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.

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

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

Who can use Copilot in PowerPoint

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

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

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

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

In this article:

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

Working with Copilot in PowerPoint

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

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

Howard Wen / Foundry

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

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

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

Howard Wen / Foundry

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

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

1. Create a presentation template

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

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

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

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

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

Howard Wen / Foundry

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

2. Create a presentation from a document

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

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

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

Howard Wen / Foundry

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

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

Howard Wen / Foundry

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

3. Add content from a document to a slide

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

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

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

Howard Wen / Foundry

4. Refine your slide text

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

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

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

Howard Wen / Foundry

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

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

• Make these slides more visual and use less text.

5. Find or create an image

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

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

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

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

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

Howard Wen / Foundry

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

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

6. Expand your presentation with relevant slides

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

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

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

Howard Wen / Foundry

7. Summarize a presentation

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

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

Howard Wen / Foundry

8. Answer questions about a presentation

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

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

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

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

Howard Wen / Foundry

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

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

9. Help you navigate a large presentation

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

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

• Show me the slides about the project timeline.

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

Howard Wen / Foundry

10. Generate speaker notes and/or an FAQ

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

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

Howard Wen / Foundry

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

• Write an FAQ for these slides.

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

Howard Wen / Foundry

Related reading:

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

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

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

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

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

Notable tech layoffs in 2026

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Layoffs in 2025

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

Global tech-sector layoffs surpass 244,000 in 2025

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Feb. 21, 2025: CISA lays off 130

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

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

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

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

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

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

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

Tech layoffs in 2024

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

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

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

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

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

Nov. 7, 2024: Freshworks lays off 660

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

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

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

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

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

August 1, 2024: Intel removes 15,000 roles

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

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

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

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

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

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

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

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

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

See news of earlier layoffs.

Luke Baker

Auf einen Blick

Pro

• Wunderschönes, schlankes Design
• Große, helle Displays
• Hervorragende Kameras
• Coole Software-Funktionen

Kontra

• Hoher Preis
• MagicOS kann gelegentlich frustrierend sein

Fazit

Das Honor Magic V6 ist ein Falt-Smartphone, das einfach alles kann. Es ist schlank, robust, leistungsstark und sieht gut aus. Die Kameras gehören zu den besten, die Software bietet einige raffinierte Funktionen und die Akkulaufzeit ist außergewöhnlich. Besitzer eines Magic V5 werden wahrscheinlich kaum einen Grund für ein Upgrade sehen, aber für alle anderen ist es eine gute Wahl – sofern Sie es sich leisten können.

Das Honor Magic V6 wurde ursprünglich bereits im März in China vorgestellt, doch es dauerte eine Weile, bis es den Weg nach Europa fand. Nun ist es endlich in Europa erhältlich und strebt den Titel des bislang besten Falt-Smartphones an.

Leider ist die Konkurrenz für Honor stärker denn je, und sie wird noch härter werden, sobald Apples seit Langem gemunkeltes Foldable auf den Markt kommt. Bietet dieses schlanke Kraftpaket genug, um weiterhin überzeugend zu bleiben?

Es sieht auf jeden Fall vielversprechend aus, verfügt über einen der größten Akkus aller jemals erschienenen Falt-Smartphones, ist das erste mit IP69-Zertifizierung und gehört dennoch zu den dünnsten Modellen. Das ist schon mal ein guter Anfang. Ich habe es in den vergangenen Wochen auf Herz und Nieren geprüft, und hier ist mein Fazit.

Design & Verarbeitung

• Aluminiumrahmen, Rückseite aus Verbundfasermaterial
• 219 g, NanoCrystal Shield-Glas
• IP69-zertifiziert

Das Honor Magic V6 sieht dem Magic V5 sehr ähnlich, wobei der auffälligste Unterschied in der Form des Kamerarahmens liegt. Dieser ist nun kantiger und weist eine achteckige Form auf. Auch neue Farbvarianten tragen dazu bei, es von der Vorgängergeneration abzugrenzen.

Luke Baker

Die rote Version ist wahrscheinlich die auffälligste; sie verfügt über eine tiefrote, fast blutrote Rückseite mit strukturierter Oberfläche. Ich besitze die goldene Version, die ebenfalls sehr auffällig ist. Freunde haben bemerkt, dass es wie ein Smartphone aussieht, das ein saudischer Prinz oder Kim Kardashian benutzen würde.

Die Farbe schimmert leicht, wenn Licht darauf fällt; sowohl am Scharnier als auch auf der Rückseite ist ein dezentes, sich wiederholendes Dreiecksmuster zu erkennen, und es bleibt irgendwie frei von Fingerabdrücken, obwohl es ziemlich glänzend ist. Das sieht wirklich cool aus. Auch die mitgelieferte Hülle ist von höchster Qualität, mit einem cremefarbenen Kunstlederbezug und einem roségoldenen Kamerarahmen, der gleichzeitig als ausklappbarer Ständer dient.

Wenn Sie etwas suchen, das etwas weniger Aufmerksamkeit auf sich zieht, gibt es natürlich auch traditionellere Modelle in Schwarz und Weiß. Letzteres hat zudem einen versteckten Vorteil: Mit nur 8,75 Millimetern im geschlossenen Zustand ist es das dünnste Modell der Reihe, und Honor geht davon aus, dass es derzeit das dünnste Falt-Smartphone auf dem Markt ist.

Ich habe das weiße Modell nicht ausprobiert, und vielleicht ist es tatsächlich spürbar schlanker, aber meiner Meinung nach sieht die goldene Version definitiv etwas dicker aus und fühlt sich auch so wie mein 8,9 Millimeter dickes Galaxy Z Fold 7 an.

Das ist allerdings Haarspalterei, denn dieses Smartphone ist immer noch dünner als viele Flaggschiff-Smartphones im Barrenformat. Ob es nun das dünnste ist oder nicht – es ist auf jeden Fall dünn genug, um sich in der Hosentasche angenehm anzufühlen.

Luke Baker

Erwähnenswert ist auch, dass das Cover-Display nun flach ist und eine symmetrischere Form aufweist. Dadurch sieht das Smartphone im zusammengeklappten Zustand noch mehr wie ein herkömmliches Barren-Handy aus, doch die unvermeidliche, eckige Kante am Scharnier verrät es ein wenig.

So wichtig die Abmessungen eines Klapphandys auch sind, ebenso entscheidend ist die Robustheit. Und glücklicherweise ist das Honor Magic V6 robust wie ein Panzer gebaut.

Es verfügt über die Schutzklasse IP69 – die höchste aller faltbaren Smartphones. Das bedeutet, dass es praktisch staubdicht ist und sowohl das Eintauchen in Süßwasser als auch den Strahl von heißem Wasser problemlos aushält. Die Technologie der faltbaren Smartphones hat große Fortschritte gemacht.

Es ist zudem besonders robust konstruiert, mit kratzfestem „NanoCrystal Shield“-Glas auf der Vorderseite und einem „Super Steel“-Scharnier, das die Stoßfestigkeit verbessert.

SGS-Zertifizierungen untermauern diese Angaben ebenfalls, da das Smartphone für seine Fallfestigkeit mit 5 Sternen ausgezeichnet wurde. Ich habe mein Testgerät nicht allzu grob behandelt, aber es ist beruhigend zu wissen, dass es unversehrt bleiben dürfte, sollte mir einmal ein Ausrutscher unterlaufen.

Bildschirm & Lautsprecher

• Außen: 6,52 Zoll, 1.080 x 2.420, OLED, 120 Hertz
• Innen: 7,95 Zoll, 2.172 × 2.352, OLED, 120 Hertz
• Stereolautsprecher

Bei Falt-Smartphones dreht sich alles um den Bildschirm. Beginnen wir also mit dem Star der Show: dem inneren Display. Mit einer Diagonale von knapp unter 8 Zoll gehört es zu den größten Falt-Smartphones im Buchformat auf dem Markt.

Es ist nahezu perfekt quadratisch, was sich hervorragend für die parallele Nutzung zweier Apps eignet.

Luke Baker

Dieses flexible Display verfügt über eine Bildwiederholfrequenz von 120 Hertz und erreicht eine beeindruckende Spitzenhelligkeit von 5.000 Nits. Solche Helligkeitsangaben sollten Sie zwar stets mit einer gehörigen Portion Skepsis betrachten, doch unabhängig davon handelt es sich um ein sehr helles Display, das auch im Freien gut ablesbar ist.

Der innere Bildschirm ist mit einer glänzenden Schutzfolie versehen (wenn auch mit einer Antireflexbeschichtung), was sowohl Vor- als auch Nachteile mit sich bringt. Wie ich bereits in anderen Testberichten zu Falt-Smartphones erwähnt habe, kaschieren mattierte Schutzfolien die Falz zwar besser, ziehen aber auch Fingerabdrücke an. Diese hier verschmiert nicht so leicht, doch trotz aller Bemühungen von Honor treten entlang der Falz einige unerwünschte Reflexionen auf.

Luke Baker

Apropos: Die Falz ist bewundernswert flach, und noch vor nicht allzu langer Zeit wäre sie die beste gewesen, die mir je begegnet wäre. Allerdings nutze ich das Oppo Find N6 seit seiner Markteinführung fast täglich, und leider kann dieses Modell da nicht ganz mithalten.

Es ist dennoch äußerst beeindruckend und um Längen besser als das Pixel 10 Pro Fold. Auch im Vergleich zum Galaxy Z Fold 7 fällt die Falz etwas weniger auf.

Was das Außendisplay betrifft, so ist es fast nicht von dem Bildschirm eines Flaggschiff-Handys im Barren-Format zu unterscheiden, abgesehen davon, dass es ganz leicht schmaler ist als üblich. Es verfügt über schöne, schmale Einfassungen an allen Seiten, eine flinke Bildwiederholfrequenz von 120 Hertz und eine noch höhere Spitzenhelligkeit von 6.000 Nits.

Wie bereits bei den letzten Generationen der faltbaren Honor-Modelle gibt es keine nennenswerten Nachteile bei der Nutzung des zusammengeklappten Telefons; es fühlt sich einfach wie ein normales Smartphone an. Wenn Sie dann einen größeren Bildschirm für Ihre Inhalte, Spiele oder Multitasking benötigen, klappen Sie es einfach auf.

Luke Baker

Wie üblich hat Honor einiges in Funktionen zum Augenschutz investiert, und beide Bildschirme unterstützen eine PWM-Dimmung mit 4.320 Hertz. Das werden Sie besonders zu schätzen wissen, wenn Sie empfindlich auf Flackern reagieren. Beide Bildschirme unterstützen zudem die Eingabe per Stylus, allerdings hatte ich leider keinen Honor-Stylus zur Hand, um dies auszuprobieren.

Die luxuriösen Displays werden durch ein ordentliches Lautsprecherset ergänzt. Das Stereopaar erzeugt eine schöne, breite Klangbühne, kann mehr als laut genug werden und bietet eine ordentliche Basswiedergabe. Sie können zwar nicht mit den bassbetonten Lautsprechern des Magic 8 Pro mithalten, aber bei einem so schlanken Gehäuse sind die Möglichkeiten nun einmal begrenzt.

Technische Daten & Leistung

• Qualcomm Snapdragon 8 Elite Gen 5
• 16 GB RAM
• 512 GB Speicher

Das Magic V6 verfügt über den leistungsstärksten Chip von Qualcomm, den Snapdragon 8 Elite Gen 5, und das globale Modell ist mit 16 GB RAM und 512 GB Speicher ausgestattet. Bei einem so schlanken Falt-Smartphone stellt die Wärmeableitung stets eine Herausforderung dar, doch Honor hat hier eine großzügig dimensionierte Vapor-Chamber verbaut, um eine optimale Leistung zu gewährleisten.

Luke Baker

Das V6 hat meine täglichen Leistungsanforderungen problemlos erfüllt. Bei einem Falt-Smartphone habe ich oft drei Apps gleichzeitig geöffnet, wechsle zwischen ihnen hin und her und spiele häufig gleichzeitig Musik ab oder streame Videos. Selbst dann kam das Smartphone kaum ins Schwitzen.

Man muss schon ein ziemlich anspruchsvolles Spiel starten, um dieses Smartphone ein wenig ins Schwitzen zu bringen, und wie es der Zufall so will, bin ich ziemlich süchtig nach NTE: Neverness to Everness (ein Open-World-Spiel mit atemberaubender Grafik und einer riesigen Stadtkarte, mit deren Darstellung die meisten Smartphones zu kämpfen haben). Doch das Magic V6 hatte damit kaum Probleme.

Das Spiel lief bei der Grafikvoreinstellung „Extreme“ flüssig mit 60 FPS, und obwohl es sich ziemlich stark erwärmte – insbesondere im Bereich der Kamera –, schien die Leistung darunter nicht zu leiden. Die beste Erfahrung machte ich mit einem GameSir-Clamp-Controller, der die Wärme von meinen Handflächen fernhielt.

Luke Baker

Honor Magic V6 – Benchmark-Ergebnisse

Was die Benchmark-Ergebnisse angeht, wird es recht interessant. Während die meisten Ergebnisse hervorragend waren, hatte das Smartphone erhebliche Schwierigkeiten, den 3DMark Wildlife Extreme Stress Test abzuschließen. Normalerweise führe ich diesen Test bei aufgeklapptem Smartphone durch, doch es überhitzte sich und brach den Benchmark jedes Mal ab, wenn ich es versuchte.

Zugegebenermaßen war es in letzter Zeit recht warm, doch so etwas ist mir bisher noch nie passiert. Bei der Durchführung des Tests auf dem Cover-Display konnte es den Test mit einem ordentlichen Ergebnis abschließen, auf dem klappbaren Bildschirm war dies jedoch nicht möglich. Im alltäglichen Gebrauch hatte ich jedoch nie derartige Probleme.

Kameras

• 50-MP-Hauptkamera mit f/1,6
• 64 MP, f/2,5, 3-fach-Tele
• 50 MP, f/2,2 Ultraweitwinkel
• 20 MP, f/2,2 Selfie-Kamera

Das Honor Magic V6 verfügt über dieselbe Kamera-Hardware wie die Vorgängergeneration, was bedeutet, dass es keine nennenswerten Neuerungen gibt.

Allerdings verfügte das V5 bereits über eine der beeindruckendsten Kameraausstattungen unter allen faltbaren Smartphones, und die Konkurrenz hat sich in dieser Hinsicht nicht sonderlich ins Zeug gelegt – daher gehört es nach wie vor zu den Besten.

Luke Baker

Auf der Rückseite befindet sich eine 50-MP-Hauptkamera mit einem Sensor von ansehnlicher Größe (1/1,56 Zoll) und einem lichtstarken f/1,6-Objektiv. Hinzu kommen eine 50-MP-Ultraweitwinkelkamera mit einem extrem weiten Sichtfeld (entspricht 13 mm) sowie ein ausgezeichnetes 64-MP-Teleobjektiv. Außerdem gibt es zwei 20-MP-Selfie-Kameras, von denen jeweils eine durch das jeweilige Display ragt.

Dies ist eine äußerst vielseitige Objektivausstattung, mit der Sie alles aufnehmen können – von weitläufigen Landschaften bis zu intimen Porträts. Wie üblich hat mir die Verwendung des Teleobjektivs am meisten Spaß gemacht, und dies könnte die beste Tele-Kamera sein, die jemals in einem faltbaren Smartphone verbaut wurde.

Es verfügt über einen recht großen 1/2-Zoll-Sensor und kann aus sehr kurzer Entfernung fokussieren. Ihr Motiv muss sich lediglich etwa 20 Zentimeter vom Objektiv entfernt befinden, und in Kombination mit der Brennweite von 70 mm (äquivalent) entsteht so eine schöne perspektivische Kompression und ein natürliches Bokeh.

Natürlich können Sie mit einem digitalen Ausschnitt noch weiter zoomen, und die Kamera-App ermöglicht Ihnen auf Wunsch eine bis zu 100-fache Vergrößerung. Bei einer Vergrößerung von mehr als 10-fach können Sie generative KI nutzen, um die Bilder zu bereinigen, doch auch ohne diese Funktion erhalten Sie bereits bei etwa 20-facher Vergrößerung brauchbare Bilder.

Ich habe bereits erwähnt, wie weitwinklig das Ultraweitwinkelobjektiv ist, und das gefällt mir besonders gut daran; ansonsten ist es jedoch im Vergleich zu den anderen Objektiven definitiv ein Qualitätsverlust.

Nachts ist es zudem am wenigsten überzeugend, da Bewegungsunschärfe dort nur schwer zu bewältigen ist. Bei den richtigen Lichtverhältnissen ist es jedoch zu wirklich beeindruckenden Aufnahmen fähig.

Luke Baker

Die Hauptkamera ist wie immer die zuverlässigste des Trios. Dank des größeren Sensors schneidet sie bei schlechten Lichtverhältnissen am besten ab und liefert tagsüber etwas schärfere Bilder als die anderen Kameras.

Die Selfie-Kameras sind nichts Besonderes. Sie erfüllen ihren Zweck und eignen sich für Zoom-Anrufe, doch wenn man auf der Rückseite so beeindruckende Kameras hat, lohnt es sich wirklich, das Smartphone umzudrehen und den Bildschirm auf der Rückseite zu nutzen, um wirklich beeindruckende Fotos zu machen.

