"According to research from MIT Sloan Management Review and Boston Consulting Group (BCG), agentic artificial intelligence (AI)-based applications will lead to major management headaches. This is because technology purchases have traditionally been considered either as a substitute or a complement to human workers. Technology automates or augments and so can either be considered as a tool or as a worker."
"The fact that agentic AI can act both as a tool and as a coworker breaks down traditional management logic, the authors of The emerging agentic enterprise: how leaders must navigate a new age of AI report warn. The report looks at how organisations now face an unprecedented challenge to manage a single system that demands both human resource approaches and asset management techniques."
Agentic artificial intelligence (AI)-based applications combine the characteristics of both tools and coworkers, creating a single system that requires asset management and human resource approaches simultaneously. IT needs predictable, scalable systems with clear technical specifications while finance needs investment models, measurable returns and depreciation schedules. Human resources requires performance management frameworks and supervision protocols. Existing management principles are incompatible with agentic AI's dual roles because tools scale predictably while workers adapt dynamically. Anticipated shifts in spending may allocate a higher share to technology than to people. New organizational design principles and hybrid management models are required to govern such systems.
Read at ComputerWeekly.com
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