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How Enterprises Are Re-Architecting Around AI

Raj Koneru
Kore.ai

Over the last year, we've seen enterprises stop treating AI as “special projects.” It is no longer confined to pilots or side experiments. AI is now embedded in production, shaping decisions, powering new business models, and changing how employees and customers experience work every day. So, the debate of "should we adopt AI" is settled. The real question is how quickly and how deeply it can be applied.

And when we talk about AI in the enterprise, we mean intelligent agents. Agents that can think, plan, act, and adapt. AI Agents that help us reimagine customer service, employee productivity and streamline business process workflows.

To understand how deeply this shift is taking hold, we conducted the Practical Insights from AI Leaders survey, gathering responses from more than 1,000 senior executives across industries and geographies. The results were clear: organizations aren't simply adopting AI anymore. They are fundamentally re-architecting themselves around it.

The Growing Presence of AI

One of the most telling insights from our survey is that 71% of enterprises are already using or piloting AI across customer service, IT, HR, operations, and marketing. That tells us something important. AI has already moved into the core of how businesses operate today. We see it driving productivity, shortening product cycles, enabling more personalized experiences, and giving leaders the confidence to make decisions faster. What stands out this time is that the momentum isn't limited to a few innovation teams- from the boardroom to the frontlines, people across the enterprise are seeing the value.

We also see clear patterns by industry. Financial services and technology firms are out in front, with many directing more than half of their tech budgets toward AI. They are rethinking risk, capital allocation, and customer engagement. Healthcare, retail, and business services are moving quickly too, focusing on automation, efficiency, and stronger customer connections. The use cases with the highest returns like intelligent search, content generation, and advanced analytics, are already changing how organizations operate day to day. And this is not just a theory we're talking about. 93% of companies have already reported early success from their pilots.

But we do have a challenge, and that is how to scale these projects. Only about a third of leaders say they feel ready to move from pilots to enterprise-wide adoption. The reasons are no surprise: the rising token costs of large models, the shortage of skilled talent, and the constant pressure around privacy and compliance. Getting started may be straightforward, but turning early wins into enterprise-wide transformation is where most organizations stumble.

Despite these hurdles, what's encouraging is the strong sense of optimism we see across organizations. AI is bringing teams together, creating room for experimentation, and building momentum that didn't exist a year ago. And even with people stretched and customer demands rising, leaders are choosing to push forward rather than slow down. You can see that urgency reflected in budgets: 90% of enterprises say they'll increase AI spending this year, with many directing anywhere from 10% to 50% of their total IT investment.

Investing Over Inventing

When it comes to execution, leaders are going with a very practical mindset on build vs. buy. 72% told us they prefer prebuilt or customizable AI solutions rather than building everything in-house. And it makes sense — speed, reliability, and the ability to plug into existing systems matter far more than squeezing out marginal cost savings. What enterprises want from vendors now is clear: trust, performance, and outcomes they can count on. AI has become mission-critical, and the conversation has shifted from how much can we save to what impact can we deliver.

But let's be honest — tools alone won't solve the problem. Many operations are still clogged with friction: too many handoffs, too many disconnected systems, and decisions that rely on someone remembering the right detail at the right time. AI can take on that invisible complexity, freeing people to focus on the work that really matters. Still, rolling out new tools isn't the same as true transformation, as the real unlock comes from talent.

This is where leaders make tough choices. Some are hiring new expertise; others are upskilling their own people. Either way, the conclusion is the same- AI skills are fast becoming a competitive edge. Prompt design, data visualization and human-AI collaboration are no longer niche capabilities. They're becoming must-haves. At the end of the day, the future of AI in the enterprise isn't just about technology. It's about giving people the confidence to work alongside intelligent systems and know they're ready for what's next.

Responsibility in the Age of AI

As adoption grows, responsibility grows with it. Two priorities keep surfacing in every conversation: data quality and security. First-party data is the most valuable input for AI, yet many organizations still struggle to govern it and put it to use effectively. In regulated sectors such as healthcare and financial services, the stakes are even higher. Compliance and trust stand on equal ground with innovation.

That brings us to security. In industries with strict oversight, the focus today is on operational excellence. Systems must be safe, explainable, and auditable. Leaders expect clear answers to basic questions: who accessed the data, why a model made a particular decision and how to reverse it if needed? These are the disciplines that turn AI from a promising idea into a dependable part of the business.