Die Bildverarbeitung von Honor kann etwas unbeständig sein, aber ich habe den Eindruck, dass sie immer konsistenter wird, und wenn sie funktioniert, lassen sich wirklich atemberaubende Bilder erzielen.

Mein größter Kritikpunkt ist die Bewegungsunschärfe im Porträtmodus. Ich bin mir nicht sicher, woran es liegt, aber ich erhalte viele unscharfe Aufnahmen, wenn die künstliche Hintergrundunschärfe aktiviert ist – selbst bei guten Lichtverhältnissen.

Ansonsten bin ich mit den Bildern, die ich mit dem Magic V6 aufgenommen habe, sehr zufrieden. Die Harcourt-Porträtmodi sind so beeindruckend wie eh und je, und mit den übrigen Filtern lässt sich der Look Ihrer Fotos ziemlich drastisch verändern. Besonders gut gefällt mir der Filter „Nostalgic Negative“, der einen schönen, kontrastreichen Cross-Entwicklungs-Look mit blauen Schatten erzeugt.

Was die Videoaufnahmen angeht, ist das Angebot etwas weniger umfangreich. Das soll nicht heißen, dass es schlecht ist, aber nachdem ich viel Zeit mit dem Oppo Find N6 verbracht habe, habe ich mich an ein ordentliches Log-Profil, 4K-120-Aufnahmen und Dolby Vision gewöhnt. Nichts davon ist hier vorhanden. Es gibt zwar ein Log-Profil, dieses funktioniert jedoch nur mit dem Hauptsensor und erzeugt ungewöhnlich körnige Schatten.

Wenn Sie jedoch keine ganz so professionellen Ansprüche haben, werden Sie mit der Videoleistung wahrscheinlich sehr zufrieden sein. Sie können mit jeder Kamera bis zu 4K bei 60 FPS aufnehmen, mit Ausnahme der Selfie-Kamera, die maximal 4K bei 30 FPS erreicht. Die Bildstabilisierung ist gut, und auch die Mikrofone sind ordentlich.

Akkulaufzeit & Aufladen

• 6.660-mAh-Akku
• 80-Watt-Laden über Kabel
• 66 Watt kabelloses Laden

Das Honor Magic V6 verfügt über den größten Akku aller faltbaren Smartphones, die ich bisher getestet habe. Irgendwie ist es Honor gelungen, einen 6660-mAh-Akku in dieses hauchdünne Gehäuse zu integrieren. Samsun wird hoffentlich davon lernen.

Diese Kapazität verblasst zwar im Vergleich zur chinesischen 1-TB-Version dieses Smartphones, die über einen erstaunlichen 7.150-mAh-Akku verfügt, doch wie wir in letzter Zeit oft gesehen haben, bedeuten die EU-Vorschriften, dass wir im Westen keinen ganz so massiven Akku erhalten können.

Luke Baker

Das spielt jedoch keine allzu große Rolle, denn dieser Akku ist mehr als gut genug. Obwohl ich den großen internen Bildschirm häufig nutzte und unzählige Fotos machte, reichte die Akkulaufzeit dieses Smartphones während des Großteils meiner Tests für eineinhalb Tage. Natürlich verkürzt intensives Gaming die Laufzeit etwas, aber Sie werden das Gerät selten, wenn überhaupt, vor dem Schlafengehen aufladen müssen.

Auch das Aufladen erfolgt schnell, vorausgesetzt, Sie verfügen über ein ausreichend leistungsstarkes Netzteil (im Lieferumfang ist lediglich ein USB-C-Kabel enthalten), um die 80-Watt-Geschwindigkeit nutzen zu können. Ich konnte das Gerät in nur einer halben Stunde von leer auf fast 70 Prozent aufladen; mehr kann man sich kaum wünschen.

Wenn Sie kabelloses Laden bevorzugen, ist dies ohne nennenswerte Einbußen bei der Geschwindigkeit möglich. Das Honor Magic V6 lässt sich mit einem offiziellen kabellosen Ladepad von Honor mit bis zu 66 Watt aufladen.

Software & Apps

• MagicOS 10, basierend auf Android 16
• Zahlreiche KI-Funktionen
• Kompatibilität mit dem Apple-Ökosystem

Auf dem Magic V6 läuft MagicOS 10, Honors eigene Variante von Android 16. Es handelt sich im Wesentlichen um dieselbe Software, die wir bereits von den letzten Honor-Flaggschiffmodellen kennen. Wenn Sie also bereits eines dieser Modelle ausprobiert haben, werden Sie kaum Überraschungen erleben.

Luke Baker

Die Software von Honor kann die Meinungen spalten. Sie weicht ziemlich stark vom typischen Android-Erlebnis ab; stattdessen erinnert sie zunehmend an iOS. Ob das nun gut ist oder nicht, hängt ganz von Ihren Vorlieben ab.

Allerdings lässt sich die Benutzeroberfläche extrem gut anpassen – wenn Ihnen also das Design oder das Layout einer Funktion nicht gefällt, können Sie es höchstwahrscheinlich ändern.

Insgesamt gefällt sie mir recht gut. Sie wirkt schnell und reaktionsfreudig, sieht standardmäßig ansprechend aus und bietet zahlreiche Werkzeuge zur weiteren Anpassung. Wie bereits erwähnt, gibt es zahlreiche Anlehnungen an iOS, darunter einige „Liquid Glass“-ähnliche Elemente, einen „Dynamic Island“-Klon, geteilte Benachrichtigungen/Schnelleinstellungen sowie die Möglichkeit, die App-Übersicht zu deaktivieren.

Das sind zwar nicht die originellsten Entscheidungen, aber sie funktionieren gut, und die meisten sind vollkommen optional.

Honor bietet Ihnen eine Vielzahl von KI-Funktionen, darunter die üblichen Tools für Transkription, Übersetzung und Zusammenfassung sowie einige sehr fortschrittliche Funktionen zur Fotobearbeitung.

Luke Baker

Auch das Multitasking ist hervorragend. Sie können Apps im Split-View nebeneinander anzeigen und dann eine dritte hinzufügen, die nur am Rand des Bildschirms hervorblitzt und bei Bedarf sofort einsatzbereit ist. Oder, wenn Sie es vorziehen, können Sie schwebende Fenster nutzen und so noch mehr Inhalte gleichzeitig auf dem Bildschirm anzeigen.

Am spannendsten finde ich jedoch die Art und Weise, wie sich das Magic V6 in Apple-Produkte integrieren lässt. Insbesondere, wie gut es mit meinem Macbook zusammenarbeitet. Wenn Sie die Honor Workstation-App aus dem Mac App Store installieren, können Sie Dateien austauschen, zwischen Geräten kopieren und einfügen, Ihr Smartphone fernsteuern und das V6 sogar als drahtlosen zweiten Bildschirm nutzen.

Luke Baker

Doch damit ist der Spaß noch lange nicht vorbei. Das Honor Magic V6 kann auch nativ Dateien in Ihrem iCloud-Konto durchsuchen und verwalten, und mit Honor Connect können Sie Dateien auch per AirDrop zu und von iPhones übertragen. Das ist großartig, wenn Sie ständig zwischen verschiedenen Ökosystemen hin- und herwechseln (wie ich es oft tue).

Insgesamt ist es also ein solides Software-Erlebnis, das jedoch nicht ganz ohne Nachteile ist. Meine größte Kritik an Honor-Smartphones ist seit einigen Jahren unberücksichtigt geblieben. Das Akkumanagement ist extrem aggressiv und beendet standardmäßig Hintergrund-Apps mit rücksichtsloser Härte.

Das bedeutet, dass Sie häufig unter stark verzögerten Benachrichtigungen leiden, bis Sie einige Einstellungen anpassen und sicherstellen, dass diese Apps geöffnet bleiben.

Luke Baker

Das lässt sich zwar leicht beheben, und ich kann die Logik dahinter nachvollziehen – schließlich bieten Honor-Smartphones stets eine hervorragende Akkulaufzeit –, doch es ist äußerst ärgerlich, und ich würde mich sehr freuen, wenn dieses Problem behoben würde.

Honor verspricht sieben Jahre lang Software-Updates und Sicherheitspatches für seine Flaggschiff-Geräte und liegt damit auf einer Stufe mit Samsung und Apple. Viel besser geht es kaum, auch wenn Sie möglicherweise eine Weile auf das auf Android 17 basierende MagicOS 11 warten müssen.

Preis & Verfügbarkeit

Das Honor Magic V6 kann ab sofort in Deutschland und den meisten anderen Ländern der Welt bestellt werden, wobei die USA wie üblich ausgeschlossen sind. Hierzulande liegt der Preis bei stolzen 2.299 Euro, wobei es bis zum 31. Juli noch einen Rabatt von 600 Euro gibt (Endpreis: 1.699,90 Euro).

Als besonderes Einführungsangebot legt Honor auch eine Reihe kostenloser Extras wie ein Tablet, einen Stift und ein Set Earbuds bei. Das macht eine Beurteilung des Preises ziemlich schwierig. Auf dem Papier ist das Magic V6 deutlich teurer als das V5, das im vergangenen Jahr für 1.999 Euro auf den Markt kam. Und das schmerzt, insbesondere wenn man bedenkt, dass es seinem Vorgänger so ähnlich ist. Mit dem Rabatt ist es jedoch günstiger.

Preislich bewegt es sich trotzdem noch in einem ähnlichen Rahmen wie viele andere Falt-Smartphones, die wir getestet haben. Darunter das Motorola Razr Fold, das Samsung Galaxy Z Fold 7 und das Google Pixel 10 Pro Fold.

Sollten Sie das Honor Magic V6 kaufen?

Das Magic V6 ist zweifellos eines der attraktivsten faltbaren Smartphones, die derzeit auf dem Markt erhältlich sind. Die Hardware ist hervorragend, die Bildschirme sind beeindruckend, es ist leistungsstark und die Kameras sind erstklassig. Wenn Sie ein faltbares Smartphone mit großem Bildschirm suchen, aber bei den Kameras keine allzu großen Abstriche machen möchten, ist dies eine hervorragende Wahl.

Allerdings könnten versierte Käufer sich für das Vorjahresmodell entscheiden und für deutlich weniger Geld ein sehr ähnliches Gesamterlebnis erhalten. Es ist nach wie vor extrem leistungsstark und verfügt über dieselben Kameras. Es wird jedoch nicht ewig vorrätig sein.

Man sollte auch bedenken, dass das Galaxy Z Fold 8 und das Z Fold 8 Ultra voraussichtlich im Juli 2026 erscheinen werden, während Apples lang erwartetes faltbares iPhone wahrscheinlich im September vorgestellt wird. Ich persönlich würde mir daher erst einmal ansehen, was diese Modelle zu bieten haben, bevor ich den Sprung wage.

Wenn Sie nicht warten können, ist das Honor Magic V6 eine hervorragende Wahl und wird dies wahrscheinlich auch bleiben. Ich kann mir nicht vorstellen, dass Samsung die Akkukapazität übertreffen wird, und ich bezweifle sehr, dass es in puncto Kameraleistung übertroffen wird. Abgesehen von ein paar kleinen Software-Mängeln ist es ein brillantes Smartphone.

Technische Daten

• MagicOS 10, basierend auf Android 16
• Außen: 6,52 Zoll, 1.080 x 2.420, OLED, 120 Hz
• Innen: 7,95 Zoll, 2172 × 2352, OLED, 120 Hz
• Fingerabdrucksensor im Ein-/Aus-Schalter
• Qualcomm Snapdragon 8 Elite Gen 5
• 16 GB RAM
• 512 GB Speicher
• Kamera:
• 50 MP, f/1,6 Hauptkamera
• 64 MP, f/2,5, 3-fach-Teleobjektiv
• 50 MP, f/2,2 Ultraweitwinkel
• Doppelte 20-MP-Selfie-Kamera mit f/2,2
• Videoaufnahmen mit bis zu 4K bei 60 fps (Rückkamera)
• Stereolautsprecher
• Dual-SIM
• WLAN 802.11 a/b/g/n/ac/6e/7
• Bluetooth 6.0
• 6660-mAh-Akku
• 80-W-Laden über Kabel
• 66 W kabelloses Laden
• 156,7 × 74,5 × 8,8 mm (zusammengeklappt)
• IP69-zertifiziert
• 219 g
• Farben: Gold, Rot, Weiß, Schwarz

(PC-Welt)

Mike Sawh

Auf einen Blick

Pro

• Insgesamt solide Tracking-Leistung
• Ansprechende Begleit-App mit einigen nützlichen Modi
• Beeindruckende Akkulaufzeit
• Ohne Abonnement

Kontra

• Hoher Preis
• Klobiges Design
• Softwarefunktionen entsprechen weitgehend denen des Air

Fazit

Der Ultrahuman Ring Pro bietet ein hervorragendes Hardware- und Software-Erlebnis und zählt damit zu den besten Smart-Ringen. Das Problem ist der hohe Anschaffungspreis, ganz zu schweigen davon, dass die Konkurrenz – sowohl bei Modellen mit als auch ohne Abonnement – für manche Nutzer attraktivere Eigenschaften bieten kann.

Der Ultrahuman Ring Pro ist der neueste Smart-Ring eines Unternehmens, das sich seit Langem im Konflikt mit Oura befindet. Nachdem der Verkauf seines Vorgängermodells in den USA vorübergehend untersagt worden war, kehrt Ultrahuman nun mit einem neuen Ring zurück, der über neu gestaltete Sensoren, eine verbesserte Prozessorleistung und eine längere Akkulaufzeit verfügt.

Der Ring Air ist weiterhin als günstigere Alternative zum Pro erhältlich, doch wenn Sie das Beste wollen, was Ultrahuman zu bieten hat, ist dieser hier die richtige Wahl.

Leider sind die Preise für die Ringe von Ultrahuman – ähnlich wie bei dem ebenfalls abonnementfreien Konkurrenten RingConn – leicht gestiegen, was bedeutet, dass sich der Pro wirklich hervorheben muss, um die höheren Kosten zu rechtfertigen und zu einer der ersten Wahl unter den Smart-Ringen zu werden.

Design & Verarbeitung

• Erhältlich in vier Farbvarianten
• Dickeres Design als der Ring Air
• Ladeetui im Lieferumfang enthalten

Der Ring Pro ist ein Smart-Ring mit einem schlichten Design, der in vier verschiedenen Farben erhältlich ist: Bionic Gold, Space Silver, Aster Black und Raw Titanium. Der Kern des Rings besteht aus Titan mit einer PVD-Beschichtung, die ihn vor Kratzern schützt. Ich habe festgestellt, dass frühere Ultrahuman-Ringe zu den am leichtesten zu zerkratzenden gehörten. Daher freue ich mich, dass der Pro Kratzer besser abwehrt.

Mike Sawh

Genau wie der Air ist auch der Pro in den Ringgrößen 5–14 erhältlich und bis zu einer Tiefe von 100 Metern wasserdicht. Ich habe mich für dieselbe Größe wie beim Air entschieden, und die Passform scheint ähnlich zu sein, wenn nicht sogar insgesamt etwas besser, da der Ring seltener an meinem Finger herumrutscht. Er ist sehr bequem und sitzt gut am Finger. Man spürt zwar die Sensoren, doch sie sind nicht so deutlich spürbar wie bei früheren Modellen.

Im Vergleich zum Ring Air von Ultrahuman erhalten Sie einen schwereren und dickeren Ring. Da ich den Oura Ring 5 gleichzeitig getragen habe, wirkt der Pro deutlich größer als der neueste Ring von Oura.

Der Pro wird mit einem Ladecase geliefert, und obwohl man es nicht mit dem neuen Case von Oura verwechseln würde, verfügt es über ein ähnlich robustes Metall-Design, das den Ring schützt, wenn er nicht am Finger getragen wird. Das Etui verfügt über zusätzliche intelligente Funktionen wie kabelloses Laden, einen „Find-my-Case“-Modus für den Fall, dass Sie es verlegen, ganz zu schweigen von der Möglichkeit, Ringdaten bis zu einem Jahr lang zu speichern.

Ein interessanter Aspekt des Designs ist, dass Ultrahuman den Ring so konzipiert hat, dass er im Falle einer Schwellung leicht durchtrennt und entfernt werden kann. Auch wenn ich hoffe, dass niemand jemals in eine solche Situation gerät, ist es beruhigend zu wissen, dass sich der Ring in einem Notfall problemlos entfernen lässt.

Fitness & Tracking

• Überarbeitete Temperatur- und Herzfrequenzsensoren
• Neuer Dual-Core-Prozessor
• Powerplugs bieten zusätzliche Funktionen gegen Aufpreis

Der Ring Pro kann so gut wie alles überwachen, was auch der Air kann. Dazu gehören Herzfrequenz, Schlaf, Stress, Temperatur und die tägliche Schrittzahl. Die größte Änderung besteht darin, dass die optischen Sensoren, die zur Erfassung dieser Messwerte verwendet werden, überarbeitet wurden und nun klarere Signale liefern, um Schlaf- und Erholungsdaten zu erfassen.

