of 10% or less, heavily missing their internal targets. Our customers are putting too many resources and effort into marginal financial gains and in doing so, they are jeopardizing their most valuable assets: service quality, resilience and customer trust.

Utilizing AI solely to slash headcount or cut operational corners is a dangerous trap that introduces severe field liabilities. A financial service organization in Latin America announced that they saved $1 million in customer support by replacing humans with AI chatbots. However, the mid-term reality revealed a different story: a damaged brand reputation due to AI errors and an influx of frustrated clients fleeing because the automated system cannot handle special cases.

Putting a company on an extreme AI diet might make it look leaner on next quarter’s financial statement, but over-indexing on cost-cutting will ultimately leave the business too weak to compete when market dynamics shift. We are now inviting our customers to change the question from “How much money will AI save us?” to “How will we leverage AI to exponentially increase the long-term value of our enterprise?”

Deploying enterprise AI is a marathon, not a sprint, and the terrain changes with every mile. The organizations that thrive in this next era will be those that transition from fascination to discipline, treating AI not as a magic bullet for immediate savings, but as a core capability that demands rigorous governance, architectural foresight and cultural maturity. Navigating this shift requires moving past the theoretical hype and anchoring decisions in raw, field-tested reality.

As we continue to deploy these technologies across industries, the blueprint for success is being rewritten in real time. Let’s keep this conversation going as we map out the future of business intelligence together.

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Late in a large enterprise SAP transformation, the strategic governance conversations began to drift. Instead of executive decisions, we found ourselves debating whether the program needed dedicated testing, whether cutover required a full weekend, whether twenty Agile teams really needed coordination support and whether offshore resources were adding value at all.

The questions were not coming from the delivery teams. They were coming from the executive sponsor.

The sponsor had recently been elevated into a senior leadership role and had never sponsored a technology transformation at this scale. The challenge was not authority. The sponsor had every right to ask any question they wanted. The challenge was that strategic governance had quietly turned into a debate about delivery practices, because the sponsor did not yet have the transformation context to focus the conversation anywhere else.

This is not a story about a bad sponsor. The executive in this case was a capable senior leader with strong judgment and authentic intent. They had been placed into a role they had not yet been prepared for, and the pattern that followed was structural, not personal. It is one of the more common patterns I have observed across enterprise transformation programs, and one of the most consistently misdiagnosed.

Most program failures are not execution failures. They are sponsor mismatches.

When governance becomes a debate about delivery practices

When the sponsor does not understand what an enterprise transformation actually requires, governance forums stop functioning as decision bodies and start functioning as practice debates.

You see it in the questions that get asked. Why do we need a dedicated testing phase? Can the Build timeline be compressed? Why does cutover need a full weekend? Why do we need more Scrum Masters across 20 product teams? Can the US team simply work longer hours instead of using offshore resources? On one program, the sponsor suggested shifting the entire project’s working hours to India time, despite roughly 85 percent of the delivery organization being based in the United States.

None of these questions are unreasonable in isolation. Each one targets a real cost or timeline pressure. The problem is what is missing underneath them: an understanding of the operational risks the original choices were designed to mitigate.

When sponsors ask delivery-practice questions without that context, the program leadership team ends up defending the work instead of advancing it. Decision velocity drops. Trust between the program and its sponsor erodes. Senior delivery talent disengages from governance forums where the conversation never reaches the decisions they need made. What looks from the outside like an active sponsor producing engagement is, from inside the program, an active drain on the cycles needed to deliver.

The compounding cost is not unique to any single program. PMI’s research on executive sponsorship consistently identifies sponsor engagement quality, rather than sponsor presence alone, as one of the strongest predictors of project success. The visible symptom is debate. The actual cost is unmade decisions.

Authority is rarely the issue. Literacy is

When transformations stall under a mismatched sponsor, the diagnostic instinct is to question the sponsor’s authority. Are they senior enough? Do they have the cross-functional reach? Can they unblock?

In most of the programs I have led or advised, authority was not the limiting factor. The sponsor in the SAP program above had ample authority. They could unblock any decision the program needed. What had not been developed was the transformation literacy to know which decisions mattered, which were technical noise and which were execution risks that should not be optimized away.

This is what I have come to think of as the literacy problem. Sponsors elevated into transformation roles often have deep functional expertise (finance, operations, business unit leadership) but limited exposure to the distinct functions of PMO, organizational change management, agile delivery, testing and cutover, and how each one reduces a specific category of implementation risk. They are not expected to be SAP configuration experts. But they need enough transformation literacy to recognize which questions actually belong in a steering committee.

Harvard Business Review’s research on effective executive sponsorship has emphasized that sponsorship effectiveness depends as much on judgment as on authority. Judgment is where literacy becomes operational. A sponsor with authority but limited transformation literacy will optimize for speed and cost in ways that consistently underestimate risk. A sponsor with both will make the tradeoffs the program actually needs.

Prosci’s longstanding benchmark studies on change management have ranked active and visible executive sponsorship as the single greatest contributor to change success for two decades. The word that matters in that finding is active. Active sponsorship without transformation literacy can introduce real cost. Not because the sponsor is acting against the program, but because the optimization choices they make are based on incomplete information about what the program is built to protect against.

Shift the conversation from delivery practices to business risk

When the sponsor relationship is already in place and cannot be changed, the program leadership team has one move that consistently works: shift the conversation.

On the SAP program above, we stopped explaining why the testing phase existed. We started explaining the business risk of reducing it. We stopped debating the number of Scrum Masters. We started connecting delivery capacity to coordination across more than twenty Agile teams and the business cost of losing that coordination. We reframed offshore support as a way to maintain delivery momentum around the clock rather than asking the U.S. team to sustain fifteen-hour days.

The shift is from defending delivery practice to explaining business risk. The sponsor does not need to understand why testing takes the time it does. They need to understand what the program is exposed to if testing is compressed. They do not need to know how many Scrum Masters are statistically optimal for twenty Agile teams. They need to know what coordination breaks when the number is wrong.

This reframing accomplishes two things. First, it brings the conversation back to the level at which sponsors actually make decisions: tradeoffs between business outcomes and business risks. Second, it builds transformation literacy in the sponsor over time, almost as a byproduct. By the third or fourth iteration of business-risk-framed conversations, the sponsor begins to ask the right questions on their own.

In practice, this happens through small but deliberate moves. When the sponsor asks why a phase needs the time it takes, the program lead names two or three things that could go wrong if the time is cut and what each would cost the business. When the sponsor asks why a role is needed, the program lead names the work that would not get done without it. Every delivery-practice question gets converted into a business-risk answer.

The program leadership team’s job is not to make the sponsor an expert in SAP delivery. It is to provide enough transformation context so that executive decisions reflect both business priorities and implementation realities.

There are a few phrases I have used with executive sponsors over the years that capture the underlying issue. The sharpest one:

If the decision has to go above the sponsor, they are not the sponsor.

Sponsorship is defined by what the sponsor can decide without asking someone else. That is the test. Anything else is the appearance of sponsorship, not the substance.

For CIOs supporting enterprise transformation, the implication is direct. Sponsor selection, or sponsor preparation when selection is not an option, is not a hierarchy question. It is a transformation capability question. The same execution discipline that goes into defining decision rights, structuring governance and protecting delivery momentum should apply, with equal rigor, to assessing sponsor fit and building sponsor literacy before the program begins.

A sponsor does not need to be the technical expert. They do need to know when to trust the people who are.

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Model Context Protocol (MCP), the emerging standard for connecting AI models to external tools and enterprise data, is undergoing its biggest architectural overhaul yet.

The latest release candidate, scheduled for release on July 28, removes protocol-level sessions in favor of a stateless architecture, a change which industry experts say is intended to make MCP easier to deploy across standard cloud infrastructure as enterprises move AI pilots into production.

“The session-based model made sense when MCP servers were local processes on a developer’s laptop. In production, it became an operational tax,” said Muskan Bandta, cloud associate at ZopDev.

“When your infrastructure team asks whether MCP services can scale like other cloud applications, the answer used to be ‘not quite.’ With the move to a stateless architecture, the answer is now yes,” Bandta added.

Earlier versions of the protocol maintained information about every client connection, meaning servers had to keep track of each session throughout an interaction. While that approach worked well for local development, it complicated deployments across multiple servers because requests often had to be routed back to the same machine, limiting scalability and making MCP a less natural fit for modern cloud architectures.

“Under the new stateless design, every request contains the information needed for any available server to process it independently. Applications that need to maintain context across multiple requests can still do so, but developers must now manage that state explicitly rather than relying on the protocol itself,” she said.

This transition to a stateless design goes beyond simplifying infrastructure by fundamentally changing how AI applications manage and share context across tools, according to Amit Jena, AI development manager at IT consulting firm Kanerika.

Instead of keeping application state hidden inside protocol sessions, the new design makes it explicit, allowing AI models to access, reason over, and pass that information between tools, giving developers greater control over how context is preserved and shared across tools, Jena said.

It should also make AI workflows more portable, resilient, and easier to orchestrate across distributed environments, he said.

MCP’s new features

Other changes to MCP include the addition of a Multi Round-Trip Requests (MRTR) mechanism that changes how AI agents request additional information they need to complete a task.

Instead of relying on a persistent connection between the client and server throughout the interaction, the new mechanism lets the server request additional input through a standard request-response exchange before continuing the task, Jena said.

Routable transport headers, another addition, enable API gateways and other networking infrastructure to identify and route MCP requests without inspecting their contents.

They reduce processing overhead, lower latency, and let enterprise teams enforce routing, rate-limiting and security policies more efficiently using existing API management infrastructure, Jena said.

MCP is also getting an updated authorization framework built around OAuth 2.1 and OpenID Connect; interactive MCP Apps; and deterministic caching of tool and resource listings to improve LLM prompt-cache hit rates, potentially saving on token costs.

Rebuilding the trust boundary

The MCP release steering committee also decided to deprecate some legacy features, including Roots, Sampling, Logging, the older HTTP+SSE transport and Dynamic Client Registration, although these will continue to work in this version and any other released over the next year.

The deprecation of Sampling is likely to have the biggest impact because it changes who is responsible for interacting with foundation models, said Jena.

“Sampling let MCP servers invoke the LLM through the client, which meant the server had a callback path into the model without owning that connection. Deprecating it means rebuilding that trust boundary,” Jena said. “Your server now calls the model provider directly. That changes your network architecture, your auth model, and depending on how you’ve built cost attribution, your billing flow.”

The year-long transition period will be enough for teams to audit their sampling dependencies now, said Jena: “The risk is that teams who haven’t implemented sampling themselves won’t know if a third-party MCP server they’re depending on uses it.”

