The AI boom is becoming a materials challenge. As AI pushes computing into new territory, the materials behind that infrastructure are becoming just as crucial as the algorithms running on it. Semiconductors and data centers are approaching physical limits around performance, thermal management, electrical efficiency, and reliability, creating new demands for materials that can do more at once. At the same time, AI is giving materials scientists new ways to search the enormous universe of possible molecules and accelerate the development of solutions.

For Mike Finelli, chief technology and innovation officer and chief North America officer at Syensqo, that convergence is transforming what advanced materials can enable. “AI is now, from a material standpoint, really pushing semiconductors and the data centers to their physical limits,” he says.

As requirements accumulate, including high temperature, purity, electrical performance, chemical resistance, plasma resistance, and long-term stability, materials move toward what Finelli calls the “top of the pyramid.” Beyond supporting AI innovation, he contends that advanced materials are “actually increasingly defining what’s going to be possible.”

That challenge is playing out across the infrastructure powering the AI surge. Syensqo is developing materials for high-voltage data center architectures, advanced sealing materials for semiconductor manufacturing, and thermal-management solutions including fluids for direct immersion cooling. Some of those innovations can also cross industry boundaries. Materials developed for electric vehicles, for example, can help address the higher voltage and energy-density demands that are emerging in data centers.

The definition of performance is also changing. More customers are expecting materials to meet technical requirements while reducing environmental impact. “Our goal is to remove the trade-off between performance and sustainability,” Finelli says. That means considering sustainability at the beginning of the research process instead of treating it as an additional requirement once a material has been developed.

AI is changing how those materials are discovered, too. Syensqo is using AI agents to digitally synthesize millions of potential molecular combinations, predict their performance and sustainability characteristics, and narrow them to a much smaller group for laboratory testing. The result, Finelli says, is the ability to go “broader, deeper, and faster” while giving scientists more time to solve complex engineering problems.

Looking to the future, Finelli sees the possibility of a reinforcing cycle: AI helps develop materials that improve AI infrastructure, which in turn enables better AI to accelerate materials discovery. That feedback loop could create a cycle of innovation and expand what future technologies can achieve.

“You end up in this accelerated materials, innovative cycle of materials innovation,” says Finelli. “That really excites me, and it gives us the opportunity to continue enabling technologies that will shape the future.”

This episode of Business Lab is produced in partnership with Syensqo.

Full Transcript:

Megan Tatum: From MIT Technology Review, I’m Megan Tatum, and this is Business Lab, the show that helps business leaders make sense of new technologies coming out of the lab and into the marketplace.

This episode is produced in partnership with Syensqo.

Now asked to name the key enablers to AI advancement, many of us might list algorithms, data centers, or even computing power, but just as critical to the performance are the advanced materials that underpin each layer of that innovation. As AI continues to evolve, it’s pushing the likes of semiconductors and data centers to new physical limits, putting new pressure on the advanced material sector to keep pace. But the relationship goes both ways. As the sector rises to this challenge, AI is also emerging as a powerful tool for accelerating materials discovery and development, significantly shortening development timelines for new solutions.

Two words for you: materials innovation.

My guest today is Mike Finelli, chief technology and innovation officer and chief North America officer at Syensqo.

Welcome, Mike.

Mike Finelli: Thank you, Megan. Nice to be here.

Megan: Thank you so much for joining us. Mike, can I start by asking you to tell us a little bit more about Syensqo and the role it plays in developing advanced materials?

Mike: Yeah, absolutely. Syensqo is a global leader in specialty materials. Our job is to help customers solve their toughest technology challenges. We serve a lot of different markets, but the way I like to say it simply is if it flies, we’re on it. If it drives, we’re in it. In healthcare, our products literally are saving lives every day. And if you like your mobile devices, if you like AI, it’s our products that are actually enabling the advanced semiconductor chips that are required to produce all of this. Our role is to enable innovation through advanced chemistry. We develop materials that deliver higher performances, greater reliability, and increasingly more sustainable solutions. The way I would say this, it’s at the heart of our business. Actually, it’s in our name, Syensqo. And to put some numbers around it, 20% of our annual revenues come from new products and applications that we’ve launched in the last five years, which is really evidence of a really strong innovation engine.

Megan: Yeah, absolutely. And as you sort of described there, you’re in all sorts of different industries with an emphasis perhaps on electronics and semiconductors. Can you talk a bit more about that work and where those industries are headed perhaps?

Mike: Sure. So look, electronics and semiconductors have been strategic markets for Syensqo for literally decades. I don’t want to date myself, but 33 years ago when I started in the company, semiconductors were one of the first industries that I worked in. And we’ve supported successive waves of innovation from enabling smaller, more powerful mobile devices, helping the industry get to the smaller and smaller profiles and the chips. We’ve helped to advance hyperconnectivity, supporting increasingly sophisticated semiconductor manufacturing. And today we’re helping to advance the AI era.

We have one of the industry’s broadest portfolios of high performance polymers and advanced materials. We support applications across the entire electronics value chain from semiconductor fabrication, electronic components, to smart devices and telecommunications, even hyperconnectivity. And our materials are helping customers solve increasingly demanding challenges around miniaturization, thermal management, electrical performance, chemical resistance, higher and higher purities, and long-term reliability and sustainability. And today we work with leading semiconductor manufacturers and electronics companies all around the world.

Megan: Fantastic. And as you alluded to there in the last 30 years, we’ve seen huge evolutions in those sectors.

Mike: Oh my God, yes.

Megan: And now AI is putting these new demands on semiconductors and data centers. What does that mean for the materials they’re built from and to what extent will AI innovation be constrained or enabled by materials science finding a solution?

Mike: Yeah, so I mean, you’re absolutely right. But AI is now, from a material standpoint, really pushing semiconductors and the data centers to their physical limits, and materials are becoming a key enabler of that continued progress.

The way I try to describe it, think of a pyramid, I call it the performance pyramid. You have commodity materials at the bottom of the pyramid and you have high performing specialty materials at the top of the pyramid. At Syensqo, all we do is we operate at the top of the pyramid and we’re continually trying to raise the top of that pyramid by bringing newer and newer and more higher performing materials out.

Now you might say, okay, but why doesn’t a data center or a semiconductor manufacturing fab need a specialty versus something in the commodity space? Well, I call it the and, and, and principle. If you just need a polymer or a material that can sit at the table at room temperature and stay there for 10 years and not change, well, there’s a lot of commodity materials that will do that and you don’t have a problem. The minute you start adding requirements, and I call it the and, and, and so if you need a polymer that can handle high temperature and have to have high purity and electrical performance and chemical resistance and plasma resistance and it’s got to have long-term stability, all of these ands, you start moving to the top of the pyramid.

Now what AI is doing with semiconductors, because of the speed at which it’s advancing, it’s requiring semiconductor chips and data centers, the number of requirements are increasing the number of ands which is pushing the limits of the materials. That’s where we come in. And I really believe that advanced materials, they’re no longer just supporting AI innovation, we’re actually increasingly defining what’s going to be possible.

Megan: Right. That’s fascinating. And in terms of rising to that challenge of focusing on that top of the pyramid and that and, and, and principle you’re talking about, could you talk us through perhaps an example or two of those top of the pyramid solutions you’ve created or that you’re working on at the moment?

Mike: Like I said, our focus is enabling higher performance, but it’s also without compromising on reliability or safety. We develop advanced polymers, elastomers, specialty fluids, fluids meaning lubricants and heat transfer fluids, and they’re used throughout the semiconductor manufacturing process and also increasingly in AI data center infrastructure. One example of our work on specialty materials for next generation AI data centers is the work we’re doing around high voltage architectures. Data centers are moving towards high voltage architectures because they can enable greater computing power while also improving energy efficiency. We know that’s a big issue for that segment of the industry, and these high voltage architectures will help them reduce and improve energy efficiency because it reduces energy losses and they can ultimately help lower the environmental footprint of the data centers. And we’re developing new materials that can help them get there.

Another example is our high performing sealing materials found inside semiconductor fabs and wafer tools. If you can picture, many people have seen what a semiconductor looks like during processing. It’s a big, big silicon disc that’s then later diced into the tiny little chips that go into the computer. But that wafer is put inside a giant chamber where it has a very extreme environment, aggressive plasmas, reactive chemicals, and they need higher and higher performing materials. And all of the seals that are around that chamber to keep those gases in the environment inside have to be able to withstand that environment. And that’s what we’re developing and we’re pushing the limits. They’re asking for higher temperatures, more aggressive environment with lower out gassing and purity. And that’s what we’re developing for this industry to allow that next chip to be developed and produced industrial.

Megan: It’s so fascinating that people wouldn’t give much though necessarily to the seal in something like that. As you’re outlining, it’s just absolutely critical in terms of performance. And in developing those solutions, I understand you also looked across different markets to see what may be applicable perhaps in more than one space, and that includes an overlap between the automotive sector and data centers, I understand. Can you tell us a little bit more about that?

Mike: As I mentioned just previously, the data centers are shifting to higher voltage architectures. This is the next generation data center, which can be more energy efficient, but it’s got a higher energy density. The power density increases, which increases temperatures. And many of the material challenges that we will be facing there, we’ve already developed for the automotive industry in electric vehicles. I’ll give you an example of an application. I mean, think about an electric vehicle. The powerhouse in electric vehicle is no longer the motor, it’s the battery. That’s where all the energy sits. And when you’re putting a hundred kilowatts of energy, driving that to the electric motor through wires and through what they call bus bars, you got to get that car up to 60 miles an hour pretty quick. You’re driving massive amounts of energy that’s increasing temperatures dramatically.

And all the electrical connections are in these bus bars that there’s a polymer that’s an insulating polymer with copper in between for all the connections. That’s got to withstand that temperature increase, which could come pretty rapidly. We’ve developed new materials there and those materials will be translatable over to these data centers where they’re going to have the higher voltages with a higher energy density.

Another thing we’ve been doing in automotive, we have a lot of knowledge in both automotive and semiconductor around fluid circulation and how to use dielectric materials to do direct immersion cooling. That’s something that will be very valuable for data centers and server farms. Using air to cool semiconductors is really inefficient and energy intensive. If you could submerse them in a liquid, you have direct immersion cooling, that’s extremely efficient, so that’s another thing we’re working on.

Another thing we developed in automotive that will be translated over is battery energy storage systems. Inside the battery, we’ve developed a binder. It’s the highest performing binder on the market, which is using the cathode of a lithium ion battery, and it keeps all the ingredients doing its job working together so that battery can actually last for 10 years and perform. Now that’s moving over to the data centers because they’re moving more towards renewables and they need to have these energy storage systems to smooth the peak loads and provide resilient backup power. That’s one of the things that we’re doing. By transferring our knowledge across the markets, we can accelerate new power and new thermal management solutions while supporting reliability required by next generation AI infrastructure.

Megan: Fantastic. So many transferable applications there that necessarily wouldn’t have sprung to mind. And it isn’t only technical advancements that you need to contend with, of course. Companies today are also demanding the materials are developed and manufactured more responsibly too. So how is sustainability shaping your innovation process?

Mike: Yeah, you’re absolutely right. I will say performance is still the entry ticket. Our customers want performance. Now what’s changing is that definition of performance is now broader and it is including sustainability targets and requirements. Our customers expect materials that deliver outstanding technical performance while also being developed and manufactured more responsibly.

At Syensqo, we believe that operating as a responsible company means we’re providing true sustainable business solutions to our customers. And this is why we developed what we call the Sustainable Portfolio Management tool, SPM. It’s a matrix, and it defines what a sustainable solution is. For us, it’s a product that in a given application improves our product’s social and environmental performance while also demonstrating a lower environmental impact in its production, creating values for our customers. In short, we want to develop products, and this is where it starts. Every one of our research projects before we even start them is assessed on whether it’s going to be a sustainable product or not.

And 88% of our portfolio now is a sustainable product. We’re developing materials that are better for the environment, lower environmental footprint when we produce it, but also they contribute to improvements for our customers as well so they could operate with a lower carbon footprint or they can operate in a safer way or less water consumption. There’s a lot of different lists in there.

Another example is our longer-term development of next generation heat transfer fluids. Semiconductor manufacturing and data centers have become more powerful. I mentioned before the heat that they’re generating, especially when they move to the higher voltage architectures. Managing that heat is increasingly important. And again, I talked about direct immersion cooling. We’re developing those solutions because today there are fluids out there that will work, but they got high global warming. That’s not good for the environment. We’re developing the next generation heat transferred fluids that will reduce the potential environmental impact compared to the fluids today. In the end, our goal is to remove the trade-off between performance and sustainability. You notice that’s another and, we can be performing and sustainable.

Megan: That’s so important, isn’t it though, to think about sustainability in terms of performance? As you say, when we’re thinking about commercially scaling up these solutions, it’s such an important part of it. And as I talked about in the introduction, AI isn’t only a challenge, but it’s also an opportunity within the advanced material space. I’d love to explore how you’re using AI tools at Syensqo to inform and accelerate the development of solutions as well.

Mike: Absolutely. We embarked on this journey about two years ago, where we’re using AI in our research and development, and we’ve partnered with Microsoft and their Microsoft discovery tool, and it’s helping us to rapidly identify and evaluate promising molecular candidates.

Now, in the normal research approach, historically, you would design your experiment and you’d look at all the potential combinations of materials and chemicals that you could make all these different molecules. And the combinations of potential and molecules that you could develop to solve a problem could be in the millions, but it’s impossible to develop a million molecules or tens of millions of molecules in your laboratory and actually physically do that. But you have to select a small area based on your expertise and knowledge, based on the literature searches, based on the state of the art that’s out there and looking at patents, et cetera. And you pick a small area and you go through the process, you develop the materials, you test them, you learn something, you go back to the drawing board, you start again. Eventually you find something that works, but it doesn’t mean you found the best possible combination that’s out there.

But what we’re doing with AI is we have developed AI agents with Microsoft that are literally digitally synthesizing the entire millions and millions of combinations of potential molecules. And we have another AI agents that are using physics-based simulation to look at all those molecules and predict the performance of them, and not just performance on physical chemical properties, but also on toxicity, on sustainability, et cetera. Then we have another agent that takes all that information and ranks them all. In the end, we have explored all of the potential molecules out there. We understand roughly what the performance should be, and we end up with a priority list of maybe a hundred, instead of millions and millions, a hundred that we actually synthesize in the lab.

