Rethinking organizational design in the age of agentic AI

Amid rapidly growing adoption of enterprise-level AI agents, there’s a disconnect emerging between ambition and execution. 

Although 85% of organizations say they want to be agentic within the next three years, 76% say their current operations and infrastructure can’t support that change. They cite a lack of readiness across people, processes, and workflows. 

The sticky tape problem

The challenge is that many organisations are often layering AI agents onto existing operations, rather than reimagine the operating model and how work will need to be rewired, explains Prasun Shah, global CTO for workforce consulting and chief AI officer at PwC UK Consulting. “They’re embedding AI employees into what is a human operating model,” layering on AI agents to existing workplace structures when “this is like adding sticky tapes to parts of an operating model that is breaking.”

Doing so may be preventing organizations from unlocking the full value agentic AI offers, creating circumstances where disillusionment can quickly creep in. That full value lies in agents’ capacity to execute entire workflows with limited human input. They can coordinate complex tasks, make independent decisions, adjust to changing conditions, and iterate performance. 

In early proving grounds that span customer service, HR, and sales, it’s already estimated that AI agents could accelerate business processes by as much as 30% to 50% and low-value work time by 25% to 40% when deployed at scale. But with this capability comes greater complexity and the need for an enterprise-wide change.

Growing the AI vocabulary 

Enterprise agentic AI platform Ema describes this change as agentic business transformation (ABT), a term it coined last year in partnership with HFS Research, in an attempt to plug what it sees as a gap in the existing lexicon about AI agents, and to provide enterprises with a new framework with which to think about their own adoption of the technology. 

“None of the existing vocabulary captures the full scope of the change,” explains Ema CEO and founder Surojit Chatterjee. “Digital transformation was about moving from paper to software. AI transformation was about adding artificial intelligence to existing processes. Co-pilot is about AI assisting in various human tasks. But ABT is something categorically different: It’s the integration of AI agents into the fabric of the organization.” 

For Shah, the dedicated term (ABT) “helps drive the need to redesign an organization in its entirety: its operating model, its workflows, decision rights, and performance management systems.” He emphasizes that “everything that’s needed to ensure those agents are actually active participants in value creation, rather than just point tools or productivity aids.”

According to Ema, ABT encompasses three core pillars: an organization’s technology stack, its workforce, and the metrics used for success. 

AI agents as connective tissue

The first pillar of ABT is the technology stack. “Your existing tech stack was designed for human-operated, application-centric workflows,” says Chatterjee. “It needs to be reconsidered when the actor is an AI agent operating at machine speed across multiple systems simultaneously.”

 As AI agents are integrated into an organization, enterprises will need to pivot from a set of linear processes and steps, to rewiring work in a very different way, explains Shah. That’s because the value in AI agents isn’t as another layer in an existing technology stack but as a connective tissue, he explains, moving between or across layers to coordinate a high-level task or retrieve and interpret data from multiple discrete applications. AI agents can create “a true competitive differentiation for an enterprise” by making decisions based on this capacity to contextualize, he says. “That is where the next battleground will be.”

To build this connective tissue, leaders need to adapt their technology stack to surface higher quality decisions from AI agents, prioritizing access to multiple datasets and applications simultaneously to develop tacit knowledge. “Organizations that make this architectural shift become genuinely more adaptive,” says Chatterjee. “When a new business requirement emerges, you don’t wait six months for a software vendor to build a feature. You configure an AI employee using natural language and connect it to the systems it needs. The time from business to production workflow drops from months to days.”

The workforce, redesigned

As AI agents are deployed for more use cases, enterprise leaders must consider what this means for dynamics across their workforce, the second pillar of ABT.

Workforce structures today deviate little from the hierarchical model of the early days of industrialization. To maximize efficiency and scale, processes are standardized, tasks are clearly delineated between strategic business units (SBUs), and employees progress up through an organization based on their capacity to optimize output from teams below them. But with AI agents that can execute, coordinate, and optimize tasks—often without managerial coordination—the lines of that established hierarchy become blurred.