Updated MCP SDKs

To accompany the protocol update, there are updated MCP SDKs for Python, Typescript, Go, and C#. These support both the old and new protocol versions, so new clients can continue communicating with older servers, while updated servers will also support older clients, reducing the risk of immediate disruptions.

That backward compatibility should make the transition largely incremental, except for enterprises that built custom infrastructure around MCP’s earlier session-based architecture, Bandta said.

Identifying and auditing those session dependencies may not be easy, Jena warned.

“Session management complexity tends to be hidden across multiple layers — the gateway config, the deployment scripts, the monitoring dashboards. The code change is small; finding everywhere the assumption lives is what takes time,” he said.

This article first appeared on InfoWorld.

Four months of Claude Code — that’s all it took for Uber to burn through its entire annual budget for AI. Token after token, engineers embraced the platform with few control mechanisms tying costs to outcomes. The result was a budget runaway and a clear case study in how limited oversight snowballs into an AI blowout.

This is a phenomenon I like to call “shadow tokens” — AI credits paid for by the company but largely invisible to decision-makers. Too many engineers have the final say over how much they consume and, therefore, what it costs. This all-you-can-eat attitude is part of the reason why Microsoft is reportedly winding down many internal licenses across key engineering teams and why one in five organizations is missing its AI spend forecast by more than 50%.

And the trend is only accelerating. By 2028, Gartner predicts that AI coding costs (driven by this kind of ungoverned consumption) will be as much per developer as the salary companies pay that person.

LLMs and agents introduce a new class of variable cost that scales with behavior rather than headcount, putting enterprises on the hook for tools that balloon with workload. I don’t see this as enterprises overspending because they’re reckless — it’s down to a lack of managerial oversight, budget alignment that demands a proven return on investment, and engineer education on how much is too much.

Going forward, CIOs need to thread the AI needle between governance that encourages transparency and reasonable spend without stifling innovation.

When shadow tokens result in real costs

The issue is that AI isn’t a traditional line item. Previously, enterprise leaders onboarded software-as-a-service (SaaS) with a good idea of the total cost. An allocated software seat or annual contract was a known quantity. The cloud added some variation (with fluctuations depending on hosting size), but instances were still modelable. AI flips this status quo on its head — the unit of consumption is behavior and the cost is exponential.

And these specifics aren’t immediately apparent at pilot. Tools can appear inexpensive in controlled experiments yet unpredictably scale depending on session length, context window size, model selection and whether agents run in parallel. This is the fallacy of the $20-per-seat enterprise plan — tokens are charged separately at API rates with no ceiling. The final dollar value of any session is set by factors that finance can’t always model in advance, particularly when these decisions usually rest with the engineers themselves.

According to Deloitte, only 21% of organizations deploying agents have a mature governance model, a real concern because they’re token-eating machines. This is what was happening at Uber — Claude Code in agentic mode was autonomously reading codebases, planning changes across dozens of files and opening pull requests. Each step quickly adds up, with Anthropic’s own documentation noting that agents consume approximately seven times as many tokens as standard sessions.

This is shadow IT and shadow AI, evolved. This time, however, many leaders approved the tool in question without guardrails governing consumption. AI hype adds fuel to the fire and normalizes long sessions. Uber’s CTO, for example, described a company-wide shift toward “agentic software engineering” with employees “who are quietly experimenting, quietly shipping and quietly pushing things forward”. This is an exciting way to test the limits of what’s possible, certainly, but it’s also a position that goes a long way to explaining how the company spent its annual AI budget by April.

Shifting the culture from usage to yield

Engineers haven’t done anything wrong here. In fact, they’re adopting and experimenting as instructed, with Uber creating leaderboards and ranking users by token consumption. More use led to a better ranking, reflecting a culture that lauds new ways of doing things. This behavior is known as “tokenmaxxing,” and its principal knock-on effect is shadow tokens — quantity-over-quality processes that leaders struggle to control until they’re fully realized in the budget. Of course, if management treats adoption metrics as performance metrics, then engineers can’t be blamed for using more tokens. The tension is that the teams driving adoption aren’t the ones managing spend.

None of this is meant to dismiss AI’s productivity possibilities and potential return on investment. Developers save 3.6 hours per week, achieve 60% higher pull request throughput and cut onboarding time in half with automation. Meanwhile, Uber shared that roughly 11% of live backend updates were written by agents with no human in the loop. However, these wins aren’t the problem — it’s that too many teams aren’t connecting input to output. I’ve spoken to admins who discovered their token spend had tripled in a single quarter after using heavier models or accidentally doubling up on agentic applications. Nobody knew until the financial damage was done.

Automation needs to happen sustainably with an eye on the bottom line. In my view, a much better metric for achieving this is AI yield — the measurable business or engineering output generated per dollar spent on tokens. Otherwise, without a feedback loop, even genuinely productive teams are flying blind.

Stopping token waste before an AI blowout

Creating that throughline between AI investment and token consumption starts with established financial metrics. This is possible via maximum spend limits (dictated by spend tagging, workload tiering and cost-per-output benchmarks) per team or project. Then, any additional allocation requires approval, closing the loop between the engineers spending the tokens and the leaders paying for them. AI isn’t cheap and teams should demonstrate a bang for their buck.

This is something we do with our engineering team at Hexnode. Resource allocation for Claude Code and Cursor is tied directly to ROI rather than letting consumption run open-ended. Given the pay-as-you-go nature of these tools, a firm usage limit per team offers simple but essential control.

Similarly, there’s room to apply some of the governance principles IT uses for device management. Things like policy enforcement, role-based access, real-time monitoring and automated alerts can flag usage behavior in advance. Uncovering such insights at the token layer works to identify power users and prevent excessive spending.

We also need to encourage cultures that praise outputs that actually achieve efficiency. AI applications that result in shipping faster, reducing rework and cutting review cycles are gains that should be celebrated. If your company hosts leaderboards, frame unnecessary token burn as wasteful rather than valuable. The organizations creating healthier consumption habits work with their engineers to understand not just how to use AI, but what responsible use looks like and what it costs.

This is a conversation teams need to have now. Anthropic just ended flat-rate pricing for programmatic workloads from June 15. Now, agents, continuous integration pipelines and automated workflows draw from a dedicated monthly credit pool billed separately from the subscription. Once that pool is exhausted, agent tasks either stop entirely or overflow to extra billing. Work can either get very expensive or grind to a halt for teams that aren’t prepared.

Getting a grip on shadow tokens means better rules and tools connecting spend to outcomes. Only by building the financial and cultural infrastructure that encourages sustainable adoption can leaders see what they’re spending, connect it to what they’re getting and course-correct before the costs become a crisis. Ultimately, shadow tokens are only invisible if we choose not to look.

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Agentic AI has advanced from the promises-and-pilots phase of 2025 to reality and rollouts in 2026. In the process, agentic AI is transforming virtually every aspect of customer relationship management (CRM), the platform that manages sales, marketing, and customer service.

“Last year, everybody was dipping their toes into the water,” says Keith Kirkpatrick, research director at The Futurum Group. This year, agentic AI has built momentum from the boardroom down, with companies recognizing that having an AI strategy is imperative. “They feel like if they don’t embrace it now, their competitors will.”

Harry Datwani, a principal at Deloitte Digital, adds that enterprise CRM customers have transitioned from “proof of concept” to “scale and execution.”

“Across sales, service, marketing, even in the commerce space, enterprises are really using AI and agentic,” he says.

“CRM in 2026 is undergoing a structural shift, not just an incremental evolution,” says Forrester analyst Kate Leggett, noting that AI is becoming a core part of CRM infrastructure, not just a feature or an add-on. According to Forrester data, around 70% of companies are already using AI in their CRM systems, she says.

Here are the hot AI-driven trends in CRM this year.

CRM becomes an action hero

CRM platforms have traditionally served as passive, static systems of record. Now, agentic AI is transforming CRM into a powerful, real-time solution that can act autonomously.

“Organizations that rethink CRM as a real-time, AI-powered system of action — and embrace agentic AI to handle complex, unpredictable work — are better positioned to deliver exceptional customer experiences,” says IDC analyst Neil Ward-Dutton. “This approach not only enhances satisfaction and loyalty but also drives operational efficiency and business agility.”

Forrester’s Leggett says that AI-powered CRM platforms have advanced from simple data capture to real-time decision-making and execution. Standard capabilities include next-best action recommendations, call summaries, automated updates, generated emails, knowledge creation, predictive forecasting, and deal scoring.

She adds that AI agents can now execute workflows, such as routing cases, sending follow-ups, and updating records (with human oversight). They can also handle end-to-end service and sales tasks autonomously, including case resolutions and sales development activities.

Agentic drives workforce changes

AI use in CRM systems is also impacting workforce strategies.

“We used to hire for deep expertise,” says Constellation Research analyst Liz Miller. “AI has commoditized expertise because I can take all that data from my CRM and train my AI models to go deep, to know everything about any product I’ve ever sold, from what has worked, what hasn’t, every price, every sale.”

Now, instead of hiring candidates with deep expertise, organizations are looking for candidates who can go wide. “I can train a model to have deep expertise. What I can’t train for is experience, because experience is what happens when a person has gone broad across a lot of different scenarios and faced complexity across that broad scenario,” says Miller.

For example, AI systems can automate many aspects of marketing, Miller notes, but there’s no substitute for creativity: people who can interrogate the data and come up with innovative marketing campaigns that connect with customers.

Terence Chesire, group vice president of ServiceNow CRM and industry workflows, says that organizations are using agentic AI to free up team members from repetitive, lower-value activities. Those employees have now moved to higher-level roles “where they’re working on transformational deals rather than just building a spreadsheet.”

“That’s what we’re seeing as super-exciting as organizations not just free up people, but the speed and effort reduction and the friction reduction in what they can do,” he adds.

Data layer takes center stage

AI’s promise to deliver actionable customer and marketing intelligence has placed even greater emphasis on the importance on sound data management practices for CRM.

“The light bulb has flashed on very brightly for our clients,” says Deloitte’s Datwani. “Everyone is talking about AI agents, but your ability to really extract value is inextricably linked to the quality of your data and the ability to make that data accessible. What we’re finding is that despite large investments over time our clients still have fragmented data. And so, they are data rich and insight poor.”

The good news, says Datwani, is that AI agents themselves can help clean up and organize data. And vendors such as Snowflake and Databricks, along with the traditional CRM powerhouses, are offering powerful data analytics solutions. “Everyone is battling for that data layer,” Datwani says.

Forrester’s Leggett adds that CRM platforms are converging with customer data platforms (CDPs), real-time event streams, and external data sources to create connected customer data networks. These real-time, connected data models can help organizations deliver hyper-personalization at scale.