Diese Neugestaltung scheint zudem mit den Patentstreitigkeiten mit Oura in Zusammenhang zu stehen.

Mike Sawh

Die App, die diese Daten anzeigt, gehört zu den ausgereiftesten, die Sie bei einem Smart-Ring finden können. Sie steht der Oura-App in nichts nach, was die ansprechende Aufbereitung Ihrer Daten angeht, und regt Sie dazu an, sich tatsächlich damit auseinanderzusetzen.

Mike Sawh

Was die Erfassung der Kerndaten angeht, müssen Sie die zweiwöchige Kalibrierungsphase unbedingt durchlaufen, bis Sie zuverlässige Ergebnisse erhalten. Die Daten zu den durchschnittlichen Herzfrequenzwerten wiesen während dieses Zeitraums erhebliche Abweichungen auf, stabilisierten sich jedoch nach diesen zwei Wochen.

Die Daten zur Ruheherzfrequenz und die Messungen der Herzfrequenzvariabilität stimmten besonders gut mit zwei anderen Trackern überein, die ich parallel zum Pro trug.

Bei der Betrachtung der Schrittzahlen stellte ich fest, dass die gemeldeten Gesamtwerte deutlich niedriger waren als bei zwei anderen Trackern, mit denen ich den Pro verglichen habe.

Die Leistung bei der Schlafaufzeichnung gehört zu den besten, die ich getestet habe, einschließlich Oura. Was die Schlafdauer, die Aufschlüsselung der Schlafphasen und den erfassten Zeitpunkt des Einschlafens betrifft, lieferte der Pro zuverlässige Werte.

Mike Sawh

Ultrahuman hebt sich von der Konkurrenz dadurch ab, dass es komplexe Daten in einem leicht verständlichen Format darstellt, beispielsweise bei der Bewertung des Gehirnalters oder der Erfassung des Schlafdefizits, das sich aus kumulierten schlechten Nächten ergibt. Es überwacht zudem, wie gut Ihr Gehirn während des Schlafs Abfallstoffe abbaut. Sie können auch die „PowerPlugs“ von Ultrahuman erkunden, bei denen es sich größtenteils um kostenlose Add-ons handelt, die eine individuellere Nachverfolgung ermöglichen.

Ich nutze derzeit das neue Parent-Modul, das besonders auf die kumulative Erholung achtet, berücksichtigt, dass der Schlaf wahrscheinlich unruhiger ist, und Ihnen Tipps gibt, wie Sie wieder in die richtige Bahn kommen können.

Mike Sawh

Wie bereits erwähnt, sind die meisten dieser PowerPlugs kostenlos. Es gibt jedoch auch solche, die Einblicke in spezielle Krankheiten wie Migräne bieten oder Daten mit einem Tesla synchronisieren; hierfür ist ein monatliches Abonnement erforderlich. Dabei handelt es sich um kostenpflichtige Funktionen, auf die die meisten Nutzer gut verzichten können.

Akkulaufzeit & Aufladen

• Bis zu 15 Tage Akkulaufzeit
• Bietet drei Akkubetriebsmodi
• Ladeetui sorgt für weitere 45 Tage

Die Akkulaufzeit ist ein wichtiges Thema beim Pro-Modell – und das nicht nur, weil er länger durchhält als der Air. Neben der Verlängerung der Akkulaufzeit von 4–6 Tagen auf 15 Tage stehen Ihnen drei Akkubetriebsmodi zur Verfügung, mit denen Sie das Beste aus jeder Ladung herausholen können.

Wenn Sie den Turbo-Modus wählen, bei dem alle Sensoren aktiviert sind, können Sie mit einer Laufzeit von bis zu 12 Tagen rechnen. Diese verlängert sich auf über 15 Tage, wenn Sie sich für den Chill-Akkumodus entscheiden. Dabei liegt der Schwerpunkt auf der Schlafaufzeichnung, doch wichtige Momente Ihres Tages werden weiterhin erfasst, um sicherzustellen, dass die wesentlichen Erkenntnisse weiterhin von Nutzen sind.

Ich habe mit dem Pro problemlos eine Akkulaufzeit von fast zwei Wochen erreicht, was eine beeindruckende Leistung ist. Das ist besser als beim Oura Ring 5 und liegt in Bezug auf die Akkuleistung auf Augenhöhe mit dem RingConn Gen 2.

Zudem verfügen Sie nun über das Ladecase, das Ihnen eine zusätzliche Akkulaufzeit von 45 Tagen bietet. Sie müssen den Ring jedoch präzise im Ladegerät platzieren; ein akustisches Signal aus dem integrierten Lautsprecher bestätigt, dass der Ring wieder aufgeladen wird. Als der Akku auf 0 Prozent sank, benötigte der Pro weniger als eine Stunde, um wieder auf 100 Prozent zu kommen.

Preis & Verfügbarkeit

Zum Zeitpunkt der Erstellung dieses Artikels kann der Ultrahuman Ring Pro für 499 Euro im Ultrahuman Store vorbestellt werden. Damit gehört er zu den teuersten Smart-Ringen auf dem Markt.

Er ist teurer als das günstigste verfügbare Modell des Oura Ring 5 und andere Smart-Ringe wie der Samsung Galaxy Ring. Der in Kürze erscheinende RingConn Gen 3 wird in den USA teurer sein als der Ring Pro, sollte in anderen Regionen jedoch günstiger sein.

Wie der Ring Air bleibt auch der Pro ein Smart-Ring ohne Abonnement. Einige der PowerPlug-Software-Erweiterungen sind jedoch mit zusätzlichen Kosten verbunden.

Sollten Sie den Ultrahuman Ring Pro kaufen?

Die großen Verbesserungen des Ring Pro gegenüber dem Air liegen in dem größeren Akku und dem robusteren Design. Ich habe die Überwachungsleistung des Air nie als unzureichend empfunden, und wenn Sie noch ein Exemplar ergattern können und ein Fan des Software-Ansatzes von Ultrahuman sind, dann ist er nach wie vor eine kluge (und günstigere) Anschaffung.

Vergleicht man den Ring Pro mit anderen Smart-Ringen, müssen wir über den Preis sprechen. Er ist teuer, und es gibt abonnementsfreie Alternativen zu einem günstigeren Preis. Ob diese Ihnen auf der Softwareseite das gleiche Maß an Sorgfalt und Aufmerksamkeit bieten, ist fraglich. Genau hier setzt sich der Ring Pro gegenüber einem Großteil der Konkurrenz durch.

Er ist vielleicht nicht der kleinste oder dünnste Ring, aber was der Ring Pro zu bieten hat, ist eine Kombination aus Hardware und Software, die ein hervorragendes Gesamtpaket ergibt.

Technische Daten

• Bis zu 15 Tage Akkulaufzeit
• Kompatibel mit Android und iOS
• Wasserdicht bis zu 100 Metern
• 2,65 mm dick
• Gewicht: 3,3–4,8 g
• Erfasst den Blutsauerstoffgehalt, die Herzfrequenz und die Körpertemperatur
• Erfasst den Schlaf und die tägliche Aktivität

(PC-Welt)

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

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

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

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

Recovery is not just a technical exercise

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

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

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

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

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

Most business continuity plans ignore ‘total blackout’

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

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

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

That is the level of clarity leaders need.

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

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

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

Threat intelligence must be actionable, not archived

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

This article first appeared on InfoWorld.

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

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

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

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

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

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

CRM becomes an action hero

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

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

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

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

Agentic drives workforce changes

AI use in CRM systems is also impacting workforce strategies.

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

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

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

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

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

Data layer takes center stage

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

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

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

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

Agentic ushers in pricing complexity

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

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

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

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

The rise of multi-agent orchestration

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

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

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

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

The interface becomes conversational

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

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

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

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

Agentic drives business process transformation

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

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

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

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

What is a business analyst?

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

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

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

Impact of AI on business analyst role

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

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

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

Business analyst job description

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

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

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

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

Business analyst skills

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

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

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

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

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

Business analyst salary

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

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

For tips on boosting your salary, click here.

Business analyst certifications

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

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

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

Business analytics tools and software

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

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

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

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

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

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

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

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

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

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

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

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

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

This article first appeared on CIO.

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

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

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

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

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

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

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

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

AI as a leadership multiplier

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

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

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

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

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

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

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

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

AI as a new operational framework

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

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

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

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

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

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

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

Risks in the AI adoption model

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

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

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

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

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

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

This article is published as part of the Foundry Expert Contributor Network.
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What is a business analyst?

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

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

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

Impact of AI on business analyst role

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

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

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

Business analyst job description

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

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

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

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

Business analyst skills

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

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

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

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

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

Business analyst salary

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

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

For tips on boosting your salary, click here.

Business analyst certifications

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

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

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

Business analytics tools and software

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

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

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

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

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

What AI-RAN actually is

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

Several pillars stand out:

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

Why AI-RAN matters for operators

Nokia and its early operator partners are trying to solve three perennial problems: finite spectrum, changing traffic patterns, and the drag of hardware refresh cycles.

First, spectrum constraints. Aji Ed, Nokia’s head of AI‑RAN and cloud RAN, called spectrum “the first constraint everybody has,” noting that operators have paid “huge amount of money” for bands and now need to “get up to the 2x spectrum” in terms of usable capacity. By running more complex AI models for multi‑user MIMO pairing, channel estimation, carrier aggregation and deep receiver/transmitter functions on GPUs, Nokia believes it can unlock those gains where traditional platforms simply run out of compute headroom.

Second, traffic is shifting. Generative AI and distributed inference workloads are driving more uplink-heavy, latency‑sensitive patterns that current RANs weren’t designed for. AI‑RAN’s ability to adapt scheduling, beamforming and resource allocation dynamically via AI models deployed at the baseband is meant to keep up with this shift.

Third, innovation cadence. In Ed’s words, “hardware upgrades can’t keep up with the innovation… we can’t really have a silicon refresh cycle linked with every three‑year cycle.” Nokia’s subscription‑based software model is designed to deliver new AI algorithms, spectral‑efficiency improvements and network optimization features continuously, without requiring “forklift” hardware replacements.

For operators, the message is attractive: comparable TCO and power to existing basebands, “no hardware premium” for GPU adoption, but higher capacity and a path to new services. Nokia told analysts it has reached performance, price and energy efficiency parity between its custom GridShark silicon and GPU-based systems, while moving the baseband roadmap to merchant silicon.

Nokia’s differentiation strategy

Every major RAN vendor is talking about AI‑enhanced radio, but Nokia is drawing a line between incremental gains and what it claims is a platform shift. When asked why its 2x spectral efficiency ambition is so much higher than the ~20% numbers competitors discuss, Ed pointed to the underlying architecture: “We are able to bring much more complex algorithms into this compute infrastructure… all of these require much higher compute, which is exactly what is coming from the accelerated computing.”

Several differentiators emerge:

• Aggressive spectral roadmap: Nokia is targeting 1.5x by 2027 and 2x by 2028, across TDD massive MIMO and FDD scenarios, with a feature roadmap built jointly with Nvidia and other partners.
• Single code base, three deployment paths: The same anyRAN software stack runs on (1) a GPU‑powered AirScale capacity plug‑in card, (2) a high‑capacity standalone AI‑RAN node, and (3) GPU‑based COTS/cloud RAN servers. This lets operators modernize “at their own pace” and mix brownfield evolution with greenfield AI-native deployments.
• Open ecosystem with D‑apps: Nokia is leaning into ORAN compliance (front‑haul, O1/O2) and actively championing the E3 interface and D‑apps concept within ORAN and AI‑RAN alliances, with Bell Labs and at least two external partners already building sensing and location applications on the platform.
• Software subscription tied to value: The commercial model builds on existing software subscriptions but ties pricing more explicitly to delivered value, such as spectral efficiency improvements and new AI services, rather than pure license metrics.

Mukherjee emphasized the openness angle in the briefing: “We see a lot of third‑party applications, whether it’s improving spectral efficiency or location service or sensing, can be developed on this platform… any AI‑powered services from us in Nokia or from ecosystems can be actually developed on top of it.” For operators burned by closed optimization stacks, that’s a notable pivot.

How AI-RAN unlocks new revenue

Most operators will sign off on AI‑RAN if the capacity and TCO story holds, but the more strategic question is monetization beyond connectivity. Nokia’s spokespeople spent considerable time on this in the analyst call, pointing to several classes of services that are difficult or impossible to deliver without AI running in the RAN itself.

Examples include:

• Integrated sensing: Turning the RAN into a distributed sensor grid that can support applications such as 3D mapping, gesture recognition and environmental monitoring, using the same RF infrastructure. Mukherjee noted, “We have at least two to three partners developing sensing applications on top of it… as well as two other companies developing location services.”
• Physical AI and location services: For factories, logistics hubs and smart cities, AI‑RAN can provide high‑precision positioning and real‑time telemetry for robots, drones and autonomous systems by fusing radio data and AI models at the edge.
• Distributed AI infrastructure: Operators exploring “AI‑native cities” can use AI‑RAN nodes and COTS GPU servers as a distributed inference fabric for applications that need tight latency to endpoints—think AR/VR offload, real‑time video analytics or interactive generative AI experiences.
• Premium connectivity tiers: With fine‑grained, AI‑driven control over uplink/downlink scheduling and QoS, operators can create differentiated SLAs for enterprise slices, mission‑critical IoT and AI workloads, charging for guaranteed performance rather than best‑effort connectivity.

Ed framed the opportunity as a continuum: Superior connectivity from 2x spectral efficiency creates “space for new AI workloads and other use cases,” while the D‑apps ecosystem and subscription model provide a mechanism to package and sell those capabilities. In practice, that could look like:

• Industrial sensing-as-a-service, where Nokia and partners supply D‑apps for integrated sensing and positioning, and operators monetize them per site or per device.
• Network‑exposed APIs for inference, location and RF sensing, integrated into operators’ broader network API portfolios as they pursue “network-as-a-platform” strategies.
• Sector‑specific AI‑native services, such as stadium analytics, transportation corridor monitoring, or drone traffic management, built by ISVs on top of Nokia’s exposed E3 data.

For operators that already use Nokia’s MantaRay and SMO stacks for cross‑network optimization, AI‑RAN essentially becomes the local real‑time execution environment, while R‑apps/X‑apps continue to orchestrate macro-level behaviors. Mukherjee described this layered architecture as “DU and CU on the platform running D‑apps using E3, interfacing to X‑apps and R‑apps through E2SM and connecting to the overall management system/SMO for lifecycle management.”

Adoption path and reality check

Nokia is not promising instant transformation. AI‑RAN pilots are slated for late 2026, with commercial availability on card‑based systems in 2027 and AirScale-based systems around 2028, all driven from a single software stack that supports 4G, 5G and is upgradable to 6G. The company already has trials and collaborations underway with T‑Mobile US, SoftBank, Indosat Ooredoo Hutchison, BT, Elisa, Vodafone, Orange, NTT Docomo, Deutsche Telekom and others.

There are still open questions around 3GPP vs ORAN standardization of E3, the maturity of the D‑apps ecosystem, and how operators will digest yet another subscription layer tied to radio software. But Nokia’s move puts a stake in the ground: in the AI era, the RAN is not just a throughput engine; it’s a programmable AI computer that can be monetized.

For Network World readers evaluating vendor roadmaps, this launch suggests a clear directional change. If Nokia hits its targets, AI‑RAN could mark the point where baseband becomes less about hardware SKUs and more about an AI platform strategy—one where spectral efficiency and new services are rolled out at “software speed,” as Ed described it, rather than at the pace of the next card generation.

Networking is core to any operating system, and when it comes to Linux, it’s actually a combination of several key components. The Linux kernel handles the data plane, moving packets, and holding live device state. NetworkManager is the network configuration service, operating as the control plane, deciding what a device’s configuration should be.

NetworkManager 1.58 was released this week, following more than five months of development and 407 commits since version 1.56. The release covers three areas: expanded support for IPv6-only networks, a set of Wi-Fi management updates, and a round of security hardening.

IPv4 address exhaustion remains the pressure behind the first of those areas, pushing more networks toward IPv6-only operation every year.

“More networks, mobile carriers, cloud providers, and anyone squeezed by IPv4 exhaustion are running IPv6-only by default,” Chris Van Hoof, director of Linux engineering, platform enablement at Red Hat, told Network World.

Advancing IPv6-only support

Dual stack networking, running IPv4 and IPv6 in parallel, has been the default IPv6 transition strategy for years. Dual stack networking, however, has a structural problem in that it still requires an IPv4 address on every device, so it does nothing to relieve address exhaustion pressure.

An alternative model called IPv6-mostly addresses that gap. It is defined in RFC 8925, “IPv6-Only-Preferred Option for DHCPv4,” and lets capable clients drop IPv4 entirely while legacy hosts that still need it keep receiving it on the same network segment.

“NetworkManager can also now auto-signal RFC 8925’s IPv6-only-preferred option, telling the network a host is fine skipping an IPv4 lease entirely,” Van Hoof said.

For the traffic that still needs IPv4, NetworkManager 1.58 adds support for CLAT, short for customer-side translator. CLAT is the client-side half of 464XLAT, a mechanism defined in RFC 6877, “464XLAT: Combination of Stateful and Stateless Translation.”