And at the end, you end up getting the solution faster, much, much faster. You’ve explored the entire space. I basically say it allows us to go broader, deeper, and faster. And the important thing is it’s not replacing our scientists, it’s not replacing our scientific expertise. In a way, it’s giving them superpowers. It’s allowing them to spend less time searching and more time solving the industry’s toughest engineering challenges.

Megan: Amazing. It sounds like it’s genuinely a really transformative tool by what you’re explaining.

Mike: Completely, completely.

Megan: I mean, just to finish, Mike, it’d be great to take a look ahead if we could, because there’s so much activity in both AI and the advanced material space. I wonder what is coming down the pipeline that you are most excited about next?

Mike: I’ve talked a lot about AI and how we’re using AI to develop new materials. I think to me, what’s really exciting, and I’m starting to see it actually happen, I’m just curious how fast this is going to go, is that we’re using AI to develop new materials that will enable AI to get better, and then that AI will use the new AI to develop new materials to get AI to go better. I see this loop of developing for AI, for AI to improve, and then we use that AI to improve ourselves. You end up in this accelerated materials, innovative cycle of materials innovation. That really excites me, and it gives us the opportunity to continue enabling technologies that will shape the future. That’s what we do at Syensqo.

Megan: Fantastic. Yeah, real sort of virtuous circle of innovation, it sounds like that. Amazing. Thank you so much, Mike.

Mike: Thank you.

Megan: Thank you so much. That was Mike Finelli, chief technology and innovation officer and chief North America officer at Syensqo, whom I spoke with from Brighton in England.

That’s it for this episode of Business Lab. I’m your host, Megan Tatum. I’m a contributing editor and host for Insights, the custom publishing division of MIT Technology Review. We were founded in 1899 at the Massachusetts Institute of Technology, and you can find us in print on the web and at events each year around the world. For more information about us and the show, please check out our website at technologyreview.com.

This show is available wherever you get your podcasts, and if you enjoyed it, we hope you’ll take a moment to rate and review us. Business Lab is a production of MIT Technology Review, and this episode was produced by Giro Studios. Thanks so much for listening. Goodbye.

This content was produced by Insights, MIT Technology Review’s custom content arm, not its editorial staff. It was researched and written by humans, with any AI tools that may have been used limited to production processes under human oversight.

Listen to the session or watch below

Employees at the world’s leading AI labs are saying there’s a real possibility that advanced AI could destroy humanity. Are they right? Or is this more scaremongering and hype? Watch a conversation unpacking AI extinction fears: where they come from, whether they hold any water, and, if so, what we should do.

Recorded on September 15, 2026

Speakers: Niall Firth, Executive Editor, Will Douglas Heaven, Senior AI editor, and Grace Huckins, AI reporter

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The era of AI inference has arrived. Imagine a healthcare system analyzing millions of data points in real time to accelerate life-saving medical research, or an intelligent assistant instantly resolving thousands of complex customer needs at once. These real-world breakthroughs rely on advanced infrastructure acting as the engine of continuous intelligence, powering real-time services while also supporting an increasingly intelligent edge of IoT and consumer devices. However, in this inference-driven landscape, every delay, bottleneck, or wasted watt directly affects human outcomes and operating costs. 

This shift changes what infrastructure must deliver. Performance, latency, memory bandwidth, storage throughput, and networking cannot be optimized in silos. Inference workloads are continuous, geographically distributed, and highly sensitive to response time, requiring systems designed for scale, resilience, and efficiency from the start.

“We tend to think of AI as a single workload, and it’s not. It’s thousands, it’s millions, it’s billions of different workloads,” says Jim McGregor, founder and principal analyst, Tirias Research. AI inference changes the optimization problem from one of raw compute to coordinated infrastructure—memory, storage, and networking.

For business leaders, the priority is clear: AI infrastructure decisions must balance cost, flexibility, and future readiness. The winners will be organizations that improve performance per watt, reduce environmental footprint, and remove memory and storage bottlenecks before they limit growth.

AI inference requires a new architectural approach

Systems for AI need to be rearchitected because shoehorning modern AI systems into legacy infrastructure limits AI’s transformative potential. Purpose-built architectures are essential to realize the true value of AI, from accelerating scientific discovery to creating truly autonomous digital agents.

Traditional enterprise IT has been able to rely on relatively stable infrastructure assumptions, but inference and agentic AI introduce new demands around latency, data movement, scalability, and utilization that make architecture choices far more consequential.

“Data centers must now support continuous, distributed, and increasingly real-time AI services—none of which are a single workload,” says McGregor. “They all require different requirements from a system-level perspective.”

To support real-time AI, enterprises can no longer view memory and storage merely as supporting hardware, but at the heart of the system. Organizations need to architect a data pipeline that can rapidly ingest, clean, transform, store, move, and deliver data. Inference workloads place sustained pressure on infrastructure in ways that look very different from earlier training-centric deployments, demanding continuous data retrieval and caching that traditional applications never required.

Accordingly, performance by itself is no longer the sole benchmark that matters. Enterprises increasingly must balance performance with efficiency, cost, and scalability, especially as they try to support different AI services without overbuilding infrastructure for peak conditions.

“You have to optimize the entire network, and that includes memory and storage, around the types of workloads you plan on running,” says McGregor. “You have to really have a detailed understanding of what those workloads are going to be.”

Any AI infrastructure strategy must start with workload awareness. Inference, agentic AI, and other emerging AI use cases require organizations to treat the data center as an integrated system.

Data movement is the new bottleneck and an opportunity for competitive advantage

As enterprises deploy advanced inference and agentic systems, the sheer volume of data being queried in real time has made data movement the most pressing constraint. Modern AI techniques like retrieval-augmented generation (RAG) require systems to constantly scan massive databases to generate accurate responses. This requires immense computing power, but more importantly, it requires immediate access to data.

McGregor says the focus shift to how efficiently data can be moved, cached, and delivered across the broader architecture elevates memory and storage from background infrastructure to strategic assets. “The biggest thing we’re doing right now is moving data from one place to another and making sure that we can use it effectively.”

Because AI is not a single workload category, simply buying the fastest processors is insufficient. Inference depends heavily on memory bandwidth, caching, storage proximity, and the ability to retrieve relevant information quickly and consistently. Understanding where each resource belongs in the stack and how those layers interact under real operating conditions has become a business imperative.

The most effective AI infrastructure looks less like a collection of best-in-class parts and more like a balanced system of compute, memory, storage, and networking, McGregor says, because bottlenecks tend to migrate from one layer to the next. “You have to architect all four together to be efficient, and that’s the challenge.”

The interdependence of data-plane design and network bandwidth means AI infrastructure planning has become a business decision just as much as an engineering one: latency is now inseparable from value. In robotics, financial services, healthcare, and customer-facing AI systems, delays are not merely technical imperfections; they can undermine safety, responsiveness, or trust. AI infrastructure performance becomes a matter of reputation management.

The organizations that gain the most from AI may not be those with the largest clusters, but those with the clearest understanding of how to align every infrastructure element to effectively execute AI workloads.

Building an AI infrastructure procurement framework

Planning AI infrastructure is not simply about choosing the fastest hardware. It is about how to scale without locking the organization into assumptions that may quickly become obsolete. “You need to be flexible because the demands are going to change rapidly and the technology is changing rapidly,” McGregor says.

Future-proofing AI infrastructure requires keeping your options open as workloads, economics, and architectures keep shifting:

• Define the AI workloads that are being optimized. Infrastructure choices must match business needs rather than what McGregor calls generic “AI readiness,” which risks overspending in some areas while leaving bottlenecks unresolved in others.
• Build a modular architecture for compute, memory, storage, power, and cooling so capacity can change as demand shifts rather than committing too early to a rigid architecture.
• Work with the full ecosystem of suppliers and integrators to reduce supply risk and improve access to the right components. McGregor says buyers can no longer assume their OEM or cloud provider alone will insulate them from supply constraints or architectural complexity.
• Reassess your procurement strategy continuously. AI requirements, hardware, and business models are changing too quickly for a fixed long-term design.
• Optimize for efficiency and ROI, not just peak performance. The most powerful setup may be too costly to sustain. Efficiency is also a public-facing metric—better utilization and more workload-aware system design can help companies respond to growing scrutiny around power consumption and water use.

The strategic goal of smarter AI data center design is not maximum performance at any cost, but an adaptable architecture that can deliver value, absorb change, and justify its footprint.

AI infrastructure is now a business strategy

AI data centers have quickly evolved from a back-end technical concern to becoming strategic business systems that help determine how effectively an organization can turn AI into revenue, improve human outcomes, and create a competitive advantage.

In the inference era, memory and storage are no longer passive repositories, explains McGregor, they are the active lifeblood of AI. The organizations that gain the most from AI will not necessarily be those with the largest computing footprint, but those that align infrastructure investments to business outcomes, reduce data bottlenecks, and build the flexibility to adapt as workloads evolve. He predicts that competitive advantage will increasingly belong to enterprises that treat compute, memory, storage, and networking as an integrated system designed to deliver AI efficiently, at scale, and with measurable ROI.

Procurement is now strategy and system design is a leadership issue, McGregor concludes. “One of the biggest questions every executive has to ask is how is AI going to change my business model?”

This content was produced by Insights, MIT Technology Review’s custom content arm, not its editorial staff. It was researched and written by humans, with any AI tools that may have been used limited to production processes under human oversight.

As companies scale, the technology supporting operations can become a liability just as quickly as it becomes an asset. Disconnected systems, site-specific tools, spreadsheets, and manual workarounds can create data silos that make it harder to spot problems early, coordinate responses, and make decisions with confidence. For Jabil, a global manufacturing company with more than 100 sites across more than 30 countries, the answer has been to make integration and simplification a priority.

The company adopted a “simplify-first, then-innovate mindset,” says Harish Manohar, SAP IT director at Jabil, recognizing that adding new technologies without first reducing complexity risks creating more risk. The goal is to standardize processes, consolidate where possible, and establish a more consistent data backbone across the organization. “Any innovation without simplification is going to add more complexity,” Manohar says.

That philosophy also changes how Jabil approaches modernization. “Any modernization or transformation should add measurable business value,” Manohar says. The company is focused on connecting processes end-to-end across its supply chain and creating a foundation that can scale consistently across regions. Integration comes first because, as Manohar puts it, “the backbone of any contemporary or modern organization is data.” Before organizations can optimize, automate, or apply AI, data needs to flow seamlessly across systems.

But doing that across a global organization is hardly straightforward. Jabil’s more than 100 sites operate with different levels of process maturity, legacy systems, and localized workflows, while regulated businesses bring additional compliance requirements. As such, standardizing across different regions and business environments means changing processes and governance without disrupting the operations already in place.

The value of that work extends beyond the technology to the people using it. Integrated workflows can offer employees shared visibility into data, reduce manual data reconciliation, and help them move from chasing information to acting on insights. For Jabil, the aim is also to improve real-time visibility into supply chain events, which can enable faster responses to disruptions and reduce operational risk.

Looking to the future, that foundation could make AI and automation all the more useful and scalable. With trusted data and integrated systems in place, Jabil is exploring predictive supply chain insights, intelligent exception handling, and AI-driven planning and forecasting. To Manohar, the takeaway is clear: “Simplicity at scale is a very competitive advantage,” and technology investments must ultimately connect to business value and operational resilience.

This episode of Business Lab is produced in partnership with SAP.

Full Transcript:

Megan Tatum: From MIT Technology Review, I’m Megan Tatum, and this is Business Lab, the show that helps business leaders make sense of new technologies coming out of the lab and into the marketplace.

Our topic today is enterprise technology integration, and how the benefits of consolidating tools and systems across the supply chain help organizations operate more reliably at scale. When companies reduce tool sprawl and connect their systems more effectively, they gain earlier visibility, faster response, and greater resilience across production lines.

My guest today is Harish Manohar, SAP IT Director at Jabil. Jabil has been on a journey to simplify its technology landscape by using SAP Integration Suite as the foundation to connect systems, retire fragmented tools, and enable more consistent operations globally.

This podcast is produced in partnership with SAP.

Welcome, Harish.

Harish Manohar: Hello, Megan. Good morning.

Megan: Thank you so much for being here, Harish. Just to start, if we could set some context, can you give us a quick overview of Jabil, the business and its overall transformation journey?

Harish: All right. So, about Jabil. Jabil is a global manufacturing company headquartered in St. Petersburg, Florida, USA. We have about 60 years of experience offering comprehensive engineering, supply chain, and manufacturing solutions across different industries. We have a global footprint of about over 100 different sites across 30-plus countries, 140,000-plus employees.

We are a trusted partner for more than 400 of the world’s top brands. That’s a little bit about Jabil.

Megan: Fantastic. And a lot of scale there, as you’re referring to some of the stats there. As things have got more complex, where did disconnected tools and systems start to slow you down, and what ultimately drove you to make integration a really strategic priority?

Harish: I talked about our global footprint across 100-plus sites. With a global footprint always comes complexity about site-specific tools. All of our sites have been in business for a long time, and over the period of years, they had their own tools for their own processes. It’s a little bit disconnected.

When we are looking to scale, the first thing we wanted to start looking at is what is this mix of site-specific tools, manual workarounds, spreadsheet-based processes, legacy applications, whatnot? That’s a big technical debt that we have had over the last 25 years. That’s where we started, and that is what led Jabil to make integration a strategic priority because we had limited ability to see issues early across plants, across regions, which would help us to coordinate responses consistently, and also to be able to scale those responses consistently. This complexity created data silos, and in a way delayed robust decision-making.

As the complexity increased globally, integration became extremely critical to a few things. It was critical to establishing a single trusted data backbone, which would directly enable faster coordinated responses across the network. We at Jabil, as part of our transformation journey, believe that having the right data at the right time fundamentally changes how we respond to disruptions, which is all about a manufacturing business. How we respond to disruptions. This is where we started our strategic priority towards having a integrated system that drove data consistency across our landscape.

Megan: Fantastic. As you have outlined there, there was obviously a real commercial need for this, but how did you think about bringing in those new technologies without adding even more complexity to the mix?

Harish: Great question. Whenever we talk about transformation, we talk about all these bleeding-edge technologies that are out there today when it comes to AI and data, cloud, et cetera. But it was very important for us to put a stake in the ground and say and adopt a simplify-first, then-innovate mindset. Because any innovation without simplification is going to add more complexity, just like you mentioned.

For us, SAP is our core digital platform. We want to focus on bringing more processes into SAP as much as possible. That is easier said than done because we have been in business for a while, global company, so not all processes exist within SAP at this point in time. We are slowly trying to standardize those processes, and having them under one single source of data would help us scale faster in terms of having data silos. We don’t want data silos across different systems.