Agentic ushers in pricing complexity

The shift from license- or subscription-based pricing to an outcome or consumption pricing model has the potential to help CIOs tie their CRM costs to specific business metrics, such as the number of customer service calls resolved per hour. But it has also introduced a new level of complexity when it comes to budgeting for CRM costs.

For example, Chesire says ServiceNow’s CRM pricing plan starts with a baseline subscription model, and on top of that, customers get a certain number of AI tokens per user and can buy additional tokens as AI usage ramps up.

Meanwhile, Salesforce has rolled out pay-per-resolution pricing with its recently unveiled AI Help Agent and last month acquired usage-based billing specialist m3ter. Oracle is also piloting outcome-based AI pricing.

All these approaches undercut the predictability of the subscription model, which will complicate CIOs’ cost calculus, Deloitte’s Datwani says. “Now, as you start to think about consumption and tokens, costs might look different. As folks are opening up the architecture with things like headless CRM, what will the cost model look like for API calls or MCP server calls? So, there’s many more variables,” he adds.

The rise of multi-agent orchestration

To act autonomously, agents need to access multiple data sets and software platforms seamlessly. As a result, the proliferation of agents, some embedded within specific vendor platforms and some created in-house, is going to require an orchestration layer, Futurum’s Kirkpatrick says.

He points out that organizations need to monitor and manage agents, enforcing the same type of policy-based access control that exists for people. Organizations also need to set limits on what domains a specific agent can get into, what types of data they can access, what lines can’t they cross.

Kirkpatrick predicts that a new class of orchestration tools will emerge, although it’s not clear whether that orchestration layer will be provided by the leading CRM vendors, hyperscalers, or third parties.

Datwani agrees. “The orchestration layer is an interesting area, where the traditional vendors are in on it, the hyperscalers are also offering it, and there are third parties. It’s my belief that there’s not going to be a clear winner.”

The interface becomes conversational

Enterprise users who have traditionally had to manually wrangle with CRM systems are likely to find the ability to employ voice commands using a natural language interface to be a game changer. For starters, a salesperson can say, “I have a meeting today with Customer X. Help me prepare.” The agent will collect relevant data, ingest it, and provide a summary with recommendations.

ServiceNow’s Chesire says voice-enabled CRM systems have an “almost magical” ability to record, transcribe, and understand the content of a call between a salesperson and a customer or potential customer. The system can then “build a quote” based on that conversation.

On the customer service side of the equation, AI-driven voice technology enables customers to speak to an AI agent, describe the problem using natural language, and get a response. The agent has the capability to, for example, solve a credit card dispute, order a replacement product, send out a service rep, or do whatever is needed to resolve the issue, says Chesire.

Beyond that, agentic technology is capable of understanding the underlying business process flaws that led to the product snafu, and make recommendations for ways to fix whatever led to the issue in the first place, he adds.

Agentic drives business process transformation

With the emergence of outcome-based pricing, organizations are taking a fresh look at how they measure the benefits of CRM systems. That conversation is leading to an even more important analysis of underlying business processes. Or, as Constellation’s Miller says, “The old adage of applying new technology to old processes only gets you more expensive old processes.”

“When we survey customers, we hear time and time again that the reason why they want to apply AI into their organizations is to foster exponential opportunity and exponential growth,” she says. “How do we get there with CRM has started to become the new conversation.”

According to Miller, AI systems breach the walls of siloed data and can take a fresh look at legacy workflows. They also don’t get sucked into turf wars between marketing and sales teams. As a result, they often recommend new actions that can lead to better processes. “I think it’s starting to happen. You’re starting to see applications where AI is beginning to accelerate decision-making and decision velocity,” she says.

“The next phase of maturity is going to be, how do we start to spread AI across our platforms so that we are seeing that holistic end-to-end relationship that we have always wanted to optimize. How do we thread that across platforms and across solutions. We’re starting to see organizations on the leading edge really start to pull those strategies together,” says Miller.

It’s difficult to ignore the fact that Apple seems to have turned its MacBook Neo into a weapon to promote platform growth, with enough performance under the hood to make competitors seem inferior.

And even as the PC industry moves to try to compete with Apple’s last huge Mac success, the company is already planning a powerful follow-up.

That points to the discipline Apple has applied to the Mac since the introduction of Apple Silicon. The company has built a clear product roadmap, strong entry-level pricing, and steady performance gains. This focus is now paying dividends, giving people the impetus to keep placing their trust in Apple and its Macs — even as the industry raises prices in the face of RAMageddon and price increases. 

The numbers don’t lie

“Apple’s recent price increase seems to be an inevitable response to these cost increases. In the second half of the year, other PC OEMs are expected to continue to raise prices, and the overall ASP increase is expected to continue,” Counterpoint said in a post Wednesday. The researcher tells us global PC shipments shrank 4% in the second quarter of 2026 as rising costs hit demand. The Mac maker, by contrast, moved in the opposite direction, generating 13% growth in the quarter — mainly on the back of the MacBook Neo introduction. 

Recent IDC data gives Apple 10.1% year-over-year growth and just under 10% (9.9% to be exact) of the worldwide PC market, even as the overall market declined 4.9%.

“With emerging supply chain and tariff challenges inflating memory prices…, Apple’s incredibly aggressive price-point for the MacBook Neo makes its release feel all the more like a gut punch to one of the PC market’s most valuable price tiers,” Futurum Research Director Olivier Blanchard said when the Neo was released. 

Neo 2.0 is already coming

In the immediate future, as competitors raise prices on the PCs that compete with Apple’s lower-cost device, Cupertino is already plotting the path toward MacBook Neo 2. Reports claim this will debut in March in new colors and use the A19 Pro chip from the iPhone 17 Pro, with performance boosted by slightly more unified memory (12GB, rather than 8GB). That’ll make it a much better Mac, likely with 10-15% performance gains and the ability to run Apple Intelligence, making it the best and most affordable AI PC in its class.

Just four months after the Neo’s rollout, Apple is already in position to leak rumors of an even more computationally capable follow-up, while competitors struggle to compete with the original on performance, build quality, and price. Still, the Neo might get more expensive, reporting warns, with the lowest-price 256GB model now gone, making the $599 Mac a mirage we can only wistfully hope to see again. 

That might matter less in context, as PC makers everywhere boost prices while RAM, chips, and storage prices head north, along with transport, logistics, and energy costs. “While [Apple] did raise prices in line with the broader market, it still remains well positioned against rivals facing the same cost pressures,” said Jean Philippe Bouchard, vice president for consumer devices at IDC. 

“As market conditions continue to worsen, the importance of supply chain management and capabilities are increasingly important,” Bouchard said. “The largest vendors, with their buying power and long-standing supplier ties, are best positioned to take share from smaller rivals.”

This was never about luck

This isn’t solely a market take about competition, it’s about planning.

Few in the industry seemed prepared for the massive memory price increases that hit this year. Apple clearly planned its low-cost Mac well before that happened, hoping to seize the PC market at the low-mid-range. This is precisely what it seems to have done, what it continues to do, and what it will continue to do.

The recent reports that it has a successor planned shows the breadth of the Mac company’s strategic vision, as Apple has quite clearly sought to fully exploit the failings of Windows and the internal contradictions of a value-conscious industry in stiff competition with itself.

With the first M-series Macs about to enter the replacement cycle, Apple has built a market it can capitalize on for at least a decade, meaning it already has a vision for PC sales that extends at least as far. That’s the kind of road map corporate purchasers want when they make platform deployment decisions, which is why Apple’s 10% share gains are the beginning of even more significant market change. 

You can follow me on social media! Join me on BlueSky,  LinkedIn, Mastodon and subscribe to my daily Apple-related news summaries at The Core.

What is a business analyst?

Business analysts (BAs) are responsible for bridging the gap between IT and the business using data analytics to assess processes, determine requirements, and deliver data-driven recommendations and reports to executives and stakeholders.

BAs engage with business leaders and users to understand how data-driven changes to process, products, services, software, and hardware can improve efficiencies and add value. They must articulate those ideas but also balance them against what’s technologically feasible and financially and functionally reasonable. Depending on the role, a business analyst might work with data sets to improve products, hardware, tools, software, services, or process.

The International Institute of Business Analysis (IIBA), a nonprofit professional association, considers the business analyst an agent of change, and says that business analysis is a disciplined approach to introduce and manage change to organizations, whether they’re for-profit businesses, governments, or nonprofits.

Impact of AI on business analyst role

As AI becomes commonplace in the tech industry, business analysts are embracing it as a tool to automate repetitive work in the role. AI tools can be used for workflow and diagramming, process mapping, data analysis, and to automate meeting minutes and transcribe meetings where requirements are established, all designed to speed up the process of analyzing data, creating visuals, and transcribing and writing user stories and acceptance criteria.

AI tools can also help identify patterns, insights, and unique data points that might go unnoticed by humans, and allow a faster time to generate insights for organizations.

Of course, as with all AI tools, they still require humans to oversee prompts, scripting, and evaluate AI outputs to ensure they’re accurate and valid. While they can’t replace the work of BAs, AI can help them spend more time on thoughtful analysis and decision making, rather than mundane tasks such as gathering and summarizing data, and querying.

Business analyst job description

BAs are responsible for creating new models that support business decisions by working closely with finance and IT teams to establish initiatives and strategies aimed at improving revenue and optimizing costs. They need a strong understanding of regulatory and reporting requirements, and have plenty of experience in forecasting, budgeting, and financial analysis combined with knowing KPIs, according to Robert Half Technology.

According to Robert Half, a BA’s job description typically includes budgeting and forecasting, planning and monitoring, variance analysis, pricing, reporting, and creating a detailed business analysis in an effort to outline problems, opportunities, and solutions for a business. It also says BAs should be able to define business requirements and report them back to stakeholders.

Since BAs are tasked with prioritizing technical and functional requirements, identifying what clients want, and determining what’s feasible to deliver, the role requires a deep understanding of systems, how they function, who’ll need to be involved, and the necessary steps to get everyone on board.  

The role is constantly evolving, especially as companies rely more on data to advise business operations. Every company has different issues that a business analyst can address, whether it’s dealing with outdated legacy systems, changing technologies, broken processes, poor client or customer satisfaction, or large, siloed organizations.

Business analyst skills

The BA position requires both hard and soft skills, as they need to know how to pull, analyze, and report data trends, share that information with others, and apply it to business goals and needs.

Not all BAs need a background in IT if they have a general understanding of how systems, products, and tools work. Alternatively, some have strong IT backgrounds and less experience in business, but are interested in shifting away from IT into this hybrid role, which often acts as a communicator between the business and IT sides of the organization. So having extensive experience in either area can be beneficial for BAs.