In a workforce that blends AI agents and human employees, managers will be freed up from many execution-based tasks but take on new responsibilities associated with managing hybrid teams. Managers “will need to be able to manage issues around trust, explainability, psychological safety, and even status dynamics” to navigate new tensions that could arise in a hybrid workforce, says Shah.

The impact of agentic AI on existing workforce structures goes far beyond the management layer, too. McKinsey predicts that by 2030, three-quarters of current jobs will require redesign, upskilling, or redeployment, and organizations will need to act swiftly to amend recruitment, retention, and remuneration. 

From output to outcome

Success metrics are the third and final pillar of ABT. 

As AI agents assume greater ownership of core enterprise processes, taking on collaborative roles alongside human employees, traditional workforce metrics that focus on activity or output—such as calls handled or reports filed—no longer make sense. 

“When you add AI employees into the workforce, activity metrics become meaningless or actively misleading,” says Chatterjee. “An AI employee can handle a thousand customer interactions in the time it takes a human to handle ten. If you measure success by interactions handled, you’ll conclude the AI is working brilliantly while missing whether any of those interactions actually drove customer satisfaction, retention, or revenue.” To correct this, enterprises must develop a new set of metrics that focus on outcome rather than output. That is, metrics on the broader benefits or changes achieved, rather than individual deliverables. 

For example, when one of Ema’s large enterprise customers overhauled its own metrics, switching from tool metrics like cost per query and AI accuracy, to outcomes like the percentage of contracts reviewed without human escalation, the measured ROI from agentic AI tripled within two quarters. The changes meant “this customer stopped building point solutions in high-volume, low-complexity workflows and started deploying AI employees where the outcome value was highest,” says Chatterjee.

Integrating new metrics may also require a complete reconfiguration of reward and talent management processes, as well as accountability and ownership within organizations, points out Shah. In human-AI teams, for example, although ethical and fiduciary responsibilities will likely remain with human employees, operational accountability will become significantly more diffused to reflect the systemic role of AI agents.

This change will raise new questions that senior leadership teams will need to wrestle with, Shah adds. They’ll need to consider: Who is accountable when an AI employee makes a mistake? What happens when AI and humans disagree? What guardrails should be erected to safeguard customers? 

Laying the groundwork for systems-level change

Systems-level change is gradual. These are complex lines of inquiry that experts continue to grapple with. But in kickstarting internal dialogue about the core pillars of ABT—the workforce, the technology stack, and the metrics by which success can be gauged—leaders can lay the groundwork for an enterprise better poised to embrace AI agents at a systems level and start to close the gap between their ambition and execution. 

This content was produced by Insights, the custom content arm of MIT Technology Review. It was not written by MIT Technology Review’s editorial staff. It was researched, designed, and written by human writers, editors, analysts, and illustrators. This includes the writing of surveys and collection of data for surveys. AI tools that may have been used were limited to secondary production processes that passed thorough human review.

Trump wraps up three-hour medical visit to Walter Reed and declares ‘Everything checked out PERFECTLY’

WASHINGTON — President Donald Trump had another medical exam on Tuesday, putting his health under renewed public scrutiny as he has worked to dismiss concerns over his age and stamina.

The 79-year-old president spent more than three hours at Walter Reed National Military Medical Center for what the White House described as preventive medical and dental checkups. It was Trump’s fourth publicly disclosed medical exam since he returned to office for a second term, and it comes as he tries to project strength ahead of midterm elections that will test his sway with voters.

Read the rest…

The Download: puncturing the AI jobs panic

This is today’s edition of The Download, our weekday newsletter that provides a daily dose of what’s going on in the world of technology.

A reality check on the AI jobs hysteria

Despite the growing hysteria over AI’s threat to white-collar jobs, there’s still scant evidence that the technology has had a large-scale impact on the labor market.

