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.

Looking ahead just a short time, Apple could hold a powerful position in AI where it most makes sense: deployment.

Not only will the company offer up its own AI models for the kind of tasks millions use ChatGPT to do today, but it will provide more sophisticated on-device agentic models to help users get things done through Siri AI.

Apple also offers limited capacity for more complex tasks through Private Cloud Compute, and, in partnership with the likes of Google in the US and Alibaba in China, the company is giving users a trusted conduit through which to access even more sophisticated AI services. 

Deeply deployable

Critics can say it took Apple a long time to get to this point, but they also seem to think the company has finally got the mix right with its series 27 operating systems. Arriving late to a party doesn’t mean you won’t shine once you get there.

Apple is also coming up the inside lane around frontier AI, with iterative OS and hardware enhancements that mean its devices become increasingly effective for Edge AI use cases, on device — no cloud service required.

The company appears to be digging down into those use cases. Mark Gurman at Bloomberg recently predicted that future M7 Ultra Macs will support as much as 1.5TB RAM, making these systems more than capable of running full weight frontier models in people’s offices, colleges, and homes. 

While that does assume the AI-flationary memory market can supply that much RAM at prices humans can afford, it is also true that people are already running AI clusters using off-the-shelf Mac minis networked over Thunderbolt cables. It’s no stretch to believe this will continue to be the case, and that it will even broaden as the power/performance offered at the high end grows.

What’s wrong with good enough?

When combined with open AI stacks, particularly newly emerging varieties, Apple’s platforms should become leading contenders for private AI services and edge AI. Many business users will leap at the chance to offer their workers powerful, self-hosted, private AI services using one or more daisy-chained Mac Studios or Mac minis. The recent craze in deployment of both Macs to support OpenClaw instances shows they already are.

Ultimately, these different slices of momentum mean I agree with investor Jason Calacanis that Apple is in position to apply a great deal of pressure on OpenAI and Claude just by putting models on their devices. 

It’s also worth thinking about how people use AI today. How many of the queries made in the world right now constitute relatively simple tasks that could be transacted by on-device AI, such as the emerging new version of Apple Intelligence or even smaller LLM models running on device? You can even run PrismML’s 1-bit, 27-billion parameter Bonsai on an iPad using the Locally app, and that’s in the here and now.

What happens? Pretty soon you’ll find people recognize that they can already run the vast majority of their AI-augmented workflows using services they have on their existing device or can access on their on-prem Mac set-ups. And, of course, as people get used to running small tasks locally and larger tasks on premises, the actual space in which they need to turn to cloud-based frontier models will erode. That’s even as companies like PrismML work towards slimming down full-weight models so they don’t need to run on a server at all.

“It’s going to be wild when people have unlimited tokens on their desks,” said Calacanis in a podcast round table discussion.

Who has the most to lose?

The current incarnations of AI felt like they came from nowhere. Most people weren’t aware of the technology until returning to work after the 2022 holiday season. Since then, the industry has proliferated with dozens of competing models, most recently including powerful but affordable frontier models such as Qwen and Kimi.ai.

These models aren’t necessarily all as good as one another, but in many cases for much of what we do, we’ll find them to be good enough. That’s an existential crisis for some, as industry observers now think the inevitable pricing pressure means some services might have over-invested in capacity before finding any way to turn a profit.

Those profit-seeking services are the ones with the most to lose as Apple extends its hardware advantage, democratizing AI access for all while providing platforms suitable for edge AI, on-premises AI, private AI, and even AI access using third-party services. (The need for the latter will shrink as the capabilities of the former get better.)

Cupertino rising

What does this all mean? While the industry remains young, it is already fragmenting. And striding through the dust of that process comes Apple, equipped with the hardware, software, and approach to build its business even as the enterprise of first mover AI services erodes.

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.

Jobs involving physical labor are at high risk of disruption from automation, with new technologies such as AI robots becoming more prevalent, according to a recent study by the Organization for Economic Co-operation and Development (OECD). That means workers in construction and extraction, farming, fishing, forestry, production and material transportation could be affected by fast-moving technology changes.

“Routine and low-skilled jobs are at higher risk,” the Paris-based public policy group said, adding that “overall, jobs requiring non-routine cognitive, social and creative skills are less susceptible to automation.”

The kinds of creative and cognitive jobs still thought to be less exposed to automation include social work and community service roles. 

OECD also said management jobs — which often require workers to devise creative answers to solve problems — fall within the creative and cognitive category. “While AI has made some high-skill job requirements more susceptible to automation, many critical skills in these roles remain difficult to automate,” OECD said.

The same still holds true for some physical and manual labor jobs – including cleaners, agricultural workers, food-prep assistants, and laborers — which are less exposed to the affects of AI, OECD said.  

But people who work in programming, translating and interpretation positions could find their work affected by the quick rise of AI tools and services. According to the organization, global AI uptake rose from 7% in 2021 to 20% in 2025.

“In these occupations, GenAI could perform a significant share of tasks at least twice as fast today or in the near future,” OECD said.

The effects of the AI boom are not always uniform across industries or regions. In a separate 2026 Employment Outlook study released by the group, exposure to disruption from generative AI (genAI) ranges from about 16% in some areas to more than 70% elsewhere, depending on industries and occupations. 

Numerous research firms have said in recent years that AI is driving short-term job losses, though tech industry experts and analysts have argued AI will also create new careers and jobs as agentic AI takes over low-skilled work. 

AI technology has become so ubiquitous that it’s been compared to electricity — virtually all companies will need it or at least know how to use it. But it’s adoption has been hindered at times as companies struggle to find ROI from its use, and by regulatory and ethical hurdles.

In the US, AI blamed for June job losses

According to a Challenger, Gray & Christmas study released earlier this month, AI was cited as the top reason for job cuts in June. The outplacement firm said employers cut 45,849 job cuts in June, of which 14,029 were attributed to AI, with the tech industry leading the cuts.

“Tech remains the epicenter of this year’s cuts,” Challenger said. “AI is the dominant force as companies are restructuring around it, automating roles, and reallocating budgets toward new capabilities. The sector is being reshaped in real time.”

Overall, AI has been responsible for 173,568 job cuts since 2021, the company said.

AI is hurting jobs in customer service, internal reporting, telecommunications, and hosting automation, said Victor Janulaitis, a staffing consultant who was formerly CEO at Janco Associates Inc.

“C-level executives continue to be focused on eliminating ‘non-essential’ managers, staff, and services,” he said. “Coders and developers have limited opportunities with legacy applications.”

While jobs in the IT sector overall are declining, current hiring tends to skew in the direction of people with AI skills. A report this month by CompTIA put job listings with AI skills at around 500,000, which is close to double the number in January.

“Employers in other industries are accelerating digital transformation initiatives and moving from AI experimentation to implementation,” said Seth Robinson, CompTIA’s vice president for industry research.

That view dovetails with what ManpowerGroup, the recruitment firm, is seeing; demand for AI-related skills has nearly doubled over the past year, said Ger Doyle, regional president of North America at ManpowerGroup.

That growth extends well beyond traditional technology roles as companies move from experimenting to AI deployments at scale, Doyle said. “We’re seeing it influence hiring across occupations ranging from data science and engineering to project management and operational roles,” he said.

Building a presentation can take lots of time. There are design choices to figure out: the slide layouts, fonts, theme colors, and so on. You can use a template to skip this hassle, but you still have to paste your text and other content into the slides and edit it all so that the results are visually appealing.

In PowerPoint, Microsoft’s Copilot AI assistant can now automate the heavy lifting of presentation creation. It can generate a first-draft presentation in minutes, then help you edit it. You can also prompt Copilot to help you quickly understand the contents of a presentation and glean insights from it. Use the tips in this guide to save oodles of time as you create and work with presentations.

Who can use Copilot in PowerPoint

Individuals with a Microsoft 365 Personal, Family, or Premium subscription have access to Copilot from within PowerPoint and other Microsoft 365 apps. Users with a Premium plan have higher Copilot usage allowances and access to advanced AI features.

For business users, it’s more complicated. Organizations with more than 2,000 users must pay for Microsoft 365 Copilot licenses for their users in addition to their regular Microsoft 365 licenses. Users at organizations with fewer than 2,000 users can use Copilot within M365 apps even without the M365 Copilot add-on licenses, but there are limitations in usage, speed, and feature availability.

To see what kind of access you have, log in to Microsoft’s Copilot Chat web hub and look for your name in the lower left corner. If you see “M365 Copilot (Premium)” under your name, you can use Copilot in M365 apps with priority access and advanced features. “M365 Copilot (Basic)” means you can use Copilot in M365 apps with lower-priority access and limited features. If you see “Copilot Chat (Basic)” or nothing below your name, you can’t use Copilot in M365 apps.

(Copilot Chat Basic users do get some Copilot functionality, including the ability to generate presentations, via the Copilot Chat hub. See our Copilot Chat tutorial for details.)

In this article:

• Working with Copilot in PowerPoint
• Create a presentation template
• Create a presentation from a document
• Add content from a document to a slide
• Refine your slide text
• Find or create an image
• Expand your presentation with relevant slides
• Summarize a presentation
• Answer questions about a presentation
• Help you navigate a large presentation
• Generate speaker notes and/or an FAQ

Working with Copilot in PowerPoint

First, let’s quickly go over the notable settings of the Copilot sidebar.

When you have a presentation open in PowerPoint, click the Copilot icon; it may be floating at the lower-right corner of your PowerPoint window or parked at the right end of the Ribbon toolbar. The Copilot sidebar will open along the right of the page. You’ll type your prompts to Copilot inside the chat window in this pane.

Agent mode: By default, Copilot can build a new presentation or make changes to an existing one in the main PowerPoint window. This is known as “agent mode.” To change this so that Copilot can’t take direct action on a presentation (all its responses appear in the sidebar), click the Allow editing button above the chat window and change it to Chat only.

The tips in this guide require that Copilot be in agent mode, so make sure you see Allow editing above the chat window.

Choice of AI model: Behind the scenes, Copilot has access to various genAI models, including different versions of Anthropic Claude and OpenAI GPT.  By default, it decides which model to use based on your prompt. You can set it to use a particular model: click Auto at the upper right of the Copilot pane and select a model from the dropdown that opens.

The tips in this guide should work fine on the default Auto setting. But feel free to experiment switching to specific models to see which give you the best results for particular tasks.

Important: Remember that generative AI output often includes errors, so always check Copilot’s output for accuracy. (Also see our tips for reducing hallucinations in Copilot.) You’ll likely want to rewrite it in your own voice as you’re reviewing it.

1. Create a presentation template

For many people, the hardest part of creating a presentation is getting started. What types of information should be included on the slides, and in what order? Copilot can give you a leg up by creating the type of presentation you need, with placeholder data that you can later replace with your own.

Start a new presentation, open the Copilot sidebar, and type your prompt into the chat window. It’s best to provide very specific details in your prompt. The more context or details you provide, the more likely Copilot will generate a presentation template that suits your needs.

A good prompt should contain the slide count, subject, audience, and tone. Example:

• Create a 6-slide presentation for a sales meeting focusing on Q1 revenue. The audience is the sales team, so keep the tone professional and focused on the sales data.

Copilot may ask a series of follow-up questions, such as your preferred visual style and desired level of detail. Then it will generate a presentation template.

You can optionally prompt Copilot for revisions, and when you’re happy with the template, swap in your own data.

2. Create a presentation from a document

You can attach a document (such as a Word document, Excel spreadsheet, or PDF) and prompt Copilot to generate a presentation based on its contents. This works best with a structured-format document (such as a business plan, project proposal, or summary report) that contains sections with headings.

Copilot can extract the document’s text and structure to generate the slide content for the new presentation. This can especially be useful for quickly turning a long report into a visually appealing presentation.

In the Copilot pane, click the + icon at the bottom of the chat window. A list of documents that you’ve recently accessed appears. Select the one that you want Copilot to use. Alternatively, click the magnifying glass icon and inside its search box, type a few letters of the filename for the document you want. (Business users with an M365 Copilot license can select up to five files for Copilot to pull from when creating a presentation.)

Then in the chat window, you can enter a prompt that’s as simple as “Create a presentation,” although as always, providing more details and context is better. This is especially important for corporate users who reference multiple source files. It’s useful to tell Copilot what data to pull from each document.

Answer any follow-up questions that Copilot asks, and it will then generate the presentation.

Note: Your marketing department may have created one or more branded company templates for Copilot to work from. If that’s the case at your organization, simply open the appropriate company template as your first step. Then you can upload docs and type a prompt as described above. Copilot will create a presentation using the branded template.

3. Add content from a document to a slide

Manually copying text or other content from a document and pasting it into a new slide is a chore. Instead, you can prompt Copilot to extract information directly from a Word document, Excel spreadsheet, or PDF to create new slides.

In the Copilot pane, attach the document using the same steps described in tip 2, then tell Copilot to create a slide from the document. As always, it helps to provide details such as the new slide’s focus or what data to include:

• Add a slide based on the attached document.
• Use the attached file to add a slide about the project budget that focuses on Q1 projections.
• Summarize only the financial section of the attached document as a slide.

4. Refine your slide text

A presentation should be visual and display only the core message. Conciseness and proper writing tone are essential for your slides, so that they don’t lose the attention of your audience.

You can prompt Copilot to refine text on an individual slide in various ways, such as rewriting it in a more professional tone or making it more concise. Highlight the text inside a text box on the slide. On the toolbar that appears over the highlighted text, click Edit with Copilot.

On the menu that opens, you can select a preset prompt to refine the text, such as Condense or Make professional. Or, at the top of this menu, you can type a prompt to rewrite the highlighted text.

Note that this feature affects all the text inside the text box. To rewrite only a portion of text inside a text box, you must split that portion out into a separate text box.

Alternatively, you can prompt Copilot to analyze your entire presentation and tighten up the wording throughout all of its slides. For example:

• Make these slides more visual and use less text.

5. Find or create an image

If you have Copilot generate a presentation from an existing Word document that contains images, it will incorporate those images into the presentation. If there are no images in the source document, you can ask Copilot to find or create one and add it to a slide.