According to the IIBA, some of the most important skills and experience for a business analyst are:

• Oral and written communication skills
• Interpersonal, organizational, facilitation, and consultative skills
• Analytical thinking and problem solving
• Being detail-oriented and able to deliver a high level of accuracy
• Knowledge of business structure
• Stakeholder and cost-benefit analysis
• Processes modeling
• Understanding networks, databases, and other technologies

For a more in-depth look at what it takes to succeed as a business analyst, click here.

Business analyst salary

The average annual salary for an IT business analyst is $80,692, according to data from PayScale. The highest paid BAs are in New York, where the average salary is 14% higher than the national average. Dallas, Texas, is second, with reported salaries 6.4% higher than the national average, closely followed by Washington, D.C., where salaries are 6.3% higher than the national average.

Some skills are in higher demand than others, with the potential to boost salary. According to Payscale, these are associated with higher BA salaries. These skills, and the amount they can boost your salary, include:

For tips on boosting your salary, click here.

Business analyst certifications

Although business analysis is a relatively new discipline in IT, a handful of organizations already offer certifications to help boost your résumé and prove your merit as an analyst. Organizations such as the IIBA, IQBBA, IREB, and PMI each offer their own tailored certifications for business analysis. These include:

• IIBA Entry Certificate in Business Analysis (ECBA)
• IIBA Certification of Competency in Business Analysis (CCBA)
• IIBA Certified Business Analysis Professional (CBAP)
• IIBA Agile Analysis Certification (AAC)
• IQBBA Certified Foundation Level Business Analyst (CFLBA)
• IREB Certified Professional for Requirements Engineering (CPRE)
• PMI Professional in Business Analysis (PBA)
• Certified Analytics Professional (CAP)

For more information about how to earn one of these certifications — and how much they cost — click here.

Business analytics tools and software

BAs typically rely on software such as Microsoft’s Excel, PowerPoint, and Access, as well as SQL, Google Analytics, and Tableau. These tools help BAs collect and sort data, create graphs, write documents, and design visualizations to explain findings. You won’t necessarily need programming or database skills for a BA position, but if you already have these skills, they won’t hurt. The type of software and tools you’ll need to use, however, will depend on your job title and what the organization requires.

For CIOs, learning from the startup ecosystem has never been more critical.

As pressure mounts to transform business operations with AI and agentic systems, IT leaders should be looking to those on the AI vanguard for insights into the strategic and technical decisions necessary to launch, grow, and thrive in today’s AI-disrupted business environment.

So why not immerse yourself in Silicon Valley’s most famous firehose of hyper-accelerated fail-fast and dream-big culture by registering for TechCrunch Disrupt 2026?

Three packed days of 200-plus sessions across six stages will spark new ideas for reshaping your AI strategy, provide fresh perspectives on the architectural, workflow, and resource decisions involved in moving AI from pilots to scale, and give you a sneak peek of business disruptions to come.

Get 10% off your TechCrunch Disrupt pass with the exclusive code CIO10. 

This year’s TechCrunch Disrupt, held Oct. 13-15 at San Francisco’s Moscone West, will feature big-picture conversations on what’s next in AI; discussions on how AI agents are rewriting SaaS, enterprise workflows, software pricing, and security; and demonstrations of AI’s future across robotics, manufacturing, defense, and industrial operations; and more.

Over 10,000 attendees will hear from 250-plus startup founders, technology executives, and enterprise IT leaders about how the future of programming is being rewritten, what enterprise AI security requires, how startups are orchestrating workloads across models while managing cost and reliability at scale, why creating a safety culture is essential for AI deployment, and how startups are deciding what work humans should own versus what should be delegated to AI as they work to build hybrid teams without losing speed, accountability, or culture.

And of course, the rising tide of enterprise-focused startups will be there seeking to bring agentic systems to your business workflows, as well as vendors familiar to your enterprise IT portfolios, such as AWS, Google, and Databricks, and enterprise IT colleagues creating mutually beneficial partnerships with the startup community, such as American Express.

That’s not to mention TechCrunch Disrupt’s signature Startup Battlefield, in which 200 standout companies showcase their innovations to compete for a $100K equity-free prize. The battlefield will give CIOs a rapid-fire, broad view of what’s possible — and a possible early look at the next big enterprise player. After all, Dropbox, Trello, and Cloudflare, among others, roamed that same battlefield before the world knew their names.

And with M&A now an early-stage startup strategy for many from day one, TechCrunch Disrupt’s exhibition floor provides IT leaders not just an opportunity to discuss the nuts and bolts of innovation architecture or how an upstart product can enhance your workflows, but a chance to find your next innovation partner, or more.

Leading-edge startups are figuring out how to make AI work at scale. Shouldn’t you be?

Don’t miss your chance to experience TechCrunch Disrupt 2026. Book your pass today and use the exclusive code CIO10 to save 10% before prices increase.

For CIOs, learning from the startup ecosystem has never been more critical.

As pressure mounts to transform business operations with AI and agentic systems, IT leaders should be looking to those on the AI vanguard for insights into the strategic and technical decisions necessary to launch, grow, and thrive in today’s AI-disrupted business environment.

So why not immerse yourself in Silicon Valley’s most famous firehose of hyper-accelerated fail-fast and dream-big culture by registering for TechCrunch Disrupt 2026?

Three packed days of 200-plus sessions across six stages will spark new ideas for reshaping your AI strategy, provide fresh perspectives on the architectural, workflow, and resource decisions involved in moving AI from pilots to scale, and give you a sneak peek of business disruptions to come.

Get 10% off your TechCrunch Disrupt pass with the exclusive code CIO10. 

This year’s TechCrunch Disrupt, held Oct. 13-15 at San Francisco’s Moscone West, will feature big-picture conversations on what’s next in AI; discussions on how AI agents are rewriting SaaS, enterprise workflows, software pricing, and security; and demonstrations of AI’s future across robotics, manufacturing, defense, and industrial operations; and more.

Over 10,000 attendees will hear from 250-plus startup founders, technology executives, and enterprise IT leaders about how the future of programming is being rewritten, what enterprise AI security requires, how startups are orchestrating workloads across models while managing cost and reliability at scale, why creating a safety culture is essential for AI deployment, and how startups are deciding what work humans should own versus what should be delegated to AI as they work to build hybrid teams without losing speed, accountability, or culture.

And of course, the rising tide of enterprise-focused startups will be there seeking to bring agentic systems to your business workflows, as well as vendors familiar to your enterprise IT portfolios, such as AWS, Google, and Databricks, and enterprise IT colleagues creating mutually beneficial partnerships with the startup community, such as American Express.

That’s not to mention TechCrunch Disrupt’s signature Startup Battlefield, in which 200 standout companies showcase their innovations to compete for a $100K equity-free prize. The battlefield will give CIOs a rapid-fire, broad view of what’s possible — and a possible early look at the next big enterprise player. After all, Dropbox, Trello, and Cloudflare, among others, roamed that same battlefield before the world knew their names.

And with M&A now an early-stage startup strategy for many from day one, TechCrunch Disrupt’s exhibition floor provides IT leaders not just an opportunity to discuss the nuts and bolts of innovation architecture or how an upstart product can enhance your workflows, but a chance to find your next innovation partner, or more.

Leading-edge startups are figuring out how to make AI work at scale. Shouldn’t you be?

Don’t miss your chance to experience TechCrunch Disrupt 2026. Book your pass today and use the exclusive code CIO10 to save 10% before prices increase.

Cisco and AMD have expanded their partnership with a new package of hardware and security software that’s designed to help enterprise customers protect, deploy, and manage distributed AI resources.

During AMD’s Advancing AI event this week, Cisco’s president and chief product officer Jeetu Patel took to the stage during AMD CEO Lisa Su’s keynote to talk about how AI inference will be widely distributed and will require an architectural stack of software and tools that Cisco and AMD are partnering to develop.

The joint architecture combines AMD’s compact, high-performance Ryzen AI Halo hardware and a variety of Cisco networking, observability, governance, and security technologies. “AMD provides the deskside/local AI platform. At the foundation is AMD Ryzen AI Halo hardware, an isolated agent sandbox and the services needed for local-first inferencing, including model routing and token limits via AMD’s Semantic Router and local inference on Lemonade,” wrote Cisco’s Yash Sheth, senior director, engineering and research, in a blog post about the new package.

Ryzen AI Halo (pictured below) is designed to support local AI inference on an AI PC using its CPU, GPU, and XDNA neural processing unit (NPU), according to AMD. A resilient AI platform should continue delivering useful AI services even when connectivity is limited, models need to change, or workloads shift, AMD stated.

Cisco then wraps that platform in a secure harness that includes its Splunk Agent Observability plus Splunk Infrastructure Monitoring to provide full-stack observability, tracking agent behavior, tokenomics and compute operation, according to Sheth.

Cisco also brings its AI Defense for model and agent security; DefenseClaw for security policy enforcement, so guardrails are enforced directly on-device, within the agent harness; and Cisco Cloud Control offering a single pane of glass for unified policy and control, Sheth stated.

“To make deskside and local AI computing work at enterprise scale, every AI node must be treated as a secure, managed node in the enterprise network,” Sheth wrote.

“The need for token efficiency and data sovereignty is driving a new class of computing, deskside computing, with users and teams putting AI agents right by their sides,” Sheth wrote. “Inference is moving to a hybrid architecture with thousands of ambient deskside agents in an enterprise helping employees have 24×7 productivity. That’s an extraordinary opportunity. It’s also a brand-new operating challenge.”

As agentic AI moves from experimentation to real enterprise workflows, organizations need more than powerful endpoints. AI agents can run continuously and act on enterprise data, but create new requirements for network infrastructure, tokenomics, agent behavior, and security, according to a statement from AMD.

“Running more AI locally can help improve responsiveness, keep sensitive data closer to users, and reduce dependence on cloud-only approaches, but enterprises also need a way to monitor and manage these systems at scale. AMD and Cisco are addressing that gap by collaborating to pair high-performance local AI compute with the observability, governance, and control infrastructure needed for enterprises to deploy it responsibly,” AMD stated.

“By combining AMD Ryzen AI Halo systems and our broader local AI software capabilities with Cisco’s enterprise networking, observability and security technologies, we are helping customers deploy AI in a way that is performant, secure, observable and manageable at scale,” said Jack Huynh, senior vice president and general manager, computing and graphics group with AMD, in a statement.

A few other interesting statistics and trends cited in AMD CEO Su’s keynote include:

• AI adoption is accelerating across all industries, with agentic AI driving a surge in compute demand and shifting workloads from training to inference, which accounts for 60% of global AI compute capacity in 2026.
• AI is moving beyond the cloud, with edge and personal devices becoming critical for real-time, distributed intelligence.
• The AI accelerator market is projected to reach $1.4 trillion by 2030, nearly tripling previous forecasts, with GPUs expected to dominate but CPUs gaining new growth vectors due to agentic AI.
• Server CPU market is forecasted to grow over 50% to $200 billion by 2030, fueled by rapid agentic AI adoption and the need for massive CPU infrastructure.