464XLAT pairs CLAT on the endpoint, which performs stateless header translation, with a stateful NAT64 translator on the provider side, letting IPv4-only apps keep functioning on a network that has no IPv4 of its own.

“CLAT is the translation layer that lets legacy IPv4-only apps and services keep working on those networks without bolt-on middleware,” Van Hoof said.

Wi-Fi management updates

NetworkManager 1.58 also brings a set of changes to how the daemon handles Wi-Fi connections and configuration.

• Band selection: The band property of Wi-Fi connections now accepts a 6GHz value, and a Wi-Fi scan run through nmcli, NetworkManager’s command line tool, now shows each access point’s band as well.
• Credential handling: WPS credentials with a 64 character hex PSK are now accepted, matching what some access points return.
• Text interface improvements: nmtui, NetworkManager’s menu driven text interface, picked up several usability additions. A new device select button lets you choose a physical interface from a list instead of typing its name. The activation screen gained a rescan Wi-Fi button, and secret prompts now include a show password checkbox. There is also a share QR code option, mirroring the existing nmcli device wifi show-password command.

Security hardening

The release fixes vulnerabilities and tightens several defaults tied to DHCP handling and connection permissions.

• CVE-2026-10805: Hostnames and MUD URLs are now validated before being written to the dhclient configuration file, rejecting characters that could alter the config syntax.
• DHCPv4 client fix: An out-of-bounds read in the internal DHCPv4 client, triggerable by an on-link attacker with a malformed UDP packet, has been fixed.
• Router option validation: The internal DHCPv4 client now ignores DHCP option 3, the Router option, when a lease also contains option 121, the Classless Static Route option, following the recommendation in RFC 3442.
• Permission checks and deprecations: For private connections that restrict access to specific users, NetworkManager now verifies that the user can access the referenced 802.1X certificates and keys.

Tunneling and automation updates

Two smaller but practical additions round out this release: a new tunnel type for virtualized networks, and a fix that closes a gap in how NetworkManager’s state survives a reboot.

NetworkManager 1.58 also adds support for creating and managing GENEVE tunnel interfaces. GENEVE, short for Generic Network Virtualization Encapsulation, is a tunneling protocol that wraps Ethernet frames inside UDP packets, letting virtualized or overlay networks run on top of physical Layer 3 infrastructure. It shows up mainly in virtualization and cloud environments, where a hypervisor or container networking layer needs to build a virtual network segment across physical hosts. Previously, NetworkManager could not create or manage these interfaces directly.

The release also adds persisted managed state. NetworkManager tracks whether it is responsible for a given network device, a setting called its managed state. Until now, that setting reset on every reboot, so provisioning tools had to reapply it each time a system restarted. NetworkManager 1.58 lets the managed state survive a reboot when it is set through nmcli or the D-Bus API.

“It’s a small change but closes a real automation gap: Provisioning tools and cloud-init style workflows can set a device’s state once via D-Bus or nmcli and trust it survives a reboot, instead of reapplying config every time,” Van Hoof said.

Some lucky customers took delivery of their own Tensor Processing Units (TPUs), custom chips developed by Google for AI applications, in the second quarter, company executives disclosed during a call to discuss its latest financial results on Wednesday.

The disclosure comes at a time when enterprises are grappling with a global shortage of high-end GPUs that is driving up costs and slowing AI deployment timelines, and even those who have GPUs don’t always have electricity to operate them.

“We delivered to customer data centers for the first time in Q2,” said Anat Ashkenazi, CFO of Google’s parent Alphabet, adding that the company had begun to recognize a small amount of revenue from TPU orders, although it expected to recognize more in 2027.

Ashkenazi did not name the customers or describe the commercial arrangements, leaving open questions about whether the systems are being deployed by large enterprises, governments, sovereign AI initiatives, or other cloud providers.

Until recently, Google’s TPU strategy centered on giving customers access to the chips through Google Cloud, while using the same silicon internally to power its own AI models and services. But during the company’s last earnings call in April, just days after it released two new TPU models, CEO Sundar Pichai said Google would consider selling TPUs to AI labs, capital markets firms, and high-performance computing applications.

On Wednesday’s call, Pichai said Google will scale up TPU sales “based on the opportunities we see and the demand we see, commensurate with the constraints that exist and the allocation needs we have for frontier model development.”

But Google is still keeping the bulk of its TPUs for itself, either for internal use or to rent out through Google Cloud Platform.

“Our first priority is making sure we are allocating what we need to compete at the frontier in terms of AGI development,” Pichai said on Wednesday’s call. “We are using both TPUs and GPUs mainly for serving our models.”

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

This article first appeared on InfoWorld.

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

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

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

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

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

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

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

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

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

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

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

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

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

This article first appeared on InfoWorld.

Revenue from IBM’s z mainframe portfolio declined 42% in the quarter ended June 30, dragging infrastructure revenue down 7% compared to the year-ago quarter. But Big Blue executives remain positive on the mainframe’s role as an important AI platform.

After warning of an earnings shortfall, IBM lowered its full-year forecast. It now expects 2026 revenue to grow between 4% and 5%, rather than its previous forecast of more than 5% growth. Some parts of its business did well: Software revenue grew 5% in the second quarter to $7.76 billion, fueled by 11% growth in hybrid cloud, 18% growth in data, and 3% growth in automation.

On the infrastructure side, IBM posted second-quarter revenue of $3.8 billion, which is down 7%. Within that business, distributed infrastructure grew 37%, but those gains were offset by a 10% decline in hybrid infrastructure and IBM Z’s 42% drop.

In a July 14 letter to investors released prior to IBM’s July 22 earnings call, CEO Arvind Krishna warned of the earnings shortfall and laid out current challenges. He related the infrastructure performance shortfall to “wrapping on the launch of z17 in the second quarter” and stated: “Given this was the strongest start to a mainframe program in our history, we expected Infrastructure revenue to decline low-single digits for the year, beginning this quarter. What played out was worse than our expectations, driven by a shortfall in our Z performance and the associated software stack, primarily in Transaction Processing.”

In the last few weeks of June, customers shifted capex spending and started purchasing more AI infrastructure components in the form of servers, storage, and memory “to secure supply-constrained infrastructure ahead of expected price increases,” Krishna stated. “This dynamic impacted client buying patterns. While we anticipated some supply chain related impact in our expectations, we did not anticipate the magnitude of the capex reprioritization.”

Yet despite challenges this last quarter, z17 remains at nearly 130% growth program-to-program, according to IBM. That’s “well ahead of z16, which was our strongest program on record, with clients representing 85% of installed MIPs maintaining or growing capacity,” the July 14 letter stated.

Mainframe infrastructure momentum is expected to continue, and IBM is anticipating strong workload growth and AI-driven capacity expansion as clients modernize mission-critical systems and emphasize resiliency and security, Krishna said during the company’s Q2 2026 earnings call on July 22.

“AI is driving incremental capacity growth and new workloads as clients look to run AI closer to their most sensitive data,” IBM senior vice president and CFO James Kavanaugh said in the call. “We are seeing strong early adoption of our AI innovations with nearly 50% of z17 customers investing in AI capabilities with Spyre AI accelerator, and clients deploying Watson X Code Assistant for Z are growing MIPS capacity three times faster than those who are not.”

“In a world where infrastructure costs are rising and efficiency matters more than ever, IBM Z offers a compelling economic advantage,” Kavanaugh continued. “Depending on the size and complexity of workloads, clients can realize a 2 to 15x total cost of ownership benefit versus moving these workloads off the platform, reinforcing why the platform remains central to their operations and positioning us to capture additional value as AI workloads grow.”

“We see no evidence of clients moving off mainframe,” Kavanaugh added. “Clients continue to invest in IBM Z to modernize mission-critical workloads with a focus on resiliency and security.”

In responding to an analyst question, Kavanaugh said three key things drive mainframe demand and purchasing requirements:

“One is capacity workload. It’s the most important determinant. 85% Of the installed MIPS capacity out there in the marketplace today running all those core mission critical workloads are either stable or growing. Clients are adding capacity and workload to mainframe, the viability. And by the way, that’s coming in new AI workloads, analytics workloads, Linux-based workloads, and those MIPS are growing program to date over 15 to 20% installed capacity,” Kavanaugh said.

Number 2 is economic factors. “We don’t talk a lot about this, but I think it’s important for our investors to understand things like total cost of ownership. Depending on the size and complexity of the workload, we have anywhere from a 2 to a 15x TCO advantage running on the mainframe [over smaller server systems]. Again, we do not see any evidence of clients migrating off mainframe and lease propensity, which is a great indicator,” Kavanaugh said.

The third driver is AI. “When you look at it, applications, data security, all on the platform, we do 450 billion inferences per day at 1 millisecond with 8 nines availability,” Kavanaugh said. “We’ve got clients that have already purchased over 50% of our Spire inferencing, and those clients that have purchased that are growing MIPS capacity, the way [we monetize value], by over three times faster than others.”

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.

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

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

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

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

Notable tech layoffs in 2026

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Layoffs in 2025

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

Global tech-sector layoffs surpass 244,000 in 2025

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Feb. 21, 2025: CISA lays off 130

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

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

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

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

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

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

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

Tech layoffs in 2024

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

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

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

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

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

Nov. 7, 2024: Freshworks lays off 660

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

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

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

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

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

August 1, 2024: Intel removes 15,000 roles

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

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

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

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

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

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

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

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

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

See news of earlier layoffs.

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

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

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

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

Recovery is not just a technical exercise

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

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

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

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

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

Most business continuity plans ignore ‘total blackout’

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

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

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

That is the level of clarity leaders need.

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

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

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

Threat intelligence must be actionable, not archived

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

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

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

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

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

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

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

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

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

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

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

AI providers won’t fix this problem

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

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

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

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

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

Three required sources

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

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

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

Why agentic AI makes this urgent

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

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

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

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

What changes when the three sources come together

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

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

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

The build trap

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

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

It is a trap. Three reasons.

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

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

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

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

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

—

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

G# (GSharp) is moving forward as a programming language for Microsoft’s .NET platform, touted as bringing Go-, Kotlin-, and Swift-style ergonomics to the CLR (Common Language Runtime). The language is described by its creators as modern, simple, and accessible.

Although pre-1.0 and still growing, G# aims to be for people who want a small, predictable language with direct access to the .NET ecosystem. Developers will see imports, func, structs, slices, maps, channels, go, select, and for in iteration. Also important are nullable flow, direct calls into the CLR (Common Language Runtime), and built-in concurrency.

With G#, copyrighted in 2026, developers get value-oriented structs, reference-oriented classes, data structs, and data classes. For concurrency, G# uses scope for structured concurrency, async func and await for task-based asynchrony, and async sequence[T] for asynchronous streams. G# also makes use of the same Task and Task[T] types familiar from the .NET BCL (Base Class Library).

G# documentation is available on the GitHub site of Microsoft software engineer David Obando. “Every .NET type—your packages, third-party NuGet packages, the BCL—is callable from G# with the syntax you already know. CLR generics use G#’s bracket spelling, and method calls, properties, indexers, and for in over IEnumerable[T] all just work,” according to the website.

A Visual Studio Code extension for G3 can be found at marketplace.visualstudio.com. The extension adds syntax highlighting, language server features, build/run commands, and debugger configuration for .gs and .gsproj files. Developers can install the extension from within VS Code (search for “G#” in the Extensions view) or from the command line.

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.

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’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.”

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

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

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

For regulated industries or restricted connectivity

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

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

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

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

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

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

Private AI behind the firewall

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

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

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

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

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

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

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

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

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

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

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

This article first appeared on CIO.

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

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

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

For regulated industries or restricted connectivity

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

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

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

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

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

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

Private AI behind the firewall

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

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

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

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

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

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

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

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

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

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

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

This article first appeared on CIO.

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

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

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

For regulated industries or restricted connectivity

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

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

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

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

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

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

Private AI behind the firewall

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

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

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

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

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

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

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

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

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

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

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

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

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

Who can use Copilot in PowerPoint

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

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

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

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

In this article:

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

Working with Copilot in PowerPoint

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

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

Howard Wen / Foundry

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

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

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

Howard Wen / Foundry

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

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

1. Create a presentation template

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

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

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

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

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

Howard Wen / Foundry

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

2. Create a presentation from a document

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

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

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

Howard Wen / Foundry

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

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

Howard Wen / Foundry

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

3. Add content from a document to a slide

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

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

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

Howard Wen / Foundry

4. Refine your slide text

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

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

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

Howard Wen / Foundry

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

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

• Make these slides more visual and use less text.

5. Find or create an image

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

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

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

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

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

Howard Wen / Foundry

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

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

6. Expand your presentation with relevant slides

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

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

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

Howard Wen / Foundry

7. Summarize a presentation

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

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

Howard Wen / Foundry

8. Answer questions about a presentation

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

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

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

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

Howard Wen / Foundry

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

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

9. Help you navigate a large presentation

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

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

• Show me the slides about the project timeline.

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

Howard Wen / Foundry

10. Generate speaker notes and/or an FAQ

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

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

Howard Wen / Foundry

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

• Write an FAQ for these slides.

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

Howard Wen / Foundry

Related reading:

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

At Cisco, VP of engineering Jason Andrews deals with all the same technical issues as every other company deploying AI, including ensuring it’s governed, secure, and integrating multiple data sources, legacy systems, and AI models.

But these issues are relatively straightforward compared to the bigger challenges relating to the fast pace of change, specifically how AI can touch and transform nearly every aspect of business.

“We’re thinking about it every day,” he says. “My belief is we’ll be seeing a massive acceleration of everything.”

In coding, for example, he’s witnessing productivity increases up to 110% with AI assistants. “I can build apps or custom integrations a lot faster,” he adds.

And the real benefit of AI isn’t just in speeding up individual steps in a process, but in making AI the core of a new business process. But building it from scratch puts even more pressure on organizations trying to get employees up to speed on new ways of doing things.

“We want to move fast, train people, and get them onboarded,” he says. “But what I thought AI was going to do for my organization nine months ago is different from three months ago.” So by the time something is rolled out, it’s changed three times.

“I struggle with the change management aspect,” he says. “The legacy model of change management isn’t fast enough. How do you create that constant learning?”

One of the ways Cisco approaches it is to create communities where people can talk about these issues and share best practices and governance, and you have to keep people’s minds open that every day is going to be different than the last, Andrews adds.

Testing the AI waters

Cisco isn’t the only organization struggling with change management in the face of the AI tsunami. In a survey of 2,000 global CEOs IBM released in May, 83% of them said AI success depends more on adoption than on the technology itself, and 77% said talent and technology roles are converging.

“Thanks to Claude Code, our entire development cadence is exponentially greater than a year ago,” says Andrew Johnson, CIO at Brownstein Hyatt Farber Schreck, a Denver-based law firm with about 700 employees and clients around the US. But, as with Cisco, the biggest challenge isn’t technical.

“In our industry, with our circumstances, we’re probably less constrained by technical capability than organizational constraints, culture, aptitude, the need to bind people to technology, and what helps me and the client,” he says. “There’s a tremendous amount of cultural shift that has to happen in our organization, which is far more demanding of my attention and complexity of thought than the technical stuff.”

Companies that bill by the hour, such as law firms, may face additional challenges as attorney productivity increases because billable hours might go down. Alternatively, the total number of cases could go up as litigation becomes less expensive. Either way, firms that adapt will see competitive advantage, and the rest will fall behind, putting more pressure on the need for change management.

“If people can’t embrace technology, we won’t be able to get a lot of value out of it,” says Johnson. “I’m talking to people about adapting their way of work. There are certainly a lot of people intrigued and anxious to dive in. They recognize the connection between the potential of the technology and what we do.”

But helping everyone see that connection and then working with them to change their habits is difficult, and requires solid relationships and good communications. “That’s been far more of a bottleneck for us,” he says.

To address the issue, the firm has developed a network of technology champions who also understand the legal side of the business. “Now we need lawyers who know how to use the technology and can articulate these things to the people we’re trying to reach,” Johnson says.

But change management is only one leadership bottleneck slowing AI adoption. Companies also struggle with figuring out their vision for AI, with slow decision-making, and a tendency to focus on the past instead of the future.

Vision and strategy

In another survey, this time of 950 business leaders released by Grant Thornton in April, 51% said strategy is the biggest driver of ROI when it comes to AI adoption, but 79% of operations leaders said they don’t have a fully developed and implemented AI strategy.

“Having leadership understanding why AI is needed and what objective they’re trying to achieve is very important,” says Shivi Verma, senior manager of engineering at Docusign. “Sometimes leadership doesn’t have a strategy for their organization on how AI should be adopted. Many times it’s bottom-up, which creates a chaotic experience.”

When Docusign started adopting gen AI, different teams and organizational units wanted to go in different directions. “All were coming up with their own strategy and tooling,” he says. So Docusign brought business leaders together to understand the pain points, and decide on the technology.

“Getting requirements and placing a bet on a specific technology was important,” he says, “as well as pivoting to a different technology if needed.”

In order to adapt to changes, the company wanted to have a nimble approach, starting with smaller use cases, with power users, and problem areas.