To add a stock image or an image from your organization’s brand library, tell Copilot what you’re looking for:

• Add a stock photo of young adults in a cafe drinking boba tea.
• Add a photo from our asset library of young adults in a cafe drinking boba tea.

To have Copilot create an image using Microsoft’s Designer image generation tool, describe your desired image. As always, specificity is helpful:

• Create a photorealistic image of a diverse group of 5 or 6 fashionable young adults sitting in a cafe drinking boba tea. They’re smiling or laughing, and some are looking at their phones.

Just as you need to review any text output from Copilot, take a close look at generated images to be sure nothing looks off.

Also note that Copilot image generation isn’t always reliable in PowerPoint. For some time during our testing for this story, Copilot said it couldn’t create an image because “the image generation service is returning a server error on every attempt.” After about a day and a half, the service began working again.

6. Expand your presentation with relevant slides

As you’re building your presentation, you may find that it’s become text heavy. Or perhaps it could use more visually oriented slides to break things up and make its progression flow better. Copilot can generate and insert new slides that are based on the content of the slides already in the presentation.

In the Copilot pane, specify exactly where you want the new slide to go. This helps Copilot to analyze the content of the slides before and after where you want the new slide. Then it can generate a slide to bridge between the two slides. Examples:

• Add a slide after slide 3 about our competitive advantages.
• Add a slide after slide 11 that transitions to slide 12.

7. Summarize a presentation

Maybe you need a quick refresh of your presentation before an important meeting. Or maybe a co-worker has sent you a presentation that’s packed with lots of slides. You can prompt Copilot to generate a summary of the presentation’s overall messaging.

In the Copilot pane, just type “summarize this presentation.” You can also have Copilot flag key slides that contain important information: “show me key slides.”

8. Answer questions about a presentation

As you’re reviewing a presentation, especially one that you didn’t create and are not familiar with, you can get Copilot to pull key data points from its slides.

In the Copilot pane, type specific informational questions. Examples:

• What are the action items in this deck?
• What is the proposed budget mentioned here?

If Copilot can’t find the exact answer to the question you ask, it will provide related information from the presentation.

This method can also help you validate that your presentation includes everything you want it to. If you ask Copilot about the action items in a presentation and it can’t find any, you know you need to add them. (Copilot will likely offer to generate them for you based on the rest of the slides.)

You can even take this tactic a step further and ask Copilot if the presentation is missing any important data, if any slides are weak or confusing, if there are any awkward transitions, if there are key points that should be better emphasized, and so on.

9. Help you navigate a large presentation

In the business world, presentations with dozens of slides are not uncommon, such as for financial reports or project documentation. Trying to find a specific slide or multiple slides can be tough. Copilot can help you navigate such a presentation.

In the Copilot pane, prompt Copilot to find slides based on specific topics. Example:

• Show me the slides about the project timeline.

Copilot will analyze the presentation and reply with a list of links to the relevant slides. Click one of these to jump directly to that slide.

10. Generate speaker notes and/or an FAQ

Here’s a great timesaver when you’re preparing to show your presentation to an audience: Copilot can automatically generate suggested speaker notes for you, based on the content of your slides. Example prompt:

• Write speaker notes for every slide with one talking point per slide.

In a related feature, Copilot can create a frequently asked questions list (FAQ) for you to consult in your speaker notes or to present as a slide:

• Write an FAQ for these slides.

Copilot will ask where you want the questions and answers added — as a new slide at the end, integrated into the speaker notes of relevant slides, or somewhere else that you designate. Make a selection, and Copilot will generate the FAQ based on the content of your presentation.

Related reading:

• 11 cool things Copilot can do in Excel
• 9 ways Copilot can turbocharge OneNote
• PowerPoint for Microsoft 365 cheat sheet
• Copilot Chat: Your hub for document creation and analysis
• How to curb hallucinations in Copilot (and other genAI tools)
• Microsoft Copilot can boost your writing in Word, Outlook, and OneNote — here’s how
• More Microsoft tips and tutorials

Here in this high-tech era of 2026, keeping important info backed up and synced should be effortless and something that just happens on its own, automatically, without any actual thought or ongoing human effort.

In many areas of our digital life, that mercifully does Just Work™ in exactly that way. Fire up an email in most modern mail services, and you can stop at any point and find your in-progress draft in that same app on any other device. The same applies to any file you’re finessing within Google Drive or other cloud storage services or document you’re dawdling over in Docs.

One area where seamless syncing somehow still doesn’t occur, though, is in the domain of downloaded documents on Android. If someone sends you a PDF or a Word file and you save it to your phone, that file exists in an archaic-seeming silo — only locally, on that one gadget. And that, of course, means (a) you can’t access it from any other device, and (b) if you misplace your phone or move into a new one at some point along the way, the file will be left behind in time and entirely unavailable.

Well, take a moment to join me in celebration: Amidst all the Gemini gobbledegook that no one asked for (and that often falls somewhere between “pointless” and “actively counterproductive”), Google’s giving us a major upgrade to Android’s backup capabilities right now. It’s a simple-seeming switch buried in your system settings, and it’s up to you to find and activate it.

Once you do, though, those once-orphaned documents on your Android device’s local storage will be perpetually synced and protected, automatically, without any ongoing thought or effort.

All you’ve gotta do is find and flip that one new switch.

[Don’t let yourself miss an ounce of Android Intelligence. Join my free weekly Android Intelligence newsletter and get one new thing to try in your inbox every Friday!]

The Android backup lowdown

So, for a quick bit of pertinent context on this: Android’s backup systems have actually come a really long way over the years.

‘Twas a time, y’see, when little to nothing about you would sync and carry over automatically from one Android device to another. Years ago — back in the ancient-seeming prehistoric era of the early 2010s — Android enthusiasts in the know would rely on community-created third-party apps for everything from remembering and resyncing downloaded apps to restoring data from within those apps and onward. And reconfiguring your system preferences would be a whole time-consuming song and dance every single time you reset a device or moved into a new one, as little to nothing would automatically carry over.

Most of that stuff is now effortless and automatic. And, thanks to apps like Google Messages, Calendar, Drive, and Docs, many other areas of important data are also synced on their own at the app level — outside of any system mechanisms.

Locally stored files, however, have remained an awkward omission. To this day, anything you download on any Android device exists only on that one device and isn’t synced or backed up anywhere. The only way that happens is — in a blast-from-the-past twist — if you go out of your way to find and set up a third-party app to handle the heavy lifting.

That brings us to today. Right now, as we speak, Google’s in the midst of sending out a quiet under-the-hood update that (brace yourself…) adds in the option to automatically sync and back up any documents on your device as a native part of Android’s backup setup.

See?

The option is on its way to all devices running 2018’s Android 9 release and higher. (If you’re still using a phone with an Android version older than that, you’re now a whopping eight years out of date, and you have much bigger problems.)

Once the added option is present and available for you, you’re literally lookin’ at 10 seconds to find and activate it.

Lemme show ya how.

Android’s document backup addition

I promise: This couldn’t be much simpler.

No matter what kind of Android device is in front of you, just head into your system settings and open the section called “Accounts and backup,” “Back up or copy data,” or something along those same lines. (The exact wording can vary based on who made your device and when it was released or last updated.)

Either tap the line labeled “Google Backup” or look for an option to “Back up data” via Google Drive. You should then either see a series of options for different areas of available backup right then and there — or, depending on your device, you might have to tap a line labeled “Other device data” (or something similar) to find the full list of possibilities.

However you get there, once you’re lookin’ at that list, you’ll see a newly added line for “Documents” if this latest under-the-hood update has reached you.

And from there, all that’s left is to tap it and enable the switch to include that in your automated backups from that moment forward.

If you aren’t seeing the option yet, don’t panic. Google always sends these under-the-hood updates out bit by bit over time, so the change probably just hasn’t reached your device quite yet. As long as you’re running Android 9 or higher, it’ll get there. Set yourself a reminder to check back once a week or so. Odds are, you’ll see it pretty soon.

Notably, all documents synced in this way are always encrypted for security, and they’re kept in your personal (or, depending on the nature of your account, perhaps company-connected) Google Drive storage. That does mean they’ll count against your overall Google storage total, so keep an eye on your Drive storage total to make sure you’re in solid shape and look to the Google One storage hub if you ever want some simple suggestions for freeing up space.

Speaking of other Google services: If you ever want to keep other types of locally stored non-document files from an Android device synced and available elsewhere, you can easily rely on Google Photos for syncing screenshots and other images — after enabling sync in general, be sure to look in the app’s “Collections” areas to find the “On this device” folder and then flip the toggle to “Backup all device folders” (or get more nuanced and open specific individual on-device folders if you want to sync some but not all of those areas) — and you can still turn to those aforementioned third-party apps for broader syncing of anything else imaginable.

But with documents now being handled automatically and natively, that’s one big worry now out of your hair. Just note that the onus will fall on you to find and flip the switch and actively opt in to the feature on each and every Android device you’re using.

Take 10 seconds to do that, though, and you’ll have one less void in your Android data arena. And you don’t need Gemini to tell you that that can only be a good thing.

Get practical Android knowledge in your inbox every Friday with my free Android Intelligence newsletter — one new thing to try each week, straight from me to you.

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.

The European Commission has fined Google a total of €890 million ($1 billion) for its breaches of the Digital Market Act (DMA).

Just over half the fine — €460 million — was because Google illegally gave preference to its own services in Google Search results.

The remainder was because in the Google Play store for Android apps, the company prevented app developers from leading consumers to alternative, often cheaper, purchase channels. Under the DMA, app developers who distribute their apps via Google Play or Apple’s App Store should be able to inform customers of alternative offers.

Now Google must give third-party services featuring in its results the same treatment as its own services, and allow developers of apps in the Play Store to communicate about offers both in and outside the Play Store, or face further fines.

The Commission first raised these issues with Google in March 2025. In April of this year, the Commission laid out plans as to how Google should allow other third-parties to share its searches, suggestions that the tech firm firmly resisted. Earlier this month, the Commission also said  Android should be open to other AI agents and not limited to Google’s own Gemini.

Google is not the only US company to have fallen foul of the DMA. In April 2025, Apple was fined €500 million for breaching the Act and, last month, the Commission fired the first shots at cloud hyperscalers Microsoft and Amazon.

Enterprise Architecture (EA) Tools unterstützen Unternehmen und Organisationen dabei, mit ihren IT-Strategien die Geschäftsziele optimal zu unterstützen. Sie sorgen ebenfalls dafür, dass Unternehmen ihre Roadmaps für die digitale Transformation geordnet vorantreiben können. EA Tools bieten dafür unter anderem Collaboration-, Reporting-, Testing- und Simulationsfunktionen. Mit deren Hilfe lassen sich Modelle implementieren, die Geschäfts- und IT-Prozesse gezielt verbessern.

Um die beste Lösung für Ihr Unternehmen zu finden, sollten Sie zuerst prüfen, ob sich das jeweilige Tool mit Ihrem Technologie-Stack integrieren lässt. Anschließend gilt es abzuwägen, ob die Informationen, Diagramme und Tabellen, die die Software zur Verfügung stellt, für das Unternehmen auch einen echten Nutzwert haben.

Empfehlenswerte Enterprise-Architecture-Tools

Nachfolgend finden Sie einen Überblick über die wichtigsten Enterprise-Architecture-Tools – in alphabetischer Reihenfolge. Sie stellen einen Mix aus Visualisierungs-, Collaboration- und Project-Management-Funktionen bereit und unterstützen eine Vielzahl von Enterprise Architecture Frameworks.

Ardoq

Nachdem zuerst über einfache Formulare Informationen von Usern, Entwicklern und sonstigen Stakeholdern im Unternehmen eingesammelt wurden, lässt sich mithilfe von Ardoq ein digitaler Zwilling der gesamten Organisation erstellen. Der Ansatz setzt also darauf, die Menschen, die in ihren Rollen mit den verschiedensten Systemen arbeiten, realistisch in ihrer Arbeitswelt abzubilden.

Jede Mitarbeiterin und jeder Mitarbeiter im Unternehmen kann später von den Netzwerkvisualisierungen und Datenfluss-Diagrammen profitieren, um seine eigene Rolle optimal zu unterstützen und den Arbeitsplatz immer wieder anzupassen und zu modernisieren. Das Tool lässt sich mit den wichtigsten Cloud-Plattformen integrieren. Es bietet eine API, die individuelle Anpassungen in allen wichtigen Programmiersprachen (Python, C#, Java, etc.) ermöglicht.

Wichtigste Use Cases:

• “Architektonischen Stress” bei Lastspitzen simulieren, falls größere Veränderungen bevorstehen;

• Verstehen, wie verändertes Nutzerverhalten neue Anforderungen generiert;

• Application Portfolio Management, um besser strategisch zu planen.

Atoll Group SAMU

Das EA-Tool SAMU macht die Enterprise Architecture sichtbar, indem es tiefe Verknüpfungen zwischen On-Premises-Systemen, dem Cloud-Layer und Tools für das Business Process Management aufzeigt. Das Tool der Atoll Group bietet vielfältige Integrationsmöglichkeiten, zum Beispiel mit Monitoring-Tools (etwa Tivoli, ServiceNow), Configuration-Management-Datenbanken (zum Beispiel CA, BMC) oder Service-Organisations-Tools (BMC, HPE). Alle Informationen fließen in ein zentrales Datenmodell ein, das um den zusätzlichen Input der Stakeholder weiter angereichert wird.

Wichtigste Use Cases:

• Enterprise-Architektur visualisieren;

• strategische Planungsprozesse und Architektur-Reviews mit Informationen unterfüttern;

• mithilfe einer visuellen Verständnisgrundlage die Kommunikation verbessern.

Avolution Abacus

Dieses Tool erfasst die Breite und den Umfang der Unternehmensarchitektur mit Hilfe eines auf Diagrammen basierenden Dashboards. Die Integration mit gängigen Tools wie SharePoint, Excel, Visio, Google Sheets, Technopedia oder ServiceNow vereinfacht die Nutzung. Abacus wurde inzwischen auch um einen Machine-Learning-Layer ergänzt, der es Anwendern ermöglicht, ein Modell zu trainieren, das ihnen beispielsweise hilft zu erkennen, wer im Unternehmen für welches System verantwortlich ist.