Model Context Protocol (MCP), the emerging standard for connecting AI models to external tools and enterprise data, is undergoing its biggest architectural overhaul yet.

The latest release candidate, scheduled for release on July 28, removes protocol-level sessions in favor of a stateless architecture, a change which industry experts say is intended to make MCP easier to deploy across standard cloud infrastructure as enterprises move AI pilots into production.

“The session-based model made sense when MCP servers were local processes on a developer’s laptop. In production, it became an operational tax,” said Muskan Bandta, cloud associate at ZopDev.

“When your infrastructure team asks whether MCP services can scale like other cloud applications, the answer used to be ‘not quite.’ With the move to a stateless architecture, the answer is now yes,” Bandta added.

Earlier versions of the protocol maintained information about every client connection, meaning servers had to keep track of each session throughout an interaction. While that approach worked well for local development, it complicated deployments across multiple servers because requests often had to be routed back to the same machine, limiting scalability and making MCP a less natural fit for modern cloud architectures.

“Under the new stateless design, every request contains the information needed for any available server to process it independently. Applications that need to maintain context across multiple requests can still do so, but developers must now manage that state explicitly rather than relying on the protocol itself,” she said.

This transition to a stateless design goes beyond simplifying infrastructure by fundamentally changing how AI applications manage and share context across tools, according to Amit Jena, AI development manager at IT consulting firm Kanerika.

Instead of keeping application state hidden inside protocol sessions, the new design makes it explicit, allowing AI models to access, reason over, and pass that information between tools, giving developers greater control over how context is preserved and shared across tools, Jena said.

It should also make AI workflows more portable, resilient, and easier to orchestrate across distributed environments, he said.

MCP’s new features

Other changes to MCP include the addition of a Multi Round-Trip Requests (MRTR) mechanism that changes how AI agents request additional information they need to complete a task.

Instead of relying on a persistent connection between the client and server throughout the interaction, the new mechanism lets the server request additional input through a standard request-response exchange before continuing the task, Jena said.

Routable transport headers, another addition, enable API gateways and other networking infrastructure to identify and route MCP requests without inspecting their contents.

They reduce processing overhead, lower latency, and let enterprise teams enforce routing, rate-limiting and security policies more efficiently using existing API management infrastructure, Jena said.

MCP is also getting an updated authorization framework built around OAuth 2.1 and OpenID Connect; interactive MCP Apps; and deterministic caching of tool and resource listings to improve LLM prompt-cache hit rates, potentially saving on token costs.

Rebuilding the trust boundary

The MCP release steering committee also decided to deprecate some legacy features, including Roots, Sampling, Logging, the older HTTP+SSE transport and Dynamic Client Registration, although these will continue to work in this version and any other released over the next year.

The deprecation of Sampling is likely to have the biggest impact because it changes who is responsible for interacting with foundation models, said Jena.

“Sampling let MCP servers invoke the LLM through the client, which meant the server had a callback path into the model without owning that connection. Deprecating it means rebuilding that trust boundary,” Jena said. “Your server now calls the model provider directly. That changes your network architecture, your auth model, and depending on how you’ve built cost attribution, your billing flow.”

The year-long transition period will be enough for teams to audit their sampling dependencies now, said Jena: “The risk is that teams who haven’t implemented sampling themselves won’t know if a third-party MCP server they’re depending on uses it.”

Updated MCP SDKs

To accompany the protocol update, there are updated MCP SDKs for Python, Typescript, Go, and C#. These support both the old and new protocol versions, so new clients can continue communicating with older servers, while updated servers will also support older clients, reducing the risk of immediate disruptions.

That backward compatibility should make the transition largely incremental, except for enterprises that built custom infrastructure around MCP’s earlier session-based architecture, Bandta said.

Identifying and auditing those session dependencies may not be easy, Jena warned.

“Session management complexity tends to be hidden across multiple layers — the gateway config, the deployment scripts, the monitoring dashboards. The code change is small; finding everywhere the assumption lives is what takes time,” he said.

Model Context Protocol (MCP), the emerging standard for connecting AI models to external tools and enterprise data, is undergoing its biggest architectural overhaul yet.

The latest release candidate, scheduled for release on July 28, removes protocol-level sessions in favor of a stateless architecture, a change which industry experts say is intended to make MCP easier to deploy across standard cloud infrastructure as enterprises move AI pilots into production.

“The session-based model made sense when MCP servers were local processes on a developer’s laptop. In production, it became an operational tax,” said Muskan Bandta, cloud associate at ZopDev.

“When your infrastructure team asks whether MCP services can scale like other cloud applications, the answer used to be ‘not quite.’ With the move to a stateless architecture, the answer is now yes,” Bandta added.

Earlier versions of the protocol maintained information about every client connection, meaning servers had to keep track of each session throughout an interaction. While that approach worked well for local development, it complicated deployments across multiple servers because requests often had to be routed back to the same machine, limiting scalability and making MCP a less natural fit for modern cloud architectures.

“Under the new stateless design, every request contains the information needed for any available server to process it independently. Applications that need to maintain context across multiple requests can still do so, but developers must now manage that state explicitly rather than relying on the protocol itself,” she said.

This transition to a stateless design goes beyond simplifying infrastructure by fundamentally changing how AI applications manage and share context across tools, according to Amit Jena, AI development manager at IT consulting firm Kanerika.

Instead of keeping application state hidden inside protocol sessions, the new design makes it explicit, allowing AI models to access, reason over, and pass that information between tools, giving developers greater control over how context is preserved and shared across tools, Jena said.

It should also make AI workflows more portable, resilient, and easier to orchestrate across distributed environments, he said.

MCP’s new features

Other changes to MCP include the addition of a Multi Round-Trip Requests (MRTR) mechanism that changes how AI agents request additional information they need to complete a task.

Instead of relying on a persistent connection between the client and server throughout the interaction, the new mechanism lets the server request additional input through a standard request-response exchange before continuing the task, Jena said.

Routable transport headers, another addition, enable API gateways and other networking infrastructure to identify and route MCP requests without inspecting their contents.

They reduce processing overhead, lower latency, and let enterprise teams enforce routing, rate-limiting and security policies more efficiently using existing API management infrastructure, Jena said.

MCP is also getting an updated authorization framework built around OAuth 2.1 and OpenID Connect; interactive MCP Apps; and deterministic caching of tool and resource listings to improve LLM prompt-cache hit rates, potentially saving on token costs.

Rebuilding the trust boundary

The MCP release steering committee also decided to deprecate some legacy features, including Roots, Sampling, Logging, the older HTTP+SSE transport and Dynamic Client Registration, although these will continue to work in this version and any other released over the next year.

The deprecation of Sampling is likely to have the biggest impact because it changes who is responsible for interacting with foundation models, said Jena.

“Sampling let MCP servers invoke the LLM through the client, which meant the server had a callback path into the model without owning that connection. Deprecating it means rebuilding that trust boundary,” Jena said. “Your server now calls the model provider directly. That changes your network architecture, your auth model, and depending on how you’ve built cost attribution, your billing flow.”

The year-long transition period will be enough for teams to audit their sampling dependencies now, said Jena: “The risk is that teams who haven’t implemented sampling themselves won’t know if a third-party MCP server they’re depending on uses it.”

Updated MCP SDKs

To accompany the protocol update, there are updated MCP SDKs for Python, Typescript, Go, and C#. These support both the old and new protocol versions, so new clients can continue communicating with older servers, while updated servers will also support older clients, reducing the risk of immediate disruptions.

That backward compatibility should make the transition largely incremental, except for enterprises that built custom infrastructure around MCP’s earlier session-based architecture, Bandta said.

Identifying and auditing those session dependencies may not be easy, Jena warned.

“Session management complexity tends to be hidden across multiple layers — the gateway config, the deployment scripts, the monitoring dashboards. The code change is small; finding everywhere the assumption lives is what takes time,” he said.

This article first appeared on InfoWorld.

Four months of Claude Code — that’s all it took for Uber to burn through its entire annual budget for AI. Token after token, engineers embraced the platform with few control mechanisms tying costs to outcomes. The result was a budget runaway and a clear case study in how limited oversight snowballs into an AI blowout.

This is a phenomenon I like to call “shadow tokens” — AI credits paid for by the company but largely invisible to decision-makers. Too many engineers have the final say over how much they consume and, therefore, what it costs. This all-you-can-eat attitude is part of the reason why Microsoft is reportedly winding down many internal licenses across key engineering teams and why one in five organizations is missing its AI spend forecast by more than 50%.

And the trend is only accelerating. By 2028, Gartner predicts that AI coding costs (driven by this kind of ungoverned consumption) will be as much per developer as the salary companies pay that person.

LLMs and agents introduce a new class of variable cost that scales with behavior rather than headcount, putting enterprises on the hook for tools that balloon with workload. I don’t see this as enterprises overspending because they’re reckless — it’s down to a lack of managerial oversight, budget alignment that demands a proven return on investment, and engineer education on how much is too much.

Going forward, CIOs need to thread the AI needle between governance that encourages transparency and reasonable spend without stifling innovation.

When shadow tokens result in real costs

The issue is that AI isn’t a traditional line item. Previously, enterprise leaders onboarded software-as-a-service (SaaS) with a good idea of the total cost. An allocated software seat or annual contract was a known quantity. The cloud added some variation (with fluctuations depending on hosting size), but instances were still modelable. AI flips this status quo on its head — the unit of consumption is behavior and the cost is exponential.

And these specifics aren’t immediately apparent at pilot. Tools can appear inexpensive in controlled experiments yet unpredictably scale depending on session length, context window size, model selection and whether agents run in parallel. This is the fallacy of the $20-per-seat enterprise plan — tokens are charged separately at API rates with no ceiling. The final dollar value of any session is set by factors that finance can’t always model in advance, particularly when these decisions usually rest with the engineers themselves.

According to Deloitte, only 21% of organizations deploying agents have a mature governance model, a real concern because they’re token-eating machines. This is what was happening at Uber — Claude Code in agentic mode was autonomously reading codebases, planning changes across dozens of files and opening pull requests. Each step quickly adds up, with Anthropic’s own documentation noting that agents consume approximately seven times as many tokens as standard sessions.

This is shadow IT and shadow AI, evolved. This time, however, many leaders approved the tool in question without guardrails governing consumption. AI hype adds fuel to the fire and normalizes long sessions. Uber’s CTO, for example, described a company-wide shift toward “agentic software engineering” with employees “who are quietly experimenting, quietly shipping and quietly pushing things forward”. This is an exciting way to test the limits of what’s possible, certainly, but it’s also a position that goes a long way to explaining how the company spent its annual AI budget by April.

