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While it’s hard to imagine, I want you to consider for a second that no company is invulnerable, and as I wrote last week, I have serious worries about the current state of Big Tech and the path it’s currently on.

Summary.   Generative AI has demonstrated the potential to significantly outperform human CEOs in strategic decision-making by excelling in data-driven tasks like product design and market optimization. In an experiment simulating the automotive industry, AI models outpaced human participants in market share and profitability but faltered in handling unpredictable disruptions, leading to faster dismissals by virtual boards. While AI’s ability to analyze complex data sets and iterate rapidly could revolutionize corporate strategy, it lacks the intuition and foresight required to navigate black swan events. Rather than fully replacing human CEOs, AI is poised to augment leadership by enhancing data analysis and operational efficiency, leaving humans to focus on long-term vision, ethics, and adaptability in dynamic markets. The future of leadership will likely be a hybrid model where AI complements human decision-making.

AI companies are leading a transition from Software-as-a-Service to Service-as-Software, turning the table on the very essence of SaaS. In the software business, a company may sell access to its platform or tool, but customers are still responsible for using that tool to achieve the desired outcome. In the services business, responsibility for achieving the desired outcome sits with the company selling the service. Instead of QuickBooks, you offer tax services—in this case, conducted by an AI accountant. The upside of this change is huge—a $4.6 trillion opportunity, since the global services market dwarfs the software market in size. 

We believe enterprise applications are undergoing a profound change. By next year, highly capable agentic systems will emerge to create new application classes and alter the way organizations think about their backend systems, data platforms and user interfaces. The extent of the transformation, we believe, will be more impactful to the application stack than were the changes brought about by innovations seen during the modern graphical user interface, Web, cloud and mobile eras.

Agentic AI is going to hit sprawl quickly, boardrooms are being reconstituted over fears of being left behind, genAI is still mostly an experiment with fuzzy returns and old-school issues like change management still determine whether companies successfully move from pilot to production. Those are a few of the takeaways from Constellation Research’s AI Forum. Here’s a look at

Agentic AI is going to hit sprawl quickly, boardrooms are being reconstituted over fears of being left behind, genAI is still mostly an experiment with fuzzy returns and old-school issues like change management still determine whether companies successfully move from pilot to production.

Those are a few of the takeaways from Constellation Research’s AI Forum. Here’s a look at everything we learned at the AI Forum in New York.