Wichtigste Use Cases:

• die IT für das gesamte Unternehmen “öffnen”, um ein allgemeines Verständnis der Datenflüsse zu erzeugen;

• umfassendes Enterprise Modeling, um eine Roadmap für künftige Entwicklungen zu erstellen;

• Business-Metriken tracken, die mit der Unternehmens-Performance zusammenhängen.

BOC Group ADOIT

ADOIT soll Teams dabei unterstützen, Ressourcen zu verwalten, Bedarfe vorherzusagen und Assets zu tracken. Dazu mappt das Tool jedes System oder Softwarepaket mit einem Objekt. Die Datenflüsse zwischen den Systemen werden in Beziehungen umgewandelt, die von diesen Objekten mithilfe eines anpassbaren Metamodells erfasst werden. Geschäftsprozesse können auf ähnliche Weise über ein gut integriertes Begleitprodukt namens ADONIS modelliert werden. ADOIT ist Web-basiert und lässt sich auch mit Tools wie Atlassian Confluence integrieren, um die Datenerfassung und -entwicklung zu beschleunigen.

Wichtigste Use Cases:

• ein unternehmensweites Modell erstellen, das bei sämtlichen Teammitgliedern ein Verständnis über den Stack schafft – und wie man diesen verbessern kann;

• vollständiger Zugriff auf EA-Daten über eine Mobile-Anwendung;

• bei Fusionen und Übernahmen den Tech-Bereich durch genaues Asset-Mapping orchestrieren.

Bizzdesign Hopex

Nach der Übernahme von Mega International zählt die Hopex-Plattform zum Portfolio von Bizzdesign. Sie soll dabei unterstützen, Unternehmensanwendungen zu modellieren und dabei ein Verständnis der von ihnen unterstützten Geschäfts-Workflows schaffen. Dabei liegt ein Schwerpunkt auf den Bereichen Data Governance und Risikomanagement. Hopex basiert auf Microsoft Azure und stützt sich auf eine Reihe offener Standards wie GraphQL und REST Queries, um Informationen aus Komponentensystemen zu sammeln. Das Reporting ist mit den Office-Tools von Microsoft sowie mit grafischen Lösungen wie Tableau und Qlik integriert.

Wichtigste Use Cases:

• datengestützte Erkenntnisse herbeiführen, um Cloud- und Anwendungsbereitstellung zu steuern;

• akkurate Nutzungsmodelle erstellen, um Architekturanforderungen zu verstehen;

• eine Bedarfsschätzung mit Umfragen und anderen Tools vornehmen, um für die Zukunft zu planen.

Bizzdesign Horizzon

Das Tool dient dazu, Business Workflows und den zugrundeliegenden Tech-Stack zu modellieren. Dazu bietet Horizzon ein Graph-basiertes Modell, das Daten von sämtlichen Stakeholdern einsammelt und diese an eine Analytics-Engine weitergibt. Im Ergebnis entstehen Diagramme, die den aktuellen Systemzustand widerspiegeln. Wichtige Schwerpunkte dieses Tools sind Change Management und Zukunftsplanung: Horizzon ist nicht zuletzt dafür konzipiert worden, die Risiken eines Redesigns zu minimieren. Das Toolset unterstützt die wichtigsten Frameworks ArchiMate, TOGAF und BPMN. Neben Mega hat Bizzdesign im Januar 2025 auch den EA-Geschäftsbereich der Software AG – Alfabet – übernommen.

Wichtigste Use Cases:

• Vorhersage zukünftiger Anforderungen durch Predictive Modeling;

• Orchestrieren von Workflows auf der Basis der technischen und der Business-Architektur;

• Antizipieren von Risiken sowie Security- und Governance-Problemen durch die Modellierung von Datensicherheitsanforderungen.

Capstera

Das Tool von Capstera fokussiert darauf, die Business Architecture selbst abzubilden. Value und Process Maps helfen dabei, die Rollen der verschiedenen Unternehmensbereiche zu definieren und nachzuverfolgen. Dabei können im laufenden Prozess Verknüpfungen mit den zugrundeliegenden Softwarprodukten und Tools hinzugefügt werden.

Wichtigste Use Cases:

• Reports erstellen, die sich erst einmal mit der Business-Architektur selbst beschäftigen;

• Beziehungen zwischen Menschen, Abteilungen und Rollen analysieren;

• die langfristige strategische Planung vorantreiben.

Clausmark Bee360

Teammitglieder, die Clausmarks Flaggschiffprodukt Bee360 (früher Bee4IT) verwenden, wollen eine einfache “Single Source of Truth” über die Workflows im Unternehmen. Ziel ist es, verschiedenen betrieblichen Rollen intelligentere Entscheidungen zu ermöglichen. Das Modul Bee360 FM (Finanzmanagement) bietet etwa die Möglichkeit, Kosten nachzuvollziehen und zuzuordnen. Die Anwender können verschiedene solcher Module miteinander verknüpfen, um EAM, Finanzmanagement, Portfolio Management und Agile Planning nahtlos zu integrieren – bei maximaler Transparenz.

Wichtigste Use Cases:

• C-Suite-Ebene befähigen, Projekte zu managen und Assets zuzuweisen;

• präzise digitale Zwillinge entwickeln, um ein Verständnis über Datenflüsse zu schaffen und künftige Erweiterungen zu planen;

• integrierte Wissensdatenbank aufbauen, um alle digitalen Workflows zu tracken.

EAS

Das Essential-Paket von EAS (Enterprise Architecture Solutions) nahm als Open-Source-Projekt seinen Anfang und hat sich inzwischen zu einer kommerziell verfügbaren Cloud-Lösung weiterentwickelt. Das Tool erstellt ein Metamodell, das die Interaktionen zwischen Systemen und Geschäftsprozessen beschreibt. Ebenfalls enthalten sind Pakete, um gängige Business Workflows wie Datenmanagement oder DSGVO-Compliance zu tracken.

Wichtigste Use Cases:

• den technischen Reifegrad der eigenen Architektur evaluieren;

• Sicherheit und Governance durch besseres Asset Tracking optimieren;

• wachsende Systemkomplexität kontrollieren und managen.

OrbusInfinity

Orbus Software hat Anfang 2025 die Akquisition seines Konkurrenten Capsifi abgeschlossen. Der Anbieter stellt mit OrbusInfinity eine Enterprise-Transformation-Plattform auf KI-Basis zur Verfügung, die schnellere, bessere Entscheidungen, Kosteinesparungen und Risikominimierung verspricht. Architecture-Teams sollen mit Hifle von OrbusInfinity mit einer Vielzahl von Stakeholdern interagieren können, um eine “digitale Blaupause” ihres Unternehmens zu generieren, die eine einheitliche Sicht auf das aktuelle und künftige Geschäft realisieren soll. Diverse Drittanbieter-Tools lassen sich außerdem mit der Plattform integrieren, darunter etwa von Microsoft, Flexera, ManageEngine oder ServiceNow.

Wichtigste Use Cases:

• Stakeholder-Management;

• Enterprise-Landschaften visualisieren;

• Entscheidungsfindung und Datenanalyse automatisieren.

Planview Enterprise One

Planview bietet eine ganze Reihe von Produkten, mit denen Unternehmen Teamwork, Prozesse und die Enterprise Architecture nachvollziehen können. Die Enterprise Tools sind in drei Kategorien unterteilt: strategisches Portfolio-Management, Produktportfolio-Management und Projektportfolio-Management. Im Zusammenspiel entstehen hardware- und Software-übergreifende Layer, die rollenbasierte Perspektiven für Führungskräfte und Teammitglieder eröffnen. Das Toolset integriert mit gängigen Ticket-Tracking-Systemen wie Jira, um Workflow-Analysen und Reports zu erstellen. Inzwischen hat Planview nach einer Übernahme neue Tools in sein Portfolio integriert, die früher unter den Namen Daptiv, Barometer und Projectplace bekannt waren.

Wichtigste Use Cases:

• eine langfristige, strategische Vision für die Architekturentwicklung aufbauen;

• Entwicklungsarbeit auf Projektebene tracken und in eine beliebige Strategie integrieren;

• mit Fokus auf die Customer Experience und die Produktstruktur den Change vorantreiben.

QualiWare Enterprise Architecture

Das Enterprise Architecture Tool von QualiWare ist Teil einer größeren Sammlung von Modellierungswerkzeugen, die darauf abzielt, sämtliche Geschäftsprozesse zu erfassen. Beispielsweise ist es möglich, einen digitalen Zwillinge zu bauen, mit dem sich Customer Journeys nachvollziehen lassen. Qualiware hat diverse KI-Algorithmen integriert, um Dokumentation und Process Discovery zu optimieren.

Wichtigste Use Cases:

• ein kollaboratives Ökosystem für Business Manager aufbauen, das ein Verständnis von der Enterprise Architecture vermittelt;

• architektonische Designelemente erfassen, um ein Wissens-Ökosystem rund um den Stack aufzubauen;

• eine breite Beteiligung in Sachen Dokumentationserstellung und -überprüfung fördern.

Quest Erwin Evolve

Das Erwin Evolve Tool von Quest hat sich von einem Datenmodellierungs-Tool zu einem System für Enterprise-Architecture- und Geschäftsprozess-Modellierung weiterentwickelt. Um die Komplexität moderner, ineinandergreifender Softwaresysteme und der von ihnen gemanagten Geschäftsprozesse zu durchdringen, können Anwender auf benutzerdefinierte Datenstrukturen zurückgreifen. Das Web-Tool erstellt Modelle, rollenbasierte Diagramme und andere Visualisierungen, die in allgemein zugängliche Dashboards einfließen. Zum Paket gehört ein KI-basiertes Modellierungs-Tool, das Whiteboard-Skizzen integrieren kann.

Wichtigste Use Cases:

• einen digitalen Zwilling für die strategische Modellierung der Enterprise Data Architecture erstellen;

• Customer Journeys verstehen;

• Services und Systeme mit Application Portfolio Management tracken.

SAP LeanIX Enterprise Architecture Suite

Die Tool-Sammlung von LeanIX umfasst unter anderem Enterprise Architecture Management und andere Bereiche, die für Aufgaben wie SaaS– und Value-Stream-Management wichtig sind – etwa um Cloud-Deployments und darauf laufende Services zu tracken. Die Daten die dabei über die IT-Infrastruktur gesammelt werden, fließen in ein grafisches Dashboard ein. Das Tool ist eng mit wichtigen Cloud-Workflow-Tools wie Confluence, Jira, Signavio und Lucidchart integriert. Das ist für Teams von Vorteil, die diese Tools bereits nutzen, um ihre Entwicklungsstrategien zu planen und umzusetzen. Seit November 2023 ist LeanIX Teil von SAP.

Wichtigste Use Cases:

• Anwendungsmodernisierung und Cloud-Migration managen;

• Obsoleszenz von Software-Services evaluieren;

• Kosten kontrollieren und managen.

ServiceNow

Die Tool-Sammlung von ServiceNow lässt sich auf verschiedene Architekturtypen herunterbrechen, darunter Assets, DevOps, Security und Service. Die Tools katalogisieren die unterschiedlichen Hardware- und Softwareplattformen, um Workflows und Datenflüsse im Unternehmen abzubilden und zu verstehen. Ausführliche Reportings und detaillierte Dashboards ermöglichen Analysen, auf deren Grundlage Risiken minimiert und die Ausfallsicherheit der Systeme erhöht werden können.

Wichtigste Use Cases:

• Tracken von Assets, Services und Systemen, die das Unternehmen ausmachen;

• Governance-Themen, Risikobegrenzung, IT-Management und Security Operations werden in einer Plattform zusammengeführt;

• durch die Integration von CRM-Tools lassen sich auch kundenorientierte Services managen.

Sparx Systems

Um Teams und Projekte verschiedener Größe und Komplexität zu unterstützen, hat Sparx vier Versionen seines EA-Tools entwickelt. Allen gemeinsam ist eine UML-basierte Modellierung, mit der sich die Komponenten komplexer Systeme tracken lassen. Eine Simulations-Engine ermöglicht “War Gaming” und vermittelt ein Verständnis darüber, wie sich Fehler ausbreiten und kaskadieren können. Sparx stellt zudem eine Vielzahl von vorgefertigten Design Patterns bereit, um Teams bei der Modellierung zu unterstützen.

Wichtigste Use Cases:

• Nachfrage- und Lastveränderungen zur Prognose künftiger Anforderungen simulieren;

• (potenzielle) Probleme durch eine Verbindungs-Matrix im Auge behalten;

• Dokumentation erstellen.

Unicom System Architect

System Architect ist eines der Angebote aus Unicoms Team Blue. Es handelt sich um ein Tool, das ein Metamodell verwendet, um automatisiert so viele Daten wie möglich über die laufenden Systeme zu sammeln – manchmal auch durch ein Reverse Engineering von Datenflüssen. Dieses systemweite Datenmodell kann über benutzerdefinierte Dashboards Teammitgliedern aller Rollen zugänglich gemacht werden. Ein weiteres erwähnenswertes Feature: Die Ressourcenzuweisung lässt sich mit Hilfe von Simulationen optimieren.

Wichtigste Use Cases:

• Was-wäre-wenn-Fragen zum Architekturmodell stellen;

• ein Metamodell von Daten und Systemen aufbauen;

• Migrations- und Transformationspläne erstellen.

ValueBlue BlueDolphin

Dieses EA-Tool sammelt Daten auf dreierlei Art:

1. Es importiert Basisdaten auf der Grundlage standardgesteuerter Automatisierung (ITSM, SAM).

2. Es arbeitet mit den Dateiformaten von Architekten und Systemdesignern – etwa ArchiMate oder BPMN.

3. Es gibt Fragebögen an andere Stakeholder heraus, die auf anpassbaren Vorlagen basieren.

Die aufbereiteten Informationen werden in einer visuellen Umgebung bereitgestellt, die Auskunft über die historische Entwicklung von Systemen gibt.