This is where we started to introduce newer capabilities around SAP. From a cloud standpoint, we have been using SAP’s BTP and Integration Suite, which is proving to be the center stage of all integrations across Jabil. Well, it’s not there yet, but that is the direction that we want to pursue is we don’t want to have a slew of different integration platforms, rather try and see where Integration Suite fits best and where other smaller integration platforms would add more value.

Similarly, we have adopted an API-driven, event-based integration approach. That is our best practice that we have put down because we don’t want to keep moving data from one place to the other. That’s not good business practice in the IT world. Most of our integration architectures are API-driven and event-based. That is our focus.

Coming back to your new technologies perspective, we want to reuse as much as possible and standardize versus going out and buying these one-off tools that solve for point-in-case use cases. We really don’t want to go down that path. For major processes, we do adopt a best-of-breed approach, but for, let’s say, site-based use cases where a specific site has a particular need for a tool, we try and standardize that and reuse what exists in a different site, for example. There may be some need for a business process change, minor process changes, but that is our direction to make those process changes and reuse what is there already in a different location or a different region. So, that’s one.

Lastly, we are heavily aligned with SAP’s clean-core approach when it comes to customization. That has been the challenge for us over the last 25 years where we have been using SAP is our systems are heavily customized because we cater to different customers across the globe. Most of our demands are customer-driven, so we have to put in play these heavy customizations.

But now we are taking a pause, and we are saying, “You know what? We have customized so much so far, but now we are moving our systems into RISE, which would enable a clean-core journey in the future.” Now we have to put really good governance criteria and review processes that do not allow heavy customization of our system. We want to move away from that model as much as possible. Again, it’s not easy to do that at this point in time, but there is always a start.

Megan: I mean, it sounds like you took a very incremental, intentional approach to this. I mean, as you scaled globally then, what did modernization really look like at the company, and why start with integration?

Harish: To that point, we have always looked at transformation, modernization, very objectively. For us, it’s just not about upgrading a system. That’s not what it is. Any modernization or transformation should add measurable business value is our model, is our charter. Having said that, we don’t look at modernization in terms of just upgrades, but in what it gets our business in terms of value.

Most of our modernization transformation approaches are focused on connecting processes end-to-end across our supply chain, which is key for our business value. And then we also have a very concerted effort going on in the business community: how to standardize how our plants operate globally. Because, like I mentioned earlier, we have 100-plus plants, different processes, different legal regulations, different countries. It’s very hard for us to come up with one template across the globe, but we are trying to standardize as much as possible. And that’s where we are leveraging SAP’s Signavio, which is our business process management tool. We want to leverage Signavio’s capabilities in helping us standardize these global processes.

Now, back to your question, why did integration come first? Because the backbone of any contemporary or modern organization is data. And to get the right data at the right time, integration is the key aspect of the whole optimization exercise. Data needed to flow seamlessly before we start optimizing or automating or even applying AI use cases. This is where integration came first.

We wanted to create a single system of record across the operations. Well, when I say “single system of record,” it’s not just SAP, but the ability for us to create those data pipelines across those systems of record being supply chain, planning, inventory, et cetera, et cetera, in that operation space.

The result is we want to get to a foundation that helps us scale consistently across our different region. That is our main objective is to, how do we scale as the business grows, as we develop into this bigger organization across different industries? How do we set this foundation that will help us scale consistently? Simplicity, consolidation becomes strategic assets at scale.

Megan: Absolutely. And you touched on some of the complexities there of doing this at a scale that Jabil is at with its international footprint. What were some of the biggest challenges in your view in terms of rolling this out across regions, and how did that more standardized approach that you’ve mentioned there help?

Harish: Absolutely. I would like to reiterate some of those key challenges I mentioned. One hundred-plus sites, different sites have different maturity levels in terms of how they approach processes. They have a multitude of different legacy systems, localized processes, workarounds, spreadsheets, and the change management that exists within each site is very different. And we do have a footprint of highly regulated businesses. And when it comes to regulated businesses, that comes with its own set of challenges around qualification and CSD processes, et cetera. These are the key challenges that we are up against.

Now, the standardization helped us provide consistent workflows, data flows, and governance across sites. Now, we are not there at 100%, but we are working towards that, providing consistent workflows, data pipelines, and governance across sites. And we want to enable faster rollouts of our new bleeding edge technologies. For example, when I talked about SAP’s BTP or SAP Signavio or any other new SAP tool or non-SAP tool, traditionally our ability to deploy those had a challenge around the heavy customization that is required for each and every site. Now, the standardization approach takes that heavy customization out, which enables a faster rollout of those newer technologies.

And then lastly, we want to scale across all of our plants. I think initially we want a target of about 40-plus plants with shared processes that are consistent across the different regions. We want to shift from a site-by-site operations model to more of an enterprise-capability approach.

Megan: Right, and fascinating. And you touched on the people management aspect of this as well, because obviously this isn’t just about technology, it’s about people too. So, from the employee side, how did this shift to a more simplified landscape change the day-to-day experience for people compared to juggling multiple tools at once?

Harish: Great question. And I’ve been hearing direct feedback from our business community on some of these transformation initiatives on how those have changed their daily jobs significantly. Before we embarked on this transformation journey, any employee, any persona. You take a buyer, you take an inventory planner, you take a finance analyst, we go by personas. They had to deal with multiple tools, manual coordination, data reconciliation, especially in the finance space, inconsistent processes across different regions. And then the time spent reconciling data resulted in delay of making decisions, robust decisions. This was the before.

But now, since we are moving towards this newer standardization and more of an integration approach, we are able to achieve, to a certain extent, a single integrated workflow across different systems. We have built some key processes that will enable the single integrated workflows across systems. The users, our business community, irrespective of their roles in the organization, have clear visibility and shared data across their teams, which is very important. Earlier, they were dealing with different versions of the data, local workbooks, spreadsheets, and then the time spent talking to each other and reconciling what is the right data? What is the single source of truth? That we are trying to peel away that layer and get to that where the employees don’t have to deal with that kind of complexity.

This reduces manual effort and enables faster issue resolution when it comes to actual disruptions. Employees move from chasing information to focusing on acting on insights, which is where I think the new age of AI comes into play. I’ll talk about that in a little bit, but technology becomes an enabler of decision-making, and it’s no more an overhead. That’s where we want to go.

Megan: Fantastic. Such an important element of this, isn’t it, that people side of things? And we’ve touched briefly on this idea of value you’ve talked about before, because with an initiative of this scale, ROI is always front and center, of course. What benefits stood out most for you, and how important was better visibility in particular across systems?

Harish: Megan, I talked about how modernization and transformation for Jabil means measurable business value, which is directly connected to the ROI. We don’t do any transformation initiatives just because we want to do it from an IT standpoint. Any investment that we make in a transformation or a modernization initiative has to have a deliverable business case that is approved, signed off by business, because that is the only way true transformation happens, if IT and business are a partner as part of this transformation journey.

The biggest benefit that we have seen in this initiative is we are striving to reach, attain real-time visibility across our supply chain events. That is the biggest benefit that we see, faster response to disruptions and exceptions. And we are working to reduce our operational risk significantly by operating in this newer model.

One example I can give you is the unified workflows that I talked about earlier. It enabled earlier identification of missing materials and faster resolution across our sites. When it comes to a manufacturing company that has a global footprint, materials are the backbone of our whole supply chain process, right? Having a unified workflow, which is able to identify missing materials early in the game, was a game changer for our whole operations community.

Real-time analytics allow instant supply chain adjustments without delays. We are focusing a lot on getting analytics, a global analytic footprint in place that allows instant supply chain adjustments without any delays. That’s where AI is going to play a major role currently, and also in the near future.

And again, when you talk about visibility. Visibility is not just about reporting what is there in the system. Visibility directly should enable scenario modeling for our users to make strategic adjustments in their processes, which visibility also should make way for proactive decision-making, and also foster business continuity. This is how we look at visibility at Jabil.

Megan: Right. And you’re still on this journey, of course, but now that Jabil has a strong integration foundation in place, what does it unlock next for you, and how are you thinking about AI and automation as you’ve touched on a couple of times?

Harish: Yeah, we have talked about a couple of times around AI. So, we strongly believe at Jabil, a strong integration foundation enables event-driven, real-time processes, robust decision-making, scalable automation, and all of this enable easier adoption of AI use cases. And again, we are in the new age of AI. We are working towards getting to a AI-enabled enterprise, but having these foundations in place truly fast tracks our approach of AI use cases.

Our key focus areas, when I’m thinking about AI and automation in the immediate future, are predictive supply chain insights, intelligent exception handling, which is key to our business operations from a site operation standpoint. Intelligent exception handling is very, very key. On the supply chain side, I talked about predictive insights. That is also absolutely important. All of this enables AI-driven planning and forecasting capabilities.

For us, AI should augment true decision-making and robust decision-making, and deliver measurable value, not just experiment AI in use cases. We want to move beyond just experimenting AI in our business processes, but we want that AI that we implement to truly augment the decision-making process that we have, and also deliver key business value.

How does all this connect to integration? Integration ensures AI has access to trusted data, and also enables the ability to act across multiple systems in a global company like Jabil.

Megan: Fantastic. And if we could just finish, I suppose, with a little bit of advice for others, for other leaders, perhaps, dealing with tool sprawl at the moment, what are some key lessons you would say you’ve learned about prioritizing integration right from the start?

Harish: Absolutely. When it comes to tool sprawl, we can go all day about what are the different areas of tool sprawl? For example, application development, we have a multitude of tools; via integration, we have a multitude of tools. Data, we have a multitude of tools, but let’s just focus on integration. That’s the core topic here.

I would recommend folks that are in transformative roles in their organizations to start with integration as a foundation and not as an afterthought, right? Prioritize simplification over adding a slew of different tools to address different capabilities. Try and simplify as much as possible before we start your upgrade or your transformation journey. Standardize over locally optimizing tools. Try and get to that. Try and get the business community, your key SMEs in the business space, to understand the value of standardization and simplification of processes and how that enables your business to deliver value faster.

Second one, after prioritize: build a single source of truth for data as much as possible. I’m not saying it’s going to be always the case where an organization as in the scale of Jabil will be able to function just with SAP. They’re going to have different systems, but try and get to a model where you’re working with a single source of truth and not locally siloed data sources, right?

Next is focus on building a scalable integration architecture. Don’t just confine yourselves to the current state where you are, and build something in place that will only serve you for the next six months to a year. No, that’s not the goal. Anything that you build as an integration architecture should be scalable, and should serve the organization for the next three to five years. That’s how I look at it. When I’m putting in a new architecture pattern or a new event-driven insights, I look at, “Okay, where is Jabil going to be two years, three years down the line? Would this suffice for that scale?” That’s how I look at it.

Then focus on outcomes and not just technology. Focus on outcomes: speed, visibility, resilience, and not just technology deployment, because end of the day, IT and business should partner on the business value and not just technology upgrades.

Going back, simplicity at scale is a very competitive advantage, and technology investments must tie directly to business value and operational resilience. That’s how we look at Jabil in terms of our tool sprawl and how we prioritize integration right from the start. And that’s what I would suggest to other leaders that are looking to advance in this space.

Megan: Fantastic. Brilliant and very comprehensive advice. Thank you ever so much, Harish. And thank you ever so much for joining us. That was Harish Manohar, SAP IT Director at Jabil, whom I spoke with from Brighton in England.

That’s it for this episode of Business Lab. I’m your host, Megan Tatum. I’m a contributing editor at Insights, the custom publishing division of MIT Technology Review. We were founded in 1899 at the Massachusetts Institute of Technology, and you can find us in print, on the web, and at events each year around the world. For more information about us and the show, please check out our website at technologyreview.com.

This show is available wherever you get your podcasts. And if you enjoyed this episode, we hope you’ll take a moment to rate and review us. Business Lab is a production of MIT Technology Review, and this episode was produced by Giro Studios. Thanks so much for listening. Goodbye.

This content was produced by Insights, MIT Technology Review’s custom content arm, not its editorial staff. It was researched and written by humans, with any AI tools that may have been used limited to production processes under human oversight.

Each day, an airline transports tens of thousands of passengers on hundreds of flights. Often these are not straightforward point-to-point routes, with passengers requiring multiple connections. The airline can consider potentially hundreds of variables to price each of these journeys: demand, season, time of day, current events, global markets, and competitor airline activity to name just a few. It is a nuanced process that must constantly adapt to the goings on in the wider world.

Generative AI-powered market models are emerging as a means of handling complex tasks like this in real time. These deep learning models are trained on high-resolution numerical data and designed to analyze, simulate, and predict complex financial dynamics. Rather than relying on historical trends or static rules, the market model acts as an AI “brain,” consolidating a variety of data to simulate different market environments and make dynamic commercial decisions, such as pricing, inventory, or revenue management.

“It helps us make better, faster, more granular commercial decisions,” says Dominic Kennedy, senior vice president of revenue management, sales, and e-commerce at Virgin Atlantic about the market model his team is using to drive their generative pricing engines in some markets.

“It considers, on a real-time basis, a plethora of different inputs, whether it be demand, capacity, or booking. It has a really sophisticated way of evaluating our positioning relative to competitors, market conditions, and a whole raft of other things that have significance in how demand is manifested,” he adds.

Download the full report

This content was produced by Insights, the custom content arm of MIT Technology Review. It was not written by MIT Technology Review’s editorial staff. It was researched, designed, and written by human writers, editors, analysts, and illustrators. This includes the writing of surveys and collection of data for surveys. AI tools that may have been used were limited to secondary production processes that passed thorough human review.

Business and technology leaders need no convincing that the time of agentic AI is here. Organizations are rapidly adopting agents, and few executives doubt the technology’s potential to transform work. But many organizations find that realizing the desired return on investment (ROI) from AI hinges on having the right foundation, with inadequate infrastructure and data being major blockers.

Agentic AI places considerable new demands on enterprise data systems. The shift from answering questions to taking actions means AI agents need data from across the enterprise, in all its structured and unstructured forms, and with the right business context. To make decisions and act in real time, agents also need frictionless access to the organization’s operational systems—for example, those storing its supply chain, point-of-sale, or human resources data. Legacy data systems, even those updated just a few years ago, struggle to meet these demands.