“We try to plan for four to six months,” he adds. “We set expectations for our leadership that we place a bet with a specific technology, but want to be able to pivot.”

Today, the leadership challenge front lines have moved yet again, to agentic AI. “Folks are creating their own agents and deciding their own permissions,” Verma adds. “We’re still coming up with a governance strategy.”

Slow decision-making

When it comes to AI deployments, Dan Diasio, global AI consulting leader at EY and CTO for its US consulting business, admits he’s a bottleneck.

There’s a great deal of interest in what AI can do, and using a variety of new AI tools. But since the firm deals with sensitive client data, safety is paramount. It’s a slow process, but important to build secure infrastructure, and to have trust in the technology. “That’s a reasonable bottleneck that makes sense,” he says.

Trust in the tools they work with is essential because clients expect it. “Every tool we use has to go through a detailed security and information privacy impact assessment, as well as a whole other set of controls so they can be used appropriately and safely,” he says.

These reviews can take a lot of time, though, and in the age of AI, speed is a highly valued currency. So how do you balance the two, when safety reviews can require input from a lot of different stakeholders and be extremely time intensive?

“We’ve stood up a team to be able to quickly certify and address a variety of platforms,” Diasio says. “Instead of working with different departments in the way we used to, we’ve started identifying representatives from different departments into a cohort. Decisions we used to make in months now take weeks.”

According to a West Monroe survey of more than 1,200 leaders released earlier this year, slow decision-making is already showing up on the bottom line. Nearly three out of four leaders said their organizations lose up to 5% of annual revenue to slow decision-making and delayed execution.

And the top reasons for the delays? According to 40% of the managers surveyed, the problem was the skills gaps of overwhelmed teams, and 35% pointed to layers of management or approvals. Nearly half said they’re spending 10 to 25% of their time on rework, excessive approvals, and unnecessary meetings, and more than half say up to 50% of their projects fail or lose momentum to delays.

Focus on the future, not the past

When it comes to the decision about where to apply AI in an organization, the tendency, Diasio says, is to turn to the experts with the most expertise in the business. But these are the same people most likely to focus on improving on what they’re already doing.

“And that often blinds people to what’s possible in the future,” he says. “That becomes a significant bottleneck.” So the solution is to revamp the decision-making process around the new reality.

“What we see some advanced companies do is give people who don’t understand the process but understand the technology equal footing with people who don’t understand the technology but understand the process,” he says. “A lot of companies are disproportionately focused on just addressing their operating model right now.”

Instead of focusing on what they’re currently doing, AI-native companies will start with a focus on the customer, he says. This shift in focus isn’t likely to show up immediately on the bottom line, or result in the highest possible number of pilots going into production.

“If leaders are in a position where they’re justifying the use of a technology to the board or their CFO, they become a bottleneck when they start demonstrating their value in terms of the number of things they’re doing,” Diasio says.

But 150 or 200 use cases deployed into production may feel like progress, like things are happening in the organization. But all these use cases are a waste of time and money if they’re applied to existing processes that don’t move the needle. “We see that happen in organizations today,” he says. “Maybe we need to reinvent the processes.”

It’s no secret that companies will need to change in order to adapt to AI. Deloitte recently surveyed 660 global technology leaders and 81% said their current operating model can deploy and govern AI enterprise-wide, but 75% also said their organization must change its operating model within the next 12 to 18 months to drive greater value.

AI ROI is real, says China Widener, Deloitte vice chair and US tech, media, and telecom industry leader. But it’s currently weighted toward efficiency gains, with broader business transformation and revenue upside still developing.

Another Deloitte survey showed that the clearest results from AI were in productivity, with 66% of organizations reporting gains, and cost efficiency, with 40% saying AI reduces costs. “However, revenue impact is still emerging,” says Widener. “Only one in five companies says AI is driving top-line growth today.” But optimism prevails, with 74% expecting it to do so in the future.

Outsourcing worked – until it didn’t.

After Akirolabs achieved early market validation and onboarded its first enterprise customers, outsourcing began to create strategic limitations around scalability, intellectual property (IP) ownership, security and delivery execution.

The challenges started after the first enterprise customers confirmed product-market fit. At that point, delivery speed became directly tied to business growth. Product quality expectations increased. Infrastructure and security requirements became stricter. Investors started asking difficult but fair questions about IP ownership, operational dependencies and long-term scalability.

Most importantly, engineering execution was no longer just an operational function – it became part of the company’s strategic advantage. That was the moment when the founders decided the company needed dedicated technology leadership to address these challenges. This is how I joined the company at the beginning of 2023. As VP of Engineering and a bit later as CTO, I led the transformation (usually known as insourcing, repatriating or backsourcing) from an outsourced model to an internal engineering organization while maintaining product delivery continuity and preparing the company for the next growth stage. The process took roughly a year and involved not only technical migration, but also organizational design, hiring, process development, infrastructure modernization and cultural transformation – everything from the ground up.

Building an internal engineering organization while still delivering

One of the biggest misconceptions about insourcing is that it is primarily a technical project. It is a leadership and execution challenge.

When I joined the company, there was effectively no internal engineering structure, limited visibility into the existing system and no clear long-term technical strategy. My first months were dedicated to understanding reality and I began with a comprehensive assessment of the codebase, operational risks, documentation quality and knowledge dependencies to determine the most viable transition strategy.

Very early in the process, I faced a critical strategic decision: whether to gradually assume ownership of the existing platform or rebuild it internally. To make that decision, I evaluated four distinct transition models ranging from limited management insourcing to a complete internal rebuild.

After assessing the technical, operational and long-term business implications of each approach, I selected the most demanding option: rebuilding the product internally while maintaining uninterrupted delivery for existing customers. Although riskier in the short term, a full rebuild offered the clearest route to complete IP ownership, architectural flexibility and long-term scalability.

At the time, this decision ran counter to the approach typically taken by startups in similar situations. Most organizations gradually assume ownership of an existing codebase to minimize short-term risk and preserve delivery capacity. My assessment was that the accumulated architectural debt, fragmented knowledge distribution and long-term maintenance risks would ultimately make a phased takeover more expensive and less scalable than a controlled rebuild. The strategy required significantly higher execution discipline, but it allowed us to establish complete ownership of the platform, eliminate inherited constraints and create an architecture capable of supporting enterprise-scale growth.

The next challenge was hiring.

In Germany, hiring can easily take four to six months – mostly due to a typical 3-month notice period, which is incompatible with startup timelines. We solved this by building a hybrid organization structure early: a lean internal core team combined with carefully selected contractors. Instead of hiring only narrow specialists, we prioritized experienced generalists capable of operating across architecture, infrastructure, security and compliance discussions. Later, we evolved toward a product engineering model, where engineers owned broader product outcomes rather than narrowly defined technical functions.

During the first three months, we established a core engineering team of four senior engineers. Over the following nine months, the organization expanded to roughly fifteen engineers while I strategically designed and executed the transformation of the platform’s architecture to meet the rigorous deployment and compliance standards of our first enterprise clients, including Raiffeisen Bank International and Bertelsmann. This structural overhaul allowed the company to meet the deployment, security and compliance requirements of enterprise customers that had previously been inaccessible under the outsourced model. At that point, we had already achieved complete coverage across backend, frontend, DevOps, QA and security.

I also intentionally kept processes lightweight during the transition. Instead of introducing heavyweight frameworks, we focused on clarity of priorities, fast decision-making and execution discipline. We used Kanban over Scrum, eliminated unnecessary meetings, shortened the remaining ones and emphasized engineering culture over process overhead.

Another major challenge was project estimation. Because dual-track development was unavoidable until the in-house platform reached production readiness, estimation accuracy had a direct impact on budget efficiency. Despite all challenges, my initial estimate ultimately proved remarkably close to the final delivery date, differing by only about a week. Accurate forecasting under conditions of parallel development streams, ongoing customer commitments and active team formation became a critical leadership challenge. Maintaining this level of predictability throughout the transition helped align engineering execution with business planning, hiring decisions and investor expectations.

The engineering transformation enabled capabilities that contributed to Akirolabs being recognized as an IDC Innovator in Procurement in 2023, named amongst the Top 27 AI Startups in Germany in 2024, Sifted’s 100 Fastest-Growing Startups in DACH & CEE 2025 and inclusion in 2024-2026 in ProcureTech100 annual recognition of procurement technology providers shaping the future of digital procurement.

Managing risk without slowing down the business

The hardest part of insourcing is not writing code, selecting the technology stack, designing architecture or configuring infrastructure. It is avoiding disruption while the company is changing underneath the product. I successfully orchestrated the concurrent overhaul of product architecture, cross-functional engineering recruitment, infrastructure modernization and live customer operations under exceptionally tight margins.

To reduce delivery risk, we approached the transition in layers.

First, we focused on infrastructure reliability and operational readiness before feature expansion. Cloud architecture, recovery testing, permission segregation and incident management processes were implemented early, not after launch. We also introduced multiple testing stages and dedicated QA functions after learning the hard way that a “developers-only” quality control approach does not scale for complex web platforms and business domains.

Second, we established a structured knowledge-transfer process to rapidly onboard engineers and reduce external dependencies.

Third, we became extremely disciplined about scope management. One of the most common reasons insourcing initiatives fail is uncontrolled change during the rebuild phase. Every new feature request increases uncertainty non-linearly. We learned to separate strategic improvements from distractions and protect the core delivery roadmap aggressively. Throughout the transition, we successfully maintained uninterrupted customer operations by utilizing planned maintenance windows, achieved a near-zero-downtime migration and permanently doubled product velocity immediately following the migration.

Beyond the technical migration itself, the transition established a repeatable operating model for scaling technology organizations beyond the product-market-fit stage. The framework combined organizational redesign, controlled knowledge repatriation, architecture modernization and enterprise-grade operational practices while maintaining uninterrupted customer delivery throughout the transformation. While the implementation was specific to Akirolabs, the underlying principles are broadly applicable to organizations seeking to transition from outsourced development to internal product ownership without disrupting business operations.

By the time the new platform reached production readiness, I had established not only a functioning engineering organization, but also a stable operational model: internal ownership, production-grade infrastructure, security processes, scalable hiring practices and clear technology and product roadmaps.

A positive side effect of the transition was the creation of internal UI/UX and Data Science capabilities, which later became strategically important for AI product initiatives and created a foundation for the third version of the product, which we released in mid-2025.

My technical restructuring and migration to a secure proprietary platform reduced architectural risk, established full in-house ownership and helped strengthen investor confidence during the company’s successful €5M fundraising round in 2024.

The transition created a stronger foundation for scale and supported the company’s continued expansion among enterprise organizations operating at Fortune 500 scale, including Ahold Delhaize, Workday, IFF, Deutsche Bahn and others.

Lessons learned for CTOs considering insourcing

Looking back, several decisions made the transition successful, and several mistakes made it harder than necessary.

The first lesson is simple: decisiveness in strategic transition is paramount to maintaining business momentum. Rapidly evaluating insourcing frameworks and defining clear boundaries with the external partner allowed us to mitigate operational downtime and execute a highly efficient migration ahead of critical market deadlines.

Second, hire more senior people and do it as early as possible. Strong technical leaders multiply execution capacity far beyond their individual contribution. In our case, the quality of the first hires influenced architecture quality, hiring standards, delivery discipline and engineering culture for the entire organization.

Finally, culture matters more than frameworks. Processes can be added later. Ownership mentality cannot.

The biggest long-term advantage of bringing development in-house was not simply faster execution, not better code quality or operational cost optimization by over 30% after the transition which we also achieved. It was an alignment. Product strategy, engineering decisions, customer priorities and business goals became part of the same conversation instead of being separated by organizational boundaries. For technology companies operating in highly competitive markets, that alignment becomes a compounding advantage over time.

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As the CSO grows in prominence, security leaders are increasingly earning a seat at the executive table, reporting directly to the CEO with the expectation to help drive business strategy and ensure organizational success.

Reporting to the CEO unlocks greater access and influence for security leaders, and while CSOs who report to their organization’s CIO still have clout, it’s a very different experience picking up the phone to speak directly with the CEO as a strategic partner.

Regardless of reporting structure, CSOs must clearly understand what they are being tasked to solve. That might sound simple, but making the leap to being a CEO’s direct report requires a new perspective, a different set of skills, and a business-level focus on metrics to do so.

We asked several current CSOs, CEOs, and IT staffing experts for advice on how security executives can best navigate a direct reporting relationship with their CEO. Offering insights below are George Gerchow, CSO at Bedrock Data and member of the IANS faculty; Matt Chiodi, CSO of Cerby; Chris Schueler, CEO at Cyderes; and Greg Fuller, vice president of the Technology Skills Suite at Skillsoft.

1. Understand how the CEO views your role

Most CEOs expect that, when you report directly to them, you fully own your functional area. Whether it’s cybersecurity, operations, or finance, they look to you as the expert in that domain. The CEO may have opinions, but ultimately, you are expected to lead and provide direction.

CEOs expect their CSO to be a true strategic partner, not just a risk reporter — connecting cybersecurity to revenue protection, regulatory compliance, customer trust, and operational resilience. In turn, CSOs should expect CEOs to treat governance as a strategic enabler, not a bureaucratic necessity.

2. Power up on skills vital to your organization at an executive level

On the technology side, AI and machine learning, cloud security, incident response, zero trust architecture, and governance, risk, and compliance (GRC) are the areas where threats evolve fastest and strategic leadership has the greatest impact. 

Equally important are “power skills”: communication, critical thinking, adaptability, and emotional intelligence. The ability to translate complex risk into business terms is what separates a strong CSO from a purely technical one. Skills, not titles, define effectiveness in the eyes of a CEO.

3. Take advantage of your direct access

Direct access to the CEO will enable you to influence strategy, shape resilience planning, and ensure cybersecurity is treated as a business imperative rather than a cost center. That authority is strongest when the CEO understands cybersecurity as a strategic lever, not just a technical function. 

While a direct reporting relationship gives you access to the CEO, it also comes with the responsibility to operate at that level. You need to provide clear, executive-level visibility into your cybersecurity program.

4. Brush up on business translation

A CSO who leads with business alignment will always carry more influence when they can translate risk into business language rather than technical jargon. Building programs that must survive an IPO, a FedRAMP audit, and real customer scrutiny forces you to tie security to revenue and trust.

The most valuable skill is translation — defining technical risk in terms of executive action and business impact that a CEO and a board can act on. You must build trust through transparency. These are the human skills that complement technology, creating a collaborative human-AI dynamic where leaders make faster, better-informed decisions. 

5. Treat conversations as risk assessment opportunities

Highly effective security leaders treat every business conversation as a risk conversation in disguise. That mindset is what largely separates a great CSO from a great technologist. Earn the CEO’s trust by speaking business first, security second. Translate every risk into revenue, reputation, or regulatory exposure.

Remember, a good CEO wants a translator, not an alarm system. They expect no surprises, a clear read on the risks that matter, and a security leader who helps the business move faster rather than slowing it down.

6. Define what a successful relationship should look like and put it in writing

Regardless of the reporting relationship, start by defining the end goal and putting it in writing. It will evolve over time, but having that initial clarity is critical. This is especially important when you’re new in a role and aiming to make your first 60, 90, or 120 days, and your first year, successful. In such cases, it’s essential to align early.

Do that collaboratively, and document it.

7. Prioritize trust and candor

The CEO needs to trust that the CSO isn’t sandbagging, and the CSO needs enough psychological safety to deliver bad news fast. When those conditions exist, security becomes a strategic asset — not a cost center.

To that end, focus on clear communication above all, and present yourself as part of a team, not a solo player. Stay calm under pressure during incidents, and treat people as peers rather than policing them. The leaders who last build trust before they need it.

8. Treat governance as a strategic competitive advantage

The strongest partnerships also share a commitment to governance as a competitive advantage.

Governance is the brakes that let you drive fast safely. When a CSO and CEO are aligned on that principle, the organization can innovate with AI while maintaining oversight and protecting against unnecessary risk. The result is an organization that does not just react to threats but builds resilience into how it operates.

9. Set clear goals and measure progress

Setting clear goals and measuring progress against those goals is essential. When expectations are clear, the areas you need to focus on become much clearer. It doesn’t solve every problem, but aligning early with your leadership, whether that’s a CEO or a CIO, can significantly reduce the pressure you may feel.

Also, never let your boss be surprised. This is where being clear on goals and consistently tracking both leading and lagging metrics becomes especially important, particularly in a direct reporting relationship with the CEO.

10. Be willing to endure challenge and discomfort

Finally, persistence and a willingness to endure discomfort for something that matters more than the pain itself are critical to surviving in this relationship. The role of a cybersecurity leader is often thankless. If you’re doing your job well, no one really notices.

Arista Networks is looking to simplify data protection at the edge of enterprise networks with a new security package that combines branch office security with SD-WAN connectivity in a single platform.

The company announced AI-driven Edge Threat Management (ETM) for VeloCloud SD-WAN, a platform that links typically separate products and capabilities including Arista’s next-generation firewall, IP reputation, external blocklists, intrusion prevention, URL filtering, application classification, geo-IP filtering, network address translation, deep packet inspection, and zone-based segmentation.