Shifting the culture from usage to yield

Engineers haven’t done anything wrong here. In fact, they’re adopting and experimenting as instructed, with Uber creating leaderboards and ranking users by token consumption. More use led to a better ranking, reflecting a culture that lauds new ways of doing things. This behavior is known as “tokenmaxxing,” and its principal knock-on effect is shadow tokens — quantity-over-quality processes that leaders struggle to control until they’re fully realized in the budget. Of course, if management treats adoption metrics as performance metrics, then engineers can’t be blamed for using more tokens. The tension is that the teams driving adoption aren’t the ones managing spend.

None of this is meant to dismiss AI’s productivity possibilities and potential return on investment. Developers save 3.6 hours per week, achieve 60% higher pull request throughput and cut onboarding time in half with automation. Meanwhile, Uber shared that roughly 11% of live backend updates were written by agents with no human in the loop. However, these wins aren’t the problem — it’s that too many teams aren’t connecting input to output. I’ve spoken to admins who discovered their token spend had tripled in a single quarter after using heavier models or accidentally doubling up on agentic applications. Nobody knew until the financial damage was done.

Automation needs to happen sustainably with an eye on the bottom line. In my view, a much better metric for achieving this is AI yield — the measurable business or engineering output generated per dollar spent on tokens. Otherwise, without a feedback loop, even genuinely productive teams are flying blind.

Stopping token waste before an AI blowout

Creating that throughline between AI investment and token consumption starts with established financial metrics. This is possible via maximum spend limits (dictated by spend tagging, workload tiering and cost-per-output benchmarks) per team or project. Then, any additional allocation requires approval, closing the loop between the engineers spending the tokens and the leaders paying for them. AI isn’t cheap and teams should demonstrate a bang for their buck.

This is something we do with our engineering team at Hexnode. Resource allocation for Claude Code and Cursor is tied directly to ROI rather than letting consumption run open-ended. Given the pay-as-you-go nature of these tools, a firm usage limit per team offers simple but essential control.

Similarly, there’s room to apply some of the governance principles IT uses for device management. Things like policy enforcement, role-based access, real-time monitoring and automated alerts can flag usage behavior in advance. Uncovering such insights at the token layer works to identify power users and prevent excessive spending.

We also need to encourage cultures that praise outputs that actually achieve efficiency. AI applications that result in shipping faster, reducing rework and cutting review cycles are gains that should be celebrated. If your company hosts leaderboards, frame unnecessary token burn as wasteful rather than valuable. The organizations creating healthier consumption habits work with their engineers to understand not just how to use AI, but what responsible use looks like and what it costs.

This is a conversation teams need to have now. Anthropic just ended flat-rate pricing for programmatic workloads from June 15. Now, agents, continuous integration pipelines and automated workflows draw from a dedicated monthly credit pool billed separately from the subscription. Once that pool is exhausted, agent tasks either stop entirely or overflow to extra billing. Work can either get very expensive or grind to a halt for teams that aren’t prepared.

Getting a grip on shadow tokens means better rules and tools connecting spend to outcomes. Only by building the financial and cultural infrastructure that encourages sustainable adoption can leaders see what they’re spending, connect it to what they’re getting and course-correct before the costs become a crisis. Ultimately, shadow tokens are only invisible if we choose not to look.

This article is published as part of the Foundry Expert Contributor Network.
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I have worked alongside enterprise technology for more than 30 years and watched AI evolve from a lab experiment into the modern boardroom’s core focus. However, the last few years of implementing AI alongside our customers have delivered our most profound reality checks.

The initial hype has faded, leaving CIOs to drive real enterprise value. Based on my experience implementing Google, OpenAI and Anthropic technologies, here are the fundamental, technology-agnostic lessons every leader must anchor their strategy around.

AI as a leadership multiplier

The most common tactical error we see is treating AI as an isolated technology project. What I have observed among our customers is that true success does not come from organizations that define a standalone “AI strategy,” but rather from those leaders that integrate AI into their business strategy.

When our customers isolate AI and define an AI strategy, it inevitably treats it like a “technological toy” to experiment with. This approach yields fragmented, orphaned initiatives that fail to scale because they are fundamentally disconnected from their core corporate objectives. What I learned is that AI is not the ultimate destination; it is a powerful catalyst. We have replaced “What can AI do for our customers?” with a more strategic question, “How does AI accelerate their existing business goals?”

Think of AI like electricity. No modern corporation designs a standalone “electricity strategy.” Instead, all companies route it invisibly across the entire organization to illuminate offices, power production lines and drive communication. AI must be woven into the enterprise fabric in the exact same way, acting as an underlying utility that supercharges your existing operational model.

Integrating AI into the broader business strategy also dictates how we measure success. It forces a shift away from short-term tech vanity metrics and anchors the technology into a long-term roadmap.

When AI remains trapped within the IT department of our customers, we notice that it is relegated to a mere “software experiment.” To become a true competitive advantage, we observed that AI requires intense cross-functional orchestration. This perspective does not diminish the merit of the technical team; their expertise is fundamental for establishing the architecture, data governance and tools your enterprise requires. However, while IT builds the foundational infrastructure, it lacks the organizational authority to decide what should be built on top of it. Only the CEO or the owner of the company can step in to ensure AI leaves the “toy project” phase and integrates into the DNA of the organization.

The requirement for top-down, executive ownership stems from three critical realities observed in the field:

• Silo-smashing and data collaboration: True enterprise AI is data-hungry and that data lives across disparate business lines, finance, operations, marketing and customer service. Only the CEO possesses the cross-functional authority to demand that data silos be dismantled.
• Cultural transformation and fear mitigation: AI triggers widespread anxiety over job displacement across all industries and hierarchies. When relegated to an “IT project,” resistance spikes as teams view it as a threat to their livelihoods. When I saw the CEO lead this cultural shift directly is when I noticed the best results.
• C-Suite education and strategic alignment: The mandate for AI capability cannot just be delegated downward; the transformation must begin at the very top. I have conducted more than 70 presentations for the Board of Directors and C-Level teams. These people need to be actively educated not on technical code, but on specific business use cases, return on investment (ROI) frameworks and how AI resolves core organizational bottlenecks.

PwC’s data found that only 12% of enterprises have achieved both cost and revenue benefits from AI. Those elite 12% succeeded precisely because their CEOs embedded AI extensively across strategic decision-making and cross-functional workflows. AI is simply too disruptive and too critical to be left exclusively in the hands of technical experts. If AI is not on the CEO’s weekly agenda, it is fundamentally missing from the company’s true strategy.

AI as a new operational framework

Traditional IT systems have operated on strict algorithmic certainty: if you input a specific set of data, the system executes an immutable line of code and guarantees the same, predictable output every single time.

AI completely breaks this paradigm. Because modern AI is built on probabilistic models, it does not execute static formulas; instead, it predicts the most likely correct response based on mathematical probabilities. This means that AI solutions carry an inherent, small percentage of uncertainty and variability. A prompt entered today might yield a slightly different, though contextually valid, output tomorrow.

Executive leadership and organizational cultures must be actively educated to accept and navigate this fundamental shift. Traditional quality assurance frameworks for software are designed for a 100% success rate. Applying this rigid standard to AI will paralyze your initiatives, keeping 80% of your projects trapped eternally in the pilot phase. This happened to us in a food and beverage company in Latin America a couple of years ago. After this experience, we started to include conditions in our contracts that tolerate statistical margins of error and still define the project as a success.

In terms of cost calculation, we had to teach CIOs and business managers to forget the monthly subscription model for AI and learn to manage the primary unit of exchange in modern AI: the token.

To understand AI costs, executives must understand how large language models process data. AI models do not read full words; instead, they break text, images or code down into “pieces” called tokens. As a baseline, every 100 words process as approximately 130 to 140 tokens. Because the major AI providers use the token as their currency, your business is billed dynamically based on the exact volume of tokens consumed by every query submitted (input) and every response generated (output).

Many leaders believe AI costs are fixed due to flat-rate enterprise tiers ($25–$30/user). This is a temporary illusion. These venture-capital-subsidized rates mask true operational costs and come with dynamic usage limits. Modeling long-term ROI on them guarantees a severe budget shock when true consumption pricing takes over.

The solution is not to halt AI adoption; doing so means losing your competitive edge. Instead, the cost per token must cease to be treated as a technical footnote relegated to the IT department. It must be elevated to a core business variable.

Risks in the AI adoption model

Since the beginning of the AI boom, I have seen all our customers making a critical tactical error that could cost them heavily in the medium term: they are focusing only on operational efficiency (reducing costs with AI).

I have observed that an alarmingly high percentage of companies remain trapped in pilot phases focused exclusively on short-term cost reduction. Bain & Company’s global Automation and AI Pathfinder Survey found that the largest share of companies measuring their AI initiatives (exactly 40%) realized cost reductions of 10% or less, heavily missing their internal targets. Our customers are putting too many resources and effort into marginal financial gains and in doing so, they are jeopardizing their most valuable assets: service quality, resilience and customer trust.

Utilizing AI solely to slash headcount or cut operational corners is a dangerous trap that introduces severe field liabilities. A financial service organization in Latin America announced that they saved $1 million in customer support by replacing humans with AI chatbots. However, the mid-term reality revealed a different story: a damaged brand reputation due to AI errors and an influx of frustrated clients fleeing because the automated system cannot handle special cases.

Putting a company on an extreme AI diet might make it look leaner on next quarter’s financial statement, but over-indexing on cost-cutting will ultimately leave the business too weak to compete when market dynamics shift. We are now inviting our customers to change the question from “How much money will AI save us?” to “How will we leverage AI to exponentially increase the long-term value of our enterprise?”

Deploying enterprise AI is a marathon, not a sprint, and the terrain changes with every mile. The organizations that thrive in this next era will be those that transition from fascination to discipline, treating AI not as a magic bullet for immediate savings, but as a core capability that demands rigorous governance, architectural foresight and cultural maturity. Navigating this shift requires moving past the theoretical hype and anchoring decisions in raw, field-tested reality.

As we continue to deploy these technologies across industries, the blueprint for success is being rewritten in real time. Let’s keep this conversation going as we map out the future of business intelligence together.

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What is a business analyst?

Business analysts (BAs) are responsible for bridging the gap between IT and the business using data analytics to assess processes, determine requirements, and deliver data-driven recommendations and reports to executives and stakeholders.

BAs engage with business leaders and users to understand how data-driven changes to process, products, services, software, and hardware can improve efficiencies and add value. They must articulate those ideas but also balance them against what’s technologically feasible and financially and functionally reasonable. Depending on the role, a business analyst might work with data sets to improve products, hardware, tools, software, services, or process.