As AI agents become embedded more widely in enterprise operations, the need to overcome the restrictions of legacy data systems grows more urgent. If Gartner’s prediction that AI agents will augment or automate 50% of business decisions by 2027 proves correct, organizations must eliminate bottlenecks or risk depriving agents of the data they need to make the right decisions at speed.

This report, based on a survey of 300 data and technology executives, explores how legacy systems are limiting the effectiveness of AI agents in many organizations. It finds that a handful of organizations—the data leaders—are having greater success with agentic AI and experiencing fewer data limitations as a result of legacy systems. These leaders offer a guide to creating the right data environment for agents to flourish and trusted systems to scale.

Key findings from the report include:

Few companies currently provide agentic AI with ample access to enterprise data. Across all the surveyed organizations, AI only has access to an average of 45% of company data. That number falls to 30% or less in organizations categorized as “data laggards”. A select group, however, ensures access to over 70% of their data. These “data leaders” are having greater success with their agents than the rest.

Trust in agent decisions is a reflection of data readiness. Today, only around half of surveyed organizations trust that the decisions their AI agents make are accurate and relevant. By contrast, 100% of the data leaders trust their agents’ decisions, a strong indicator that reliable AI requires a reliable data foundation.

Data leaders find it easier to achieve agent scale and speed. Two-thirds of data laggards say legacy data systems limit AI agent scaling (66%) and prevent agents from making decisions at speed (68%). Having largely overcome legacy data constraints, the leaders have mostly cleared these roadblocks, with just 8% reporting either constraint.

The pressure is on to make data estates agent-ready. Within two years, 100% of respondents plan to be using agentic AI, with 69% expecting to use it widely. Without removing data system constraints, agentic AI will fail to deliver the desired speed and efficiencies it promises.

Data access and context are top priorities. The most important initiative to enable scaling among all respondents is improving access to structured and unstructured data for AI agents. Also high on the list is enhancing data and AI governance with business context. Data leaders are also focusing heavily on the automation of data management.

Download the full report.

This content was produced by Insights, the custom content arm of MIT Technology Review. It was not written by MIT Technology Review’s editorial staff. It was researched, designed, and written by human writers, editors, analysts, and illustrators. This includes the writing of surveys and collection of data for surveys. AI tools that may have been used were limited to secondary production processes that passed thorough human review.

Imagine a healthcare system made up of multiple AI agents: one that manages symptom assessment, another scheduling, a third insurance, and a fourth pharmacy.

Each is an expert in its domain. But they all have their own distinct knowledge and objectives. Today they can exchange data, but they are not yet able to actually coordinate patient care without a human making the decisions.

“The intelligence is already there. What is missing is the connective tissue that turns four strangers into one team,” explains Vijoy Pandey, senior vice president and general manager of Outshift by Cisco.

This “connective tissue” comes from adding a semantic layer—what Outshift calls the “Internet of Cognition”—that enables agents across domains to work together and, critically, “think” together through shared intent, context, and reasoning.

This semantic layer relies on a connectivity layer beneath it called the “Internet of Agents,” which allows autonomous agents to discover one another, prove identity, and exchange messages across domains.

When used together, they enable “the next step on the road to distributed artificial superintelligence,” says Pandey.

From solo silicon savants to the ‘Internet of Cognition’

For years, the AI industry has been focused on growth. Scaling vertically has led to bigger models, trained on more data with more compute. This has produced the reasoning capabilities that can be like a “brain” for AI agents, which can perceive, reason, and act in digital environments.

While vertical scaling can produce more capable agents perpetually, to enable agentic problem solving across different systems, companies, and platforms the next axis of scale must be horizontal, says Pandey.

Multi-agent systems are already being explored in areas like software engineering, drug discovery, and scientific simulations, but their performances so far have been underwhelming. One study finds a failure rate of between 41% and around 87% when evaluating seven open-source multi-agent systems.

“Connected agents handle coordinated action well; taking a task whose shape they have seen, divided and passed around,” Pandey explains. “What they cannot do is hold a goal in common and reason toward something none of them was trained to solve.”

“The gap is architectural, not a prompting problem,” Pandey adds. “Without the right coordination layer, naive multi-agent setups can perform worse than a single agent. The step change is that team of agents converging on its own, on a new problem, with no human stitching the seams.”

To reach this goal, Pandey says Outshift has built a connectivity layer called AGNTCY, an open-source project now under the Linux Foundation. AGNTCY allows agents across different systems, companies, and platforms to find each other, prove identity, and exchange messages through open, standardized protocols.

And, as Pandey explains, this allows the Internet of Cognition thesis to take a step further. It creates a semantic layer that allows agents to align goals (share intent), pool institutional knowledge and compound memory (share context), and make collective trade-offs (share reasoning).

Pandey likens this progression to that of humans: “For hundreds of thousands of years humans got individually smarter, and the gains died with each person who made them,” he explains. “Around 70,000 years ago that changed, when humans learned to share intent, build cumulative knowledge, and reason collectively. That is when scattered individuals became civilization.

“Agents are at the same threshold. We have built the silicon geniuses and given them agency. What they lack is the layer that let humans go collective,” he says.

First steps to distributed superintelligence

Enabling agents to work collectively rests on three pillars in the tech stack:

Shared intent through cognition state protocols: Cognition state protocols are the semantic handshake that allow agents to agree on a goal before they act and then negotiate toward it. Outshift has created an open-source coordination layer called Mycelium, which organizations can clone and use against their own agents.

“We found that unstructured groups reached a decision about a third of the time across 14 scenarios,” says Pandey, speaking about internal testing. “A coordination protocol that makes agents declare a goal, surface missing information, and resolve conflicts before acting raised that to 93%.”

Shared context through cognition fabric: A cognition fabric is a shared institutional memory and communication mesh that allows agent insight to compound over time rather than resetting each session. This policy-governed context layer solves the problem of “organizational amnesia,” says Pandey, by ensuring the baseline intelligence of the systems only ever goes up.

Shared reasoning through cognitive amplifiers and guardrail technologies: Two kinds of cognition engine can be used together to enable shared reasoning. Cognitive amplifiers speed up shared reasoning and modeling, and guardrail technologies (GATs) create security, cost, and compliance frameworks. Humans are active contributors to this layer, making judgment calls the system routes to them (rather than reviewing outputs after the fact).

Cognition sharing in multi-agent systems can create new risks, including unintended delegations, malicious prompt injections or memory poisoning, or over-privileged agents with access to permissions and data far beyond what their tasks require. Environment-specific controls are therefore needed to protect against unintended actions or consequences.

“Agents have human-like attributes but operate at machine speed and scale,” says Pandey. “Everything we built for twenty years—access control, identity, compliance—was built for humans or machines, not both.”

Continuous Agent Semantic Authorization (CASA)—an open-source reference implementation developed by Outshift—is a GAT that works to ensure agent actions remain securely aligned with the user’s original goal through a process of continuous authorization. It does this by reading what the agent is trying to accomplish then checking each tool request against that task.

In the case of a healthcare system, for example, an agent told to summarize a patient record may start by querying a whole database. This could lead to CASA denying the call, because the request no longer matches the task it was authorized for.

“Today’s controls are scoped to a role or a session not to the task so an agent granted a tool can use it for anything,” explains Pandey. “Roughly 90% of the time, an agent has no way to confirm it is even cleared for the job it was handed.”

Experimentation for cross-domain innovation

When horizontally scaling intelligence in the enterprise, businesses should begin by experimenting with one cross-functional workflow that spans three or four teams and currently needs a human authorizing the handoffs, Pandey advises.

“Stand it up as a small multi-agent system on open, interoperable infrastructure, with a measurable baseline,” he says. “Keep building bigger models, add the horizontal axis on top of them, and change what you measure. Track where one agent’s insight made another agent better—that is the signal the horizontal axis is working.”

By starting to experiment now with intent, context, and reasoning layers, organizations can get ahead of the curve. “The problems are open, and the infrastructure is still being written,” says Pandey. “This is the moment to build it.”

For more information on the Internet of Cognition, visit Outshift.com.

This content was produced by Insights, the custom content arm of MIT Technology Review. It was not written by MIT Technology Review’s editorial staff. It was researched, designed, and written by human writers, editors, analysts, and illustrators. This includes the writing of surveys and collection of data for surveys. AI tools that may have been used were limited to secondary production processes that passed thorough human review.

Drug discovery is a high-cost, high-risk endeavor that is under growing pressure from a market increasingly defined by first-mover advantage.

Since the 1950s, the cost of developing new pharmaceuticals has roughly doubled every nine years—a phenomenon known as Eroom’s Law. Today, bringing a new drug to market takes an average of 10-15 years and costs anywhere from $1 billion to $2.5 billion, with failure rates upward of 90%.

AI has become the pharmaceutical industry’s biggest bet on bringing success rates up and timelines down. The faster drug companies can identify, test, and optimize new chemical compounds, the lower the risk of costly failures later in development.

“The main cost in drug discovery is still the clinical phase, so trying to reduce risk and increase your success rates there is obviously hugely beneficial,” says Paul Belcher, director of protein research strategy at global life sciences company Cytiva. “AI is one approach that drug companies hope will not only save time and compress timelines, but enable better quality candidates to reach the clinic.”

Early use of AI in drug discovery shows potential, but also highlights the need for robust and authentic data, as well as integration in lab systems.

AI brings efficiency to the lab

One of the most promising early-stage applications of AI in drug discovery is in hit identification. This involves screening libraries of molecular entities against a disease-related target, such as a protein, to find molecules that bind to it. A successful hit gives researchers a starting point for further testing and refinement, with the aim of eventually developing a viable drug.

Belcher has seen a shift from empirical screening to predictive design: Instead of physically screening libraries, drug companies are now using AI to design drug candidates from scratch and predict how they will interact with disease targets before committing anything to research and development (R&D).

This means companies are no longer limited by how much they can physically screen to identify starting points. “AI does away with that,” says Belcher. “And it can help eliminate low-quality candidates before you have to physically test them, saving time and resources.”

What AI can’t do yet is reliably predict kinetics or developability of new compounds, says Belcher. This means every AI-generated candidate still needs to be validated in the lab.

Traditional screening workflows were built to identify hits at scale, not to profile large numbers of complex candidates in detail. This is placing more pressure on lab teams, who now have to test, characterize, and purify a growing volume of more diverse, AI-generated compounds.

“The current techniques used in hit identification can screen hundreds of thousands, sometimes millions of compounds, using binary or threshold-based techniques producing low-fidelity data—yes-or-no responses,” Belcher explains. “AI can increase the number of hits you get and potentially give you better quality hits as well. That increases demand for higher-throughput, information-rich technologies to then validate and characterize those hits.”

Models need complete, quality data

As AI has accelerated demand for data-rich lab systems, it has also highlighted a fundamental need for better, more complete data.

Many earlier AI models were trained on publicly available datasets and are now hitting what Belcher calls a data wall. Because models have access to the same data, they all reach similar conclusions, with diminishing returns over time. Additionally, the datasets weren’t built with AI in mind, meaning they lack the structure, labeling, and diversity needed to keep models accurate and free of bias.

Publication bias reinforces the problem. “Most publicly available datasets and scientific publications focus exclusively on positive results,” says Belcher. “No one wants to share their failures. This bias is almost like having one hand tied behind your back. AI models can identify patterns associated with success, but they lack the comprehensive understanding of failures that would make predictions more reliable.”

The data Belcher believes would markedly improve models—the failed experiments, the compounds that don’t bind—remains frustratingly difficult to come by. “We often joke that there should be a journal of negative data,” he says. “It’s often buried in lab notebooks, and it’s never used to inform or guide future research.”

This lack of negative data creates a fundamental problem: Without access to a broad range of data, models can’t be adequately trained to avoid bias. “In all machine learning applications, the model’s performance relies heavily on the quality and scope of the training data,” notes Belcher.

Fabrication has also become much easier with AI, compounding concerns around data integrity. Take Western blots, for example. These are part of a standard technique for identifying proteins in blood or tissue samples, and they are among the most common targets for manipulation in biomedical research. Belcher cites research by Dutch microbiologist Elisabeth Bik, who found that almost 4% of biomedical papers contained duplicated or manipulated images. This was back in 2016, before generative AI made fabrication trivial.

“Manipulated or faked data has always been a problem in science, but in the AI world, especially when used to train models, it could have potentially disastrous consequences,” says Belcher. “There needs to be more tools to verify that data is not manipulated.”

Some vendors are starting to tackle this challenge. Belcher points to solutions like Cytiva’s Image Integrity Checker, for instance, which uses secure hash algorithms—the same technology used in blockchain—to detect whether scientific images have been tampered with. “We’re starting to see a lot of interest from publishing houses that want to adopt this as standard because it’s a quick way to ensure that what gets published in the literature is genuine,” he adds.

Autonomous labs could accelerate breakthroughs

Belcher describes the future state of drug discovery as fully autonomous labs that run with minimal human intervention. Foundational to this vision is consistency in data and infrastructure.

These AI-driven dark labs, or labs-in-the-loop, operate around the clock. They cycle through prediction, testing, and optimization, and then feed results back into AI models to guide the next round of experiments. This can improve the success rates of drug candidates entering clinical trials, says Belcher. Better starting points, combined with more rounds of optimization, should result in better candidates with fewer liabilities reaching the clinic.

But automating a lab depends heavily on integration. That means interoperable systems, highly structured and comprehensive datasets, and information flowing easily in and out. Most labs aren’t there yet. “Today, a lot of the instruments in labs are standalone,” Belcher notes. “You can have the best technology in the world, but if it’s a closed ecosystem—if the user can’t get the data out—it doesn’t do any good.”

An integrated infrastructure can enable labs to generate FAIR (findable, accessible, interoperable, and reusable) data at scale. This would not only inform individual lab reports, but could also train subsequent generations of AI models, effectively closing the loop between the computational, AI-driven dry lab and the physical wet lab.

“Our goal is to help scientists and researchers accelerate their breakthroughs and make that future state of autonomous labs a real possibility,” says Belcher. “We want to help them generate reliable data, simplify workflows in discovery, and hopefully enable what they’re working on to become tomorrow’s life-changing therapies, faster and with greater confidence.”

On costs and what comes next

AI-driven drug discovery is still in its early days. Notably, no drug discovered primarily through AI-driven design has yet received full FDA approval—although Belcher expects that to change in the next two to three years.

How big of an impact could AI eventually have on drug discovery? “The holy grail would be full in silico prediction of efficacy and toxicity, eliminating the need for the vast majority of physical wet lab work,” says Belcher. But there are many barriers to this beyond the maturity of the models, including regulatory hurdles and cost challenges.