ETM provides perimeter protection at the WAN edge and is a software upgrade option to VeloCloud SD-WAN, according to Arista. It can help simplify branch operations with a common operating system, a uniform enforcement engine, and common end-to-end security policies, the vendor stated. The new ETM solution also leverages Arista’s AVA (Autonomous Virtual Assist) for AI-driven policy intelligence.

“Multi-vendor branch complexity creates the ultimate blind spot, and your adversaries are actively hiding in it,” wrote Brendan Gibbs, Arista’s vice president, AI, routing, and switching platforms, in a blog post about the new platform.

Sprawling multi-vendor infrastructure creates operational headaches and increases security risks, according to Gibbs. “When you have four or five different point solutions from different vendors stacked on top of each other, configuring them becomes a manual, disjointed process. In fact, industry data shows that up to 95% of network changes are still performed manually, which inevitably leads to configuration mistakes, the single biggest driver of network downtime and security policy gaps,” he wrote. 

“When security policies are decoupled from local network routing, critical blind spots emerge. An attacker doesn’t need to break your cloud-delivered SASE firewall; they just need to target the unmonitored local traffic gaps between your Wi-Fi AP, your LAN switch, and your SD-WAN edge router,” Gibbs wrote.

ETM is integrated into VeloCloud Orchestrator as a dedicated enterprise application. “This enables security operators to configure policies that build on the same source of shared network configuration while maintaining a dedicated management console for security policy configuration, provisioning, and reporting,” Arista stated.

ETM security policies are managed in VeloCloud Orchestrator. “Admins can build and assign reusable policies consisting of predefined objects and templates. This design makes updating security policies possible by a few simple clicks, while the associated changes are propagated throughout the network within minutes,” Arista stated.

VeloCloud Orchestrator is the central management, configuration, and monitoring hub for VeloCloud SD-WAN and SASE networks.

In addition, VeloCloud edge routers collect threat intelligence data from a variety of sources to determine in real-time the trustworthiness and identity of hosts inside and outside the network. Through integration with Arista Network Detection and Response and other web-based dynamic lists, administrators can identify suspicious hosts and build policies to block potentially harmful activities, the vendor stated.

Integration with Arista’s AVA policy assistant is aimed at simplifying management of branch security policies. AVA continuously analyzes configuration states and translates complex, multi-site security rules into plain English, Gibbs explained. For example, NetOps administrators can use AI with Ask AVA to predict “how specific traffic will be handled before committing to a deployment, preventing manual configuration errors that leave branches exposed,” Gibbs wrote.

Arista also touted support for network-wide segmentation policies. “The flexible security policy configuration within the Edge Threat Management policy management extends the security coverage from the data center to the branch,” the vendor stated. “Security operations administrators can build access policies that are enforced across a distributed network. The centralized design enables admins to configure and deploy consistent zone based policies across the entire distributed network.”

ETM is a significant addition to the Arista VeloCloud portfolio. Arista bought the VeloCloud SD-WAN platform from Broadcom a year ago and has been promising new technologies that expand the platform. ETM also could further the vendor’s stated plans to expand beyond its data center networking roots and compete more broadly with enterprise networking vendors such as Cisco, Palo Alto Networks, and Fortinet.

In the SASE and SD-WAN world, vendors such as Cisco, Palo Alto, Fortinet, Cato Networks, and Versa Networks are among the most balanced suppliers, with both SD-WAN and SSE contributing meaningful revenue streams, according to a recently published report from Dell’Oro Group.

“We forecast that SASE will remain on a double-digit growth path in 2026, with SSE-first rollouts remaining the most common entry point, and SD-WAN supported by branch modernization, software attach, and branch security refresh,” Dell Oro stated.

“AI is changing the SASE discussion from access and inspection to governance, data protection, and control over agents and machine traffic,” Mauricio Sanchez, senior director, enterprise security and networking at Dell’Oro Group, stated in the report. “A 21 percent Y/Y quarter shows that SASE is not waiting for a future AI refresh cycle; it is already absorbing the early security and networking requirements created by AI adoption,” Sanchez added.

ETM for VeloCloud SD-WAN will be available in Q4 of 2026 and will be available for all current VeloCloud hardware and virtual edge platforms.

Microsoft and Mistral are betting that the future of enterprise AI is in sovereign infrastructure and model choice, rather than with one locked-in system. 

The companies have announced a “significant expansion” of their strategic partnership, which includes a multibillion dollar commitment from Microsoft. Mistral will add to its GPU infrastructure in Europe and extend access to its frontier multilingual models, while Microsoft will expand its sovereign cloud capabilities. The companies will also align on a joint go-to-market plan and will pursue enterprise opportunities together across Europe and globally, as well as funding proofs of concept (PoCs), offering Azure credits, and leading workshops to drive AI innovation with customers.

The partnership between the tech giant and the three-year-old French startup might seem an odd combination at first glance, analysts note, as both develop enterprise AI models and offer access as-a-service. But it reflects changing AI market dynamics.

“It’s possible to be both a competitor and a partner at the same time,” noted technology analyst Carmi Levy. Large cloud providers are becoming AI marketplaces in their own right, he pointed out, and are drifting away from exclusively promoting their own models. Building Mistral support into their infrastructure avoids platform lock-in and removes a “key objection for customers looking for options.”

“As much as Microsoft would want everybody standardizing on Copilot and Phi, it recognizes the simple fact that customers increasingly want to choose their own models,” said Levy.

Expands model access, sovereign cloud capabilities

As part of the agreement, Mistral will expand its Europe-based capacity with thousands of Nvidia Vera Rubin GPUs.

Mistral CEO and co-founder Arthur Mensch described a “slight gap” in compute capacity in Europe, noting that this expansion will provide more compute capability and support Microsoft’s cloud and AI services, providing a “shared platform for training, inference and large-scale deployment.” The companies call it a critical step to allow Microsoft customers to benefit from Mistral’s “scientific and compute innovations.”

In addition, Mistral Medium 3.5 and OCR 4 models are now available in Microsoft Foundry, and Mistral Medium 3.5 can be used in Microsoft Copilot Studio.

The partnership also extends Microsoft’s sovereign cloud infrastructure as well as combining Mistral’s frontier models with Microsoft’s security, compliance, and cloud-to-edge platform. This gives enterprises, particularly those in regulated markets, the ability to deploy AI where they see fit, while maintaining control over their data and workloads, according to the companies.

Further, customers will be able to build AI using the same models, tools, APIs, and workflows they’re used to, across Microsoft Foundry, Foundry Local, and Azure Local, and opt for fully Azure-hosted cloud environments; cloud-connected, controlled Azure Local environments that only use cloud-based Azure when necessary; and fully-disconnected environments that can operate independently for more sensitive scenarios.

“Europe should have access to the world’s most capable AI without compromising control over their data, operations or digital future,” said Brad Smith, vice chair and president, Microsoft, noting that with this partnership, the company is honoring its European digital commitments and giving customers a foundation for AI so they can “operate on their own terms.” Customers with “heightened sovereignty needs” will be able to exercise more control with “resilience and assurance” and continued access to Mistral’s open-weight models.

Enterprise credibility

Gartner distinguished VP analyst Arun Chandrasekaran noted that there’s no doubt that this agreement strengthens Microsoft’s sovereignty messaging and its position in regulated industries, and the tech giant benefits by expanding its AI portfolio with a “credible European frontier model provider”

He pointed to key differences from the initial partnership struck by the two companies in 2024; whereas originally Microsoft was hosting Mistral’s models, it is now consuming capacity built by Mistral in Europe.

Ultimately, the deal emphasizes European data centers, customer-controlled deployments, Azure Local, and fully-disconnected environments, addressing many of the concerns that surrounded the original Azure cloud only relationship, Chandrasekaran explained.

For Mistral, the partnership provides “enterprise credibility, and repeatable infrastructure revenue” that can fund continued AI platform development, he said. The combination of Microsoft’s enterprise AI platform with Mistral’s models and European AI infrastructure will give joint customers more deployment flexibility and expand options around data residency, sovereign AI deployments, and disconnected/on-premises environments.

“It also gives customers more model choice, reducing dependence on a single AI provider,” said Chandrasekaran.

A complementary partnership

Mistral continues to innovate with its frontier AI models and its chat and coding agent, Vibe (formerly Le Chat), yet it doesn’t attract as much attention as Claude or ChatGPT.

One of the company’s key differentiators is its targeted business model. Levy pointed out that not every workload requires “full-flight GPT.” For customers trying to rein in costs and limit exposure with on-premises deployments, Mistral’s “more focused capabilities can represent a cost-effective alternative.”

Chandrasekaran pointed to Mistral’s combination of high-performance open-weight models, strong multilingual capabilities, and a “focus on efficient inference that lowers deployment costs.”

Unlike many frontier AI companies, it offers customers greater flexibility to self-host and customize models; this makes it particularly attractive for enterprises and governments with sovereignty or regulatory requirements, he said. Its European roots also position it as the leading alternative for organizations seeking cutting-edge AI outside the US and Chinese ecosystems.

Bill Wong, research fellow at Info-Tech Research Group, also pointed to Mistral’s high-quality models and “adeptness as a sovereign AI leader.” There is growing demand for AI companies that comply with regional laws and data residency, and Mistral is established as “one of the most prominent European players.”

“Such a strategic position makes it a great partner for Microsoft to further expand its AI offerings beyond just being a single-model provider,” he said. Customers get freedom of choice while complying with data sovereignty and regulatory limitations without having to execute a separate AI deployment, while Mistral, for its part, can go beyond Europe and gain more visibility with international businesses.

Mistral brings both “technological and political advantages,” Levy noted. The startup’s European roots give Microsoft more credibility “at a fraught time for geopolitical relationships.” Customers in Europe and beyond are concerned about US exposure, and Mistral can provide a safer choice.

Meanwhile, Microsoft can deploy European-developed AI models running on European infrastructure, thus maximizing regulatory compliance while offering next-level enterprise marketing scale that Mistral “simply couldn’t achieve on its own,” said Levy. Mistral-based workloads deployed on Azure will also benefit from Microsoft’s “comprehensive security certifications, governance frameworks, and monitoring.”

Bottom line: Both companies can maximize their unique roadmaps through the partnership, he said. “As the rules of the AI economy continue to evolve, expect more eyebrow-raising deals like this to be signed.”

HireQuotient, an AI-native recruiting platform, today announced its integration with Paylocity (Nasdaq: PCTY), bringing AI-powered candidate sourcing and screening capabilities to Paylocity customers in manufacturing, building services, construction, healthcare and insurance, which are industries where deskless and frontline hiring has historically been underserved by AI recruiting tools.

Employers in these sectors who already use HireQuotient are seeing the impact firsthand.

“By simply putting in vetting criteria, I was able to get a very specific talent pool within a day,” said Niki Simoneaux, COO of Arc Health. “With EasySource, we can reach a huge database or filter for specific licenses and areas.”

“With technology and the ability to work remotely, we’re able to recruit nationwide outside of our footprint. This expands the pool of prospective candidates and gives us access to candidates who might not have ever applied for a position on our website’s career page,” said Jeff McGee, vice president at W3 Insurance.

“HireQuotient’s AI-native product helped my team at Alliance Building Services to cut down time to close position by more than 60%, and their team works very closely with the client to ensure adoption at scale,” said Willow Marcon, senior vice president at Alliance Building Services.

Recruiters in manufacturing, building services, construction, healthcare and insurance often spend more than two-thirds of their time on manual work and using over 10 platforms to just close a hire: sourcing a wide range of profiles, skimming resumes, finding contact information, reaching out and doing hundreds of calls and constant follow-ups. That fragmented process leads to recruiter burnout and leaves gaps in candidate data. Because most HR platforms don’t offer built-in AI native agents that work in tandem to do all it takes to close the hire, employers in these industries have faced hiring delays and platform churn.

The partnership addresses this gap by integrating HireQuotient’s EasySource platform directly into the Paylocity ecosystem. Instead of relying on rigid keyword searches, EasySource identifies strong talent pools, screens for role-specific credentials and licenses and personalizes outreach by phone and email. For mid-market companies with 500 to 1,000 employees, that translates to a 70% faster time-to-hire and an estimated $100,000 in annual savings.

The integration also closes the feedback loop for employers. By feeding post-hire data back into the recruiting system, EasySource learns from successful hires to build smarter talent pools over time, while keeping recruiters engaged longer by freeing them to focus on the human side of hiring.

Gokul Rajaram, board member at Coinbase and former board member of The Trade Desk (Nasdaq: TTD), and also known as the godfather of Google AdSense, said, “Smarthveer is one of those rare founders who picks an unglamorous, deeply underserved market and refuses to leave until it’s fixed. Frontline hiring is exactly that market. Being named to Paylocity’s elite partner network is a testament to his relentlessness and to the team he’s built. Excited for what’s ahead.”

“Paylocity maintains an elite partner network, so being named one of them is a testament to the strength of our product,” said Smarthveer Sidana, founder and CEO of HireQuotient. “By keeping that recruiting activity inside the Paylocity ecosystem, we’re helping them close a critical gap for their employers, capture revenue that previously sat outside their platform, and prevent the client churn that comes with a fragmented hiring process.”

Jim Moffatt, former global CEO of Deloitte Consulting and board partner at Greycroft VC, said, 

“This is a big milestone for Smarthveer and his team. I congratulate them on this big win. Paylocity’s large client base acts as a strong distribution, and HireQuotient’s EasySource acts as a strong product to cater to the needs of Paylocity’s clients. Paylocity is known for its highly selective approach, and I’m glad to see that after months of evaluation and extensive due diligence, they’re going live with HireQuotient’s EasySource. I feel confident in the value this partnership will create for frontline industries. I remember when Smarthveer spoke to me about it in December, and it felt very ambitious. I’m glad to see it turn to reality.”

For employers with a traditionally deskless workforce in industries where AI adoption has lagged, the integration bridges a major capability gap by allowing them to source, screen, onboard and manage payroll all in one place.

For more information, visit www.hirequotient.com.

A media kit with additional partner quotes, executive headshots and logos can be found here.

About HireQuotient

HireQuotient is an AI-native recruiting platform that automates candidate sourcing and screening for employers in manufacturing, building services, construction, healthcare, insurance and other frontline-heavy industries. Its flagship platform, EasySource, is one of a select number of recruiting technologies integrated with Paylocity’s HR and payroll ecosystem. Founded by Smarthveer Sidana, HireQuotient is headquartered in San Francisco. For more information, visit https://www.hirequotient.com/.

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AWS has updated AWS Data Exports, its service for generating and managing cost and usage Reports (CURs), to include standardized Amazon Bedrock product metadata, making it easier for enterprise engineering teams to analyze AI usage and spending as they scale AI deployments spanning multiple foundation models.

The update extends billing exports with normalized fields for model provider, model name, inference type, inference mode, billing unit and Bedrock product family, and will enable enterprises to identify which models generated costs and compare spending across providers without relying on custom parsing or normalization of billing records, AWS wrote in a blog post.

That reduced reliance on custom parsing will reduce the engineering effort required to analyze billing data, analysts said.

“Before the update, a data engineer would typically need to maintain a model ID registry, write regex against usage type strings, or join AWS CloudTrail with CUR to figure out which provider generated which cost,” said Bhupendra Chopra, chief revenue officer at IT consulting firm Kanerika.

The new standardized fields “can be the difference between a billing pipeline that needs constant babysitting and one that doesn’t,” Chopra added.

That’s because custom parsing logic is more prone to break down or require maintenance when AWS adds new models or updates pricing in Bedrock, said Pareekh Jain, principal analyst at Pareekh Consulting.

Richer billing data to boost enterprise AI cost governance

Beyond reducing engineering overhead, the update could also help enterprises improve AI cost governance.

Before this update FinOps teams struggled to identify which model Bedrock related to because usage type fields were inconsistent, and there was no unified product family name that captured all Bedrock costs in one place, Chopra said.

“Now those attributes — model provider, model name, inference type, inference mode, pricing unit — are standardized and available by default. That’s the plumbing work no one talks about, but it’s what makes downstream reporting actually reliable,” Chopra added.

This, said Jain, makes it easier to build dashboards showing cost by model, provider, token type or inference mode while also identifying expensive workloads, unusual token growth and opportunities to move to cheaper models or batch processing.

It’s a timely update, especially in light of last week’s AWS billing issue that caused some customers to see incorrect cost estimates of services consumed in the AWS Management Console, said Muskan Bandta, cloud associate at FinOps services providing firm ZopDev.

“Anything that gives customers clearer, more granular and more trustworthy billing data is welcome when confidence in the numbers has just been shaken. It does not fix what went wrong, but better visibility into where spend is going is exactly what teams want more of after an episode like that,” Bandta added.

This article first appeared on InfoWorld.

AWS has updated AWS Data Exports, its service for generating and managing cost and usage Reports (CURs), to include standardized Amazon Bedrock product metadata, making it easier for enterprise engineering teams to analyze AI usage and spending as they scale AI deployments spanning multiple foundation models.

The update extends billing exports with normalized fields for model provider, model name, inference type, inference mode, billing unit and Bedrock product family, and will enable enterprises to identify which models generated costs and compare spending across providers without relying on custom parsing or normalization of billing records, AWS wrote in a blog post.

