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.

As Apple gears up to anoint John Ternus the new company CEO in September (while current leader Tim Cook takes a seat on the board) the company appears to be firing on all cylinders ahead of the leadership transition. 

What’s going well

Just look at the evidence: 

• Apple is building market share across its entire product range; even memory-driven price inflation doesn’t seem to have dampened demand for its hardware yet.
• While Apple had to raise prices, the company’s MacBook Neo remains seriously popular. It’s sitting atop Amazon’s US best-selling chart, which currently includes six Macs in the top 10. The Neo has topped this chart since its introduction.
• Apple’s iPhone 17 series continues to sell well, with recent market data showing sustained growth. Both Counterpoint and IDC tell us that iPhone shipments continue to increase, even as other vendor shipments slide.
• IDC analyst Francisco Jeronimo recently estimated that Apple’s upcoming foldable iPhone Ultra could grab 29.4% of global folding smartphone sales this year, rising to 34.9% in 2027.
• The company’s new 27 series of operating systems is attracting a great response as beta testers report that it is already solid, stable, and performing well.
• The AI narrative has really changed, with analysts no longer quite so starry-eyed at the prospects for the big frontier AI firms. Apple’s edge-AI-enabling approach is winning converts.

What’s coming up

The company’s newly-filed lawsuit against OpenAI may or may not succeed, but it will certainly help consolidate recognition of the importance of Apple’s designs and intellectual property in whatever hardware emerges from the AI firm. It also means both Apple and OpenAI are already competing in hardware, even though neither company yet offers anything that directly challenges the other. 

Apple has just set out its stall to brand-loyal fans in a big way and did so before OpenAI gets to woo the same set of customers with a wriggle of its Jony Ive-tinged talisman.

The stage is set for intense competition between the two. Though some say Apple’s needs to improve employee retention, if it does find proof of efforts to use recruitment to engage in industrial espionage, it’ll be easier to represent its own products as being the OG for new hardware. 

If nothing else, it means consumers will forever be asking, “If OpenAI’s designers are so good, why did it need to poach them from Apple?” Doubt is a weapon.

Managing perception

It doesn’t matter how the case goes, because there fight is already affecting consumer psychology. It also means that as Ternus prepares to take his seat atop the rainbow-colored Apple throne, we can already size him up. “A man is measured by his enemies,” Joe Abercrombie wrote in “The Trouble With Peace.”

Given the proximity of the leadership transition, it’s highly probable that Ternus signed-off on the litigation; in doing so he — and Apple — tell us to expect more of the same. 

Apple has, rightly or wrongly, decided that OpenAI will become its new existential bugbear, following in the footsteps of Microsoft Windows, Real Networks, Adobe Flash, Android, and Samsung, all of whom have been useful foils against which Apple has been able to build and maintain its identity.

Looking at that list, you’d be tempted to believe that nothing much is new. Apple has often defined itself by the enemies it sometimes keeps. What has been will be again, which in this case means even as OpenAI attempts to carve out an identity as a hardware manufacturer delivering solutions to compete with Apple and Google, Ternus’ team’s looks to drive a consensus-shaped wedge into the pro-LLM propaganda. 

That blow comes as Apple finally gets its act together around AI, and as the company prepares for a future in which the world’s most-used wearable device also becomes the wearable way to woo Siri AI.

My kingdom come

Rising market share, powerful solutions, an increasingly recognized and respected approach to AI, and an ideological crusade — these details constitute Apple’s place today and are Tim Cook’s coronation gift to Ternus. He’s passing along a strong and hyper-profitable baton that screams of timeliness and relevance even as the company gets set, ready, to go with a year or two of new product designs, new product families, and a 20^thanniversary iPhone.

This is Apple’s party. OpenAI’s name didn’t make the list. 

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

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

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

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

A ‘significant opportunity’ in technology

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

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

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

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

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

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

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

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

Monday.com’s key market advantages

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

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

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

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

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

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

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

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

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

Actions for the near-term

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

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

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

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

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

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

This article originally appeared on CIO.com.

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

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

Moving closer to hardware-as-a-service

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

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

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

Easy payments for RAM-ageddon

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

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

New age, new shopping habits

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

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

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

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

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

Managing future risk

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

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

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

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

AMD’s MI455X targets the AI memory wall

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

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

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

AMD

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

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

AMD’s Helios rack takes aim at Vera Rubin

Dave Altavilla

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

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

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

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

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

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

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

AMD

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

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

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

Pensando networking and ROCm software advance

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

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

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

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

Customer commitments underscore rack-scale confidence

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

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

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

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

AMD expands its robotics and embedded foundation

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

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

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

Execution for AMD is now the test

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

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

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

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Traditional phishing techniques are in decline as a result of the disruption of the Tycoon2FA phishing-as-a-service (PHaaS) platform, Microsoft said in a new report, “Email threat landscape: Q2 2026 trends and insights”.

“Phishing volume linked to the platform fell 92% from pre-disruption averages, including QR code phishing and CAPTCHA-gated phishing both declining from their March highs,” the company wrote in the report.

The takedown reduced activity across multiple phishing categories, forcing attackers to shift to newer delivery methods.

Riding this shift in were a few notable phishing campaigns, including an automated business email compromise (BEC) campaign that reached 42,000 organizations in under three hours, and a multi-stage phishing campaign that used nested email (EML) files, calendar invitations, and a Microsoft authentication redirect to deliver malware.