The International Institute of Business Analysis (IIBA), a nonprofit professional association, considers the business analyst an agent of change, and says that business analysis is a disciplined approach to introduce and manage change to organizations, whether they’re for-profit businesses, governments, or nonprofits.

Impact of AI on business analyst role

As AI becomes commonplace in the tech industry, business analysts are embracing it as a tool to automate repetitive work in the role. AI tools can be used for workflow and diagramming, process mapping, data analysis, and to automate meeting minutes and transcribe meetings where requirements are established, all designed to speed up the process of analyzing data, creating visuals, and transcribing and writing user stories and acceptance criteria.

AI tools can also help identify patterns, insights, and unique data points that might go unnoticed by humans, and allow a faster time to generate insights for organizations.

Of course, as with all AI tools, they still require humans to oversee prompts, scripting, and evaluate AI outputs to ensure they’re accurate and valid. While they can’t replace the work of BAs, AI can help them spend more time on thoughtful analysis and decision making, rather than mundane tasks such as gathering and summarizing data, and querying.

Business analyst job description

BAs are responsible for creating new models that support business decisions by working closely with finance and IT teams to establish initiatives and strategies aimed at improving revenue and optimizing costs. They need a strong understanding of regulatory and reporting requirements, and have plenty of experience in forecasting, budgeting, and financial analysis combined with knowing KPIs, according to Robert Half Technology.

According to Robert Half, a BA’s job description typically includes budgeting and forecasting, planning and monitoring, variance analysis, pricing, reporting, and creating a detailed business analysis in an effort to outline problems, opportunities, and solutions for a business. It also says BAs should be able to define business requirements and report them back to stakeholders.

Since BAs are tasked with prioritizing technical and functional requirements, identifying what clients want, and determining what’s feasible to deliver, the role requires a deep understanding of systems, how they function, who’ll need to be involved, and the necessary steps to get everyone on board.  

The role is constantly evolving, especially as companies rely more on data to advise business operations. Every company has different issues that a business analyst can address, whether it’s dealing with outdated legacy systems, changing technologies, broken processes, poor client or customer satisfaction, or large, siloed organizations.

Business analyst skills

The BA position requires both hard and soft skills, as they need to know how to pull, analyze, and report data trends, share that information with others, and apply it to business goals and needs.

Not all BAs need a background in IT if they have a general understanding of how systems, products, and tools work. Alternatively, some have strong IT backgrounds and less experience in business, but are interested in shifting away from IT into this hybrid role, which often acts as a communicator between the business and IT sides of the organization. So having extensive experience in either area can be beneficial for BAs.

According to the IIBA, some of the most important skills and experience for a business analyst are:

• Oral and written communication skills
• Interpersonal, organizational, facilitation, and consultative skills
• Analytical thinking and problem solving
• Being detail-oriented and able to deliver a high level of accuracy
• Knowledge of business structure
• Stakeholder and cost-benefit analysis
• Processes modeling
• Understanding networks, databases, and other technologies

For a more in-depth look at what it takes to succeed as a business analyst, click here.

Business analyst salary

The average annual salary for an IT business analyst is $80,692, according to data from PayScale. The highest paid BAs are in New York, where the average salary is 14% higher than the national average. Dallas, Texas, is second, with reported salaries 6.4% higher than the national average, closely followed by Washington, D.C., where salaries are 6.3% higher than the national average.

Some skills are in higher demand than others, with the potential to boost salary. According to Payscale, these are associated with higher BA salaries. These skills, and the amount they can boost your salary, include:

For tips on boosting your salary, click here.

Business analyst certifications

Although business analysis is a relatively new discipline in IT, a handful of organizations already offer certifications to help boost your résumé and prove your merit as an analyst. Organizations such as the IIBA, IQBBA, IREB, and PMI each offer their own tailored certifications for business analysis. These include:

• IIBA Entry Certificate in Business Analysis (ECBA)
• IIBA Certification of Competency in Business Analysis (CCBA)
• IIBA Certified Business Analysis Professional (CBAP)
• IIBA Agile Analysis Certification (AAC)
• IQBBA Certified Foundation Level Business Analyst (CFLBA)
• IREB Certified Professional for Requirements Engineering (CPRE)
• PMI Professional in Business Analysis (PBA)
• Certified Analytics Professional (CAP)

For more information about how to earn one of these certifications — and how much they cost — click here.

Business analytics tools and software

BAs typically rely on software such as Microsoft’s Excel, PowerPoint, and Access, as well as SQL, Google Analytics, and Tableau. These tools help BAs collect and sort data, create graphs, write documents, and design visualizations to explain findings. You won’t necessarily need programming or database skills for a BA position, but if you already have these skills, they won’t hurt. The type of software and tools you’ll need to use, however, will depend on your job title and what the organization requires.

EF Core is Microsoft’s flagship ORM (object-relational mapper), the software layer that allows .NET developers to work with relational databases. The DbContext class is the core component of the EF Core framework for managing database operations. However, the DbContext class in EF Core is not thread-safe. Hence, if you share DbContext instances between multiple threads, you will often encounter data corruption issues and the InvalidOperationException.

In this article, we’ll learn how we can execute queries in parallel in EF Core by handling thread-safety issues to avoid concurrency errors. To work with the code examples provided in this article, you should have Visual Studio 2026 installed in your system. You can download Visual Studio 2026 here.

Executing EF Core queries in parallel – the problem

When working in today’s data-driven applications, you will often need to fetch data from multiple unrelated datasets. In applications that use concurrency, thread-safety is critical to guaranteeing correct execution, avoiding data corruption and race conditions, and ensuring data consistency. Let’s understand this with an example.

Let’s say we want to populate a dashboard that displays all recently processed orders, metrics, logs, and traces, as well as your application’s performance metadata. We might write the following code.

public class Dashboard
{
    public List Orders { get; set; } = new();
    public Metrics Metrics { get; set; } = new();
    public List Logs { get; set; } = new();
    public List Traces { get; set; } = new();
}
public static async Task LoadDashboardAsync(ProductService productService)
{
    Task<List>    ordersTask  = productService.GetProcessedOrdersAsync();
    Task        metricsTask = productService.GetMetricsAsync();
    Task<List> logsTask    = productService.GetRecentLogsAsync();
    Task<List>    tracesTask  = productService.GetTracesAsync();
    await Task.WhenAll(ordersTask, metricsTask, logsTask, tracesTask);
    return new Dashboard
    {
        Orders  = await ordersTask,
        Metrics = await metricsTask,
        Logs    = await logsTask,
        Traces  = await tracesTask
    };
}

In the preceding code snippet, there are four read operations that are executed by four different Task instances. Our objective is to ensure that the database round trips run in parallel instead of in sequence. We can accomplish this by usingTask.WhenAll, which starts the four tasks, waits for every task to finish, then returns the data wrapped inside a new Dashboard instance.

If we executed these queries sequentially, the user would have to wait until each query completed its execution in turn—for a total wait time equal to the sum of the times for all four queries. However, by running these queries in parallel, we reduce the wait time considerably. The user will need to wait only as long as it takes for the slowest of the four queries to complete its execution.

However, there is a danger with the above approach. If you run multiple operations on the same DbContext instance, you will see an InvalidOperationException with the following message:

A second operation started in this context before the previous operation was completed. This is usually caused by multiple threads using the same DbContext instance; instance members are not guaranteed to be thread-safe.

Databases such as SQL Server, PostgreSQL, and Oracle Database follow a request-response communication model at the connection level: a single connection can process only one command at a time. Hence, you cannot run multiple queries concurrently using the connection. If you await several operations using the same connection, EF Core detects the overlapping use of a non-thread-safe context and throws an InvalidOperationException. To run queries in parallel, you must give each task its own connection or context.

Why DbContext isn’t thread-safe – and how to work around it

The DbContext class in EF Core is designed to manage a single unit of work. To be more precise, EF Core does not provide support for running multiple operations on the same DbContext instance. This design approach creates inherent challenges when you use the same DbContext instance across multiple threads. If DbContext were thread-safe, extensive locking would be required, which would degrade data access performance.

This stateful design of DbContext makes it unsuitable for concurrent access patterns that involve loading, modifying, or tracking different sets of data simultaneously, because it needs to maintain the internal representation of database state.

The change tracker is one of the most important components of DbContext in EF Core. It monitors all entities loaded into memory and detects any changes made to them after they have been loaded. It keeps track of the original, current, and changed values of the entities, thereby enabling the EF Core runtime to know the current state of these entities when you call the SaveChanges() method on the DbContext instance.

To implement thread-safety when working with DbContext, we must write our code to ensure that each concurrent operation gets its own copy of a short-lived instance. Now, we could accomplish this by wrapping a shared DbContext instance inside a thread-safe block using the lock keyword, so that all calls to the database take place using one and only one thread at a time. This approach is illustrated in the code snippet below.

using Microsoft.EntityFrameworkCore;
public class Product
{
    public int Id { get; set; }
    public string Name { get; set; } = string.Empty;
    public decimal Price { get; set; }
    public int Quantity { get; set; }
}
public class AppDbContext : DbContext
{
    public AppDbContext(DbContextOptions options) : base(options) { }
    public DbSet Products => Set();
}

However, while the above approach gives us the thread-safety we need, it can degrade data access performance considerably. A better approach is to use IDbContextFactory , which creates fresh DbContext instances on demand. Calling its CreateDbContext() method is cheap and produces a fresh, isolated context every time.

The following code snippet shows how you can register an instance of type IDbContextFactory as a singleton. You can safely call this code from any thread.

builder.Services.AddDbContextFactory(options =>
    options.UseSqlServer(
        builder.Configuration.GetConnectionString("Default")));

Executing EF Core queries in parallel – the solution

Now let’s see how we can put IDbContextFactory to work. The following code illustrates a class named ProductService that uses a factory to create DbContext instances for each scope of work.

public class ProductService
{
    private readonly IDbContextFactory _factory;
    public ProductService(IDbContextFactory factory)
        => _factory = factory;
    public async Task GetByIdAsync(int id)
    {
        await using var context = await _factory.CreateDbContextAsync();
        return await context.Products.FindAsync(id);
    }
    public async Task UpdateStockQuantityAsync(int id, int updateQuantity)
    {
        await using var context = await _factory.CreateDbContextAsync();
        var product = await context.Products.FindAsync(id);
        if (product is null) return;
        product.Quantity += updateQuantity;
        await context.SaveChangesAsync();
    }
}

Note that ProductService has two methods, GetByIdAsync and UpdateStockQuantityAsync. An instance of the DbContext class is created locally in each of these methods. Now, suppose you have two threads, T1 and T2, that execute these methods concurrently. That is, thread T1 executes the GetByIdAsync method while thread T2 executes the UpdateStockQuantityAsync method. Because each of these methods is executed in isolation, they will have their own context, connection, and change-tracking information, and there will be no mutable state, so you don’t need to implement thread synchronization in either of these methods.