Analysis of US labor data shows that unemployment in occupations most exposed to AI is actually lower than in less-exposed jobs. There are also no signs that large numbers of workers are shifting from AI-threatened professions into supposedly safer manual-labor jobs.

It’s true that things aren’t great in the job market—but the question is why. Here’s what the data really says about AI and jobs.

—David Rotman

Opinion: It’s time to address the looming crisis in entry-level work

Georgios Petropoulos, an assistant professor at the USC Marshall School of Business

AI has not yet produced mass unemployment. But it may be quietly weakening the first rung of the career ladder.

A recent Stanford study found that young workers in AI-exposed occupations suffered a sharp decline in employment after the spread of generative AI. The same pattern didn’t appear in low-exposure jobs, suggesting AI is replacing junior tasks that once gave young workers their first foothold.

It’s time to rethink how we train, prepare, and support young people entering the workforce. Read this op-ed on how job seekers, businesses, and society can adapt.

The must-reads

I’ve combed the internet to find you today’s most fun/important/scary/fascinating stories about technology.

1 The Pope has called for governments to regulate AI 
In his first major teaching document, Pope Leo said AI must be “disarmed.” (BBC)
+ He warned that AI fuels war and misinformation. (CNN)
+ But could also “open up a horizon extending in all directions.” (Engadget)
+ Anthropic cofounder Chris Olah also spoke at the event. (Reuters $)

2 SpaceX has launched its biggest and most powerful rocket
The Starship V3 made its test flight debut two days after Elon Musk announced SpaceX’s IPO.(Guardian)+ SpaceX pulled off the launch, but not the landing. (Ars Technica)
+ The rocket could be key to SpaceX’s valuation. (Fortune $)
+ But rivals to the company are rising. (MIT Technology Review)

3 Huawei says it can make industry-leading chips within five years
The Chinese tech giant announced a breakthrough in chip design. (Reuters $)
+ Its progress underscores Beijing’s push to neutralize US sanctions. (NBC)
+ Chinese chip stocks rallied after the announcement. (Bloomberg $)

4 A new vaccine may protect against the Ebola strain behind the current crisis
Tests have shown promising results for the mRNA vaccine. (New Scientist)
+ Another Ebola vaccine that could be ready for trials in months. (BBC)
+ But vaccines face a new problem: their name. (MIT Technology Review)

5 A swimmer broke a world record at the ‘Steroid Olympics’
Athletes at the Enhance Games were encouraged to take dope. (Wired $)
+ Silicon Valley elites have backed the competition. (WP $)
+ Which fits right into 2026’s longevity vibes. (MIT Technology Review)

6 The EU plans to fine Google a massive antitrust penalty
For allegedly favoring its own services in search results. (CNBC)
+ It would be the largest penalty for breaching the Digital Markets Act. (Reuters $) 

7 US quantum computing subsidies may not be legal
Congressional critics say the funding has been misused. (Ars Technica)

8 AI is minting new billionaires—and workers want their share
The Samsung labor showdown reflects global concerns. (Rest of World)

9 China has launched artificial human embryos into orbit
To find out whether we can reproduce beyond Earth. (Gizmodo)

10 Jony Ives has designed Ferrari’s first fully-electric car
The legendary Apple designer has created a polarizing aesthetic. (FT $) 

Quote of the day

“Technology is never neutral, because it takes on the characteristics of those who devise, finance, regulate, and use it.” 

—Pope Leo issues a warning about AI in his first encyclical letter, entitled ‘Magnifica humanitas: On Safeguarding the Human Person in the Time of Artificial Intelligence.”

One More Thing

portrait of Monica Sanders

ALYSSA SCHUKAR


How climate vulnerability and the digital divide are linked

In Anacostia, a historic African-American section of Washington, DC, Monica Sanders is measuring Wi-Fi speeds. It’s below the FCC’s minimum to qualify as a broadband service. She then checks the temperature: 46.9 °F.

Sanders, an adjunct professor of law at Georgetown University, frequently records this combination of weak internet access and environmental conditions. Her work shows how underinvestment in infrastructure can leave underserved communities more exposed to climate risks like extreme heat and flooding.