Wichtigste Use Cases:

• systemweite Daten von internen und externen Stakeholdern automatisiert und formularbasiert erfassen;

• zukunftsorientierte Reportings erzeugen, um den Change zu überwachen und voranzutreiben;

• Kooperation und Zusammenarbeit durch offenes Data Reporting fördern.

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Dieser Artikel ist im Original bei unserer Schwesterpublikation CIO.com erschienen.

Every CIO I speak with today is wrestling with some version of the same question: How do we move faster with AI and deliver on our commitments?

It’s an understandable concern. Boards and CEOs are asking about AI. Business leaders are experimenting with use cases. Employees are discovering tools daily, while technology vendors promise unprecedented gains in productivity, innovation, and competitive advantage.

After hundreds of conversations with technology executives over the past year, I’ve become convinced that speed isn’t the real issue. The organizations pulling away from the pack aren’t necessarily adopting AI faster than everyone else. They’re executing more effectively — a subtle distinction that represents one of the defining leadership challenges of the AI era.

Technology has never been the hardest part of transformation. People, priorities, culture, and operating models are the biggest challenges. The ability to translate bold boardroom aspirations into thousands of thoughtful decisions made every day by architects, engineers, product managers, analysts, and business leaders is where competitive advantage is created. AI may be accelerating the pace of change, but it hasn’t changed that fundamental truth.

I’ve met plenty of executives who are exceptional in the boardroom. They know how to frame a vision, influence a board, and build confidence among investors and business leaders. I’ve also met remarkable technologists who instinctively understand the architectural decisions, engineering tradeoffs, and implementation details that determine how great ideas become reality. Modern CIOs, however, must move comfortably between both worlds. Afshean Talasaz is one who stands out among this rare breed.

Long before becoming CIO of Colonial Pipeline, Talasaz built his career from the ground up as a business professional, data scientist, and technologist. He has designed enterprise platforms, built AI capabilities, led technology organizations, and partnered closely with executive leadership teams on business transformation. Today, as an executive in residence with our Practitioners for Practitioners (P4P) community, he helps CIOs and business leaders navigate one of the most significant technology shifts of our generation.

While Talasaz brings deep knowledge of data and AI to the table, his greatest strength is his ability to create strategy and connect it with execution. He can spend the morning discussing enterprise reinvention with the board and the afternoon debating architectural principles with the teams responsible for bringing that vision to life.

That versatility gives Talasaz a unique lens on how CIOs can deliver value with AI.

Software companies have a term for engineers who understand every layer of the technology stack: full-stack developers. Listen to Talasaz and it becomes evident that the AI era requires something similar from technology leaders: a full-stack CIO.

The full-stack CIO: Leading with clarity

A full-stack CIO understands how every layer of the enterprise influences the next. They recognize that every strategic priority becomes a portfolio investment, every investment shapes an operating model, every operating model influences architecture, every architecture choice informs product decisions, every product decision shapes engineering priorities.

The best CIOs understand both ends of that journey. The extraordinary ones understand everything in between.

And those who execute best lead with clarity, Talasaz says.

“Everyone, from executives to middle managers to the people writing code, should be able to explain what we’re trying to achieve,” he emphasizes. “Clarity isn’t that we’ve handed out the PowerPoint. It’s that people genuinely understand where we’re going and can articulate it in their own language.”

One of the unintended consequences of the AI boom is that organizations are beginning to confuse activity with alignment. They have AI councils, AI governance committees, AI innovation labs, AI centers of excellence, AI pilots, and AI roadmaps. Yet if you stop ten people in the hallway and ask a deceptively simple question, What business problem are we actually trying to solve? you’ll often hear ten different answers.

As a result, architects optimize for one objective while product teams optimize for another. Business units pursue opportunities that seem perfectly reasonable from their perspective. Engineers make thoughtful technical decisions based on the information available to them. Individually, none of those decisions are necessarily wrong. Collectively, however, they create organizational drift. AI doesn’t create that problem. It simply accelerates the consequences.

And while AI can be a force multiplier for the positive when every decision is guided by a shared understanding of where the organization is headed, it can also be a force multiplier for the negative, resulting in an organization simply moving faster in different directions.

“When we have the fundamentals right, the tech infrastructure, the operating models, the nuances of how our business actually runs, we get the impacts of AI in a positive way,” Talasaz says. “When we don’t have those in place, AI can amplify the gaps or mute the benefits.”

At a time when so much of the conversation surrounding AI is focused on algorithms, agents, and automation, it’s an important reminder that organizations don’t execute strategy; people do.

Reducing organizational friction

Most executives are familiar with the concept of VUCA that characterizes today’s business environment. But Talasaz stresses the importance of turning this concern inward: “If the world outside our organizations is becoming more volatile, uncertain, complex, and ambiguous, what are we, as leaders, doing to the inside of our organizations?”

Leaders spend enormous amounts of time helping their organizations respond to external disruption but comparatively little time asking whether they are inadvertently re-creating those same conditions internally in response to those external needs. Are we reducing uncertainty or introducing more of it? Are we simplifying work or adding unnecessary complexity? Are we helping people focus on what matters most, or asking them to navigate competing priorities and shifting expectations?

Talasaz refers to this phenomenon as double VUCA — something I’ve witnessed repeatedly while working with CIOs over the past decade. Organizations often assume they’re struggling because of technology limitations when the real constraint is organizational friction. Teams wait for decisions. Priorities shift faster than roadmaps. Governance grows heavier. New committees are formed to solve problems created by existing committees. Everyone is working harder, yet the organization somehow feels slower.

AI amplifies both outcomes. Organizations with clarity become dramatically more effective because AI accelerates good decisions. Organizations without clarity simply accelerate confusion.

Operating model as strategy enabler

AI governance is one way to achieve greater clarity, but as Talasaz says, governance shouldn’t primarily exist inside policy manuals that few people read.

Instead, AI governance should be embedded in the daily rhythms of the organization, shaping how teams collaborate, how decisions are made, how products move from ideas into production, and how innovation happens safely without requiring constant escalation. In other words, it’s all about your operating model.

“If you had to pick one thing that isn’t technology, your operating model is the most important element for executing data and AI at scale,” he says.

The best operating models create enough clarity that capable people can make thousands of decisions independently and confidently, without having to wait for permission. By embedding good governance into the way it works, the organization becomes faster.

This advice echoes something I’ve heard repeatedly from some of the world’s most respected CIOs: High-performing organizations aren’t built on tighter control; they’re built on greater trust, supported by clear principles, shared expectations, and operating models that enable responsible decision-making at every level of the enterprise.

Talasaz points out that technology leaders tend to speak in terms of transformation. He suggests CIOs consider a different word: reinvention.

As he explains, transformation implies replacing what exists today with something new. Reinvention starts with a more clear-eyed and practical premise: Some things absolutely must change; others represent years, sometimes decades, of accumulated expertise, customer trust, operational discipline, and competitive advantage.

Reinvention is about building on those strengths while also creating new ways to deliver value. The leaders making the greatest progress in their AI journeys seem to recognize that it’s less about abandoning the past than thoughtfully preparing the organization for the future.

Closing the gap between strategy and execution

Full-stack CIOs must be able to map out the various layers of execution and planning that need to be done at every level of the organization to be successful. To help with this, Talasaz has developed a data and AI framework that draws on his own experiences “from the keyboard to the boardroom.”

As Talasaz sees it, too many organizations have been doing good work in isolation. “They’re doing a lot of the right things,” he says. “They’re just not connected.”

Boards may be discussing growth while business leaders redesign customer experiences. Product teams may be prioritizing new capabilities while architects modernize platforms. Data teams may be improving quality while engineers focus on delivery. Every group makes meaningful progress within its own domain, yet somewhere between strategy and execution, the connective tissue begins to disappear. Talasaz’s framework brings those connecting points to the forefront.

Crucially, the framework doesn’t begin with technology or AI or even with data. It begins with the experiences the organization hopes to create for its customers, employees, or partners. Many AI initiatives start with the question, “What can this technology do?” And indeed, we need to be inspired by the possibilities and challenged to think differently by what the technology can do. But, Talasaz emphasizes, we also need to ask what experiences we need to deliver for our business and how the technology can make that a reality.

The framework challenges CIOs to answer that question first. Only after the experiences are clearly defined does the conversation move to the capabilities required to deliver it, the business activities that support those capabilities, the AI and data products that enable them, and finally the data foundation that makes everything possible.

This shift in perspective ensures that, rather than allowing technology investments to search for business value, the business experience defines the technology required to deliver it. For CIOs, that’s more than a planning exercise. It’s a fundamentally different way of leading.

Over the coming months, the P4P community will be convening a series of small CxO roundtables to explore these issues and work more deeply with Afshean Talasaz’s 6×6 Data and AI Framework. CIOs and other enterprise leaders interested in participating are welcome to reach out to me directly.

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.”

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.

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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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:

Skills	Salary Boost
ScrumMaster	44%
Microsoft Azure	30%
Supply Chain	27%
Oracle eBusiness Suite	25%
Master Data Management (SAP MDM)	24%
SAP Sales and Distribution (SAP SD)	24%
Product Support	18%
Microsoft Dynamics GP	18%
SAP Quality Management (SAP QM)	18%
Workday Software	15%

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.

Predicting an outage is tricky business, but CIOs might want to circle Oct. 11, 2026, through Jan. 11, 2027, for likely trouble of a potentially widespread and puzzling nature.

That’s because a relatively trivial update to DNSSEC on Oct. 11, one that will take full effect by Jan. 11, is likely to deliver a series of seemingly unrelated system outages. This will come from oceans of dependencies from third-party, shadow, agentic, gen AI, SaaS, homegrown, and legacy apps — among many other quiet executable hiding spots, including virtual environments and containers.

Sai Joshitha Kathari, senior site reliability engineer at payment card giant Visa, says most enterprises have far more DNS-related exposure than they realize because of these many dependencies.

“This has the potential to create real downstream destruction when unresolved failures sit underneath important business functions,” Kathari says. 

The danger is that so many of these issues are either unknown to IT or handled by a third-party vendor and no one in IT has had reason to ask those vendors about DNS updates. 

“The risky areas are usually not the obvious managed DNS services. They are the older internal applications, hardcoded resolvers, containerized workloads, sidecar configurations, custom scripts, partner integrations, VM images, stale base images, and service-to-service dependencies that nobody has touched in a long time,” Kathari explains. “These systems can keep working quietly for years, then fail during a DNS or certificate-related change because they bypassed the normal platform standards.”

Independent technology analyst Carmi Levy says that CIOs need to take this event very seriously. 

“The two-pronged deadline — October 11, 2026, when the new Key Signing Key (KSK) begins signing the root zone, and January 11, 2027, when the old key is retired — should be marked in red on everyone’s calendar, just as December 31, 1999, once was,” Levy says. “Failure to comply could result in websites, critical business applications, and related resources dropping off the face of the Earth once the transition is complete.”

Levy adds: “Custom-built code that lives outside conventional support mechanisms may or may not function when the DNS changes go into effect.”

The DNSSEC update itself is straightforward, but it is also the first significant DNSSEC change — specifically a change in the trust anchor — since 2018. 

The rollout statement noted that “the trust anchor is formally known as the Domain Name System Security Extensions (DNSSEC) root zone Key Signing Key (KSK). The KSK is the cryptographic key at the core of the DNSSEC trust anchor and is used to verify that DNS responses are legitimate and have not been modified in transit.”

Expect nearly every enterprise to be impacted

Kim Davies, vice president of IANA Services and president of public technical identifiers at ICANN, says the extent of the impact on enterprises is unknowable, given the nature of shadow IT and other edge cases. 

But based on the massive number of dependencies both known and unknown in the typical global enterprise, Davies guesses that just about every enterprise will be impacted, to varying degrees. 

“In highly complex organizations, it is very likely there will be some impact in the corners, in the margins, of the organization,” Davies tells CIO. “DNS is such a core technology that underpins everything.”

As the updates propagate, hiccups will materialize, Davies notes. “When the system cannot validate the [DNS] information, it will treat it as suspect and DNS lookups will fail.”

Visa’s Kathari says, “Enterprises should expect some secondary DNS-related glitches when major DNSSEC-related changes happen, not necessarily because the core infrastructure teams will ignore the update, but because large environments have many hidden dependency paths.”

Making this problem far worse, Kathari notes, is that the glitches will likely initially look like anything other thana DNS glitch. That will force IT staff to waste a vast number of hours chasing causes that ultimately prove to be unrelated to the incidents. 

“The impact for CIOs is that DNS failures rarely announce themselves as DNS failures. They look like application timeouts, broken logins, failed API calls, queue lag, payment failures, partner connectivity issues, or random regional instability,” Kathari explains. “That makes troubleshooting slower because teams may spend hours looking at the application, database, network, or cloud provider before realizing name resolution is part of the failure path.”

Sanchit Vir Gogia, chief analyst at Greyhound Research, agrees that IT will likely spin its wheels chasing the wrong ghosts.

“A validation failure rarely stays in its lane. It surfaces as an application error, an API timeout, or a reachability problem, which turns a resolver fault into a coordination failure,” Gogia says. “The application team blames the network, the network team blames the cloud, and the user simply watches work stop.”

“Images and templates are the frontier most teams miss,” Gogia adds. “A resolver fixed in summer can be broken again in October the instant a stale golden image is redeployed, because automation no longer lets configuration drift slowly. It restores yesterday’s assumptions at machine speed.”

It is widely expected that enterprises will not have any problems executing the change or, more likely, relying on their hyperscalers to properly handle the change. That is the concern. 

“CIOs are being distracted so much with AI and this is such a deep in the weeds infrastructure issue that this can and willcatch people off-guard,” Justin Greis, CEO of consulting firm Acceligence, tells CIO. “I think we’ll see a meaningful number of enterprise disruptions associated with the DNSSEC trust anchor rollover. Not because the update itself is especially difficult, but because it will expose weaknesses that already exist inside many organizations.”

Most enterprise IT operations have had no reason to compile a comprehensive list of all DNS dependencies, but many will be instantly discovered in January. 