And it changes how enterprises prepare themselves. The organizations that will benefit most are those that align strategy with execution. They assign ownership for data and models. They define risk checks and review cycles. They build talent around evaluation, model governance, and human-AI collaboration. Most importantly, they foster a culture where teams can move quickly but within clear guardrails.

Many leaders are already taking this path. The real question is what you will do differently to ensure your enterprise builds AI that is both powerful and responsible.

Raj Koneru is Founder and CEO of Kore.ai

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How Enterprises Are Re-Architecting Around AI

Raj Koneru
Kore.ai

Over the last year, we've seen enterprises stop treating AI as “special projects.” It is no longer confined to pilots or side experiments. AI is now embedded in production, shaping decisions, powering new business models, and changing how employees and customers experience work every day. So, the debate of "should we adopt AI" is settled. The real question is how quickly and how deeply it can be applied.

And when we talk about AI in the enterprise, we mean intelligent agents. Agents that can think, plan, act, and adapt. AI Agents that help us reimagine customer service, employee productivity and streamline business process workflows.

To understand how deeply this shift is taking hold, we conducted the Practical Insights from AI Leaders survey, gathering responses from more than 1,000 senior executives across industries and geographies. The results were clear: organizations aren't simply adopting AI anymore. They are fundamentally re-architecting themselves around it.

The Growing Presence of AI

One of the most telling insights from our survey is that 71% of enterprises are already using or piloting AI across customer service, IT, HR, operations, and marketing. That tells us something important. AI has already moved into the core of how businesses operate today. We see it driving productivity, shortening product cycles, enabling more personalized experiences, and giving leaders the confidence to make decisions faster. What stands out this time is that the momentum isn't limited to a few innovation teams- from the boardroom to the frontlines, people across the enterprise are seeing the value.

We also see clear patterns by industry. Financial services and technology firms are out in front, with many directing more than half of their tech budgets toward AI. They are rethinking risk, capital allocation, and customer engagement. Healthcare, retail, and business services are moving quickly too, focusing on automation, efficiency, and stronger customer connections. The use cases with the highest returns like intelligent search, content generation, and advanced analytics, are already changing how organizations operate day to day. And this is not just a theory we're talking about. 93% of companies have already reported early success from their pilots.

But we do have a challenge, and that is how to scale these projects. Only about a third of leaders say they feel ready to move from pilots to enterprise-wide adoption. The reasons are no surprise: the rising token costs of large models, the shortage of skilled talent, and the constant pressure around privacy and compliance. Getting started may be straightforward, but turning early wins into enterprise-wide transformation is where most organizations stumble.

Despite these hurdles, what's encouraging is the strong sense of optimism we see across organizations. AI is bringing teams together, creating room for experimentation, and building momentum that didn't exist a year ago. And even with people stretched and customer demands rising, leaders are choosing to push forward rather than slow down. You can see that urgency reflected in budgets: 90% of enterprises say they'll increase AI spending this year, with many directing anywhere from 10% to 50% of their total IT investment.

Investing Over Inventing

When it comes to execution, leaders are going with a very practical mindset on build vs. buy. 72% told us they prefer prebuilt or customizable AI solutions rather than building everything in-house. And it makes sense — speed, reliability, and the ability to plug into existing systems matter far more than squeezing out marginal cost savings. What enterprises want from vendors now is clear: trust, performance, and outcomes they can count on. AI has become mission-critical, and the conversation has shifted from how much can we save to what impact can we deliver.

But let's be honest — tools alone won't solve the problem. Many operations are still clogged with friction: too many handoffs, too many disconnected systems, and decisions that rely on someone remembering the right detail at the right time. AI can take on that invisible complexity, freeing people to focus on the work that really matters. Still, rolling out new tools isn't the same as true transformation, as the real unlock comes from talent.

This is where leaders make tough choices. Some are hiring new expertise; others are upskilling their own people. Either way, the conclusion is the same- AI skills are fast becoming a competitive edge. Prompt design, data visualization and human-AI collaboration are no longer niche capabilities. They're becoming must-haves. At the end of the day, the future of AI in the enterprise isn't just about technology. It's about giving people the confidence to work alongside intelligent systems and know they're ready for what's next.