A Stanford study found that the cost of training frontier AI models has more than doubled every year since 2016, adding more financial pressure to a sector already defined by exceptionally high R&D spend.

Belcher acknowledges the tension, but remains optimistic about what’s ahead. “I think we’ll get to a point where there’s a balance between AI and wet work, from a cost perspective and a risk perspective,” he says. “As long as the cost of compute doesn’t ever outweigh the cost of clinical development, I think AI is going to be an advantage.”

Learn more about how Cytiva is using faster discovery to reshape protein purification workflows.

This content was produced by Insights, the custom content arm of MIT Technology Review. It was not written by MIT Technology Review’s editorial staff. It was researched, designed, and written by human writers, editors, analysts, and illustrators. This includes the writing of surveys and collection of data for surveys. AI tools that may have been used were limited to secondary production processes that passed thorough human review.

Designing and developing a new medicine is an expensive, failure-prone scientific challenge. A new drug can take many years to develop, at the cost of a significant investment. And even then, most possible candidates never reach the patient. For biologic medicines, therapies made from engineered proteins rather than synthetic chemistry (which are often used to treat conditions across most major acute and chronic diseases), the complexity is even greater.

Scientists explore vast quantities of possible molecules, looking for the rare few that will bind to the right target, remain stable in the human body, and be manufacturable at scale. Today, AI is speeding up these processes and has quickly become a core part of the infrastructure in pharmaceutical R&D.

AI-assisted design is a growing part of how biologic drug candidates are developed, and companies like AstraZeneca are actively building its engineering teams to push this further. “Everything we do, whether it’s design, make, test, or analyze, is now computationally enhanced,” says Puja Sapra, senior vice president and head of R&D biologics engineering and oncology targeted discovery at AstraZeneca. “The cycle times are getting shorter while productivity and innovation increase.”

Sapra explains that AstraZeneca’s approach follows a build-measure-learn loop. AI generates or prioritizes candidate molecules computationally, predicting which designs are most likely to succeed. Scientists then focus lab resources only on the top-ranked candidates. This leads to a tighter feedback cycle with fewer dead ends, faster iteration, and the ability to go after disease targets that were previously considered untreatable by medicine. Because the number of possible molecular combinations far exceeds what any human team can systematically explore, using AI to narrow and refine the options for testing has become a major focus in biologics drug design.

Navigating complex drug design problems

Beyond accelerating timelines, AI is also being applied to the discovery of entirely new classes of medicines. Traditional biologics typically target one disease pathway. The next generation of drugs can hit multiple targets simultaneously or precisely deliver therapeutic payloads to specific cells. Achieving this requires optimization across many variables at once. Looking ahead AI-driven models could help design these increasingly complex, multi-specific biologics, explains Puja Sapra. “For example,” she continues, “such models could help identify which two or three targets to prioritize based on the underlying biology, then optimize across multiple parameters to balance a molecule’s potency, stability, manufacturability, and safety.” “Drugging the undruggable is becoming a reality,” Sapra says. “These technologies will eventually enable us to develop medicines against targets once thought impossible to reach. The potential for benefit to patients is remarkable.”

The data moat

McKinsey estimates that generative AI, combined with other computational tools, could cut drug discovery timelines by as much as 50%. But every AI model is only as good as its training data. In drug discovery, that means ample quantities of high-quality biological data. Experiments can provide a rich source of such data. Whether they succeed or fail, each experiment generates a signal about what does and does not work.

“Data is our differentiator,” says Sapra, explaining how the company’s datasets are proprietary and multimodal and include molecular structures, binding measurements, safety profiles, and manufacturing outcomes. “We’ve built an intentionally diverse portfolio across multiple disease areas and drug types. All of that data empowers us to fine-tune frontier AI models with richer, more representative training sets.” She continues, “Further, we have invested in deep screening technologies to generate additional datasets required in volume to constantly refine and validate our models.”

Building an autonomous discovery engine

To bring all of that data together in one place, AstraZeneca is building what it calls a “lab of the future” facility in Kendall Square, Cambridge, Massachusetts where AI and robotic automation will be able to form a continuous, closed-loop discovery system. “Where a self-driving car uses sensors and models to navigate its environment, this system uses AI to make predictions, robotic systems to execute experiments, and instruments to generate data,” explains Sapra. That data feeds directly back into the models, accelerating each subsequent cycle.

“Throughout, scientists will remain central to the process, providing the oversight, judgement, and strategic direction that ensure outputs are explainable, tolerable, and directed toward potential patient benefit,” she adds.

Eventually, automated high-throughput systems will be able to make and evaluate thousands of molecular interactions on a weekly basis. “This will generate AI-ready data at a scale that traditional workflows cannot match,” Sapra says. “Robotic sample handling, automated quality checks, and integrated data pipelines also have the potential to help accelerate early drug development timelines significantly.”

The next frontier: Generating medicines from scratch

Ultimately, Sapra says, the end-state vision for AI in biologic drug discovery is what the field calls “de novo” design. For this, the goal is for AI to generate entirely new protein sequences that precisely fit the desired drug properties. This includes designing the structure, predicting safety, how it will behave in the body and how to make it manufacturable.

“The field is making great progress toward a completely AI-generated biologic, designed from scratch all the way to a clinical candidate,” Sapra says. “As we continue to leverage frontier models and fine-tune them with the right datasets, we bring ourselves closer to this reality. I believe it will come. It’s a matter of time.”

Several key elements are needed to reach this point, however. First is richer and more standardized training data across the industry. Second, robust evaluation benchmarks for AI-generated candidates. And third, teams that know how to work at the intersection of machine learning and biology. Of all the prerequisites, however, safety prediction may be the most consequential, and perhaps the least discussed, Sapra says.

“One of the hardest problems in de novo design is predicting whether a computationally generated molecule will be safe in the human body,” Sapra explains. AstraZeneca is tackling this with what amounts to virtual clinical trials. These are advanced cell systems and micro-scale organ models that function as physical testbeds, paired with AI that learns from their outputs.

 “These systems have the potential to generate enhanced biological signals without traditional testing bottlenecks, and they’re a critical missing piece in closing the loop between AI-generated designs and clinical-ready candidates,” Sapra adds.

A shift currently underway is the move toward agentic AI systems that can simultaneously generate molecule candidates and predict how efficacious and safe they are likely to be. These autonomous workflows can connect disease-level insights directly to molecule design, bridging what were previously separate data silos. “The complexity of the biology goes hand-in-hand with the design of the molecule,” summarizes Sapra.

Human talent unlocks AI potential

The transformation underway in biologics is not just about technology. “With more autonomous systems, human oversight remains at the heart of this approach—ensuring explainable and ethical AI for the benefit of patients,” says Sapra.

For scientists, working with AI is a collaborative process. “Scientists will work hand-in-hand with these model systems,” she says. “There will be a world where models will design molecules, then scientists will work with the systems to test those molecules and put all that data together.” Through this process of human checks, balances, and judgement calls, the models will evolve and constantly improve, ultimately with potential to benefit patients.

For engineers, designing and building effective systems ready for human-AI collaboration will mean ensuring high levels of model transparency and explainability. According to Sapra, AstraZeneca’s engineering teams include data scientists, automation specialists, and AI engineers, who are developing systems that act as “thinking partners” rather than black boxes. “Engineers are designing systems that generate, validate, and learn at speed. And the problems are genuinely hard: Multimodal data fusion, closed-loop optimization, uncertainty quantification, and interpretability at the point of clinical decision-making,” she adds.

In taking on such technically demanding challenges, engineers and scientists have the opportunity to contribute to the research and development of potentially life-changing treatments for many diseases, says Sapra. “The biologic medicines we can develop today, and those we’ll design tomorrow, depend on combining world-class AI and engineering talent with deep scientific expertise.”

This article has been initiated and funded by AstraZeneca.  Z4-85058, July 2026.

This content was produced by Insights, the custom content arm of MIT Technology Review. It was not written by MIT Technology Review’s editorial staff. It was researched, designed, and written by human writers, editors, analysts, and illustrators. This includes the writing of surveys and collection of data for surveys. AI tools that may have been used were limited to secondary production processes that passed thorough human review.

With the rapid progress of AI capabilities and the move to agentic systems, organizations are expanding their use cases as the technology continues to grow. That constant evolution also introduces risk, leaving IT leaders to wonder which investments will prove valuable even six months into the future.

Returning to the foundational elements of AI architecture—the structural framework required for deploying and managing reliable, integrated AI systems at scale—allows technology leaders to make astute decisions today while supporting a future of AI agents that can retrieve information, make decisions, and execute complex workflows across systems.

Four elements of AI architecture you can count on

The following capabilities provide a stable compass on the path to production-ready deployment, regardless of how the underlying technology evolves.

1. Prepare data for AI at scale

Models are only as reliable as the data they can access, and poor data quality leads to AI hallucinations, bias, and unreliable outputs.

Most enterprises rely on legacy systems, inconsistent data structures, fragmented ownership, and incomplete datasets, making it difficult to scale AI effectively. Powerful as it is, AI itself cannot solve these underlying data problems.

As Adnan Adil, CIO of Elastic, explains: “The data is a durable part of AI architecture because without it, these models won’t run, won’t provide the right context, or won’t give the right level of services that we’re looking to implement.” Industry surveys consistently cite data quality as one of the greatest barriers to AI success. “The data quality has to be good; otherwise, the user loses confidence in the system,” says Adil.

An effective AI strategy begins with connecting data across the organization and ensuring it is organized, accurate, governed, and accessible in real time. These considerations are most effective when built into models and architecture from the start. Scalable data architecture allows AI systems to evolve alongside the business and connect reliably to the internal information needed to deliver meaningful value.

Gartner predicts that companies will abandon 60% of all AI projects through 2026 if they are not supported by AI-ready data. Avoiding that outcome includes clear data standards and ownership, clean and labeled data, and pipelines that support real-time retrieval.

2. Use context engineering to deliver the right data to every AI query

Context engineering ensures that the model draws on the most pertinent information for each query, selecting and organizing the data needed to produce accurate answers efficiently.

Effective context engineering shapes the inputs that guide AI reasoning and action. While prompt engineering focuses on how a request is worded, context engineering designs the entire information environment around the model: retrieving the right data and presenting it in a structured, machine-readable way. Many organizations are discovering that reliable AI depends as much on context quality as on the strength of the model.

Context engineering relies on a modernized, unified data foundation as well as retrieval and memory systems such as retrieval augmented generation (RAG) and vector databases. It also requires careful prioritization to determine what information matters most, what should be excluded, and when different types of information should be used. Feeding models too much context can dilute relevant details, increase costs, and slow response times.

“Minimum context, correct and current data, and machine-readable information are critical to effective context engineering,” Adil says.

3. Build AI governance and LLM observability in from the start

Strong governance and LLM observability help organizations maintain control over how AI systems use data, monitor system performance, and identify problems before they affect operations.

In the absence of clear controls around retrieval, workflows, and model usage, AI systems often process far more information than necessary. This inefficiency also drives up operating costs by requiring additional computing resources, often reflected in higher token consumption and API charges.

Governance also works in tandem with robust security. AI expands the attack surface, introducing risks such as prompt-based data leakage, model vulnerabilities, and adversarial inputs. Protecting sensitive information requires strong access controls, monitoring, and oversight.

Adil notes that essential controls — including those related to security, granular cost management, project controls, data security, and architecture—are frequently insufficient.

For governance systems to support transparent, compliant, trustworthy, and cost-effective AI, organizations cannot leave them as a layer to add later. Governance structures need to be embedded into architecture, workflows, and decision-making processes from the outset.

When governance is established from the start, it enables robust observability. Observability helps organizations understand how AI applications are performing in practice. Mechanisms for LLM observability and benchmarking allow teams to assess accuracy and utility over time, monitor adoption patterns, and adjust systems as conditions change. Observability also helps organizations gain trust by increasing visibility of model performance, behavior, and failure points.

Furthermore, observability is essential to get ROI of AI initiatives, as the benefits of it are often indirect and business value depends heavily on how systems are adopted and used. Real-time visibility into AI behavior allows organizations to measure performance against expectations, identify gaps between intent and reality, and continuously refine systems as requirements evolve.

In a 2026 report from Elastic, 85% of IT decision makers expect to enable LLM observability for their internal generative AI apps.

“Observability is actually huge. We can use observability data for cost control, decision-making, and engineering efficiency,” Adil says.

4. Keep humans in the loop

The thoughtful design, integration, and governance that maximize AI value demand specialized in-house expertise. Nearly 70% of respondents in Deloitte’s 2025 Tech Executive Survey report plan to grow teams in direct response to generative AI, a clear contrast to widely reported AI-related cuts. Adil agrees: “We think the people aspect is largely what’s going to make AI impactful going forward.”

As AI systems become more embedded in operations, organizations need people who can govern workflows, evaluate outputs, redesign processes, and adapt systems as conditions change. Evolution toward increasingly autonomous tools requires teams skilled in prompt engineering, orchestration, and change management. 

Talent adept at critical thinking and prepared to adapt with technology’s rapid advances will be in high demand. Although turnover brings in fresh thinking, it also presents high costs in system continuity, institutional understanding, and innovation. Human-centered strategy needs to be built into AI execution stages to ensure smooth implementation. 

As Adil says, “Many aspects of the stack are moving very, very fast, but institutional knowledge and the ability to adapt remain durable.

Thoughtful AI investment for future growth

As AI systems evolve from single-task assistants to increasingly autonomous agents, the organizations best positioned to benefit will be those that invest in the underlying systems, governance, and expertise that make AI reliable at scale.

Tech leaders who focus on these fundamentals can move effectively from experimentation to reliable, production-level deployment in the medium term, confident that these elements will remain relevant and adaptable amid constant advancements.

“We fundamentally believe that with these tools, velocity of work will get much faster,” Adil says. “We are really focused on how we can do work with these tools in ways we had not thought of before.”

Learn more about how Elastic is building an AI-first enterprise with these core foundational components.

This content was produced by Insights, the custom content arm of MIT Technology Review. It was not written by MIT Technology Review’s editorial staff. It was researched, designed, and written by human writers, editors, analysts, and illustrators. This includes the writing of surveys and collection of data for surveys. AI tools that may have been used were limited to secondary production processes that passed thorough human review.