Potentially widespread fallout

A major retailer, for example, might suddenly be unable to connect with FedEx to arrange for deliveries or a hospital may find that test results are no longer being shared with patient portals. It might manifest as an assembly line that halts because an IIoT component can no longer share files with its vendor system or a truck fleet that stops being tracked. 

“There will almost certainly be systems that fall through the cracks. Some will be legacy applications that rely on outdated DNS configurations that have not been updated in years,” Greis says. “Others will be business-unit-developed tools, contractor-built solutions, embedded systems, manufacturing and industrial systems, or highly customized workloads that operate outside normal IT oversight. These are the types of systems that often surface during infrastructure events like this.”

Greis adds that many enterprises will discover in January problems created by their own automation.

“Over time, enterprises build layers of processes, templates, and deployment mechanisms that are reused across teams and environments,” Greis notes. “Even after DNS infrastructure is updated correctly, older settings can inadvertently be reintroduced through routine updates and system changes, creating intermittent and difficult-to-diagnose failures.”

The good news from this situation is that enterprises are not going to likely lose all DNS access if any of these glitches occur. But that may be of no comfort because even if the disruptions are only with small edge cases, that can still cause massive operational disruptions.

Cricket Liu, EVP and chief evangelist at Infoblox, gives the example of a DNS server that responds to factory-floor system queries.

“Or let’s say this disrupts [an enterprise’s key] SaaS application. All name resolution may stop and it will show a server failure. It will not deliver a response whenever I look anything up. That’s not subtle at all,” Liu says. “It’s highly likely that companies are going to see some effects.”

Back in 2017, the switchover was relatively uneventful, giving some CIOs hope that January 2027 will also be a non-event. But given the technology advancements in the last 10 years and the resulting tidal wave of new enterprise tech dependencies, few are realistically expecting no problems this go around. 

Impossible to predict what will happen

One of the top network experts on DNS effects in enterprises is Geoff Huston, chief scientist at the Asia Pacific Network Information Centre (APNIC), the regional Internet Registry administering IP addresses for the Asia Pacific region.

Huston says it is difficult to project what will happen in January until it happens.

“Just like the last time, we are flying blind with this key roll. Because nothing really terrible happened last time, there is some confidence that nothing terrible will happen this time, but we just can’t tell in advance as there are no good measurement approaches that allow us to peek inside the trust state of recursive resolvers,” he says.

As for potential edge-case glitches, Huston says it is possible, but if third-party vendors do not properly handle the update, there will be other issues as well, as the KSK cryptographic key used within DNSSEC signs and validates the keys that protect DNS records. 

“If it is not standards-compliant, then you have more problems than just the KSK roll,” Huston says, “as it raises the obvious question of ‘What else is not correctly implemented in the DNS resolver that I’m running?’”

As a silver lining, Acceligence’s Greis says any hiccups that result from the DNS KSK update may be a gift in disguise for CIOs. 

“The irony is that some of the most business-critical components in the technology stack are often the least visible because they work in the background,” Greis says. January “may reveal how much modern business resilience depends on infrastructure that many organizations rarely examine until something breaks. For CIOs, that’s the real lesson. This is not fundamentally a story about a DNS update. It is a story about operational visibility, resilience, and governance. Organizations that treat the rollover as a routine infrastructure task will likely complete the update and move on. Organizations that use it as an opportunity to understand and strengthen the foundations of their technology environment may gain far more value than simply avoiding an outage.”

Atos has launched a new sovereign cloud platform aimed squarely at European public sector bodies, healthcare providers and defense organizations. It’s the latest effort by European companies in their fight back against US dominance.

Atos Sovereign Cloud offers a range of controls for data management, providing customers with resilience and full control over their data, complying with existing European legislation on data residency.

“Digital sovereignty has become a global operational priority for organizations that need to manage dependencies, jurisdictional exposure and disruption risks across complex digital environments. Atos Sovereign Cloud gives customers a practical way to apply sovereign controls to their most critical workloads, while preserving flexibility, resilience and the ability to innovate securely,” said Michael Kollar, Atos Group digital sovereignty leader.

There has been a concerted effort by European organizations to meet US competition head-on. Earlier this month, four companies signed up to the certification program introduced by the European cloud body, CISPE,

This is the latest effort by Atos to get the company back on track. In April, it sold its supercomputer company, Bull to the French government, after a previous attempt in 2024 to sell off its computer services division and after a refinancing deal in the same year.

The company implemented a further round of refinancing this year and in its half-yearly report claimed that this was an “important milestone” in securing the company’s future. However, in its first-quarter results revenue showed an organic decline of 11 percent, so any projected growth may be some time in the future. Whether its Sovereign Cloud offering is the harbinger of the revival remains to be seen.

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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Atos has launched a new sovereign cloud platform aimed squarely at European public sector bodies, healthcare providers and defense organizations. It’s the latest effort by European companies in their fight back against US dominance.

Atos Sovereign Cloud offers a range of controls for data management, providing customers with resilience and full control over their data, complying with existing European legislation on data residency.

“Digital sovereignty has become a global operational priority for organizations that need to manage dependencies, jurisdictional exposure and disruption risks across complex digital environments. Atos Sovereign Cloud gives customers a practical way to apply sovereign controls to their most critical workloads, while preserving flexibility, resilience and the ability to innovate securely,” said Michael Kollar, Atos Group digital sovereignty leader.

There has been a concerted effort by European organizations to meet US competition head-on. Earlier this month, four companies signed up to the certification program introduced by the European cloud body, CISPE,

This is the latest effort by Atos to get the company back on track. In April, it sold its supercomputer company, Bull to the French government, after a previous attempt in 2024 to sell off its computer services division and after a refinancing deal in the same year.

The company implemented a further round of refinancing this year and in its half-yearly report claimed that this was an “important milestone” in securing the company’s future. However, in its first-quarter results revenue showed an organic decline of 11 percent, so any projected growth may be some time in the future. Whether its Sovereign Cloud offering is the harbinger of the revival remains to be seen.

This article first appeared on CIO.

Atos has launched a new sovereign cloud platform aimed squarely at European public sector bodies, healthcare providers and defense organizations. It’s the latest effort by European companies in their fight back against US dominance.

Atos Sovereign Cloud offers a range of controls for data management, providing customers with resilience and full control over their data, complying with existing European legislation on data residency.

“Digital sovereignty has become a global operational priority for organizations that need to manage dependencies, jurisdictional exposure and disruption risks across complex digital environments. Atos Sovereign Cloud gives customers a practical way to apply sovereign controls to their most critical workloads, while preserving flexibility, resilience and the ability to innovate securely,” said Michael Kollar, Atos Group digital sovereignty leader.

There has been a concerted effort by European organizations to meet US competition head-on. Earlier this month, four companies signed up to the certification program introduced by the European cloud body, CISPE,

This is the latest effort by Atos to get the company back on track. In April, it sold its supercomputer company, Bull to the French government, after a previous attempt in 2024 to sell off its computer services division and after a refinancing deal in the same year.

The company implemented a further round of refinancing this year and in its half-yearly report claimed that this was an “important milestone” in securing the company’s future. However, in its first-quarter results revenue showed an organic decline of 11 percent, so any projected growth may be some time in the future. Whether its Sovereign Cloud offering is the harbinger of the revival remains to be seen.

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.

This article is published as part of the Foundry Expert Contributor Network.
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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:

Skills	Salary Boost
ScrumMaster	44%
Microsoft Azure	30%
Supply Chain	27%
Oracle eBusiness Suite	25%
Master Data Management (SAP MDM)	24%
SAP Sales and Distribution (SAP SD)	24%
Product Support	18%
Microsoft Dynamics GP	18%
SAP Quality Management (SAP QM)	18%
Workday Software	15%

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.

Predicting an outage is tricky business, but CIOs might want to circle Oct. 11, 2026, through Jan. 11, 2027, for likely trouble of a potentially widespread and puzzling nature.

That’s because a relatively trivial update to DNSSEC on Oct. 11, one that will take full effect by Jan. 11, is likely to deliver a series of seemingly unrelated system outages. This will come from oceans of dependencies from third-party, shadow, agentic, gen AI, SaaS, homegrown, and legacy apps — among many other quiet executable hiding spots, including virtual environments and containers.

Sai Joshitha Kathari, senior site reliability engineer at payment card giant Visa, says most enterprises have far more DNS-related exposure than they realize because of these many dependencies.

“This has the potential to create real downstream destruction when unresolved failures sit underneath important business functions,” Kathari says. 

The danger is that so many of these issues are either unknown to IT or handled by a third-party vendor and no one in IT has had reason to ask those vendors about DNS updates. 

“The risky areas are usually not the obvious managed DNS services. They are the older internal applications, hardcoded resolvers, containerized workloads, sidecar configurations, custom scripts, partner integrations, VM images, stale base images, and service-to-service dependencies that nobody has touched in a long time,” Kathari explains. “These systems can keep working quietly for years, then fail during a DNS or certificate-related change because they bypassed the normal platform standards.”

Independent technology analyst Carmi Levy says that CIOs need to take this event very seriously. 

“The two-pronged deadline — October 11, 2026, when the new Key Signing Key (KSK) begins signing the root zone, and January 11, 2027, when the old key is retired — should be marked in red on everyone’s calendar, just as December 31, 1999, once was,” Levy says. “Failure to comply could result in websites, critical business applications, and related resources dropping off the face of the Earth once the transition is complete.”

Levy adds: “Custom-built code that lives outside conventional support mechanisms may or may not function when the DNS changes go into effect.”

The DNSSEC update itself is straightforward, but it is also the first significant DNSSEC change — specifically a change in the trust anchor — since 2018. 

The rollout statement noted that “the trust anchor is formally known as the Domain Name System Security Extensions (DNSSEC) root zone Key Signing Key (KSK). The KSK is the cryptographic key at the core of the DNSSEC trust anchor and is used to verify that DNS responses are legitimate and have not been modified in transit.”

Expect nearly every enterprise to be impacted

Kim Davies, vice president of IANA Services and president of public technical identifiers at ICANN, says the extent of the impact on enterprises is unknowable, given the nature of shadow IT and other edge cases. 

But based on the massive number of dependencies both known and unknown in the typical global enterprise, Davies guesses that just about every enterprise will be impacted, to varying degrees. 

“In highly complex organizations, it is very likely there will be some impact in the corners, in the margins, of the organization,” Davies tells CIO. “DNS is such a core technology that underpins everything.”

As the updates propagate, hiccups will materialize, Davies notes. “When the system cannot validate the [DNS] information, it will treat it as suspect and DNS lookups will fail.”

Visa’s Kathari says, “Enterprises should expect some secondary DNS-related glitches when major DNSSEC-related changes happen, not necessarily because the core infrastructure teams will ignore the update, but because large environments have many hidden dependency paths.”

Making this problem far worse, Kathari notes, is that the glitches will likely initially look like anything other thana DNS glitch. That will force IT staff to waste a vast number of hours chasing causes that ultimately prove to be unrelated to the incidents. 

“The impact for CIOs is that DNS failures rarely announce themselves as DNS failures. They look like application timeouts, broken logins, failed API calls, queue lag, payment failures, partner connectivity issues, or random regional instability,” Kathari explains. “That makes troubleshooting slower because teams may spend hours looking at the application, database, network, or cloud provider before realizing name resolution is part of the failure path.”

Sanchit Vir Gogia, chief analyst at Greyhound Research, agrees that IT will likely spin its wheels chasing the wrong ghosts.

“A validation failure rarely stays in its lane. It surfaces as an application error, an API timeout, or a reachability problem, which turns a resolver fault into a coordination failure,” Gogia says. “The application team blames the network, the network team blames the cloud, and the user simply watches work stop.”

“Images and templates are the frontier most teams miss,” Gogia adds. “A resolver fixed in summer can be broken again in October the instant a stale golden image is redeployed, because automation no longer lets configuration drift slowly. It restores yesterday’s assumptions at machine speed.”

It is widely expected that enterprises will not have any problems executing the change or, more likely, relying on their hyperscalers to properly handle the change. That is the concern. 

“CIOs are being distracted so much with AI and this is such a deep in the weeds infrastructure issue that this can and willcatch people off-guard,” Justin Greis, CEO of consulting firm Acceligence, tells CIO. “I think we’ll see a meaningful number of enterprise disruptions associated with the DNSSEC trust anchor rollover. Not because the update itself is especially difficult, but because it will expose weaknesses that already exist inside many organizations.”

Most enterprise IT operations have had no reason to compile a comprehensive list of all DNS dependencies, but many will be instantly discovered in January. 

Potentially widespread fallout

A major retailer, for example, might suddenly be unable to connect with FedEx to arrange for deliveries or a hospital may find that test results are no longer being shared with patient portals. It might manifest as an assembly line that halts because an IIoT component can no longer share files with its vendor system or a truck fleet that stops being tracked. 

“There will almost certainly be systems that fall through the cracks. Some will be legacy applications that rely on outdated DNS configurations that have not been updated in years,” Greis says. “Others will be business-unit-developed tools, contractor-built solutions, embedded systems, manufacturing and industrial systems, or highly customized workloads that operate outside normal IT oversight. These are the types of systems that often surface during infrastructure events like this.”

Greis adds that many enterprises will discover in January problems created by their own automation.

“Over time, enterprises build layers of processes, templates, and deployment mechanisms that are reused across teams and environments,” Greis notes. “Even after DNS infrastructure is updated correctly, older settings can inadvertently be reintroduced through routine updates and system changes, creating intermittent and difficult-to-diagnose failures.”

The good news from this situation is that enterprises are not going to likely lose all DNS access if any of these glitches occur. But that may be of no comfort because even if the disruptions are only with small edge cases, that can still cause massive operational disruptions.

Cricket Liu, EVP and chief evangelist at Infoblox, gives the example of a DNS server that responds to factory-floor system queries.

“Or let’s say this disrupts [an enterprise’s key] SaaS application. All name resolution may stop and it will show a server failure. It will not deliver a response whenever I look anything up. That’s not subtle at all,” Liu says. “It’s highly likely that companies are going to see some effects.”