That reduced reliance on custom parsing will reduce the engineering effort required to analyze billing data, analysts said.

“Before the update, a data engineer would typically need to maintain a model ID registry, write regex against usage type strings, or join AWS CloudTrail with CUR to figure out which provider generated which cost,” said Bhupendra Chopra, chief revenue officer at IT consulting firm Kanerika.

The new standardized fields “can be the difference between a billing pipeline that needs constant babysitting and one that doesn’t,” Chopra added.

That’s because custom parsing logic is more prone to break down or require maintenance when AWS adds new models or updates pricing in Bedrock, said Pareekh Jain, principal analyst at Pareekh Consulting.

Richer billing data to boost enterprise AI cost governance

Beyond reducing engineering overhead, the update could also help enterprises improve AI cost governance.

Before this update FinOps teams struggled to identify which model Bedrock related to because usage type fields were inconsistent, and there was no unified product family name that captured all Bedrock costs in one place, Chopra said.

“Now those attributes — model provider, model name, inference type, inference mode, pricing unit — are standardized and available by default. That’s the plumbing work no one talks about, but it’s what makes downstream reporting actually reliable,” Chopra added.

This, said Jain, makes it easier to build dashboards showing cost by model, provider, token type or inference mode while also identifying expensive workloads, unusual token growth and opportunities to move to cheaper models or batch processing.

It’s a timely update, especially in light of last week’s AWS billing issue that caused some customers to see incorrect cost estimates of services consumed in the AWS Management Console, said Muskan Bandta, cloud associate at FinOps services providing firm ZopDev.

“Anything that gives customers clearer, more granular and more trustworthy billing data is welcome when confidence in the numbers has just been shaken. It does not fix what went wrong, but better visibility into where spend is going is exactly what teams want more of after an episode like that,” Bandta added.

What if the next breakthrough in Enterprise AI doesn’t come from computer science alone?

What if it comes from applying principles that physicists have understood for more than a century?

According to Gartner, rising token-driven AI spend is straining budgets and challenging cost justification. As organizations race to deploy generative AI and agentic systems, token consumption dominates nearly every executive discussion: How many tokens did we use? How much did inference cost? Can we reduce our AI bill?

These are important operational questions. But they are not the strategic questions.

I believe the economics of enterprise AI can be viewed through the lens of three well-established principles from thermodynamics: the conservation of energy, entropy, and exergy.

While these principles describe physical systems — not AI —they offer a useful way to think about how organizations should measure AI success.

Principle 1: Value is created through transformation

The 1^st Law of Thermodynamics tells us that energy cannot be created or destroyed. It can only be transformed.

Enterprise AI presents a similar management lesson: Tokens are not valuable because they are consumed; they become valuable only when they are transformed into business outcomes: A faster loan application decision. A better customer experience. Faster and more accurate software. Reduced fraud. Higher employee productivity. A new product. A strategic insight.

The executive question therefore is not, “How many tokens did we consume?” It is: “How much business value did those tokens create?”

This leads to a new executive metric: return on tokens (ROT).

Just as organizations measure return on investment, they should begin measuring the business value generated for every million AI tokens consumed.

The organizations that win will not necessarily consume fewer tokens. They will generate more value from every token they use.

Principle 2: Every transformation creates waste

The 2nd Law of Thermodynamics teaches us that every energy transformation introduces inefficiencies.

Some energy inevitably becomes less useful for doing work.

The same pattern appears in enterprise AI: Not every token contributes equally to business outcomes.

Some are spent on:

• Repeated prompts
• Oversized context windows
• Redundant reasoning
• Hallucinations requiring correction
• Multiple agents performing the same work
• Expensive models solving simple problems

Those tokens are not “lost.” They simply produce very little business value.

I think of this as token entropy. Every enterprise deploying AI will experience it. The goal is not to eliminate token entropy completely — that would be unrealistic. The goal is to continuously identify it, measure it and reduce it. Because every unnecessary token represents an opportunity to improve both cost and business performance.

Principle 3: Useful work matters more than energy consumed

Thermodynamics introduces another important idea: Exergy.

Unlike energy, exergy measures how much energy can actually be converted into useful work. Two systems may consume the same amount of energy while producing dramatically different results.

The same is true for enterprise AI.

Imagine two companies each consuming one billion tokens. One produces meeting summaries. The other transforms claims operations, accelerates software delivery, detects fraud, improves customer retention, and creates new revenue opportunities. Both consumed the same number of tokens. Only one extracted significantly more business value.

Borrowing this concept as a management analogy, I call this token exergy.

Token exergy represents an organization’s ability to convert AI intelligence into meaningful business outcomes:

• High token exergy means AI is solving important business problems.
• Low token exergy means AI is generating activity without creating proportional enterprise value.

The distinction matters, because activity is not the same as impact.

A new responsibility for CIOs

For years, CIOs have monitored infrastructure: Cloud costs, storage, network utilization, GPU consumption.

These metrics remain important, but they tell only part of the story.

Token usage needs to be measured, planned, optimized and governed with the same discipline as any other cloud resource. This means that the next generation of CIO dashboards should answer different questions:

• What is our return on tokens?
• Where is token entropy reducing our effectiveness?
• How much token exergy are we generating?
• Which AI initiatives produce the greatest business value?
• Which use cases create the strongest competitive advantage?

These are no longer technology metrics. They are business metrics.

The next generation of CIOs will not simply deploy AI. They will manage an economy of intelligence.

Their role will resemble that of a portfolio manager — allocating AI capacity where it creates the greatest enterprise value, reducing waste and continuously improving the productivity of every autonomous workflow.

That responsibility cannot be fulfilled by dashboards alone.

It requires an intelligent layer capable of observing, learning and optimizing the entire AI  ecosystem. Three-layer enterprise agentic architecture Will enable this.

The next competitive advantage

Every major technology revolution eventually shifts from measuring inputs to measuring outcomes:

• Factories stopped measuring coal consumption and began measuring productivity.
• Cloud computing evolved beyond server utilization to business agility.
• Digital businesses measured customer acquisition costs and lifetime value.

Enterprise AI is approaching the same inflection point. Organizations that focus only on token costs will optimize for efficiency. Organizations that measure return on tokens, minimize token entropy and maximize token exergy will optimize for business transformation.

That is a fundamentally different objective. And I believe it will separate AI leaders from AI followers.

Because in the end, the future of enterprise AI will not be determined by how many tokens an organization consumes. It will be determined by how effectively those tokens are transformed into lasting business value. The AI adoption spending spree is over. Time to focus on value.

This article is published as part of the Foundry Expert Contributor Network.
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AMD has expanded its AI infrastructure portfolio with the launch of Helios, an open, rackscale AI infrastructure designed for frontier AI and sovereign computing. Helios is built around AMD’s next-generation Instinct GPUs, EPYC Venice processors, Pensando networking and the ROCm software stack.

“Helios is AMD’s first complete AI rack system with GPUs, CPUs, and networking built together, instead of selling separate chips. It is well suited for training large AI models, memory heavy models, long context processing and high volume inference, and AMD’s biggest shot yet at challenging Nvidia’s dominance,” said Pareekh Jain, CEO at EIIRTrend & Pareekh Consulting.

AMD has also secured an early hyperscale deployment for Helios with Microsoft agreeing to deploy it to power its frontier model AI inference, its AI customers, and support Azure AI services.

The architecture behind Helios

The launch of Helios marks AMD’s latest attempt to strengthen its position in a market where Nvidia continues to dominate AI infrastructure. Unlike previous AMD AI offerings centred on individual accelerators, Helios is designed as a complete rack-scale system integrating compute, networking and software.

According to Jain, Helios goes up against Nvidia’s Vera Rubin rack. “Nvidia is faster on raw inference speed and has a faster internal connection between chips whereas AMD wins on memory size and offers better value for the price and power used. It’s standout feature is memory, where each rack packs about 50% more total memory than Nvidia’s competing system, which helps run very large AI models. It also uses open, industry-standard connections instead of Nvidia’s private technology, giving buyers more flexibility,” he said.

The AMD Helios rackscale design includes 72 AMD Instinct MI455X GPUs with AMD EPYC Venice CPUs and AMD Pensando Vulcano networking using UALink, optimized for compute, data movement, and system efficiency. The platform also supports both OCP and MX data types, delivering up to 2.9 EFLOPS of FP4 and 1.4 EFLOPS of FP8 compute for AI training and inference.

It also integrates 31TB of HBM4 memory with 19.6TB/s of memory bandwidth, while a liquid-cooling design uses quick-disconnect connections to efficiently dissipate heat. It is designed on open standards including OCP Open Rack Wide (ORW), Ultra Accelerator Link (UALink), and Ultra Ethernet Consortium (UEC) and can be scaled efficiently across datacenters while optimizing power, cooling, and serviceability for modern AI infrastructure, said the company.

On the security front, Helios incorporates a hardware root of trust and continuous attestation at every layer. It supports hardware-enforced isolation, encrypted memory and interconnects to help protect AI models, data and workloads in multi-tenant environments.

The software challenge

While the launch of Helios might help AMD close the hardware gap with Nvidia’s rack-scale systems, it will be the software compatibility that will be the real driver of enterprise adoption.

For this, AMD is expanding its ROCm AI software platform too, which supports frameworks including PyTorch, TensorFlow, and JAX, for enabling high-throughput inference and efficient distributed training while preserving familiar developer workflows.

Jain stated While hardware parity or superiority in memory bandwidth is achievable, software maturity remains the key differentiator for Nvidia. The Nvidia’s CUDA software has a 15-20 year head start, and almost every AI tool, tutorial, and codebase defaults to it.

He added software has been AMD’s weak spot. AMD has improved  ROCm a lot but it still lags behind on the newest, most specialized optimizations, and setup is more complicated. For everyday AI work, ROCm is usable but for cutting-edge performance, CUDA still leads.

Evaluating the trade-offs

For CIOs evaluating AI infrastructure, Helios launch brings in another option to a market that has largely revolved around Nvidia’s dominance. But when considering Helios, CIOs will have to evaluate factors such as performance, software readiness, deployment models, procurement timelines and total cost of ownership before committing to a platform.

While AMD has not publicly announced a specific price tag for the Helios, Jain believes it to be noticeably cheaper to buy and run with lower chip prices and lower power use per GPU.

“It gives companies a real second option besides Nvidia, easing supply shortages and giving leverage in negotiations. The catch is software, where teams need to check whether their AI tools run well on AMD’s stack, since some advanced tools are still CUDA only,” Jain said.

For CIOs planning to deploy both, Jain warns the two systems can’t be plugged together into one combined machine as they use different, incompatible connection technology. But companies can and do run both side by side in the same data center, just as separate systems handling different jobs.

Military strategists know that asymmetric wars are lost not at the point of attack but at the seams between defensive units, where no single commander owns the territory and information moves slower than the threat. In January 2024, a finance employee at Arup’s Hong Kong office learned this lesson for $25 million, joining a video call with what appeared to be the engineering firm’s chief financial officer and several colleagues, receiving instructions to wire funds to a designated account, and complying. Every face on the screen was a deepfake, cloned from publicly available footage of the actual executives. The attackers conducted the entire meeting in real time and vanished before anyone in the organization realized the CFO had never logged on.

The incident would be remarkable enough as a one-off, but it represents a pattern accelerating well beyond isolated cases. Global payment fraud reached $33.4 billion in 2024 according to the Nilson Report, and the US absorbed a disproportionate 42% of those losses despite processing only 25% of global card transactions. The latest FBI Internet Crime report identifies more than one million complaints and nearly $21 billion in cyber-enabled crime losses in 2025 (up from $16 million in 2023), while Deloitte projects AI-enabled fraud in the US will hit $40 billion by 2027. This increasingly includes crypto-related fraud, not just credit card or traditional banking fraud.

For anyone who oversees financial operations, risk or payment technology infrastructure, these numbers are not forecasts of a future “regional conflict.” Instead, they are the current cost of a war most institutions have not yet recognized they are fighting.

Reconnaissance at scale: How AI redraws the attacker’s map

The conventional narrative around AI-powered fraud emphasizes speed: Faster phishing, faster credential stuffing, faster social engineering. Jason Kikta, CTO of Automox, sees the shift differently. “The main threat from AI misuse isn’t faster execution, as automation has been leveraged for years,” Kikta says. “The true dangers are lower barriers to entry and faster adaptation, giving attackers the ability to pivot techniques in near real-time.”

The distinction means that execution is a quantitative improvement, the kind existing defenses can absorb by scaling up. Lower barriers to entry and real-time adaptation are qualitative: A force multiplier that turns every amateur into an equipped operator with a coach that learns from each failed attempt. Deepfake-as-a-service platforms now produce voice clones from three seconds of audio. AI-driven vulnerability scanning maps an institution’s unpatched endpoints while the security team is still scheduling the review meeting. In 2024, 269 million stolen credit card records appeared on dark web platforms, giving AI-equipped attackers what military intelligence analysts would call an order of battle: A detailed map of the defender’s exposed positions, ready to be mined for patterns, tested against live systems and exploited at machine speed.

The result is a combined arms threat, one that operates across domains simultaneously the way a competent military force coordinates air, ground and intelligence rather than running them as independent campaigns. The same AI that crafts a convincing business email compromise can probe unpatched point-of-sale systems to install digital skimmers. The same synthetic identity that opens a fraudulent credit card account can exploit a payment authorization vulnerability discovered through automated scanning. Card-not-present fraud now accounts for 71% of all US card fraud losses, and the attack surface keeps expanding as digital wallets and e-commerce push more transactions into channels where physical card verification is impossible.

Attackers treat endpoint management gaps and transaction monitoring gaps as a single attack surface, while most defenders continue to patrol them as separate territories.

Fragmented command: The structural vulnerability AI exploits

Consider how most financial institutions, crypto platforms and digital asset intermediaries actually organize their defenses: A cybersecurity team focused on identity compromise, endpoint protection and infrastructure threats; a fraud team focused on account takeover, mule networks and scam typologies; an AML or financial crimes team focused on wallet screening, sanctions exposure and suspicious activity reporting; and an AI risk or digital trust team, if one exists at all, focused on synthetic media, model abuse and impersonation. Each function has its own tooling, budget, reporting line and intelligence feeds. In crypto markets, where value can move irreversibly across wallets, chains, mixers, exchanges and OTC brokers in minutes, those silos create exploitable gaps between detection, attribution, interdiction and recovery.

A pig-butchering scam that begins on a dating app, migrates to WhatsApp, directs a victim to a fake crypto investment platform, and then launders proceeds through nested services and cross-chain bridges is not just a fraud event. It is also a cybersecurity event, a financial crimes event, an identity event, a platform abuse event and, increasingly, an AI-enabled social engineering event. Chainalysis reported that high-yield investment scams and pig-butchering schemes were among the most successful crypto scam types in 2024, while also noting growing use of AI in fraud and scams.

Research published by the University of California, Davis found that these schemes follow a staged lifecycle: Trust-building, fabricated investment returns, escalating deposits, withdrawal obstruction and re-targeting of victims after the initial loss. When each part of that lifecycle is monitored by a different team, the institution sees fragments of the attack rather than the economic system of the crime.

“Fraud no longer happens in isolated channels,” observes Jeff Li, Global Product & Designer Lead at Binance. “AI-powered scams move seamlessly across platforms, and payment systems, making fragmented defenses increasingly ineffective.” He believes that the future of security depends on unified intelligence — combining AI, real-time monitoring, secure infrastructure and cross-functional response mechanisms into a single coordinated defense system.

“We’ve invested heavily in AI-driven risk detection, real-time scam warnings and infrastructure to stay ahead of evolving threats, continues Li, claiming that from Q1 2025 to Q1 2026, these efforts helped Binance prevent over $10 billion in potential user losses and protected more than 5 million users globally. As AI continues to reshape both fraud and fraud prevention, the focus remains on building systems that can protect users, not just at scale, but in real time.

Unified command: From org chart to battle plan

Kikta’s assessment contains a contrarian detail worth teasing apart: “The good news is that a strong compliance program prioritizing depth of coverage and speed of enforcement will hold up against AI-enabled fraud,” he says. In a landscape saturated with predictions that existing defenses are obsolete, Kikta argues that the fundamentals of patch management, endpoint hygiene and compliance rigor still hold, provided the clock speed at which those fundamentals execute keeps pace with the adversary.

That clock speed is the operational link between cybersecurity and card fraud prevention. An unpatched point-of-sale terminal or payment gateway exposed for 30 days represents 30 days of reconnaissance opportunity for an AI scanner probing for places to install a digital skimmer or intercept card data in transit. A compliance gap in identity verification is an open invitation for synthetic identities to open accounts and run fraudulent transactions. Endpoint management data and transaction monitoring data describe the same attack surface from different angles, and fusing those streams into a single operational picture, the financial equivalent of a military intelligence fusion center, gives defenders something the current siloed structure cannot: Visibility into an attack developing across domains before it reaches the payment layer.

The value of that convergence extends beyond defense. A unified data layer across cyber, fraud and payments creates consolidated threat intelligence that can inform underwriting decisions, merchant risk scoring and product design. Organizations that treat converged security data as a business intelligence asset (not merely an operational feed) will find they have built something with commercial utility well beyond the security operations center.