Frameworks like Lean Six Sigma and business process management (BPM) first gained traction because they promised clarity in the chaos—a structured way to bring order to messy, sprawling operations. Lean Six Sigma emphasized statistical rigor and quality control; BPM created end-to-end maps of how work should flow across departments. Both offered a repeatable way to embed habits of measurement, analysis, and accountability into day-to-day company culture.

But today, those time-tested playbooks are evolving as companies seek to embed AI into established process excellence methodologies. By some estimates, the market for AI-powered process optimization is projected to exceed $113 billion within the next decade. In one study, a full 88% of business leaders anticipated increasing investments into AI-infused process intelligence in the next 12 to 18 months.

Yet without the right foundations, many of those investments may not fully deliver on their potential. Companies that already operate with discipline have an edge. They can channel new tools into proven systems rather than bolting them onto shaky foundations. Organizations with mature process disciplines are also better positioned to translate AI ambition into real outcomes, as they are already accustomed to data-driven decision-making and process discipline—precisely the cultural foundation AI systems need to deliver value.

Simply put: AI can accelerate process excellence, but existing process excellence is what makes AI truly impactful. Technology and process are no longer separate levers, and only organizations that pull them together stand to realize the full value of both.

Download the full report.

This content was produced by Insights, the custom content arm of MIT Technology Review. It was not written by MIT Technology Review’s editorial staff. It was researched, designed, and written by human writers, editors, analysts, and illustrators. This includes the writing of surveys and collection of data for surveys. AI tools that may have been used were limited to secondary production processes that passed thorough human review.

Artificial intelligence may have captured the public imagination through chatbots and image generators, but some of its most consequential use cases are unfolding far from consumer-facing tools. In industries where physical infrastructure, operational continuity, and safety are paramount, AI is becoming a core operating layer. With its sprawling industrial systems and constant stream of operational data, the energy sector offers a glimpse into what that future could look like.

At Woodside Energy, AI adoption did not begin with generative models or enterprise copilots. The company has spent years building predictive analytics, optimization systems, and machine learning tools across exploration, drilling, maintenance, and plant operations. “We’ve always had very large volumes of operational data coming from the equipment and the plants and the assets that we operate,” says the company’s vice president for digital Andrew Melouney. “Those have created really clear, quite high-value use cases for us.”

That long-term investment in infrastructure and governance is now enabling a broader shift toward agentic AI systems that can support complex industrial workflows. Rather than replace human operators, Woodside designs AI systems to augment expertise in high-stakes environments. A prime example is its “Startup Advisor,” an AI copilot that helps operators manage the complex process of starting liquefied natural gas (LNG) plants. “We’re really thinking about, how does it support the people in the organization in terms of empowering them to make better decisions, to make faster decisions,” Melouney explains.

The company’s approach reflects a wider evolution taking place across industrial AI: graduating from isolated experiments to enterprise-wide systems built on standardized platforms, governed data, and repeatable deployment patterns. That transition, Melouney argues, requires organizations to rethink both their technology stacks and how work itself gets done. “We’re not just bolting AI onto an existing process,” he says. “We’re deeply thinking about how that work needs to be reimagined.”

Melouney’s motto has become: “Think big, prototype small, and scale fast.”

As AI systems become more autonomous and interconnected, the companies poised to succeed may be those that spent years building the operational foundations beneath the hype.

“Our ambition is really for an autonomous enterprise, where we have agents with agency that are able to really deeply interact with our core workflows,” says Melouney.

This episode of Business Lab is produced in partnership with Infosys.

Full Transcript:

Megan Tatum: From MIT Technology Review, I’m Megan Tatum, and this is Business Lab, the show that helps business leaders make sense of new technologies coming out of the lab and into the marketplace.

This episode is produced in partnership with Infosys.

Now, when people think about artificial intelligence, they often picture chatbots or productivity tools, but some of the most sophisticated and high impact uses of AI are actually happening far from consumer apps, inside complex industrial environments where safety, reliability, and physical systems matter. The global energy sector is a prime example.

Companies like Woodside Energy, a global energy producer headquartered in Western Australia, have been applying AI for more than a decade now, from advanced analytics and operations, to remote decision support, to smarter maintenance, and energy efficiency across large scale assets. Today, Woodside is scaling that experience, embedding AI more deeply across its operations and the enterprise with a strong focus on governance, data quality, and human accountability.

Two words for you: technological fuel.

My guest today is Andrew Melouney, vice president for digital at Woodside Energy. Welcome, Andrew.

Andrew Melouney: Thanks, Megan. It’s great to be here.

Megan: Lovely to have you. Now, Andrew, as I said there, the energy sector has approached AI quite differently from technology or consumer businesses. Early value has emerged in operational and industrial environments, rather than consumer-facing generative AI tools. Why is that? And what differentiates the energy sector’s AI journey?

Andrew: Megan, I think it really comes down to the nature of the work we do. Energy operations and what Woodside does is very asset intensive, it’s very safety critical, and it’s highly physical. And when you think about how Woodside operates, we operate across the full value chain. We do exploration through to drilling and subsurface work, to project development, all the way through to operating assets, which are often operated in harsh and remote locations, and then global energy portfolio marketing and trading as well.

We’ve always had very large volumes of operational data coming from the equipment and the plants and the assets that we operate, and those have created really clear, quite high-value use cases for us. When you think about reliability, when you think about safety and efficiency, those are really critical things for a company like Woodside. We’ve been doing traditional AI for many years now. If you think about analytics, if you think about optimization, if you think about things like predictive models, those techniques we’ve been applying to our data sets and to our business since around 2015.

And more recently with the advent of generative AI, we’ve really found that we’ve got a pretty strong and awesome foundation to build on top of and to really solve problems in the service of improving the business. And again, whether that is keeping people safe, keeping the environments we operate in safe, or improving returns for the organization.

Megan: Fantastic. I mean you touched on it there, but how has this reality shaped your own AI strategy at Woodside? Where did you start, and where did the technology prove most impactful in those early days?

Andrew: Well, like I said, we’ve had a very long journey, in terms of understanding our operational data, recognizing the value of it, and collecting it at scale so that we can use it. And we’ve been very deliberate in that approach, Megan. We’ve really thought about where the value is and where the risks were manageable. And we’ve started looking at, in today’s world from an agentic AI perspective, we’ve started looking at the problems that were solved with traditional AI and machine learning and data science in the past. And we’ve started to think about, where can we then layer agentic AI over the top to provide an even better outcome?

For our asset intensive industry and organization, we’re looking at areas such as maintenance optimization. We’re looking at areas such as, how do we ensure our LNG plants start up reliably, consistently, and safely? And we’re considering really our frontline workforce and making sure that we’re giving people on the frontline the tools required to do their jobs. When we think about AI, we’re really thinking about, how does it support the people in the organization in terms of empowering them to make better decisions, to make faster decisions? I think over time, this has just evolved from what has been traditional analytics to now artificial intelligence and generative AI. And we’ve learned along the way that the technology is important, but it’s about aligning people, processes, and the technology together.

We’ve spent a long time not only in collecting the data and having a well-curated data set that we can build on top of, but we’ve also spent a lot of time teaching people how to work in agile ways, how to do design thinking, how to problem solve, and how to really make sure that the technology that, say, my team can bring to bear to the organization is adopted effectively and purposefully. And I think once we had that solid foundation in place from a technology perspective, from a data perspective, once we got strong trust built between our digital teams and the organization, we really saw quite a material uptick and the scaling of technology occur more broadly across the enterprise.

Megan: Fantastic. That people piece so important, isn’t it? It’s just a tool, technology, that needs to be in the right hands. And you touched on data there; industrial AI obviously depends on vast amounts of data. Can you walk us through how you’ve approached data at Woodside in a little more detail? How it’s structured and governed, and how tools like maintenance intelligence as well fit into that.

Andrew: Well, data is really foundational and fundamental to everything we do, particularly from a technology perspective. It gives us the ability to innovate at pace when we are building over the top of a strong foundation. As I said before, we’ve had the benefit of a long-term investment in our underlying operational data. I think the way we think about data is that it’s an asset for us.

And when you think about operating a facility where you’ve got sensors everywhere, you’ve got data streaming in real time, you’ve got operators needing to make decisions in real time, we have consciously made a decision over many, many years to invest in that enterprise scale data platform to make sure that it’s secure. We’ve got well-structured data assets, and we’ve got strong governance over the top of that data so that when it is used, when it’s built in a data science application or an AI agent, that we’ve got a level of trust in it that it’s going to be used responsibly. And that when it’s used, it can be trusted to give the outcome that we expect.

We have developed platforms that continuously ingest really high frequency data from the assets and from our enterprise systems. Once we’ve been able to develop solutions on top of that, parts of the business that might own the systems that collect that data, they see the value in it.

When you look at something like maintenance intelligence is a really good example of how we’ve been able to take something that we’ve been working on for a long time. Woodside does a lot of maintenance, it’s a very important part of our business, and it occurs across all of our operating assets. But we have been looking at how we do predictive analytics and predictive maintenance for a long time across that data set that we own. And something like maintenance intelligence is a solution that gives us the ability to optimize how we do that maintenance. And what it does is it analyzes historical maintenance records, alongside the performance of the equipment. And again, by having that data set well-governed and in one place, we get the ability to correlate different data sets, such as maintenance records out of SAP, alongside say equipment and performance coming from our time series data lake.

And when we build over the top of that, something like maintenance intelligence gives us the opportunity to recommend to the assets what the optimal timing for maintenance activities might be, and really give what is quite a simple aim, which is do the right work at the right time. And with something like maintenance intelligence, we have seen the opportunity, and we have the opportunity to reduce maintenance hours by up to 15% over five years on one of the assets that we’ve piloted this on. And as we’ve built out that underlying analytical model, we’re now able to put agentic AI over the top of that and provide better insights and optimize that solution more.

It really comes down to providing our asset teams and our operational teams with the right decision support capability that ensures they’re still accountable to make the decision and to ensure the right work is being done, but we are giving them the best possible opportunity to use their judgment and experience with the data that we provide to make the right decision.

Megan: Sounds like a really impactful change. Last year also marked a milestone in moving from early AI learnings to scale, using AI more deliberately as a force multiplier. What transition were you trying to make and how did you approach it?

Andrew: Well, Megan, we’ve had a philosophy for a long time in Woodside from an innovation perspective, where we really want to think big, we want to prototype small, and we want to scale fast. We want to find big opportunities that we can go after, but we want to ensure that we look at how we deploy those on a small scale first, and then provide the right learning and insight that then can scale it everywhere. Something like maintenance intelligence is a good example of that, or our Startup Advisor, where we know that we’ve got multiple plants that we need to start up. We know that we’ve got multiple assets that need to do maintenance, so we have a big, bold ambition about how we can improve and optimize that. We start with a small prototype; it might be one subsystem, it might be just a part of an asset, and then we scale it out, we learn, and we scale faster.

I think from an AI learning perspective, one of the key things we’ve learned is really the transition from moving from isolated AI solutions to a more coordinated enterprise-wide capability. If you look back maybe 18 months, two years, in our generative AI journey, we rarely started by deploying AI as broadly as we could in the organization from a personal productivity perspective. And probably being quite open in terms of the problems that we will solve, the business problems that we’ll solve with AI. That had a lot of benefits for us in terms of allowing our organization to get to know AI, get to know the capabilities, to build the trust in it.

What we’ve learned though is that we’ve needed to pivot from that to being a little bit tighter in terms of where we are going to invest our time and resources and more higher value solutions. How do we then enable and empower the rest of the organization so that they can actually effectively problem solve with technology in their domain or in their personal productivity without having to come to a central team?

When we think about that, think big, prototype small, scale fast, has been something really important for us. The transition from a more broader approach to use case development and solution development to now a narrower focus on the high value priorities. We’ve seen that paying dividends to us and allowing us to go after solutions and opportunities, things like Startup Advisor.

And so our Startup Advisor is a agentic AI solution that really aims to optimize and empower and better support our operators that sit in front of a panel and have to start up LNG plants, which are incredibly technical facilities and require really specialist skills to start up. And so our Startup Advisor is almost like a copilot that sits alongside those operators, and it gives them the ability to be able to play back previous startups. It gives them the ability to look at how the current startup is progressing, and it provides them better insights to optimize how they start up that facility. And again, starting up an LNG facility is incredibly complex.

Megan: I can imagine.

Andrew: When we think about opportunities like Startup Advisor, again, it goes back to that think big, prototype small, and scale fast. We started with a very bold vision of, how do we start up all of our LNG plants in a much more structured and optimized fashion? How do we better support our panel operators? How do we make, say, a more junior panel operator have a copilot that can help them almost like an experienced panel operator sitting next to them? And when we think about that vision and the ability then to prototype on a small scale and then scale fast, I think it’s been really successful for us.

As we scale, we’ve just naturally expanded into more agent-based solutions. Today, we’ve got around 50 AI agents in production, supporting both our operating assets and our enterprise workflows. These tools have been proven in live environments, and we have really seen the benefit of being able to shift from point solutions that maybe solve small scale problems in specific areas, to AI and agentic solutions with agency that can really work across our workflows.

We’re able to do this because we’ve standardized on the platform that we build on and we’ve got repeatable patterns. That’s been another really important learning for us, is that we don’t want to build 50 solutions in 50 different ways. We really want to be empowering our organization and our technical teams and the users of our solutions to roll them out quickly, to roll them out safely, and to do it in a patternized and platform manner.

But the last point I’ll make, Megan, from a learning perspective is that we’ve really understood that a strong governance around how AI is deployed and developed is critical for us, and it’s critical for us to go fast as well. The traditional ways of governing how we roll out different solutions or digital systems isn’t going to scale to the breadth that we need when we are thinking about AI. Being able to have a clear philosophy around how we innovate, transitioning from isolated solutions to that enterprise-wide capability, and making sure that we’ve got strong platforms with strong patterns and clear governance are the three really critical things that we’ve learned.

Megan: Such important pillars, all of them. And you’ve been working with Infosys on this journey. How has that partnership helped accelerate scaling and embedding AI across the business?

Andrew: Well, Infosys is our managed service provider, and so they play a really critical role in the operations of our core business. One of the things that I like to say is that our license to innovate is based on our license to operate. And so, for my team to be able to turn up to an operating asset or a corporate function and have the trust that’s needed to be able to innovate and reimagine and redesign how work gets done, to be able to do that, we need to make sure that our core platforms, our core systems, our applications are running really reliably, safely, and consistently every day. Having an experienced partner like Infosys looking after those core operations in partnership with our internal teams is really, really important to us.