Back in 2017, the switchover was relatively uneventful, giving some CIOs hope that January 2027 will also be a non-event. But given the technology advancements in the last 10 years and the resulting tidal wave of new enterprise tech dependencies, few are realistically expecting no problems this go around. 

Impossible to predict what will happen

One of the top network experts on DNS effects in enterprises is Geoff Huston, chief scientist at the Asia Pacific Network Information Centre (APNIC), the regional Internet Registry administering IP addresses for the Asia Pacific region.

Huston says it is difficult to project what will happen in January until it happens.

“Just like the last time, we are flying blind with this key roll. Because nothing really terrible happened last time, there is some confidence that nothing terrible will happen this time, but we just can’t tell in advance as there are no good measurement approaches that allow us to peek inside the trust state of recursive resolvers,” he says.

As for potential edge-case glitches, Huston says it is possible, but if third-party vendors do not properly handle the update, there will be other issues as well, as the KSK cryptographic key used within DNSSEC signs and validates the keys that protect DNS records. 

“If it is not standards-compliant, then you have more problems than just the KSK roll,” Huston says, “as it raises the obvious question of ‘What else is not correctly implemented in the DNS resolver that I’m running?’”

As a silver lining, Acceligence’s Greis says any hiccups that result from the DNS KSK update may be a gift in disguise for CIOs. 

“The irony is that some of the most business-critical components in the technology stack are often the least visible because they work in the background,” Greis says. January “may reveal how much modern business resilience depends on infrastructure that many organizations rarely examine until something breaks. For CIOs, that’s the real lesson. This is not fundamentally a story about a DNS update. It is a story about operational visibility, resilience, and governance. Organizations that treat the rollover as a routine infrastructure task will likely complete the update and move on. Organizations that use it as an opportunity to understand and strengthen the foundations of their technology environment may gain far more value than simply avoiding an outage.”

The European Commission has fined Google a total of €890 million ($1 billion) for its breaches of the Digital Market Act (DMA).

Just over half the fine — €460 million — was because Google illegally gave preference to its own services in Google Search results.

The remainder was because in the Google Play store for Android apps, the company prevented app developers from leading consumers to alternative, often cheaper, purchase channels. Under the DMA, app developers who distribute their apps via Google Play or Apple’s App Store should be able to inform customers of alternative offers.

Now Google must give third-party services featuring in its results the same treatment as its own services, and allow developers of apps in the Play Store to communicate about offers both in and outside the Play Store, or face further fines.

The Commission first raised these issues with Google in March 2025. In April of this year, the Commission laid out plans as to how Google should allow other third-parties to share its searches, suggestions that the tech firm firmly resisted. Earlier this month, the Commission also said  Android should be open to other AI agents and not limited to Google’s own Gemini.

Google is not the only US company to have fallen foul of the DMA. In April 2025, Apple was fined €500 million for breaching the Act and, last month, the Commission fired the first shots at cloud hyperscalers Microsoft and Amazon.

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.

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.

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.

Defense research agency DARPA made its largest quantum computing award ever this week, with a $125 million agreement announced on Wednesday. The same day, the White House announced an additional $5 billion for the Genesis Mission, which focuses on AI for science but also includes technology to accelerate quantum computing and quantum sensors.

“Taken together, these announcements signal that U.S. quantum strategy is shifting from supporting individual research projects to building the infrastructure needed for a quantum-enabled economy,” says Heather West, research manager in the infrastructure systems, platforms, and technology group at IDC.

None of the individual quantum announcements are surprising, she says. But the level of coordination is new. “Government investment is expanding beyond foundational research toward commercialization, manufacturing, and deployment,” she says.

“The US government has been signaling that quantum computing is a priority,” says David Mooter, an analyst at Forrester Research. Part of it is the desire for the US to be a leader in quantum, as it has been in other high-tech areas, he says. And part of it is because the government itself can take advantage of quantum computers.

“Spy agencies would love to use them to decrypt intercepted messages, including messages they intercepted years ago and saved,” he says. And other departments could use quantum computers or networks for energy-related research, for supply chain optimization, and for secure communications. 

Quantum computing is accelerating, he says. “I would not be surprised to see a general gate-based quantum computer that’s good enough to provide commercial value for limited use cases by 2030.”

DARPA’s Quantum Benchmarking Initiative

DARPA’s Quantum Benchmarking Initiatives was launched in 2024, and 18 companies were selected in April of 2025 for Stage A of the project, with awards of up to $1 million each. The companies were to use the money to provide details of their concepts and show how they could lead to a functional, fault-tolerant quantum computer in under a decade.

Then, in November of 2025, DARPA chose 11 companies for Stage B of the project, with awards of up to $15 million for developing their research plans.

To date, only two companies have been chosen for Stage C: PsiQuantum and Microsoft. PsiQuantum announced $32 million of DARPA funding for testing and evaluation in September of last year. This week’s $125 million award will expand the scope and pacing of the validation and verification work. Stage C awards can go up to $300 million, according to DARPA.

This past May, PsiQuantum also announced $100 million from the Department of Commerce, part of the CHIPS and Science Act, to accelerate domestic manufacturing of critical quantum computing components.

Microsoft and PsiQuantum are both in Stage C, bypassing the sequential path that other companies are expected to follow, because they were both part of DARPA’s predecessor to QBI, the Underexplored Systems for Utility-Scale Quantum Computing program.

Genesis Mission

Genesis Mission was launched in late 2025 with the goal of using AI to accelerate scientific breakthroughs, and it now includes more than 15 government agencies.

As part of the Genesis Mission, quantum computing and sensing company Infleqtion announced three projects for the Department of Energy on Wednesday. The three projects focus on quantum circuit design for nuclear applications, atomic quantum sensing, and nuclear fusion energy research.

This announcement did not include the total monetary value of the projects, but, in May, the company announced a separate agreement with the Department of Commerce for $100 million to accelerate Infleqtion’s neutral-atom technology roadmap.

Other quantum-related Genesis Mission projects announced this week include $1.5 million for a BlueQubit quantum error correction project with Microsoft and other partners, a Stanford effort to model the behavior of electrons at quantum scale, an MIT quantum sensing project, Argonne National Laboratory projects on quantum circuit design and quantum sensors, Brookhaven Lab quantum sensor projects, and quantum computing projects at Northwestern University.

IBM, one of three dozen private companies that are part of the Genesis Mission Consortium, announced that it will be leading a project to support more effective quantum applications, and will contribute up to $50 million of quantum compute access for the Genesis Mission.

Enterprise priorities

This week’s quantum announcements aren’t a sign that enterprises need to run out and buy quantum computers, says IDC’s West. But they do need to start preparing for the quantum era — such as by identifying business areas where quantum computing could become a competitive differentiator over the next decade.

But the most immediate threat is that of adversaries using quantum computers to break current encryption standards. Organizations should be inventorying cryptographic assets and developing a roadmap for the migration to quantum-proof algorithms, West says.

The point of no return is closer than ever, and many major players in the encryption and communication space, including Google and Cloudflare, have been accelerating their timelines. In fact, this Wednesday was the federal deadline for naming their post-quantum cryptography migration leads under a June executive order.

“The preparation that needs to be done to prepare is to implement post-quantum cryptography yesterday,” says Forrester’s Mooter.

However, according to a survey released by DigiCert this morning, while 87% of organizations are planning, testing or implementing PQC initiatives, only 7% of organizations have deployed quantum-safe or hybrid cryptography across most of their digital certificates.

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. 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.

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.

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.

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.”

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.

This article is published as part of the Foundry Expert Contributor Network.
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Every CIO I speak with today is wrestling with some version of the same question: How do we move faster with AI and deliver on our commitments?

It’s an understandable concern. Boards and CEOs are asking about AI. Business leaders are experimenting with use cases. Employees are discovering tools daily, while technology vendors promise unprecedented gains in productivity, innovation, and competitive advantage.

After hundreds of conversations with technology executives over the past year, I’ve become convinced that speed isn’t the real issue. The organizations pulling away from the pack aren’t necessarily adopting AI faster than everyone else. They’re executing more effectively — a subtle distinction that represents one of the defining leadership challenges of the AI era.

Technology has never been the hardest part of transformation. People, priorities, culture, and operating models are the biggest challenges. The ability to translate bold boardroom aspirations into thousands of thoughtful decisions made every day by architects, engineers, product managers, analysts, and business leaders is where competitive advantage is created. AI may be accelerating the pace of change, but it hasn’t changed that fundamental truth.

I’ve met plenty of executives who are exceptional in the boardroom. They know how to frame a vision, influence a board, and build confidence among investors and business leaders. I’ve also met remarkable technologists who instinctively understand the architectural decisions, engineering tradeoffs, and implementation details that determine how great ideas become reality. Modern CIOs, however, must move comfortably between both worlds. Afshean Talasaz is one who stands out among this rare breed.

Long before becoming CIO of Colonial Pipeline, Talasaz built his career from the ground up as a business professional, data scientist, and technologist. He has designed enterprise platforms, built AI capabilities, led technology organizations, and partnered closely with executive leadership teams on business transformation. Today, as an executive in residence with our Practitioners for Practitioners (P4P) community, he helps CIOs and business leaders navigate one of the most significant technology shifts of our generation.

While Talasaz brings deep knowledge of data and AI to the table, his greatest strength is his ability to create strategy and connect it with execution. He can spend the morning discussing enterprise reinvention with the board and the afternoon debating architectural principles with the teams responsible for bringing that vision to life.

That versatility gives Talasaz a unique lens on how CIOs can deliver value with AI.

Software companies have a term for engineers who understand every layer of the technology stack: full-stack developers. Listen to Talasaz and it becomes evident that the AI era requires something similar from technology leaders: a full-stack CIO.

The full-stack CIO: Leading with clarity

A full-stack CIO understands how every layer of the enterprise influences the next. They recognize that every strategic priority becomes a portfolio investment, every investment shapes an operating model, every operating model influences architecture, every architecture choice informs product decisions, every product decision shapes engineering priorities.

The best CIOs understand both ends of that journey. The extraordinary ones understand everything in between.

And those who execute best lead with clarity, Talasaz says.

“Everyone, from executives to middle managers to the people writing code, should be able to explain what we’re trying to achieve,” he emphasizes. “Clarity isn’t that we’ve handed out the PowerPoint. It’s that people genuinely understand where we’re going and can articulate it in their own language.”

One of the unintended consequences of the AI boom is that organizations are beginning to confuse activity with alignment. They have AI councils, AI governance committees, AI innovation labs, AI centers of excellence, AI pilots, and AI roadmaps. Yet if you stop ten people in the hallway and ask a deceptively simple question, What business problem are we actually trying to solve? you’ll often hear ten different answers.

As a result, architects optimize for one objective while product teams optimize for another. Business units pursue opportunities that seem perfectly reasonable from their perspective. Engineers make thoughtful technical decisions based on the information available to them. Individually, none of those decisions are necessarily wrong. Collectively, however, they create organizational drift. AI doesn’t create that problem. It simply accelerates the consequences.

And while AI can be a force multiplier for the positive when every decision is guided by a shared understanding of where the organization is headed, it can also be a force multiplier for the negative, resulting in an organization simply moving faster in different directions.

“When we have the fundamentals right, the tech infrastructure, the operating models, the nuances of how our business actually runs, we get the impacts of AI in a positive way,” Talasaz says. “When we don’t have those in place, AI can amplify the gaps or mute the benefits.”

At a time when so much of the conversation surrounding AI is focused on algorithms, agents, and automation, it’s an important reminder that organizations don’t execute strategy; people do.

Reducing organizational friction

Most executives are familiar with the concept of VUCA that characterizes today’s business environment. But Talasaz stresses the importance of turning this concern inward: “If the world outside our organizations is becoming more volatile, uncertain, complex, and ambiguous, what are we, as leaders, doing to the inside of our organizations?”

Leaders spend enormous amounts of time helping their organizations respond to external disruption but comparatively little time asking whether they are inadvertently re-creating those same conditions internally in response to those external needs. Are we reducing uncertainty or introducing more of it? Are we simplifying work or adding unnecessary complexity? Are we helping people focus on what matters most, or asking them to navigate competing priorities and shifting expectations?

Talasaz refers to this phenomenon as double VUCA — something I’ve witnessed repeatedly while working with CIOs over the past decade. Organizations often assume they’re struggling because of technology limitations when the real constraint is organizational friction. Teams wait for decisions. Priorities shift faster than roadmaps. Governance grows heavier. New committees are formed to solve problems created by existing committees. Everyone is working harder, yet the organization somehow feels slower.

AI amplifies both outcomes. Organizations with clarity become dramatically more effective because AI accelerates good decisions. Organizations without clarity simply accelerate confusion.

Operating model as strategy enabler

AI governance is one way to achieve greater clarity, but as Talasaz says, governance shouldn’t primarily exist inside policy manuals that few people read.

Instead, AI governance should be embedded in the daily rhythms of the organization, shaping how teams collaborate, how decisions are made, how products move from ideas into production, and how innovation happens safely without requiring constant escalation. In other words, it’s all about your operating model.

“If you had to pick one thing that isn’t technology, your operating model is the most important element for executing data and AI at scale,” he says.

The best operating models create enough clarity that capable people can make thousands of decisions independently and confidently, without having to wait for permission. By embedding good governance into the way it works, the organization becomes faster.

This advice echoes something I’ve heard repeatedly from some of the world’s most respected CIOs: High-performing organizations aren’t built on tighter control; they’re built on greater trust, supported by clear principles, shared expectations, and operating models that enable responsible decision-making at every level of the enterprise.

Talasaz points out that technology leaders tend to speak in terms of transformation. He suggests CIOs consider a different word: reinvention.

As he explains, transformation implies replacing what exists today with something new. Reinvention starts with a more clear-eyed and practical premise: Some things absolutely must change; others represent years, sometimes decades, of accumulated expertise, customer trust, operational discipline, and competitive advantage.

Reinvention is about building on those strengths while also creating new ways to deliver value. The leaders making the greatest progress in their AI journeys seem to recognize that it’s less about abandoning the past than thoughtfully preparing the organization for the future.