Discover how the digital divide is shaping climate vulnerability in the US.

—Colleen Hagerty

We can still have nice things

A place for comfort, fun, and distraction to brighten up your day. (Got any ideas? Drop me a line.)

+ Here’s a joyful way to settle sibling squabbles: a mandatory dance-off.
+ Build the metropolis of your dreams in this browser-based city simulation game.
+ Watch this hypnotic tiny train move in a perfect, endless loop on a rotating turntable.
+ Take a nostalgic look at early computing history with this curated gallery of vintage punch cards.

Physiological determinants of cortical P100 responses in pattern visual evoked potentials: a scoping review

BackgroundPattern visual evoked potentials (pattern VEP) are widely used for functional assessment of the visual pathways. The P100 component represents the principal clinical parameter owing to its relative interindividual stability and diagnostic value. However, both latency and amplitude are modulated by multiple physiological and environmental factors, which complicates interpretation and the establishment of reliable reference standards. This scoping review aimed to systematically map determinants of P100 parameters in healthy individuals.Main textThe review was conducted in accordance with PRISMA-ScR and Joanna Briggs Institute methodology. Databases were searched for studies published between 2015 and 2025 that examined biological, refractive, anthropometric, metabolic, or environmental influences on pattern VEP parameters in healthy populations. Owing to methodological heterogeneity, findings were synthesized descriptively. Thirty-nine studies met the inclusion criteria. Age emerged as the most consistent determinant of P100 parameters. Latency followed a non-linear trajectory across the lifespan, with shortening during maturation, stabilization in early adulthood, and progressive prolongation after approximately 40 years of age, whereas amplitude generally declined with aging. Sex differences predominantly affected amplitude, with women typically demonstrating higher P100 or N75–P100 amplitudes in adult populations; latency differences were less consistent and often minimal in paediatric cohorts. Retinal image quality exerted a strong dose-dependent effect on P100 parameters: increasing refractive blur and higher-order aberrations were associated with progressive latency prolongation and amplitude reduction, particularly for small check sizes. Ocular dominance showed no clinically meaningful interocular asymmetry. Metabolic disturbances were associated with prolonged latency in selected populations, whereas anthropometric variables such as head size and height demonstrated weak or inconsistent associations. Among environmental factors, acute alcohol intake prolonged P100 latency, while moderate caffeine consumption had no significant effect.ConclusionAge and retinal image quality represent the primary physiological determinants of P100 latency and amplitude in healthy individuals. Most other modifiers exert modest or context-dependent effects. Consideration of these variables is essential for accurate interpretation of pattern VEP recordings and for establishing reliable local reference standards consistent with ISCEV recommendations.

Progenitor diversity during formation of the mammalian neocortex

Mammalian neocortical development follows a precise spatiotemporal sequence to generate the organized structure responsible for higher-order cognition and behavior. Increasing evidence suggests that diversification of neural stem and progenitor cells during prenatal development is a key step in the emergence of the intricate circuitry and functional architecture of the cerebral cortex. This review discusses novel findings with an emphasis on mechanisms and consequences of cell lineage variation during normal and altered brain development, including focus on neurodevelopmental disorders such as autism spectrum disorders and Down syndrome.

Autonomic imbalance and vascular injury in hypertensive chronic kidney disease: mechanisms and clinical potential of ultrasound-guided sympathetic blockade