As we move from pilots to enterprise-wide deployment, the ability to partner with someone like Infosys also gives us the ability to scale. And so being from Perth and Western Australia, while we’ve got a really strong local team in Western Australia, and we’ve also got a very strong team in some of our other operating locations, like everyone, we’re struggling to find people that can fill AI roles. Being able to partner with Infosys and have a number of different operating models at our disposal becomes really important for us. Having co-mingled teams where they are staff, they are Infosys staff, Woodside staff, and some of our other partners, really just brings diversity of thought and experience to how we solve problems.

Fundamentally, the partnership has allowed us to operate and innovate with more confidence. While Woodside always retains ownership of the strategy and where we’re going and the governance and my teams remain accountable for the outcomes, we can’t do what we do without strong partnerships like the one we have with Infosys.

Megan: Fantastic. And as AI adoption scales, you mentioned yourself, governance becomes increasingly important. How challenging has that been, and what guardrails have you put in place at Woodside?

Andrew: So, Megan, governance is really important to us, and we operate in a well-regulated environment. That means we’ve got to make really deliberate and well-reasoned decisions when we’re thinking about how we deploy technology into our organization, whether it’s artificial intelligence or anything else, for that matter. And so, governance is really central to how we approach the execution of our AI strategy at Woodside.

We’ve got maybe two or three really key things that we’ve put in place. The first one is just making sure that every AI use case goes through a structured assessment, and that’s making sure it meets our privacy controls, our cyber controls. We’re also asking the question, not just, could we do this, but should we do this? We’ve really got to bring together safety, ethics, transparency, accountability, and make sure that we make an informed decision. When an AI solution is going through that structured assessment, if there are concerns about how we might use that solution, it then goes to an AI council that’s made up of senior leaders across the organization. That council and that group really oversee some of the prioritization and risk management. That’s where we can have really strong, robust debates around, again, could we do something, should we do it, and how do we mitigate any of the risks that we might introduce here?

I think the last one, Megan, is really around lifecycle management. When you start thinking about, we’ve got 50 at the moment, but if we had 500 agents working in our organization, really amplifying the experience and the decision-making and the value creation of our staff, we really want to have an ability to manage the lifecycle of how those agents operate. We want to know, how many people are using them? What’s the efficacy and the outcome? Is there model drift? Do we need to retune or retrain? I think that’s an area where many organizations, including Woodside, are still leaning into and still figuring out the best way to do this. We can do it quite easily with 50 agents, but 500, 5,000, 50,000 becomes an opportunity for us. Again, thinking about how we partner with others, solving problems like that really present an opportunity to co-create and to co-solve with some of our partners, like with Infosys.

Megan: Fantastic. Just to close, what’s your long-term vision for AI at Woodside? How do you see this evolving over the years ahead, and what could it unlock for the sector in your view?

Andrew: So Megan, I think our ambition is really for an autonomous enterprise, where we have agents with agency that are able to really deeply interact with our core workflows. The outcome that we want to get from that is to protect our people, to protect the environments we operate in, and to be able to provide energy at a lower cost to the world. When we think about that ambition, we can really see that being applied to almost all of the areas that Woodside work in. Whether that’s from exploration through to project developments, through to operations or marketing, the scale of the opportunity in front of us and the ability for us to really change the way that work flows through the organization is really exciting.

For us, there’s three things that we have to get right in terms of being able to execute on that ambition. The first one is really thinking about how the work gets done in the organization so that we’re not just bolting AI onto an existing process, but we’re deeply thinking about how that work needs to be reimagined. We’ve also got to think about how we enable our workforce to work differently. Providing them with the skills and the tools and the ability to really harness the power of the technology that we provide.

Secondly, we’ve got to continue to move from and restrain ourselves from deploying point solutions that solve very narrow problems, to having more connected, agentic systems of systems that can interact with each other. To do that, and if we do that successfully, that’s where we really get the high value unlock from agents being able to interact with workflows and really change how the work gets done.

And lastly, Megan, it’s about how we must continue our philosophy of thinking big, prototyping small, and scaling fast.

Megan: Which is a fantastic lens to which to make all these decisions. Thank you so much, Andrew. That was Andrew Melouney, vice president for digital at Woodside Energy, whom I spoke with from Brighton in England.

That’s it for this episode of Business Lab. I’m your host, Megan Tatum. I’m a contributing editor and host for Insights, the custom publishing division of MIT Technology Review. We were founded in 1899 at the Massachusetts Institute of Technology, and you can find us in print, on the web, and at events each year around the world. For more information about us and the show, please check out our website at technologyreview.com.

This show is available wherever you get your podcasts. And if you enjoyed this episode, we hope you’ll take a moment to rate and review us. Business Lab is a production of MIT Technology Review, and this episode was produced by Giro Studios. Thanks ever so much for listening. Goodbye.

This content was produced by Insights, the custom content arm of MIT Technology Review. It was not written by MIT Technology Review’s editorial staff. It was researched, designed, and written by human writers, editors, analysts, and illustrators. This includes the writing of surveys and collection of data for surveys. AI tools that may have been used were limited to secondary production processes that passed thorough human review.

Enterprise investment in AI is booming. Gartner is calling 2026 an “inflection year” for organizations to align their AI projects with strategic business objectives. As the pressure to prove ROI mounts, executives and technology leaders are looking to agentic AI to drive the measurable financial outcomes their businesses seek.

A prime opportunity for AI agents exists in the tech function, where IT infrastructure costs are projected to grow two to three times by 2030, even as budgets remain unchanged, according to McKinsey. And in the last 18 months, tech teams—the engineers, developers, architects, and other practitioners who are building, deploying, and continually improving their organizations’ infrastructure and applications—are clearly putting agents to work.

The ultimate promise of agents is not only to automate tasks but to manage and coordinate entire workflows, pursuing business goals in a way that allows humans and agents to work together. Given the risks involved in automated decision-making, teams cannot delegate the work that agents do without confidence that they are fully capable of performing the task and that it will do so in a safe, reliable, and secure manner.

Among technology experts, our research shows that teams are exceedingly confident about using agentic AI across a significant amount of AI, data, and cloud tasks.

Where agent readiness drops is largely due to a lack of business context being supplied to agentic systems. The more complex the task, the more reasoning capability an agent requires and the greater its need for business context. Such context-generation capabilities for agents are still at an early stage of development, especially in situations where enterprise data is difficult to wrangle and connect into the agent lifecycle at the speed and quality in which developers and executives need it. Human oversight is a key factor of success in deploying agentic AI.

Knowing that tech teams are in a pivotal position to lead this transformation, the experts we interviewed expect agent confidence to accelerate as experience with agents deepens and business environments mature. “As we design agents to operate within the same operational boundaries, identity systems, and governance models that teams already use, they start to behave more like the systems organizations already trust,” says Jeremy Winter, corporate vice president and chief product officer at Microsoft Azure Platform.

This report, based on a survey of 300 global technology experts, ranks 101 tasks across AI, data, and cloud workflows based on respondents’ confidence in agents acting on their behalf. It also examines how technology teams view the opportunities and challenges related to agentic AI, along with the potential for the technology to enhance their careers.

Key findings from the report include:

Confidence in agents is surging for measurable tasks and growing in areas of complex judgment. Technology experts overwhelmingly believe agents help with everyday work including streamlining processes, improving performance, and reducing repetitive tasks. Confidence is highest for processes like generating reports and boilerplate code, and there is clear opportunity where tasks involve multistep workflows and advanced reasoning to make decisions.

Data workflows are the breakthrough domain. Tech teams trust agents most where structure can provide a reliable foundation for decisions. This includes areas such as data quality monitoring, visualization anomaly detection, real-time data stream monitoring, and data profiling. This is where domain experts closest to the point of data generation can provide context to allow agents to act and deliver trusted outcomes.

Download the full report.

Read the Microsoft Cloud blog by Amanda Silver, corporate vice president of Microsoft 365 Core and Work IQ, which underscores the importance of keeping humans in the loop and how systems thinking advances careers. And for a deeper dive into data workflows as a breakthrough use case for agents, check out the Fabric blog to hear from Kim Manis, corporate vice president of Product for Microsoft Fabric.

This content was produced by Insights, the custom content arm of MIT Technology Review. It was not written by MIT Technology Review’s editorial staff. It was researched, designed, and written by human writers, editors, analysts, and illustrators. This includes the writing of surveys and collection of data for surveys. AI tools that may have been used were limited to secondary production processes that passed thorough human review.

Artificial intelligence is rapidly reshaping retail, but not in the ways consumers might immediately notice. The biggest transformation may not be flashy virtual try-ons or chatbot shopping assistants, but in how decisions are made behind the scenes: how products surface in search results, how inventory moves through supply chains, how engineers ship code faster, and how retailers respond to customer behavior in real time. As legacy retailers navigate a fragmented and hyper-competitive landscape, AI is becoming an operating philosophy.

At Macy’s, that philosophy is more often defined by what senior director of engineering Murali Murugan describes as an “AI-first” approach. “AI first isn’t about adding intelligence on top,” Murugan says. “It’s about redesigning how decisions happen so the business moves faster and every experience feels more relevant by default.” Rather than layering AI onto existing workflows, Macy’s is embedding intelligence directly into systems that include personalization, search, operational planning, and software development itself.

The company’s strategy is reflective of a larger shift taking place across retail: moving from isolated AI pilots toward integrated systems designed to compress, as Murugan puts it, “the gap between the signal and the action.” Early efforts focused on narrow, high-impact use cases like search recommendations and customer engagement, where measurable gains in conversion and reduced friction quickly built internal momentum. “Once we established the quick wins, scaling was a business decision, not a technology debate anymore,” he says.

That momentum is now extending into conversational commerce through tools like Ask Macy’s, an AI-powered shopping assistant designed to act more like a personal stylist than a traditional search bar. Whether for a prom, a vacation, or a last-minute event, customers can describe what they need conversationally and receive curated recommendations informed by past purchases, preferences, and context.

Still, the company sees AI as more of an invisible layer augmenting human judgment than a replacement for it. The long-term vision is retail that feels increasingly seamless, adaptive, and personalized, powered by systems customers may never even notice are there.

“The real transformation in this all comes from continuous improvement,” Murugan says. “It’s about learning from the mistakes, quickly adapting to the newer technology standards that are coming into play, timing, and execution which compound into a meaningfully better customer experience.” 

This webcast is produced in partnership with Infosys.

This content was produced by Insights, the custom content arm of MIT Technology Review. It was not written by MIT Technology Review’s editorial staff. It was researched, designed, and written by human writers, editors, analysts, and illustrators. This includes the writing of surveys and collection of data for surveys. AI tools that may have been used were limited to secondary production processes that passed thorough human review.

AI is booming. New use cases are emerging each day. To capitalize on the technology’s potential, enterprises require data at scale. In many cases, though, the relevant information is blocked or unstructured, which limits its use by AI models. 

To understand this challenge, consider the foundation of the web itself. The web was not designed for the automated discovery and retrieval that new AI applications demand. Overcoming this inherent design constraint requires infrastructure.

The next frontier in AI may depend on a new web data infrastructure layer that can enable models to discover and map this ever-expanding digital realm. This layer must be able to navigate hundreds of millions of existing web domains and billions of new URLs created each week, delivering real-time information and overcoming technical barriers.

“The data suggests there’s far more data out there,” says Or Lenchner, CEO of Bright Data, a web data collection platform. “Think of the universe: It’s out there, but you don’t know what you don’t know.”

Enabling access to fresh, relevant, and trustworthy data

While early AI breakthroughs were driven by scaling training data and model size, organizations are now encountering a fundamental bottleneck: They need to keep pace with the dynamic, unstructured, and constantly evolving nature of web data in order to ground outputs in current and verifiable information. AI performance increasingly depends not just on model architecture but on a system’s compute, networking, retrieval, and data engineering capabilities—that is, the system’s ability to quickly and reliably retrieve data that is fresh, relevant, and trustworthy.

Traditional model training relies on snapshots of information collected at a particular point in time. Training AI on such static data is no longer sufficient. To track fluctuations such as competitor pricing, consumer sentiment, and market trends, companies need a constant feed of new information, pulling data in real time along with relevant context. Their infrastructure must therefore be able to handle millions of simultaneous interactions across websites that vary by geography, language, format, and access rules.

“If it can’t retrieve real-time information, it lacks context,” Lenchner says. “In a business setting, that’s not acceptable anymore. Stale answers lead to bad decisions and disappointed consumers.”

Speed is not merely a matter of convenience; it’s a matter of necessity. Today’s organizations operate in environments where prices, inventory, markets, security threats, and customer behavior change continuously. Delayed data retrieval can reduce the usefulness of an otherwise sophisticated model.

Using live, high-quality web data can also reduce AI hallucinations because the model has a more relevant knowledge base. This builds user trust. In fact, one survey found that 56% of AI practitioners said businesses need access to real-time web data to improve trust in AI outputs. To ensure the model runs efficiently and effectively, the information must also be pared down to the appropriate essentials. 

Despite the introduction of retrieval-augmented generation (RAG), where models pull in external data at the moment of a query, many AI systems still struggle to deliver outputs that are current, contextually relevant, and trustworthy in operational settings. According to Gartner, 60% of AI projects that are not supported by AI-ready data—accurate, structured, organized, and contextualized—will be abandoned by the end of the year. 

This is because large-scale retrieval alone does not solve the problem. As Lenchner puts it, “You need to retrieve data at scale, but also in real time. Latency becomes an issue because of the end user who is waiting for the output.” 

Accessing fresh, AI-ready data at scale introduces technical and structural challenges. In practice, many enterprise systems combine public web retrieval with APIs, licensed datasets, and proprietary internal data in their AI applications. Integrating these fragmented sources into a timely and usable knowledge layer requires specialized capabilities. Some research has found that 97% of AI organizations depend on real-time web data infrastructure, but 90% feel boxed in by various restrictions. Companies are increasingly developing technical approaches to navigate these constraints.

Lenchner draws this metaphor: “Think of the trained model as intelligence and relevant data as knowledge. A powerful intelligence layer sitting on top of a hollow knowledge layer is like a genius who knows nothing—useless in practice. Intelligence and knowledge have to come together.”

The promise of new infrastructure

A new layer of web data infrastructure can address this developing need for stronger AI inputs by enabling discovery of data, real-time access, and tailoring to a specific context. As Lechner describes it, “It’s all about collecting data at scale, super-low latency, without being blocked.”