Closing the gap between strategy and execution

Full-stack CIOs must be able to map out the various layers of execution and planning that need to be done at every level of the organization to be successful. To help with this, Talasaz has developed a data and AI framework that draws on his own experiences “from the keyboard to the boardroom.”

As Talasaz sees it, too many organizations have been doing good work in isolation. “They’re doing a lot of the right things,” he says. “They’re just not connected.”

Boards may be discussing growth while business leaders redesign customer experiences. Product teams may be prioritizing new capabilities while architects modernize platforms. Data teams may be improving quality while engineers focus on delivery. Every group makes meaningful progress within its own domain, yet somewhere between strategy and execution, the connective tissue begins to disappear. Talasaz’s framework brings those connecting points to the forefront.

Crucially, the framework doesn’t begin with technology or AI or even with data. It begins with the experiences the organization hopes to create for its customers, employees, or partners. Many AI initiatives start with the question, “What can this technology do?” And indeed, we need to be inspired by the possibilities and challenged to think differently by what the technology can do. But, Talasaz emphasizes, we also need to ask what experiences we need to deliver for our business and how the technology can make that a reality.

The framework challenges CIOs to answer that question first. Only after the experiences are clearly defined does the conversation move to the capabilities required to deliver it, the business activities that support those capabilities, the AI and data products that enable them, and finally the data foundation that makes everything possible.

This shift in perspective ensures that, rather than allowing technology investments to search for business value, the business experience defines the technology required to deliver it. For CIOs, that’s more than a planning exercise. It’s a fundamentally different way of leading.

Over the coming months, the P4P community will be convening a series of small CxO roundtables to explore these issues and work more deeply with Afshean Talasaz’s 6×6 Data and AI Framework. CIOs and other enterprise leaders interested in participating are welcome to reach out to me directly.

Leadership wants to scale AI. Budgets are tripling. Adoption is up.

Then the CFO asks the question every board now asks: which of these initiatives is actually profitable?

Most organizations cannot answer that question, not because they lack visibility into cost, but because the cost data they have was never designed to produce that answer.

Applying lessons learned from managing cloud spend won’t be a fix for the AI and ROI quandary. True, cloud taught a generation of CFOs that billing without business context is noise. So to get cloud ROI, they stitched two data sources together: cost data plus business data. AWS reveals which account, which region, which tag, which resource. Merge in customer and product mappings on top and the ROI of the cloud spend comes into focus.

But AI is harder. It requires three data sources: cost, business, and telemetry—the automatic collection of data from disparate sources that helps to clarify the whole picture of what happened and why. An executive or engineering lead can have AI invoices and customer revenue. But they have no way to connect them to business value. The token count on the OpenAI invoice does not specify which customer triggered which call, which feature it served, or whether the prompt produced a business outcome. That data does not exist in the provider’s billing.

AI providers won’t fix this problem

The situation is not likely to change anytime soon because AI providers are not in the business of attributing an enterprise’s costs to that enterprise’s customers. Instead, AI providers are in the business of selling tokens. The granularity they expose is the granularity their billing systems require, not the granularity a CFO requires.

Not convinced? Compare what AWS gives you to what an AI provider gives you.

AWS billing exposes resource IDs, account hierarchies, region, SKU, tag metadata, usage by the minute. Every dollar can be attributed to a workload, a team, a customer segment if it was tagged correctly. The data is rich enough that mature FinOps teams built unit economics on top of it years ago.

An AI provider invoice gives you tokens consumed by model, with optional grouping by API key. That is the resolution. No request-level attribution. No customer ID. No feature mapping. No prompt outcome. No retry identification. Multi-step agent workflows collapse into a token count. Imagine a large bank receives a multi-million dollar AI invoice each month. But it has no visibility into what parts of the business were responsible for what parts of the cost so cannot allocate them.

If an enterprise wants to know what AI cost drove which customer or feature, it has to capture that data itself, inside an application, before the call leaves it. 

Three required sources

Building AI ROI measurement requires three data sources, stitched together in a single model.

1. Cost data, normalized across providers. Every AI provider delivers cost differently. OpenAI invoices in one taxonomy, Anthropic in another, fine-tuning vendors and inference platforms each in their own. Cloud GPU costs sit in AWS or Azure billing. Vector database costs land in Pinecone or Snowflake invoices. None interoperate by default. Normalization is necessary but not sufficient. It will put all your AI costs in one schema. It does not tell you what they produced.
2. Application-layer telemetry. This is the source most organizations are missing, and the one that makes AI ROI structurally different from cloud ROI. It requires instrumenting AI calls inside your application across six categories: request-level tracing tied to a customer or session ID; feature attribution tied to the product surface that triggered the call; agent-step capture for multi-step workflows; retry and fallback identification so recovery costs don’t get attributed to primary calls; model selection logging that records which model was chosen and why; and outcome capture that ties each call to whether it produced business value. None of this data exists in the provider’s billing. All of it has to be captured at the moment the call is made and stored in a system that can be stitched to the cost data.
3. Business data. Revenue, customer segments, product hierarchies, and feature usage. The same business data already feeding your CRM and analytics stack, mapped to the customers and features the telemetry layer attributes calls to.

Stitched together, the three sources produce the unit economics every AI investment decision now requires: cost per customer interaction, margin per feature, profitability per agent workflow, ROI per model choice. None of these can be calculated from billing data alone. None can be calculated from telemetry alone. They require all three sources, modeled together in a way that maps cost to outcome.

Why agentic AI makes this urgent

Single-call inference is the easy case. One request, one cost, one customer, one outcome.

Agentic workflows are different. An agent decomposes a task into multiple steps. Each step calls a model. Some steps fall back to a different model when the first fails. Some steps retry on a poor result. Some steps invoke external tools that themselves cost money. A single user request can produce dozens of inference calls across multiple providers, with the cost compounding in ways the provider invoice cannot disaggregate.

If telemetry does not capture agent-step granularity, no one will know which steps are profitable. Aggregate costs will show up three weeks later in the invoice. By then, the workflow has been running at scale, customers are onboarded, and unprofitable paths have been retried thousands of times.

When agents make the calls, the volume of cost-generating events without business context attached grows by an order of magnitude. The window for instrumenting this before it becomes unmanageable is closing.

What changes when the three sources come together

Once the three sources are stitched together, the AI investment conversation changes.

Five different ways to build the same AI capability stop looking equivalent. They converge on adoption metrics and diverge by 10x on cost. The team picks the approach that delivers a similar business outcome at one-fifth the cost, because the team can finally see the difference. Product teams design features with margin awareness from the architecture phase, not from the post-launch budget review. Engineering teams choose model architectures with cost-per-outcome data alongside latency and quality. Leadership evaluates AI initiatives the way they evaluate any other capital allocation: on unit economics, not on the engagement chart. Aggregated invoices track the cost per customer interaction. Engagement metrics reveal margin per feature. Gut-instinct model selection is checked against real cost-per-outcome model selection results. 

Within seconds, everyone can see which AI features are profitable, which should scale, and which should be killed. This is the insight everyone is looking for and companies that achieve it will optimize the benefits of AI.

The build trap

AI costs are compounding now. The board is not waiting 18 months for an internal project to reach production.

The temptation to build it anyway has never been sharper. AI coding tools have changed what a small engineering team can ship in a quarter. The instrumentation layer looks tractable. The cost normalization looks like a weekend project. The semantic model feels like something a senior engineer could draft over a sprint.

It is a trap. Three reasons.

Volume is the first. A production AI footprint generates millions of telemetry events per hour, and that volume scales with agentic adoption. Real-time ingestion, correlation, and attribution at that scale is not the same problem as vibe coding a prototype in an afternoon. It is a permanent operational system that has to be right every minute of every day.

The vendor landscape is the second. Cost data arrives in delayed billing windows from providers with non-interoperable schemas. Schemas change without notice. New AI providers enter the landscape monthly, each with its own taxonomy and metering. The system is not built once. It is maintained against a moving target that moves faster than most internal release cycles.

The third is what the first two add up to: this is business-critical infrastructure. The CFO and the board are going to make capital allocation decisions on the data this system produces. When schema drift goes unnoticed for two weeks, when an agent telemetry stream stops correlating to a vendor that quietly changed its billing API, the cost of being wrong is not a sprint of cleanup. It is a quarter of misallocated capital.

The build-vs.-buy question for engineering leaders has changed. It’s not “can we build this?” The honest answer is yes. The real question is whether the marginal hour of your strongest engineers is best spent stitching cost data to telemetry to business outcomes, or building the AI products that produce the revenue the cost data is measuring.

The capability is reproducible in weeks. The choice is whether to spend the next 18 months building it, or the next 18 months acting on it.

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New Tech Forum provides a venue for technology leaders—including vendors and other outside contributors—to explore and discuss emerging enterprise technology in unprecedented depth and breadth. The selection is subjective, based on our pick of the technologies we believe to be important and of greatest interest to InfoWorld readers. InfoWorld does not accept marketing collateral for publication and reserves the right to edit all contributed content. Send all inquiries to doug_dineley@foundryco.com.

Running containers on Windows has never been as easy as it should be. While there are versions of Docker Desktop and Podman that work with both the Windows Subsystem for Linux (WSL) and Hyper-V, I’ve found both overly complex and unstable. Where they have worked, it’s turned out that Hyper-V has been the best option, using a Linux virtual machine to host my containers. That all adds up to overhead, layers of virtual infrastructure that get in the way of work and that need to be rebuilt every time I restart my PC.

Part of the problem is WSL. It’s a good tool, but WSL2’s file-system integration is slow, and you’re left having to work with code using Visual Studio Code’s remote integration, which means putting a VS Code Server in every container you’re building and testing. If you’re working with Kubernetes, that’s even more complexity that needs to be managed, dragging you away from code.

I ended up running most of my container testing and development from a separate machine, a Linux server running containerd. But though it worked (and had all the resources of workstation-class device), it wasn’t portable, and for some reason I’ve yet to uncover, Ubuntu’s remote desktop access doesn’t work for me.

So, it was good to see Microsoft make several announcements around WSL at Build 2026 as part of a push to make Windows a developer platform again. The first, an improved WSL3, is still some way away, but the second, WSL-native container support, shipped at the end of June. It is already seeing community-driven development of Docker Desktop-like tooling to help monitor and manage your containers.

Delivering a WSL-based container platform fits in with the other developer-focused Windows announcements at Build. Making Windows behave more like Linux is Microsoft responding to developer needs, given that more than 50% of servers on Azure run a Linux distribution. Linux is the basis of cloud-native infrastructure, so developers need to be able to build on it wherever they are.

Getting started with WSL container

WSL container provides a new CLI that works in parallel to the familiar WSL, with commands to support the entire container life cycle, from creation to shut down. All you need to do to get started is upgrade your WSL installation to the current pre-release build (at the time of writing this was 2.9.3). Simply open an administrator PowerShell terminal and enter wsl --update --pre-release.

This downloads and installs the latest WSL release. Once you’ve closed and re-opened your terminal (to ensure that you’ve updated its context) you can check that WSLC has installed by entering wslc, which should list the available commands. The new CLI is aliased to WSL container, if you prefer to keep your container work separate from WSL (and avoid typos that might accidentally affect your WSL installations).

Under the hood Microsoft is using WSL container to trial new integration points for Linux in Windows. One key change is the use of a new file system that significantly speeds up access to Windows from inside a container. Another improvement gives WSL container a new networking mode that relays networking connections directly through the Windows network stack, ensuring it has access to the same resources and security as Windows.

Calling Linux containers from Windows applications

Things get more interesting when you start to use the WSL container API from inside your Windows code. Here you can include calls to Linux containers inside your desktop applications, taking advantage of existing services, building and deploying containers from inside your CI/CD pipeline. Using the new file system and networking stack helps reduce the friction that comes with crossing the boundaries between the two platforms.

The WSL container API is available as a NuGet package, with support for C, C#, and C++. It allows your code to start and stop containers, and interact directly with them, sending command-line calls and reading back responses. Where things get interesting is being able to launch a containerized service from your code, exposing its REST or gRPC APIs on a local network port. Microsoft has provided sample code to show you what’s possible at this early stage.

Microsoft is doing something revolutionary here. It’s taking the cloud-native, service-driven model and bringing it into Windows and using it to bridge decades of divergent development. You no longer have to rewrite a service that works on Linux to run in Windows; all you need to do is containerize the service and launch it from the WSL container API. When you’re done, the API will tidy up after you, shutting down the container and reclaiming the memory it used.

It’s important to remember that this is only the first public preview of a rapidly developing platform. There are many opportunities here to, say, build on the syscall translation layer developed for WSL1 to produce a native Windows-to-Linux application integration stack that removes the overhead of using web-based service calls. It will be interesting to see what develops, but this first release is very interesting indeed.

Manage Linux containers from Windows

If you want a Docker Desktop-like experience for building and testing containers on Windows developer hardware, you may not have long to wait. WSL container’s underlying API is already being used to build tools that manage and monitor containers for you. One such tool is the WSL Container Desktop, under development on GitHub. While there aren’t any release builds yet, it’s easy enough to compile and get running by cloning the source repository and building using the .NET CLI. You do need to have the Windows App SDK installed, and some features require access to the Azure CLI.

WSL Container Desktop is built in C#, with a WinUI front end. It’s currently only verified for use on x64, though I was able to compile and run it on an Arm64 PC and use it to test and run containers. Once running, it gives you a well-designed front end for your WSL-hosted containers, showing what’s running and what resources they are using. You can link WSL Container Desktop to container registries, like Docker’s and Azure’s, so you can quickly pull base containers and then use the WSL container environment to add your own code and customizations.

Your main interaction point is the WSL Container Desktop dashboard, which shows what containers are running and their current resource usage. Elements are displayed in cards, taking a cue from Windows’ own user interface and especially from its Settings app. From the dashboard, you can drill down into the available containers, with quick start, stop, and reload options, as well as an extended memory that includes the ability to open a web browser to the appropriate port. I tested this with a container that included an entire KDE webtop, giving me a Linux distro running in a container in my browser.

