For 30 years, outsourcing was built on labor arbitrage.
Move work somewhere cheaper.
Scale teams.
Bill more hours.
AI is changing the equation.
When routine work can be automated, capacity becomes abundant.
The competitive advantage shifts from:
→ headcount
→ hourly rates
to:
→ domain expertise
→ business understanding
→ outcome delivery
The question for software companies is no longer:
"How do we sell more capacity?"
It's:
"What value remains when capacity becomes a commodity?"
Interesting HBR article in the comments.
#AI #Outsourcing #SoftwareEngineering #Leadership
The most important skill in software development is no longer coding.
It's a problem definition.
A recent paper on Agentic Engineering argues that code is becoming a temporary artefact generated by AI agents to achieve outcomes.
I'm not fully convinced software engineering is disappearing.
But I do believe we're moving from:
→ writing code
→ designing intent
The winners won't be the fastest coders.
They'll be the people who best understand business problems, constraints, and outcomes.
Interesting read:
https://t.co/6FKQbhyXNf
#AI #AgenticAI #SoftwareEngineering
Cognizant at WEF Davos 2026: What the Numbers Really Tell Us About AI
$4.5 trillion.
That's the value of work that is ALREADY ready to scale with AI – according to Cognizant's latest research.
This isn't speculation. This isn't the "AI bubble" everyone keeps talking about.
This is concrete business value waiting to be captured.
But here's the catch.
93% of jobs could be impacted by AI in some way – six years ahead of what was predicted just three years ago.
What does this mean for IT leaders ?
→ You don't have time for "wait and see"
The pace of change is accelerating. Companies building AI capabilities today will be miles ahead of competition in 2 years.
→ AI governance is the new competitive advantage
Cognizant argues that real-time AI governance is now a business necessity. It's not just about compliance – it's about the ability to adapt in real time.
→ Digital skills = engine of prosperity
WEF and Cognizant developed a joint framework to assess, develop and credential digital talent. Why does this matter? Because companies with skilled teams don't just earn more – they build organizational resilience.
→ Agentic AI as a turning point
Multi-agent AI systems break through organizational silos. This isn't science fiction – Cognizant is presenting "Agent Foundry," a concrete platform for scaling AI agents in production.
The key question for every CEO:
Is your organization prepared for a world where 93% of roles will be transformed by AI?
This isn't about fearing technology. It's about pragmatically preparing people, processes and governance.
We can learn from the mistakes of companies that deployed AI without strategy. The question is – will we use it?
Full WEF 2026 materials → https://t.co/hpuOgRD8Sz
#AI #DigitalTransformation #WEF2026
🔑 KEY TAKEAWAYS FOR YOUR USE:
Main insights from the page:
$4.5T – US labor value potentially impacted by AI in 2026
93% of jobs could be impacted by AI – 6 years ahead of schedule
Cognizant is a WEF Strategic Partner
New skills building framework (WEF + Cognizant partnership)
"Agent Foundry" – platform to scale AI agents from pilots to production
Strong emphasis on responsible AI and real-time governance
95% of companies using AI saw zero meaningful revenue growth.
Programmers with AI coding tools got slower, not faster.
And AI agents? They completed less than 3% of real work tasks when tested.
Fresh data from Forrester and MIT that every CEO should see before signing off on their next AI investment.
JP Gownder, VP and principal analyst at Forrester, put it bluntly: "A lot of generative AI stuff isn't really working. We're not seeing AI-driven productivity gains in any of the available data."
This isn't pessimism. This is measurement.
The Solow Paradox is back
Here's the historical pattern that should give every tech optimist pause:
→ 1947-1973 (pre-PC era): 2.7% annual productivity growth
→ 1990-2001 (PC mainstream): 2.1%
→ 2007-2019: 1.5%
More technology. Less productivity growth. Nobel laureate Robert Solow predicted this in 1987: "The effects of the PC revolution can be seen everywhere, except in the productivity statistics."
AI might be walking the same path.
The workplace reality is messier than the demos
Research is painting a troubling picture of AI in actual work environments. One study found that AI is creating what researchers call "workslop" — employees passing off low-quality AI output with the expectation that someone else down the line will polish it.
I've seen this pattern emerging in CEE organizations that rushed to deploy AI tools without defining clear workflows or accountability structures. The tool gets adopted. The quality drops. The blame gets diffused.
What this actually means for business leaders
The problem isn't AI technology itself.
The problem is deploying AI without:
Clear success metrics defined upfront
Specific use cases mapped to business outcomes
Process readiness and data quality
Realistic expectations about what "productivity" actually looks like
"Why AI" must come before "which AI." Always.
One more thing worth noting
Gownder pointed out something I've observed as well: some companies are firing people "because of AI" — then quietly hiring cheaper teams offshore three weeks later.
AI becomes a convenient narrative for cost-cutting that was happening anyway. The technology gets blamed. The real strategy stays hidden.
My take
None of this means AI is useless. The 5% of companies seeing real results? They exist. The technology has genuine capabilities.
But the winners won't be companies that deploy AI because of FOMO or board pressure.
The winners will be those who deploy it pragmatically — with clear ROI expectations, honest measurement, and the patience to iterate.
In CEE, we have an advantage: we can learn from the expensive mistakes being made elsewhere. The question is whether we'll use that advantage, or repeat those mistakes anyway because "everyone else is doing AI."