Consider the following code that executes a read operation and an update operation in two separate tasks.

public static async Task RunMethodsInParallelAsync(ProductService productService)
{
      Task readTask = productService.GetByIdAsync(1);
      Task updateTask = productService.UpdateStockQuantityAsync(3, 5);
      await Task.WhenAll(readTask, updateTask);
      Product? product = await readTask;
 }

The Task.WhenAll method runs the two tasks in parallel and waits until both have finished. The reason this approach is thread-safe, and will not create concurrency errors, is that each of these two methods creates its own DbContext instance internally. Therefore the read operation and the update operation use independent DbContext instances.

Use DbContext pooling to reduce allocation cost

Although creating DbContext instances is not that costly, you should consider using pooled contexts in applications that require high scalability and high performance. The following code snippet shows how you can register a pooled context.

builder.Services.AddPooledDbContextFactory(options =>
    options.UseSqlServer(connectionString));

A call to AddDbContext() will register a DbContext instance as scoped per HTTP request. Each request will run on a different thread and each will have its own context. However, keep in mind that the default scoped registration of the DbContext will not always suffice.

You will need a factory to create instances of DbContext when you’re using a background service, or performing some work inside a particular request, or running some business logic operation over multiple contexts.

Key takeaways

• If you use EF Core in the data access layer of your application, you must implement thread safety measures whenever you run your queries in parallel.
• You cannot execute multiple queries in parallel in EF Core using the same DbContext instance.
• The IDbContextFactory enables you to create a DbContext instance for each thread, thereby enabling you to work with these instances in isolation.
• Although using a DbContext pool involves a small allocation overhead, it becomes a non-issue if you need high throughput.

Late in a large enterprise SAP transformation, the strategic governance conversations began to drift. Instead of executive decisions, we found ourselves debating whether the program needed dedicated testing, whether cutover required a full weekend, whether twenty Agile teams really needed coordination support and whether offshore resources were adding value at all.

The questions were not coming from the delivery teams. They were coming from the executive sponsor.

The sponsor had recently been elevated into a senior leadership role and had never sponsored a technology transformation at this scale. The challenge was not authority. The sponsor had every right to ask any question they wanted. The challenge was that strategic governance had quietly turned into a debate about delivery practices, because the sponsor did not yet have the transformation context to focus the conversation anywhere else.

This is not a story about a bad sponsor. The executive in this case was a capable senior leader with strong judgment and authentic intent. They had been placed into a role they had not yet been prepared for, and the pattern that followed was structural, not personal. It is one of the more common patterns I have observed across enterprise transformation programs, and one of the most consistently misdiagnosed.

Most program failures are not execution failures. They are sponsor mismatches.

When governance becomes a debate about delivery practices

When the sponsor does not understand what an enterprise transformation actually requires, governance forums stop functioning as decision bodies and start functioning as practice debates.

You see it in the questions that get asked. Why do we need a dedicated testing phase? Can the Build timeline be compressed? Why does cutover need a full weekend? Why do we need more Scrum Masters across 20 product teams? Can the US team simply work longer hours instead of using offshore resources? On one program, the sponsor suggested shifting the entire project’s working hours to India time, despite roughly 85 percent of the delivery organization being based in the United States.

None of these questions are unreasonable in isolation. Each one targets a real cost or timeline pressure. The problem is what is missing underneath them: an understanding of the operational risks the original choices were designed to mitigate.

When sponsors ask delivery-practice questions without that context, the program leadership team ends up defending the work instead of advancing it. Decision velocity drops. Trust between the program and its sponsor erodes. Senior delivery talent disengages from governance forums where the conversation never reaches the decisions they need made. What looks from the outside like an active sponsor producing engagement is, from inside the program, an active drain on the cycles needed to deliver.

The compounding cost is not unique to any single program. PMI’s research on executive sponsorship consistently identifies sponsor engagement quality, rather than sponsor presence alone, as one of the strongest predictors of project success. The visible symptom is debate. The actual cost is unmade decisions.

Authority is rarely the issue. Literacy is

When transformations stall under a mismatched sponsor, the diagnostic instinct is to question the sponsor’s authority. Are they senior enough? Do they have the cross-functional reach? Can they unblock?

In most of the programs I have led or advised, authority was not the limiting factor. The sponsor in the SAP program above had ample authority. They could unblock any decision the program needed. What had not been developed was the transformation literacy to know which decisions mattered, which were technical noise and which were execution risks that should not be optimized away.

This is what I have come to think of as the literacy problem. Sponsors elevated into transformation roles often have deep functional expertise (finance, operations, business unit leadership) but limited exposure to the distinct functions of PMO, organizational change management, agile delivery, testing and cutover, and how each one reduces a specific category of implementation risk. They are not expected to be SAP configuration experts. But they need enough transformation literacy to recognize which questions actually belong in a steering committee.

Harvard Business Review’s research on effective executive sponsorship has emphasized that sponsorship effectiveness depends as much on judgment as on authority. Judgment is where literacy becomes operational. A sponsor with authority but limited transformation literacy will optimize for speed and cost in ways that consistently underestimate risk. A sponsor with both will make the tradeoffs the program actually needs.

Prosci’s longstanding benchmark studies on change management have ranked active and visible executive sponsorship as the single greatest contributor to change success for two decades. The word that matters in that finding is active. Active sponsorship without transformation literacy can introduce real cost. Not because the sponsor is acting against the program, but because the optimization choices they make are based on incomplete information about what the program is built to protect against.

Shift the conversation from delivery practices to business risk

When the sponsor relationship is already in place and cannot be changed, the program leadership team has one move that consistently works: shift the conversation.

On the SAP program above, we stopped explaining why the testing phase existed. We started explaining the business risk of reducing it. We stopped debating the number of Scrum Masters. We started connecting delivery capacity to coordination across more than twenty Agile teams and the business cost of losing that coordination. We reframed offshore support as a way to maintain delivery momentum around the clock rather than asking the U.S. team to sustain fifteen-hour days.

The shift is from defending delivery practice to explaining business risk. The sponsor does not need to understand why testing takes the time it does. They need to understand what the program is exposed to if testing is compressed. They do not need to know how many Scrum Masters are statistically optimal for twenty Agile teams. They need to know what coordination breaks when the number is wrong.

This reframing accomplishes two things. First, it brings the conversation back to the level at which sponsors actually make decisions: tradeoffs between business outcomes and business risks. Second, it builds transformation literacy in the sponsor over time, almost as a byproduct. By the third or fourth iteration of business-risk-framed conversations, the sponsor begins to ask the right questions on their own.

In practice, this happens through small but deliberate moves. When the sponsor asks why a phase needs the time it takes, the program lead names two or three things that could go wrong if the time is cut and what each would cost the business. When the sponsor asks why a role is needed, the program lead names the work that would not get done without it. Every delivery-practice question gets converted into a business-risk answer.

The program leadership team’s job is not to make the sponsor an expert in SAP delivery. It is to provide enough transformation context so that executive decisions reflect both business priorities and implementation realities.

There are a few phrases I have used with executive sponsors over the years that capture the underlying issue. The sharpest one:

If the decision has to go above the sponsor, they are not the sponsor.

Sponsorship is defined by what the sponsor can decide without asking someone else. That is the test. Anything else is the appearance of sponsorship, not the substance.

For CIOs supporting enterprise transformation, the implication is direct. Sponsor selection, or sponsor preparation when selection is not an option, is not a hierarchy question. It is a transformation capability question. The same execution discipline that goes into defining decision rights, structuring governance and protecting delivery momentum should apply, with equal rigor, to assessing sponsor fit and building sponsor literacy before the program begins.

A sponsor does not need to be the technical expert. They do need to know when to trust the people who are.

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Earlier this month, Nokia provided an AI-RAN platform update that brings an AI-native and programmable compute which is projected to double spectral efficiency by 2028. This increases speed, but more importantly, it can allow mobile operators to create some actual monetization beyond connectivity.

With this release, Nokia is introducing what it calls the industry’s first commercial AI-RAN platform, built on its AI‑native anyRAN software and Nvidia’s Aerial AI-RAN stack running on merchant GPU-based accelerated computing. The company is already seeing more than 20% gains in spectral efficiency from AI-driven radio algorithms, with a roadmap to reach 50% by 2027 and more than 100% by 2028, effectively doubling capacity on existing spectrum in dense cells.

Legacy RAN infrastructure enables connectivity but not much beyond that. The AI-RAN makes the network intelligent and extends AI into the physical world, enabling telcos to get more from their infrastructure investments, including providing a path to 6G. The partnership with Nvidia brings CUDA and AI into mobile environments.

For Network World readers, the headline isn’t just that Nokia got to market first with AI‑RAN—it’s that the company is using AI and GPUs to break the historical coupling between radio performance and custom silicon refresh cycles, and to turn the RAN into an application platform.

What AI-RAN actually is

At a technical level, Nokia’s AI‑RAN is a software‑defined baseband architecture that runs Layer 1/Layer 2 RAN functions and AI models on accelerated compute, primarily GPUs, instead of being locked into fixed‑function ASICs. Udayan Mukherjee, Nokia’s CTO for RAN and core, summarized the vision in the analyst briefing: “AI‑RAN is essentially a platform that turns the radio network into a true AI‑native programmable platform… one software detached from the hardware, defining flexible hardware deployment configurations, including part of the AI grid.”

Several pillars stand out:

• AI‑native design: Algorithms move from traditional linear models to increasingly nonlinear techniques (e.g., advanced channel estimation, deep receivers/transmitters, RKHS-based methods), which demand tensor-heavy compute best delivered by GPUs.
• Software-defined RAN: The same anyRAN software stack runs across different hardware configurations—plug‑in cards, standalone AI‑RAN nodes, and COTS/cloud RAN—so innovation comes via software releases rather than baseband card swaps.
• Programmable “D‑apps” layer: Nokia is pushing a new real‑time E3 interface from Layer 1/2 into an application layer for distributed apps (D‑apps) that can tap IQ samples, channel estimation and scheduling data for use cases such as sensing and location services.
• Crucially, this isn’t meant to replace all custom silicon overnight. Mukherjee was explicit: “We are not dropping the purpose‑built product… but we want to also get to merchant silicon, because that’s the future as we want to develop bigger models and AI elements and value‑added services on top of it.” The result is a hybrid era where AI‑accelerated platforms coexist with existing basebands but begin to shoulder the most compute‑intensive workloads.