Mascaro frames the prescription in terms that belong in a boardroom, not a SOC. “The real competitive advantage in fraud isn’t your AI stack,” he says. “It’s leadership’s clarity to unify risk disciplines that everyone else keeps in separate departments.”

Field manual: What winning institutions do differently

The institutions gaining ground in this new form of asymmetric conflict share a common operational posture: They treat endpoint management as card fraud prevention rather than IT maintenance, and they feed cyber, fraud and payments intelligence into a single picture rather than three separate briefings. The defensive AI advantage, such as it is, comes from that integration, not from any single model’s sophistication.

Adversaries have already unified their operations. Yet, payment processors and financial institutions that keep running separate campaigns on separate fronts, with separate intelligence, will keep conducting after-action reviews of battles they have already lost.

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Site reliability engineers (SREs) have the tough assignment of resolving thorny performance and reliability issues. But their primary mission is to provide devops teams with operational insights and to suggest implementation improvements on business system performance, security, and overall robustness.

Google introduced its SRE playbook in 2003, but it took some time for the role’s definition, tools, and techniques to become mainstream. Startups were the first to adopt observability for cloud-native applications and create dedicated SRE positions. As tools matured and SRE responsibilities became more clearly defined, larger enterprises assigned SREs to work as a bridge between devops and IT ops teams to improve resilience across a wider range of applications, APIs, and data pipelines.

SRE is a career path for multidisciplinary engineers with strong investigative instincts, sharp data analytics skills, and the temperament to perform under pressure. It has become a critical responsibility as tech became mission-critical for enterprises, and it is a growing role in the genAI era as more businesses deploy AI agents.

But the critical need for resiliency and greater technological complexity brings new challenges for SREs. According to the 2026 State of Production Reliability and AI Adoption report, 44% of respondents experienced an outage linked to ignored or suppressed alerts in the past year, and 35% report their engineers occasionally ignore or dismiss alerts due to alert fatigue. More than 70% of alerts received are not actionable, according to 57% of organizations.

So, is AI making the SRE’s role easier and helping businesses run more reliable technology operations? On the other hand, AI is also driving complexity, as companies deploy genAI tools and AI agents across more business functions and seek to automate more decision-making across operations.

AIops and agentic ops aid SREs

Over the past decade, SRE responsibilities have become somewhat easier through improvements in monitoring platforms, observability practices, tools for centralizing operational data, and AI applied in IT operations (AIops). But during the heat of resolving an outage or performance issue, it’s not easy to correctly identify what system triggered the issue versus other downstream systems impacted by it.

According to the Komodore 2025 Enterprise Kubernetes Report, 79% of production incidents originate from recent system changes, including deployments and changes to compute environments. But the other 21% of incidents stem from issues outside of the business’s control, including network failures, third-party changes, and cloud provider failures.

“SREs using AI capabilities succeed or fail in the moment an incident unfolds, when engineers are deciding what to investigate next,” says Itiel Shwartz, CTO at Komodor. “If the system streamlines root cause detection, connects signals to recent changes, and explains its reasoning in a way engineers recognize, it earns trust. If it adds uncertainty or demands extra validation, it gets sidelined, regardless of how bespoke the model behind it may be. What’s less obvious is what it takes to make AI for SREs work in production, and how different that reality is from prototypes, demos, or early internal builds.”

AIops is not a new capability, especially in using machine learning to correlate logs, metrics, and traces across monitoring and alerting systems. IT service management and SREs have been using AIops to reduce the mean time to resolve incidents and to perform accurate root cause analysis (RCA) efficiently. Agentic ops is the next wave of genAI operational capabilities, including tools for monitoring AI agents, managing their access rights, and detecting AI model accuracy drift.

 “AI is useful during major incidents because it can pull together a lot of context into a few clear sentences, which is exactly what an SRE needs in the moment,” suggests Shani Shoham, chief revenue officer at OpenObserve. “The complexity of architecture and the different tooling make it easier for AI than for a human, but autonomous resolution is still a way off.”

AI’s impact on people and burnout

The business pressure to keep systems up, secure, and performing well is a 24/7 stressful responsibility. According to The SRE Report 2025 from Catchpoint, 36% of SREs often or always experience elevated stress during an incident, and 28% said the stress persists even after the incident is resolved. AI capabilities may prove to be a game-changer in helping SREs avoid burnout and reduce stress.

“AI can improve RCA by taking in a much larger incident context than any engineer can hold at 3am, reasoning across traces, logs, metrics, deploys, config changes, alerts, ownership, and recent production behavior,” says Noam Levy, founding engineer and field CTO at Groundcover. “Beyond attempting a full RCA, its immediate value is distilling the signals that actually matter, reconstructing a clear timeline of cause and effect, and helping engineers separate correlation from likely causality. Once a fix is deployed, agents can also verify remediation by comparing pre- and post-fix behavior, but this depends on broad access to rich, correlated production signals and a cost model that does not discourage adoption or experimentation.”

Not only are incidents resolved faster and with less stress, but AI can also free up SRE time to focus on proactive work and create a career path for junior developers into SRE roles. Quais Taraki, CTO at EDB Postgres AI, adds, “AI reduces toil by automating repetitive tasks while accelerating incident resolution through copilots that correlate signals across distributed systems, allowing SREs to focus more on resilience strategies like chaos engineering and failure analysis.”

AI can have long-lasting operational impacts, especially for organizations looking to deploy more mission-critical technology and AI capabilities. Two longer-term benefits of AI for SREs are reducing the number of bridge calls needed for incident response and the number of engineers required in “war rooms” to coordinate root cause analyses.

“When something goes wrong, AI that guides SREs can do the full analysis, get to the root cause, and perform the remediation,” says Spiros Xanthos, founder and CEO of Resolve AI. “AI also helps avoid many escalations, and when escalations are needed, it targets the right people from the network, infrastructure, and the application teams. AI for SREs centralizes operational intelligence, exposes tribal knowledge, and can guide more junior developers.” 

AI agent reliability

While AI capabilities have been a net positive in helping SREs improve system reliability, the growth of AI code generators, vibe coding, and spec-driven development is adding to their workloads. According to one study, 41% of all global code is now AI-generated, and Gartner predicts that 40% of new enterprise production software will be created using vibe coding techniques by 2028.

But coding velocity is creating new issues for SREs as AI pull requests have 1.4 times more critical issues and 1.7 times more major issues, according to CodeRabbit. “AI-assisted development has created an unprecedented velocity of code reaching production, expanding surface area, edge cases, and failure rates faster than traditional SRE practices can absorb,” says Vinod Jayaraman, cofounder and CTO at NeuBird AI. “The speed of shipping has far outpaced the speed of understanding what breaks in production. To close this loop, SREs need enterprise agents that can capture precise diagnostic context, including correlated traces, service dependencies, and anomaly timelines, and structure it as actionable input for the engineers and AI coding tools responsible for the fix.”

The growing number of AI agents deployed to production creates new challenges. AI agents are not just code; they have multiple failure points. They are built using language models, connect to proprietary sources for context, and integrate with Model Context Protocol servers to support more complex workflows. Changes are ongoing and not deployment events, so the SRE’s job of identifying the source of performance and accuracy drifts isn’t trivial. 

“Traditional SRE was built for systems that fail in reproducible ways, but agents fail differently and drift when a model provider pushes an update, and behavior shifts silently with no baseline for comparison,” says Mohammed Aboul-Magd, vice president of product at SandboxAQ. “Most organizations can’t even answer the basics: how many agents are running, what they have access to, and whether they’re still doing what they were built to do.”

“Every time a senior engineer leaves, they take years of learned failure patterns with them, and the next outage starts from square one,” adds Ronak Desai, cofounder and CEO at Ciroos. “Using AI for compounding operational memory changes that, and every incident your system resolves, the AI learns it.”

SREs should take a leadership role in emerging best practices, including defining their standards for AI agent non-functional acceptance criteria, observability practices, and release-readiness criteria. SREs should update their service-level objectives (SLOs) and define error budgets for AI agents in production.

Ryan Downing, vice president and CIO of enterprise business solutions at Principal Financial Group, says, “Standard SLOs and error budgets give teams the guardrails, and AI helps interpret the telemetry against those targets, reducing noise so engineers can get to the real issue faster and automate parts of remediation before customers are impacted.”

AI raises the SRE’s business impact

The more dramatic shift in site reliability engineering is an evolution of its business scope. IT leaders focus on uptime, performance, and issue resolution, as well as understanding their impacts. Business leaders will look to IT and SREs to identify, determine root cause, and remediate a broader class of issues, including rogue AI agents and the impacts of rapidly deploying new agentic capabilities. 

“AI agents are handing SREs categories of problems they’ve never had to solve before, specifically failures defined in business terms, not technical ones,” says Blake Sherwood, distinguished technologist for AI and platform strategy at Smarsh. “Traditional reliability engineering is built around latency, errors, and crashes, but agents now fail due to skipped compliance steps or outcomes that looked fine technically but were wrong contextually. Most SRE teams aren’t wired for that yet.”

The question is whether SREs with AI-augmented tools can keep up with the velocity, complexity, and business urgency of deploying new AI business capabilities.

Every enterprise AI conversation seems to begin with the same question: Which model should we use?

I understand why. Models are visible. They have names, benchmarks, release notes, pricing pages and impressive demos. They are easy to compare in a leadership meeting. One model promises better reasoning. Another offers a larger context window. Another appears faster, cheaper or more specialized.

But after years of working around enterprise platforms, integration layers, cloud migration, middleware, production operations and mission-critical systems, I see the AI conversation differently.

The model matters. But it is not where most enterprises will struggle next.

The next AI bottleneck is the infrastructure behind the model.

I do not mean only GPUs, cloud capacity or data storage. I mean the full enterprise operating layer that allows AI to work safely in the real world: data pipelines, identity, APIs, messaging, observability, security controls, deployment automation, cost governance, auditability, support ownership and recovery design.

That layer is what determines whether AI remains an exciting experiment or becomes a trusted business capability.

Pilots hide the hard part

Most organizations can build an impressive AI pilot. A small team can connect a model to a dataset, create a workflow and show a use case that works well in a controlled setting.

The harder part starts when that pilot moves into a real production process.

That is when practical questions show up. Who owns the data quality? What systems can the AI access? How do we trace which prompt, policy or retrieval flow produced a specific answer? What happens when an API slows down, a queue backs up or a downstream system is unavailable?

To me, these are not model problems. They are infrastructure problems.

This is where many enterprises are now headed. The first phase of AI was experimentation. The next phase is operationalization, and that is where the real gap becomes clear.

McKinsey has made a similar point in its work on agentic AI, noting that the next phase of value depends less on isolated tools and more on redesigning workflows, operating models and enterprise execution around agents.

AI pilots can survive on enthusiasm. Production AI requires architecture.

AI is becoming an integration problem

The more I look at enterprise AI, the more it feels like an integration challenge.

In large organizations, I have seen how messaging platforms, integration gateways, deployment pipelines, monitoring tools and cloud infrastructure can decide whether a digital capability succeeds or fails. AI will be no different. Even the strongest model will struggle if the data, middleware, identity layer and operational controls around it are weak.

AI does not work in isolation. It needs context from systems of record, clean data from different business areas, secure access to APIs, event streams, workflows, knowledge repositories, monitoring tools and legacy systems.

That is why the CIO question is changing.

It is no longer just, “Which AI tool should we buy?”

It is becoming, “Can we safely operationalize intelligence across the business?”

This is where agentic AI matters. Autonomous AI only creates real value when the architecture around it can make its actions safe, traceable and useful.

A model can generate an answer. Infrastructure determines whether that answer is secure, timely, explainable, governed and connected to the right workflow.

For example, an AI assistant that summarizes customer or order information may look like a model use case. But underneath, it depends on access control, fresh data, reliable APIs, logging, encryption, monitoring and policy enforcement.

If the answer is wrong, people may blame the model. But the real failure may have started with stale data, weak integration, poor access design, missing observability or an unreliable downstream system.

That is why CIOs should not judge AI only by model capability. The enterprise system around the model matters just as much.

Latency will become a trust issue

In traditional technology operations, latency is often treated as a performance metric. In AI-enabled workflows, latency becomes a trust issue.

When an employee asks an AI assistant for help and the response takes too long, the employee stops using it. When a customer-facing workflow becomes slow, the customer abandons it. When an AI agent waits on multiple backend calls, the entire business process feels unreliable.

This becomes even more important as organizations move from simple chat interfaces to agentic workflows. A single AI-driven action may include identity checks, context retrieval, policy validation, model reasoning, API calls, business-rule execution, logging and human approval.

Each step adds latency. Each dependency adds a possible failure point.

A model may be fast in a benchmark but slow inside an enterprise process. That difference matters.

This is where platform engineering becomes essential. Enterprises need reusable patterns for AI workloads: approved connectors, secure retrieval methods, queue-based decoupling, caching strategies, deployment pipelines, monitoring dashboards and standard rollback procedures.

Without those patterns, every AI initiative becomes a custom build. Custom builds may work for pilots, but they do not scale across a large enterprise.

Observability has to expand

Traditional monitoring tells us whether infrastructure is healthy. Is the server up? Is CPU high? Is memory exhausted? Is the application returning errors?

AI needs that, but it also needs more.

We need to know what data was retrieved, which model was used, which prompt version was active, which user initiated the request, which policy was applied, how long each step took and whether the output passed validation.

We also need to detect new forms of risk: unusual usage patterns, repeated failed tool calls, unexpected cost spikes, sensitive data exposure, weak retrieval results or an AI workflow attempting actions outside its intended boundary.

In production AI, observability is not only about uptime. It is about confidence.

If a business leader, auditor, regulator or security team asks why an AI system made a recommendation, the answer cannot be, “The model said so.” The enterprise needs traceability. It needs evidence. It needs operational context that engineers, risk teams and business owners can understand.

This is one of the biggest gaps I see in AI strategy. Many organizations are investing in models and use cases, but not enough in the control plane required to manage them.

Data readiness is still underestimated

AI has exposed an uncomfortable truth: many enterprises are not as data ready as they think.

Data is often duplicated across platforms, described differently by each team, governed inconsistently and refreshed on different schedules. Access rules may be clear in one system but unclear in another. Even basic business definitions can change from department to department.

AI does not fix that automatically. In many cases, it makes the problem more visible.

A bad report may be questioned. A bad AI answer may sound confident enough to be trusted.

That is a real risk.

Being data-ready for AI is not just about connecting a vector database or indexing documents. It requires clear ownership, lineage, classification, quality checks, retention rules, access boundaries and a shared understanding of which data should be used for which purpose.

The same principle applies to resilient cloud-native design. In my IEEE TechRxiv paper, “Enabling Fault-Tolerant Multicast in Cloud-Native Architectures” I explored how reliability, observability and fault tolerance become foundational requirements when critical workloads stretch across hybrid and multi-cloud environments.

CIOs already understand this because they have lived through enterprise resource planning programs, cloud migration, integration modernization, cybersecurity transformation and analytics initiatives. The lesson is familiar: technology cannot outrun data discipline forever.

Security cannot be added later

As AI moves from answering questions to acting, security becomes much more important.

An assistant that summarizes information carries one level of risk. An agent that can open a ticket, update a record, trigger a workflow, approve a request or contact a customer carries a very different one.

The more AI can do, the more identity, authorization, least privilege, separation of duties and human approval matter.

Enterprises should be careful not to grant AI broad access just to speed up a pilot. That may seem harmless in development, but it can become dangerous at scale.

AI access should be treated like any other privileged enterprise capability: limited, logged, reviewed and easy to revoke.

The NIST AI Risk Management Framework is a useful reference point here because it frames AI risk as something organizations must govern, map, measure and manage continuously rather than something handled only at the end of deployment.

Security teams should be involved early, not at the end. The goal is not to slow innovation. The goal is to build a platform where safe innovation becomes repeatable.

The CIO has to define the operating model

AI is creating pressure from every direction. Boards want productivity. Business teams want automation. Employees want better tools. Vendors are pushing new features. Security teams are watching risk. Finance teams are watching cost. Customers expect faster, smarter experiences.

The CIO sits in the middle of all of it.

That is why the CIO’s role cannot stop at choosing tools or approving pilots. The CIO has to define how AI will actually operate across the enterprise.

That means answering practical questions. Which architecture is approved? Which data sources can be trusted? How are AI workflows deployed, monitored, supported and governed? How are costs controlled? How do teams reuse common patterns instead of rebuilding the same foundation each time?

This work may not be as exciting as a model demo, but it is what separates sustainable AI from short-term experimentation.

The winning organizations will not be the ones with the most pilots. They will be the ones with the strongest AI operating layer.

They will build reusable platform patterns, strengthen data governance, design access properly, monitor AI behavior end to end and measure success by business improvement, not only model performance.

The model still matters. But the enterprise behind the model matters more.

A powerful model on weak infrastructure will eventually disappoint the business. A capable model on strong infrastructure can deliver real value because it can be trusted, secured, scaled and improved.

That is the shift CIOs need to lead.

The next AI bottleneck is not the model. It is whether the enterprise behind the model is ready.

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