Software
Gartner's latest research predicts that by 2029, 60% of organizations will adopt smaller software engineering teams, a significant increase from 15% this year. AI agents taking on more routine technical tasks will drive engineering departments to reorganize into agile groups of 4-5 people, but this model is not aimed at cost reduction, but rather to better combine AI with human expertise.
In a report released last week, Gartner stated that agentic AI is reshaping the enterprise application software market, expected to impact up to $234 billion in spending by 2030. As AI agents complete tasks across systems, users' reliance on traditional software interfaces decreases, accelerating the shift of SaaS pricing models from subscriptions to outcome-based approaches. The report warns that traditional vendors failing to adapt to this transition may face survival crises, while those embracing agentic capabilities will gain new revenue opportunities.
According to a report released by Emergn on Wednesday, U.S. companies lose an average of 2.4% of annual revenue due to AI projects failing to deliver expected value. The technology and consulting firm surveyed 700 senior business leaders. Only 30% of organizations consider shutting down underperforming AI projects a normal practice, and nearly half say projects are typically halted only after significant time and money have been invested.
HP and OpenAI announced an agreement on Sunday to deploy OpenAI's enterprise AI platform Frontier across HP's global operations, making HP one of the first enterprises to adopt the platform at scale. The two parties plan to jointly develop AI agents for internal operations such as customer support, employee productivity, and software development. HP initiated an exploration phase when the platform was launched in February, assessing the alignment of technical capabilities with business priorities.
According to the latest Gartner report, by 2028, the token costs of AI programming will exceed the average salary of ordinary developers. The shift from subscription models to pay-as-you-go pricing intensifies fluctuations in AI spending, making it difficult for enterprises to predict and control budgets. Experts advise CIOs to strengthen usage monitoring and cost governance.
Gartner's latest report indicates that more than 70% of CEOs believe their organization's IT operating model cannot adapt to the AI era, with traditional centralized frameworks struggling to cope with rapid AI disruption, geopolitical volatility, and the proliferation of AI within enterprises. Only 24% of CIOs say their existing models can effectively adapt to business changes, leaving CIOs facing an imbalance between responsibility and control. Gartner recommends shifting to an orchestration-centric 'technology operating model' with embedded decision rights and guardrails.
Latest research indicates that the world's 2000 largest listed companies are unable to unlock nearly $18 trillion in AI investment value due to internal operational shortcomings—including poor data quality, inefficient processes, outdated technology, and talent gaps. The report states that most enterprises have not yet addressed the fundamental issues constraining AI returns, with only 6% of surveyed organizations classified as 'mature debt resolvers.'
IBM and Google Cloud Reach Strategic AI Platform Partnership to Expand Enterprise AI Services Market
IBM and Google Cloud announced a deepened strategic partnership, integrating IBM Consulting Advantage platform with Google Gemini enterprise agent platform and forming a Google Cloud business unit staffed with thousands of certified consultants. This initiative aims to help clients modernize legacy systems, manage hybrid cloud infrastructure, and drive AI application adoption.
Salesforce achieved revenue of $11.13 billion in the first quarter of fiscal year 2027, up 13% year-over-year, but analysts noted slowing growth in products such as Tableau and Agentforce Commerce, with the company relying on the Agentforce platform to sustain growth momentum.
Google Cloud and Workday announced an expanded partnership on Thursday, integrating Workday's Sana self-service agent into Gemini Enterprise, enabling employees to query leave balances, payroll, tax information, and expense policies in a single interface, and supporting managers in approving timesheets and initiating performance reviews. The two companies aim to automate HR and finance processes through AI agents, responding to transformations in the SaaS industry.