Responsibility in the Age of AI

As adoption grows, responsibility grows with it. Two priorities keep surfacing in every conversation: data quality and security. First-party data is the most valuable input for AI, yet many organizations still struggle to govern it and put it to use effectively. In regulated sectors such as healthcare and financial services, the stakes are even higher. Compliance and trust stand on equal ground with innovation.

That brings us to security. In industries with strict oversight, the focus today is on operational excellence. Systems must be safe, explainable, and auditable. Leaders expect clear answers to basic questions: who accessed the data, why a model made a particular decision and how to reverse it if needed? These are the disciplines that turn AI from a promising idea into a dependable part of the business.

And it changes how enterprises prepare themselves. The organizations that will benefit most are those that align strategy with execution. They assign ownership for data and models. They define risk checks and review cycles. They build talent around evaluation, model governance, and human-AI collaboration. Most importantly, they foster a culture where teams can move quickly but within clear guardrails.

Many leaders are already taking this path. The real question is what you will do differently to ensure your enterprise builds AI that is both powerful and responsible.

Raj Koneru is Founder and CEO of Kore.ai

Hot Topics

The Latest

For years, production operations teams have treated alert fatigue as a quality-of-life problem: something that makes on-call rotations miserable but isn't considered a direct contributor to outages. That framing doesn't capture how these systems fail, and we now have data to show why. More importantly, it's now clear alert fatigue is a symptom of a deeper issue: production systems have outgrown the current operational approaches ...

I was on a customer call last fall when an enterprise architect said something I haven't been able to shake. Her team had just spent four months trying to swap one AI vendor for another. The original plan said three weeks. "We didn't switch vendors," she told me. "We rebuilt half our integrations and discovered what we'd actually been depending on." Most enterprise leaders don't expect that to be the experience ...

Ask any senior SRE or platform engineer what keeps them up at night, and the answer probably isn't the monitoring tool — it's the data feeding it. The proliferation of APM, observability, and AIOps platforms has created a telemetry sprawl problem that most teams manage reactively rather than architect proactively. Metrics are going to one platform. Traces routed somewhere else. Logs duplicated across multiple backends because nobody wants to be caught without them when something breaks. Every redundant stream costs money ...

80% of respondents agree that the IT role is shifting from operators to orchestrators, according to the 2026 IT Trends Report: The Human Side of Autonomous IT from SolarWinds ...

40% of organizations deploying AI will implement dedicated AI observability tools by 2028 to monitor model performance, bias and outputs, according to Gartner ...

Until AI-powered engineering tools have live visibility of how code behaves at runtime, they cannot be trusted to autonomously ensure reliable systems, according to the State of AI-Powered Engineering Report 2026 report from Lightrun. The report reveals that a major volume of manual work is required when AI-generated code is deployed: 43% of AI-generated code requires manual debugging in production, even after passing QA or staging tests. Furthermore, an average of three manual redeploy cycles are required to verify a single AI-suggested code fix in production ...

Many organizations describe AI as strategic, but they do not manage it strategically. When AI plans are disconnected from strategy, detached from organizational learning, and protected from serious assumptions testing, the problem is no longer technical immaturity; it is a failure of management discipline ... Executives too often tell organizations to "use AI" before they define what AI is supposed to change. The problem deepens in organizations where strategy isn't well articulated in the first place ...

Across the enterprise technology landscape, a quiet crisis is playing out. Organizations have run hundreds, sometimes thousands, of generative AI pilots. Leadership has celebrated the proof of concept (POCs) ... Industry experience points to a sobering reality: only 5-10% of AI POCs that progress to the pilot stage successfully reach scaled production. The remaining 90% fail because the enterprise environment around them was never ready to absorb them, not the AI models ...

Today's modern systems are not what they once were. Organizations now rely on distributed systems, event-driven workflows, hybrid and multi-cloud environments and continuous delivery pipelines. While each adds flexibility, it also introduces new, often invisible failures. Development speed is no longer the primary bottleneck of innovation. Reliability is ...

Seeing is believing, or in this case, seeing is understanding, according to New Relic's 2025 Observability Forecast for Retail and eCommerce report. Retailers who want to provide exceptional customer experiences while improving IT operations efficiency are leaning on observability ... Here are five key takeaways from the report ...