Other options include a details view that displays current logs and provides tools for inspecting the state of a container. This is the type of tool that comes in useful when debugging and testing container applications, as it can provide insights that the WSL container CLI doesn’t offer. Another option helps you clean up after you’ve downloaded an image and don’t need it anymore, with analytics that show the largest images and images you haven’t used for some time. On top of its tooling for working with WSL containers, WSL Container Desktop provides a basic settings tool that helps you configure its look and feel, as well as how it integrates with Windows.

Run Kubernetes inside Windows for cloud-native development

One of the more useful features of WSL Container Desktop is the ability to quickly stand up a K3s Kubernetes instance in WSL that can be used to host WSL containers, providing a local environment to build and test cloud-native applications wherever you might be. The K3s tooling offers a similar experience to the Kubernetes project’s own Headlamp UI, making it easy to go between your development environment and a production Kubernetes cluster.

It’s fair to describe WSL container as one of those Windows features you didn’t think you needed, but now it’s here you can’t live without it. WSL container simplifies building a container development tool chain in Windows, and at the same time allows you to think about a new generation of hybrid applications that take advantage of decades of development in both Windows and Linux.

The result is something that was unimaginable a few years ago: dropping a Linux container into the middle of a Windows application and treating it as another local service. As the WSL container platform evolves, you should expect to see more ways of bringing Linux and Windows together, using containers to deliver a hybrid platform that gives us the best of both worlds at long last.

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.

This article is published as part of the Foundry Expert Contributor Network.
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Oracle is expanding its Cloud@Customer on-premises portfolio with a managed database offering that it says will enable enterprises to run databases, applications, and AI agents in their own data centers, helping CIOs modernize mid-sized workloads while meeting data residency, regulatory, and low-latency requirements.

The hybrid cloud offering, Base Database Cloud@Customer, combines existing database and infrastructure services such as the Base Database Service and Data Infrastructure Cloud@Customer X11 platform. It is designed for enterprises that do not need the scale of Exadata Cloud@Customer but still want their infrastructure and AI capabilities on-premises, managed by Oracle, the company said.

The Cloud@Customer X11 platform itself consists of two Oracle X11 compute servers and shared all-flash storage, offering up to 60 usable processor cores and 660 GB of memory per server, 47.2 TB of storage, and 10/25 GbE networking.

For regulated industries or restricted connectivity

Analysts see the new offering filling a gap for enterprises that want the operational and economic benefits of the cloud but cannot send their data to a public cloud because of legal restrictions or technology limitations.

These enterprises, according to Ashish Chaturvedi, executive research leader at HFS Research, are likely to be in regulated industries such as financial services, healthcare, government, and defense that must comply with data residency requirements, or needing low-latency access from remote sites to operational databases.

The offering could also appeal to enterprises modernizing mid-sized workloads at remote locations or within individual business units that could never justify the investment in a full Exadata rack, said Amit Chandak, chief analytics officer at IT consulting firm Kanerika.

In all cases, Chaturvedi said, the appeal of the offering is its managed nature, which takes away the burden of looking after the underlying infrastructure.

Deployment and maintenance becomes easier too, said Michael Leone, principal analyst at Moor Strategy and Insights: “They get automation that mid-size teams rarely have the staff to build. Clustering, patching, standby databases, and backups arrive configured instead of hand-assembled because the offering is managed.”

The economics are equally compelling, Chaturvedi said. The pay-as-you-go pricing model, combined with online compute scaling, helps enterprises avoid overprovisioning and paying license fees for idle cores, which is a “classic waste” of fixed on-premises systems, he said.

Private AI behind the firewall

Beyond the operational and economic benefits, the architecture of the new offering enables databases, applications, VMs, and AI agents to be collocated on the same platform, removing what Chaturvedi called “the single biggest blocker” to AI adoption in regulated environments: the need to keep private data behind the firewall.

“For a CIO in a regulated sector who wants to deploy AI agents but can’t let regulated data touch an external model API, that’s a real unlock,” Chaturvedi said.

More so because most AI offerings, at least in their present form and state, cannot guarantee sensitive data protection, said Igor Ikonnikov, advisory fellow at Info-Tech Research Group.

Even if Base Database Cloud@Customer turns out more expensive than fully cloud-based options, “It’s still attractive as it eliminates reputational and economic risk caused by possible AI-induced data leakage,” Ikonnikov said.

The offering’s consolidation of databases, applications, and AI agents will also simplify deployment of AI-based workflows, said Forrester principal analyst Noel Yuhanna. “It reduces stack complexity and helps accelerate development cycles, deliver real-time data, and eliminate data movement challenges.”

Despite those advantages, Chandak cautioned that the offering is unlikely to see broad adoption outside Oracle’s existing customer base: “If a company isn’t already on Oracle, the pull is weak. You don’t buy into Oracle’s database just to get this.”

Enterprises seeking similar hybrid cloud capabilities have no shortage of alternatives: AWS, Microsoft, Google Cloud, IBM, Dell Technologies, and HPE all offer combinations of on-premises infrastructure, cloud management, and AI services.

However, those alternatives typically require customers to integrate multiple software and hardware components rather than consume them as a single managed offering.

Oracle’s differentiation, although narrow, is hard to match, Chaturvedi said: “The vertical integration of database, engineered hardware, cloud management, high-availability architecture, and now private AI, all engineered together and delivered as a managed on-prem subscription should be genuinely convenient and attractive.”

The offering is compatible with Oracle AI Database 26ai and Oracle Database 19c in Enterprise Edition and Standard Edition configurations. It also supports Oracle Real Application Clusters, Oracle Data Guard, and Zero Data Loss Recovery Appliance through Oracle-managed cloud automation for high availability and disaster recovery, the company said.

Base Database Cloud@Customer is now generally available, Oracle said. It did not provide pricing.

This article first appeared on CIO.

Oracle is expanding its Cloud@Customer on-premises portfolio with a managed database offering that it says will enable enterprises to run databases, applications, and AI agents in their own data centers, helping CIOs modernize mid-sized workloads while meeting data residency, regulatory, and low-latency requirements.

The hybrid cloud offering, Base Database Cloud@Customer, combines existing database and infrastructure services such as the Base Database Service and Data Infrastructure Cloud@Customer X11 platform. It is designed for enterprises that do not need the scale of Exadata Cloud@Customer but still want their infrastructure and AI capabilities on-premises, managed by Oracle, the company said.

The Cloud@Customer X11 platform itself consists of two Oracle X11 compute servers and shared all-flash storage, offering up to 60 usable processor cores and 660 GB of memory per server, 47.2 TB of storage, and 10/25 GbE networking.

For regulated industries or restricted connectivity

Analysts see the new offering filling a gap for enterprises that want the operational and economic benefits of the cloud but cannot send their data to a public cloud because of legal restrictions or technology limitations.

These enterprises, according to Ashish Chaturvedi, executive research leader at HFS Research, are likely to be in regulated industries such as financial services, healthcare, government, and defense that must comply with data residency requirements, or needing low-latency access from remote sites to operational databases.

The offering could also appeal to enterprises modernizing mid-sized workloads at remote locations or within individual business units that could never justify the investment in a full Exadata rack, said Amit Chandak, chief analytics officer at IT consulting firm Kanerika.

In all cases, Chaturvedi said, the appeal of the offering is its managed nature, which takes away the burden of looking after the underlying infrastructure.

Deployment and maintenance becomes easier too, said Michael Leone, principal analyst at Moor Strategy and Insights: “They get automation that mid-size teams rarely have the staff to build. Clustering, patching, standby databases, and backups arrive configured instead of hand-assembled because the offering is managed.”

The economics are equally compelling, Chaturvedi said. The pay-as-you-go pricing model, combined with online compute scaling, helps enterprises avoid overprovisioning and paying license fees for idle cores, which is a “classic waste” of fixed on-premises systems, he said.

Private AI behind the firewall

Beyond the operational and economic benefits, the architecture of the new offering enables databases, applications, VMs, and AI agents to be collocated on the same platform, removing what Chaturvedi called “the single biggest blocker” to AI adoption in regulated environments: the need to keep private data behind the firewall.

“For a CIO in a regulated sector who wants to deploy AI agents but can’t let regulated data touch an external model API, that’s a real unlock,” Chaturvedi said.

More so because most AI offerings, at least in their present form and state, cannot guarantee sensitive data protection, said Igor Ikonnikov, advisory fellow at Info-Tech Research Group.

Even if Base Database Cloud@Customer turns out more expensive than fully cloud-based options, “It’s still attractive as it eliminates reputational and economic risk caused by possible AI-induced data leakage,” Ikonnikov said.

The offering’s consolidation of databases, applications, and AI agents will also simplify deployment of AI-based workflows, said Forrester principal analyst Noel Yuhanna. “It reduces stack complexity and helps accelerate development cycles, deliver real-time data, and eliminate data movement challenges.”

Despite those advantages, Chandak cautioned that the offering is unlikely to see broad adoption outside Oracle’s existing customer base: “If a company isn’t already on Oracle, the pull is weak. You don’t buy into Oracle’s database just to get this.”

Enterprises seeking similar hybrid cloud capabilities have no shortage of alternatives: AWS, Microsoft, Google Cloud, IBM, Dell Technologies, and HPE all offer combinations of on-premises infrastructure, cloud management, and AI services.

However, those alternatives typically require customers to integrate multiple software and hardware components rather than consume them as a single managed offering.

Oracle’s differentiation, although narrow, is hard to match, Chaturvedi said: “The vertical integration of database, engineered hardware, cloud management, high-availability architecture, and now private AI, all engineered together and delivered as a managed on-prem subscription should be genuinely convenient and attractive.”

The offering is compatible with Oracle AI Database 26ai and Oracle Database 19c in Enterprise Edition and Standard Edition configurations. It also supports Oracle Real Application Clusters, Oracle Data Guard, and Zero Data Loss Recovery Appliance through Oracle-managed cloud automation for high availability and disaster recovery, the company said.

Base Database Cloud@Customer is now generally available, Oracle said. It did not provide pricing.

This article first appeared on CIO.

Oracle is expanding its Cloud@Customer on-premises portfolio with a managed database offering that it says will enable enterprises to run databases, applications, and AI agents in their own data centers, helping CIOs modernize mid-sized workloads while meeting data residency, regulatory, and low-latency requirements.

The hybrid cloud offering, Base Database Cloud@Customer, combines existing database and infrastructure services such as the Base Database Service and Data Infrastructure Cloud@Customer X11 platform. It is designed for enterprises that do not need the scale of Exadata Cloud@Customer but still want their infrastructure and AI capabilities on-premises, managed by Oracle, the company said.

The Cloud@Customer X11 platform itself consists of two Oracle X11 compute servers and shared all-flash storage, offering up to 60 usable processor cores and 660 GB of memory per server, 47.2 TB of storage, and 10/25 GbE networking.

For regulated industries or restricted connectivity

Analysts see the new offering filling a gap for enterprises that want the operational and economic benefits of the cloud but cannot send their data to a public cloud because of legal restrictions or technology limitations.

These enterprises, according to Ashish Chaturvedi, executive research leader at HFS Research, are likely to be in regulated industries such as financial services, healthcare, government, and defense that must comply with data residency requirements, or needing low-latency access from remote sites to operational databases.

The offering could also appeal to enterprises modernizing mid-sized workloads at remote locations or within individual business units that could never justify the investment in a full Exadata rack, said Amit Chandak, chief analytics officer at IT consulting firm Kanerika.

In all cases, Chaturvedi said, the appeal of the offering is its managed nature, which takes away the burden of looking after the underlying infrastructure.

Deployment and maintenance becomes easier too, said Michael Leone, principal analyst at Moor Strategy and Insights: “They get automation that mid-size teams rarely have the staff to build. Clustering, patching, standby databases, and backups arrive configured instead of hand-assembled because the offering is managed.”

The economics are equally compelling, Chaturvedi said. The pay-as-you-go pricing model, combined with online compute scaling, helps enterprises avoid overprovisioning and paying license fees for idle cores, which is a “classic waste” of fixed on-premises systems, he said.

Private AI behind the firewall

Beyond the operational and economic benefits, the architecture of the new offering enables databases, applications, VMs, and AI agents to be collocated on the same platform, removing what Chaturvedi called “the single biggest blocker” to AI adoption in regulated environments: the need to keep private data behind the firewall.

“For a CIO in a regulated sector who wants to deploy AI agents but can’t let regulated data touch an external model API, that’s a real unlock,” Chaturvedi said.

More so because most AI offerings, at least in their present form and state, cannot guarantee sensitive data protection, said Igor Ikonnikov, advisory fellow at Info-Tech Research Group.

Even if Base Database Cloud@Customer turns out more expensive than fully cloud-based options, “It’s still attractive as it eliminates reputational and economic risk caused by possible AI-induced data leakage,” Ikonnikov said.

The offering’s consolidation of databases, applications, and AI agents will also simplify deployment of AI-based workflows, said Forrester principal analyst Noel Yuhanna. “It reduces stack complexity and helps accelerate development cycles, deliver real-time data, and eliminate data movement challenges.”

Despite those advantages, Chandak cautioned that the offering is unlikely to see broad adoption outside Oracle’s existing customer base: “If a company isn’t already on Oracle, the pull is weak. You don’t buy into Oracle’s database just to get this.”

Enterprises seeking similar hybrid cloud capabilities have no shortage of alternatives: AWS, Microsoft, Google Cloud, IBM, Dell Technologies, and HPE all offer combinations of on-premises infrastructure, cloud management, and AI services.

However, those alternatives typically require customers to integrate multiple software and hardware components rather than consume them as a single managed offering.

Oracle’s differentiation, although narrow, is hard to match, Chaturvedi said: “The vertical integration of database, engineered hardware, cloud management, high-availability architecture, and now private AI, all engineered together and delivered as a managed on-prem subscription should be genuinely convenient and attractive.”

The offering is compatible with Oracle AI Database 26ai and Oracle Database 19c in Enterprise Edition and Standard Edition configurations. It also supports Oracle Real Application Clusters, Oracle Data Guard, and Zero Data Loss Recovery Appliance through Oracle-managed cloud automation for high availability and disaster recovery, the company said.

Base Database Cloud@Customer is now generally available, Oracle said. It did not provide pricing.