To counter phishing attacks, Microsoft recommends blocking emails containing known bad URLs/ subject fields, enabling password-less authentication methods, or moving to MFA for accounts that still require passwords.

Tycoon2FA disruption sent attackers exploring

The take-down of Tycoon2FA forced its operators to abandon portions of their infrastructure and rework hosting, domain registrations, and delivery mechanisms.

“After falling 15% in March and another 22% in April, Tycoon2FA-linked phishing volume dropped 74% in May to just 1.5 million messages, then fell another 20% in June to 1.2 million, by far the lowest monthly volumes observed in at least a year,” Microsoft said.

The decline extended to QR Code lures and fake CAPTCHA pages, two phishing techniques in which Tycoon2FA accounted for 12% and 14% of industry activity in June, respectively. This indicated that the platform’s customer base had not been able to migrate to a replacement infrastructure.

But cutting off one head of the hacker hydra only gave rise to new tactics elsewhere.

The adaptation came in the form of using Microsoft Teams as a social engineering channel. Attackers established conversations to build trust before attempting credential theft or delivering malicious payloads. “Teams-based phishing volume climbed steadily throughout Q2, with the average number of detected attacks rising 19% from March to April, holding roughly flat into May (+1%), then increasing another 10% into June,” Microsoft said.

Microsoft also observed a highly automated BEC campaign that reached over 67,000 users using scripted emails, Amazon Simple Email Service (SES), and engagement tracking, alongside a separate phishing campaign targeting 107,000 users that abused Microsoft’s authentication flow and trusted cloud services, including Teams archive recording and ICS calendar invite, to disguise malware delivery behind legitimate infrastructure.

Phishing changes but the defense doesn’t

While QR Code and Captcha-based phishing attacks dropped significantly in the second quarter, business email compromise (BEC) charted jumped 121% between March and April, before dropping down again in May.

QR Code phishing represented 8.3 million attacks in June 2026, down from a peak of 18.7 million in March. Similarly, Captcha-gated phishing fell from 12 million attacks in March to 2.2 million in June.

BEC attacks hit 9 million in March, falling to 3.9 million in June.

But even as these phishing classics lost momentum and newer techniques emerged, Microsoft’s defensive advice remained rooted in the basics. It noted organizations should complement email filtering with phishing-resistant authentication such as passkeys and phishing-resistant MFA to reduce the effectiveness of credential theft campaigns.

The company also recommended strengthening Exchange Online Protection and Microsoft Defender for Office 365 with capabilities such as Safe links and Zero-hour Auto Purge (ZAP), in which malicious emails already delivered to mailboxes are removed before they are read, alongside enforcing password-less authentication methods like Windows Hello, FIDO keys, and Microsoft Authenticator.

Microsoft concluded its report with a list of indicators of compromise (IoCs) from the threats observed in the quarter to support detection efforts.

This article first appeared on CSO.

Foto: I Believe I Can Fly – shutterstock.com

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.

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

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

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

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

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

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

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

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

A steep learning curve

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

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

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

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

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

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

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

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

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

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

Routing

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

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

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

Harness

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

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

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

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

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

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

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

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

Specialization

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

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

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

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

In brief:

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

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

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

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

Why do software companies need new metrics?

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

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

How this shift is impacting pricing

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

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

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

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

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

How AI upends classic SaaS metrics

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

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

Revenue composition

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

Margin reality

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

Behavioral and value signals

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

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

What does this mean for enterprise value calculations?

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

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

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

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

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

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

What this means for leaders, boards and investors

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

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

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

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

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

Why advanced prompting still matters in enterprise settings

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

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

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

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

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

After (CoT prompt):

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

Results: Accuracy and depth improved dramatically.

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

Template you can use:

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

[Task or question]

For each step:

1. State your observation or calculation.

2. Explain the implication.

3. Proceed only when confident.

Final answer in this format: [structured output]

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

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

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

Prompt Snippet:

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

Path 1: Focus on cost and scalability.

Path 2: Focus on security, compliance and integration.

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

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

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

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

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

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

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

ReAct example: (used in data analytics workflow)

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

1. Reason about what information you need.

2. Choose the appropriate tool or action.

3. Observe the result.

4. Repeat until you can answer confidently.

Query: [user request]

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

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

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

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

Original prompt: [paste]

Provide the improved version and explain your changes.

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

5. Multimodal and structured output techniques

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

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

Best practices I learned the hard way

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

Final takeaways for technical leaders

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

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

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

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

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

The benchmark has moved

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

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

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

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

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

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

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

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

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

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

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

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

The CIO’s real problem

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

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

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

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

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

Closing the gap without slowing down

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

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

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

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

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

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

AI as a leadership multiplier

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

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

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

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

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

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

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

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

AI as a new operational framework

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

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

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

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

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

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

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

Risks in the AI adoption model

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

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

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

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

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

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

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

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

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

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

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

When governance becomes a debate about delivery practices

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

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

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

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

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

Authority is rarely the issue. Literacy is

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

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

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

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

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

Shift the conversation from delivery practices to business risk

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

MCP’s new features

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

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

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

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

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

Rebuilding the trust boundary

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

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

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

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

Updated MCP SDKs

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

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

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

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

This article first appeared on InfoWorld.