From chaos to clarity. That's still the path forward.
https://t.co/JcV8glapzH
What are you seeing in your organization — real productivity gains, or expensive experiments? 👇
#AI #DigitalTransformation #CEE
https://t.co/JcV8glapzH
Trump's voice is now "selling" mortgages for Fannie Mae.
The catch? It's not Trump. It's AI.
This is the moment when the authority principle meets synthetic reality.
Fannie Mae - the same institution that guarantees half of the $13 trillion US mortgage market and was at the center of the 2008 crisis - used a cloned presidential voice to advertise the "American Dream."
With administration approval. With a disclaimer at the end of the spot.
Psychology is ruthless:
→ The authority principle (Cialdini) works regardless of whether the voice is real
→ The brain responds to a familiar, authoritative tone
→ Disclaimer at the end? Most viewers won't see it
AI just got the keys to our decision-making mechanisms.
What does this mean for business?
We're entering an era where authenticity becomes a strategic choice, not a default state.
Question for every leader: how will your organization build trust when any voice and image can be synthetic?
This isn't alarmism. It's a pragmatic observation:
Voice cloning technology is available (Eleven Labs). Legal frameworks - lagging behind. Social psychology - unchanged for decades.
A mix that demands conscious decisions, not reactive regulations.
Fannie Mae showed the direction. Other institutions will follow.
Are we ready for a world where authority can be cloned?
https://t.co/xwCfY3se0n
#AI #DigitalTransformation
https://t.co/xwCfY3se0n
Failures teach faster. Tech Review lists 8 2025 flops and why. We need to tighten spend, temper AI claims, boost resilience. Which flop should we study first? https://t.co/PAh0uo1jbd #AI#SupplyChain#Leadership
Writer AI Leaders Forum revealed an uncomfortable truth:
Most AI deployments fail not because of technology, but lack of governance, trust, and change management.
Companies winning? They treat AI as a leadership challenge, not an IT project.
Who leads AI at your company?
More on why AI governance is the real differentiator: https://t.co/ei81SykZ8s
#AILeadership
The Real Reason Apple Builds in China — and It’s Not What You Think
Everyone says Apple manufactures in China because it’s cheaper.
But ask Tim Cook, and he’ll tell you something different:
It’s not cost. It’s craft.
The kind of expertise that takes decades — not dollars — to build.
When Tim Cook explained that China could fill “multiple football fields with tooling engineers,” it reframed everything I thought I knew about Apple’s supply chain.
This wasn’t about cost — it was about capability.
I used to assume Apple built in China for cheaper production.
But the more I’ve learned about manufacturing, the clearer it’s become: cheap labor doesn’t build iPhones — mastery does.
China didn’t undercut competitors; it out-trained them.
Here’s what’s really behind Apple’s decision:
→ Skill: Millions trained in micro-tooling and materials precision.
→ Scale: Factories and suppliers that operate as one massive organism.
→ Speed: The ability to prototype, adapt, and deliver within days, not months.
The U.S. and others shifted toward tech, media, and finance — but neglected the industrial expertise that built their foundations.
Tariffs can’t rebuild that. Automation helps, but infrastructure and training are what sustain it.
If a nation wants to compete, it needs to rebuild its learning loops:
✅ Revalue vocational paths. Treat manufacturing skill as a mark of excellence, not fallback.
✅ Pair AI with apprenticeships. Machines scale precision; humans sustain it.
✅ Invest long-term. Industrial capacity compounds like trust — slow, quiet, essential.
In my view, this isn’t about China winning.
It’s about remembering what progress is built on — making things that last.
Question for You:
Can countries like the U.S. or India rebuild true manufacturing mastery — or has that edge permanently shifted East?
#Leadership #Manufacturing #SystemsThinking #AIandIndustry #EconomicStrategy #PascalPerspective
AI panic is rising, but it’s time for a shift. We should focus on responsible AI development and regulation instead of fear. Embracing AI's potential can lead to positive change, from improving healthcare to addressing climate challenges. #AI#FutureOfTech https://t.co/T83slJs1d1
A UCLA study found that AI detects prostate cancer with 84% accuracy, compared to 67% by doctors. The AI tool, Unfold AI, creates a 3D map from clinical data, leading to more precise and less invasive treatments.
Read more: https://t.co/d2DwagZ9gw
🤖 Over the past decades, artificial intelligence (AI) has gone from being something out of science fiction to being very much part of science fact. Can we leverage AI to build a greener and more sustainable future?
👉 https://t.co/I17cXPK8V8
#AI#Future
🤖 The U.S. Department of State has used robotic process automation to cut the processing time for its monthly financial statement from two months to two days, according to CIO Kelly Fletcher.
👉 https://t.co/n1Tw3FiL2D
#RPA#Automation#Robots#US https://t.co/n1Tw3FiL2D
🤖 OpenAI announced the latest version of its primary large language model, GPT-4, on Tuesday, which it says exhibits “human-level performance” on many professional tests.
👉 https://t.co/Vj4kKf0ueY
#AI#OpenAI#GPT4
🤖 “Robotic Process Automation Market” report is an in-depth analysis study offered which explains necessary aspects like competition, segmentation, and indigenous growth in inordinate detail.
👉 https://t.co/fr3JImiQCy
#RPA#Automation#Robots https://t.co/fr3JImiQCy