Rather than relying on increased computing power, this type of platform emulates human browsing behavior to access available content and transform raw code into structured data feeds. It can work with websites that might not interact with traditional scraping tools, such as those heavy in JavaScript, or with aggressive antibot software. 

As Lenchner explains, “It’s basically having infrastructure that can mimic a web user with identifying information—IP address, location, and 1,000 more parameters. And at scale. Think of doing that 80 billion times a day for millions of websites. And every single time, you are looking exactly as the website expects you to look.”

Of course, continuous retrieval introduces new data governance challenges. To address them, platforms can enforce strict compliance protocols aligned with global privacy frameworks, such as the EU’s General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA). They can also be limited to openly accessible, public information, avoiding paywalls or private logins. Any networks used can be vetted and consent-based, and incentives can be provided to owners of IP addresses. In this way, systems can be designed to comply with tightening regulation.

Such complex capabilities do not come easy. “When this is critical infrastructure for a company,” Lenchner says, “doing it in-house becomes a full-time engineering problem that competes with the actual AI work.” Addressing this complexity requires organizations to commit significant resources, leading many to seek specialized platforms designed specifically for data retrieval, orchestration, and observability.

Infrastructure for the real world

Real-time data retrieval is changing what AI systems can do inside organizations. For example, a retail company can use public information to enable a dynamic pricing engine, and global brands can track trademark infringements. 

As the ecosystem matures, organizations that invest in this emerging data infrastructure layer will be better positioned to build AI systems that are more responsive, reliable, and aligned with real-world conditions—AI systems that can continuously adapt using current web data. Over time, the distinction between AI models and the infrastructure that feeds them may even begin to disappear.

As Lenchner says, “The world is changing. And everything that is happening in the world is being uploaded to the public web. The amount of new data that is being generated is growing and accelerating.”

To learn more from Bright Data, read the Data for AI 2026 report.

This content was produced by Insights, the custom content arm of MIT Technology Review. It was not written by MIT Technology Review’s editorial staff. It was researched, designed, and written by human writers, editors, analysts, and illustrators. This includes the writing of surveys and collection of data for surveys. AI tools that may have been used were limited to secondary production processes that passed thorough human review.

As adoption of AI agents looks set to surge by as much as 300% in the next two years, leadership teams are carefully considering the implications of a hybrid human-AI workforce. 

Unlike existing enterprise-level automation that relies on manual input, AI agents are capable of autonomously coordinating complex tasks, interacting with multiple tools and environments across an organization. In early applications that center on customer service, HR, and sales, adoption of agentic AI has led to productivity gains of 30-50%. 

Their autonomy positions agents more as collaborators than tools, working side-by-side with human employees in blended teams that look poised to upend traditional workplace dynamics. 

More than three-quarters of HR leaders believe that the deployment of AI agents will transform existing workplace norms, driving a complete reappraisal of how roles and responsibilities are distributed, how skills are prioritized, and how workplace culture is shaped.

Though many admit they’re in the early or preparatory phase of this shift, 86% of chief HR officers predict that navigating digital labor shaped by agentic AI will be a central component of their role in the years ahead.

Fluency in the change management aspect of agentic AI adoption will be a crucial differentiator when it comes to unlocking the full potential of the technology going forward, believes Ateet Jayaswal, chief culture and employee experience officer at Wipro, a leading technology services and consulting company. This moment is one that he says, “calls for a mindset shift in how HR leaders would enable their organizations.”

Redeploying roles to enable higher-value work

As AI agents assume ownership of more complex and integral tasks, the distribution of roles and responsibilities within an organization will undergo significant change. It’s estimated that three-quarters of current roles will require redesign, reskilling, or redeployment by 2030 as a result of agentic AI. 

For leadership, this shift should be about reskilling employees toward higher-value work in order to optimize the potential of an agent-human hybrid workforce, says Jayaswal. 

For example, Wipro is a complex organization of 240,000 employees across 65 countries. It previously had multiple policies, documents, and knowledge fragmented across different systems, which delayed response to employee queries. 

But the company has recently integrated a custom agentic AI assistant—an agent co-created in partnership with enterprise agentic AI platform Ema Unlimited—that can swiftly navigate this complex system, assuming responsibility for 50 HR tasks that had previously fallen to human employees. With the help of an AI agent, average response time to queries has lowered from 48 hours to five seconds. 

Human employees have more time to focus on work “that requires a creative and imaginative mind and cross-functional collaboration, leveraging diverse ideas and thoughts to problem-solve,” says Jayaswal. The AI agent, meanwhile, handles rote administrative tasks like sorting timesheets or helping employees navigate policies and take actions in the flow of work. 

When reallocating employee responsibilities, though, it is imperative that humans remain in the loop, Jayaswal caveats. When agentic AI is incorporated into enterprise technology, it must work with sensitive and personal data and therefore needs even more stringent guardrails and constraints than consumer applications. “When you expose an AI agent to organizational data, when you integrate it into multiple enterprise systems, then pathways around the AI agent become extremely important,” he says. “It’s an evolving space that leadership needs to have front-of-mind.” Governance should include robust data privacy rules and the establishment of governance layers, such as an AI council, he suggests.  

At a fundamental level, the adoption of AI agents will force a re-evaluation of human roles, believes Jayaswal. Rather than employees primarily performing repetitive tasks or troubleshooting, a significant proportion of their time will shift to designing, teaching, and optimizing an AI agent that can do this work for them with far greater speed and predictability and without the agent getting bored. 

“The nature of your job changes from being the hero who comes in to solve the problem to designing the hero who can solve the problem,” he summarizes. “The individuals who I have seen thrive in this environment are the ones who make this shift.”

An evolving employee skillset

Just as roles and responsibilities will be reconfigured to reflect the input of AI agents, the core skills of human employees will be reprioritized. More than four in five HR leaders say they’re planning to reskill workers to become more competitive in a market shaped by AI agents. 

Technical skills will be increasingly important. Leading employers such as Salesforce, Danone, and Walmart are already rolling out dedicated AI and digital skills programs that aim to equip everyone from frontline workers to C-suite executives with a baseline level of AI literacy in response to the pervasiveness of the technology. 

But desirable soft skills will also evolve, Jayaswal points out. Employees who assign tasks to an AI agent need to plainly articulate what modular steps may be needed to accomplish a task, what the desired outcome should be, and what parameters or guardrails need to be in place to ensure the agent doesn’t access or share confidential data. 

As HR executives adapt to a blended workforce, three skills are emerging as top priorities during recruitment, according to a recent survey: relationship building, like forging constructive partnerships and account management; collaboration; and adaptability. 

Maintaining a healthy workplace culture

In freeing up human employees to focus on higher-value tasks, the hope is that AI agents can elevate the employee experience, deepening fulfilment and satisfaction in the workplace. 

“At Wipro, our vision is to improve the life of Wiproites,” says Jayaswal. “We are taking away non-value added work by embracing modern ways of collaborating, engaging, and transacting, leaving associates with higher order work content.” 

But leadership teams embracing agentic AI will also need to plan for the new pressures and stressors that the technology can place on a workforce. 

There is already confusion and knowledge gaps, with 73% of HR leaders reporting their employees don’t yet understand how digital labor will impact their work. Many organizations have opted to define AI agents as teammates or colleagues on org charts, but new research says this could erode trust and a sense of professional identity. It also raises new questions around accountability and ownership. 

The role of management in addressing these concerns is critical, says Jayaswal. To maintain healthy dynamics, managers need to become skilled at orchestrating blended systems, splitting their focus between supervising AI agents and motivating human employees as they also build and supervise AI agents.

Upgrading employee well-being programs will be a core part of maintaining a robust workplace culture. “As there are more interactions with AI agents, you are losing some of the human touch that was provided by service delivery partners or leaders, or often even by colleagues and peers,” Jayaswal says. Employee services that encourage social connection and empathetic communication may help teams navigate this. 

A breakneck transformation

Agentic AI looks set to scale at breakneck speed across many enterprises, and it will significantly transform how these organizations operate. 

Carefully considering and deciding how to adapt to this newly blended workforce is now a top priority for leadership teams. Reviewing and refining organizational strategies is essential for optimizing both technological gains and the employee experience.

This content was produced by Insights, the custom content arm of MIT Technology Review. It was not written by MIT Technology Review’s editorial staff. It was researched, designed, and written by human writers, editors, analysts, and illustrators. This includes the writing of surveys and collection of data for surveys. AI tools that may have been used were limited to secondary production processes that passed thorough human review.

The global health care sector is under increasing strain. 

Decades of chronic underinvestment and constraints in recruitment have coincided with a surge in demand for services for aging populations. Gaps in provision are already taking a toll, with fragmented access to care and high rates of stress and burnout among staff. And it’s getting worse. The World Health Organization has warned that current shortfalls will increase to 11 million workers by 2030. 

In their urgent hunt for a solution, many health-care providers are now pinning their hopes on agentic AI, with more than two-thirds (68%) having already adopted AI agents into their workforce, according to KPMG. 

The technology is being deployed to automate complex back-office processes, collaborate with medical teams, and even triage patients, all in a bid to reduce the cognitive load on clinicians and improve quality of care for patients as the supply of human health-care workers dwindles.

A different type of digitalization 

Until now, the benefits of digitalization within health care have been limited. 

Many staff have blamed slow or outdated technology for adding to the administrative burden rather than alleviating it. For example, U.S. patient data was migrated to electronic health records (EHRs) in the early 2000s, but this data remains fragmented and reliant on manual inputs. 

New telehealth services and digital care tools, like remote monitors, have had similar shortcomings, says Ashis Barad, MD, chief digital and technology officer at Hospital for Special Surgery (HSS), an academic medical center in New York that focuses on musculoskeletal health. Both technologies have helped improve access to health care by removing geographical barriers, he says, but they’ve failed to replicate the quality of in-person care or win trust from patients. 

Agentic AI is different from these existing technologies, he insists. 

Rather than relying on manual inputs or defaulting to human workers for any case that sits slightly outside a rigid framework, AI agents can handle nuanced, complex scenarios. They can make autonomous decisions, retrieve information from expert clinical sources, and iterate over time, freeing clinicians to focus on higher-level patient care. As Dr. Barad puts it: “Agentic AI takes your workflow and collapses it, augments it, supercharges it, and makes it more performant.” 

At HSS, AI agents have already been deployed in multiple areas. They handle complex backend processes, such as insurance claims that previously took several weeks to complete and involved both HSS staff and a third-party contractor to handle the volume. Now, says Dr. Barad, AI agents complete 1,100 claims per month. They’ve reduced the appeals stage from 45 minutes to five and improved the success rate of those appeals from 65% to 100% in the nine months since implementation. HSS now handles all claims in-house. 

Building on that success, HSS is now deploying AI agents in non-clinical patient-facing settings with an AI scheduling and triage service, as part of a collaboration with enterprise agentic AI developer Ema Unlimited. The service is accessible 24/7 via web, text, or phone. It uses conversational AI to ask patients clarifying questions about their condition and then books appointments with the most appropriate clinician, factoring in location, insurance coverage, and physician availability. “It completes the whole loop,” says Dr. Barad. The AI agent is trained on “all of our context, all of our rules, and all of our knowledge base,” he adds, providing patients with streamlined access to highly specialist knowledge from world-leading surgeons.

Given the high-stakes decisions delegated to AI agents, the triage service has built-in safeguards—sensitive, complex, or uncertain scenarios are escalated to human specialists. Every decision made by the AI agent is auditable and human staff can step in at any point. Patient data is kept secure and the system is trained on all HSS protocols, policies, and care pathways. By keeping humans in the loop, Ema says its technology strikes the balance between efficient automation, patient-first safety, and human-informed decision making. 

As the technology becomes more prolific, it will be incumbent on providers to ensure they have these sorts of guardrails embedded into systems, says Dr. Barad. At HSS all decisions around the technology are filtered through an AI subcommittee that Dr. Barad co-chairs alongside a senior nursing executive. AI agents that may touch on patient care will be scrutinized with far more rigor than, say, backend processes, he explains.

AI agents prompt systems-level change

For example, Dr. Barad has plans to create a dedicated AI lab at the HSS main campus in New York City—a move that aims to democratize access to the technology across the organization. It will be open to all staff looking to understand or build AI agents, he explains, with informative classes and one-on-one training. “We’re getting agentic AI into everybody’s hands,” he says. This echoes research by Deloitte, which found that leading agentic AI adopters in health care were far more likely to have opted for multiagent solutions, redesigning end-to-end workflows rather than sticking to narrow solutions or individual use cases.

The key, it appears, is to integrate AI agents across the entire enterprise, treating them as a general-purpose technology. As Dr. Barad puts it: “It’s wrong to think of agentic AI in use cases… It’s a general-purpose technology, analogous to electricity.”

In practice, this means health-care providers need to set the right foundation to achieve value with agentic AI. This includes creating a unified data strategy, one that integrates fragmented data sources across an organization to create a single, comprehensive source of truth. In health care, data is often split across multiple departments and providers, each with their own legacy IT system.

In systems that rely on fragmented data sources, metrics often lack standardized definitions too. For example, Dr. Barad says that each hospital he’s worked in has had a slightly different definition for “time to start surgery,” a metric commonly used to gauge operating room efficiency. This level of fragmentation impedes AI agents from retrieving information from different sources or applications and assimilating the tacit knowledge that differentiates them from other technologies.

By creating greater interoperability of data at HSS, patient-facing AI agents can draw from a patient’s clinical care history and existing recommendations from their clinician, combine this information with current symptoms, and decide whether a situation requires escalation before notifying the correct specialist and informing the patient. 

Building better outcomes

For Dr. Barad, the potential for AI agents to overhaul health care and alleviate the current pressures on resources, access, and patient care is huge. 

He envisions a future in which 90% of non-clinical health-care tasks could be administered by AI agents, freeing clinicians up for what he calls white-glove work, meaning the most complex, specialized, and sensitive cases.

Most health-care providers seem equally optimistic. According to research by KPMG, 84% of providers are already comfortable handing decision making about specific processes over to AI agents.

“We’re spending so much time on keyboards and computers right now that we’re actually not doing what we should be doing,” says Dr. Barad. “This is going to rehumanize health care.”

This content was produced by Insights, the custom content arm of MIT Technology Review. It was not written by MIT Technology Review’s editorial staff. It was researched, designed, and written by human writers, editors, analysts, and illustrators. This includes the writing of surveys and collection of data for surveys. AI tools that may have been used were limited to secondary production processes that passed thorough human review.