Hypertensive Chronic Kidney Disease (CKD) constitutes a significant global health burden, characterized by a vicious cycle of hypertension and progressive renal decline. Autonomic imbalance, specifically sympathetic overactivity and parasympathetic withdrawal, is increasingly recognized as a central driver of this pathophysiology, interacting with traditional hemodynamic factors such as RAAS activation and volume overload. This review aims to elucidate the deep-seated mechanisms by which autonomic imbalance induces vascular injury and renal progression, and to evaluate the clinical potential of ultrasound-guided sympathetic blockade as a novel therapeutic strategy. We conducted a comprehensive narrative review of recent basic research and clinical evidence regarding the “Kidney-Brain-Vascular Axis” and neuromodulation therapies in the context of hypertensive CKD. The pathogenesis involves a maladaptive “Neuro-Immune-Vascular Axis.” Sympathetic overactivity not only induces hemodynamic stress but also disrupts the Th1/Th2 immune balance, accelerating vascular calcification and fibrosis. Ultrasound-guided sympathetic blockade offers a reversible, minimally invasive neuromodulation approach. Preliminary clinical evidence suggests it may lower blood pressure, improves vascular endothelial function, and potentially delays renal progression, particularly in patients with resistant hypertension, with a superior safety profile compared to renal denervation. Ultrasound-guided sympathetic blockade represents an emerging and investigational adjunct, constrained by the lack of large-scale randomized controlled trials and long-term outcome data.

Disease-associated RNA and protein signatures in iPSC-derived microglia model of Alzheimer’s disease

IntroductionMicroglia, the resident immune cells of the central nervous system, play a critical role in maintaining neural homeostasis and regulating inflammatory responses in the brain. Increasing evidence suggests that microglial dysfunction contributes to the progression of neurodegenerative diseases, including Alzheimer’s disease (AD). However, the molecular mechanisms underlying these alterations remain incompletely understood. This study aimed to characterize disease-associated molecular changes in microglia derived from induced pluripotent stem cells (iPSCs) of sporadic AD patients and healthy donors.MethodsiPSC-derived microglia from sporadic AD patients and healthy controls were analyzed using integrated multi-omics approaches, including total RNA sequencing, proteomics, and small non-coding RNA (sncRNA) sequencing. Gene Ontology (GO) analysis was performed to identify dysregulated biological pathways from transcriptomic and proteomic datasets. In addition, a modified T4 polynucleotide kinase (T4 PNK)-based sncRNA sequencing method was used to profile disease-associated sncRNAs and identify previously uncharacterized RNA species.ResultsComparative analyses revealed significant AD-associated alterations in mRNA, protein, and sncRNA expression profiles in iPSC-derived microglia. GO analysis demonstrated dysregulation of pathways related to extracellular communication, intracellular transport, cytoskeletal organization, and protein–protein interactions. Furthermore, the modified T4 PNK–sncRNA sequencing approach identified multiple disease-associated sncRNAs, including several novel and previously uncharacterized RNA species potentially linked to AD pathology.DiscussionThese findings demonstrate that iPSC-derived microglia provide a valuable model for studying molecular mechanisms associated with sporadic AD. The identified transcriptomic, proteomic, and sncRNA alterations highlight key pathways potentially involved in microglial dysfunction and neurodegeneration. In particular, the discovery of novel disease-associated sncRNAs may provide new insights into AD pathogenesis and reveal potential therapeutic targets for future investigation.

GGDA-net: geometry-guided deformable attention network for Alzheimer’s disease image classification

BackgroundConvolutional neural networks (CNNs) have achieved remarkable success in medical image analysis, including Alzheimer’s disease (AD) classification. However, conventional convolution operations rely on fixed sampling patterns, and most existing attention mechanisms primarily focus on feature responses while neglecting spatial sampling geometry, limiting their ability to capture structural variations in brain images.MethodsTo address these limitations, this paper proposes a Geometry-Guided Deformable Attention Network (GGDA-Net) for medical image classification. The proposed framework integrates Linear Deformable Convolution (LDConv) with a Geometry-Aware (GA) Attention mechanism to jointly model feature semantics and spatial geometry. Specifically, LDConv introduces adaptive spatial sampling through learnable offsets, enabling flexible modeling of geometric deformations in brain structures, while the GA attention exploits the resulting geometric cues to guide the network toward more informative anatomical regions.ResultsThe experimental results show that the accuracy rates on the two datasets reached 99.38 and 99.16% respectively, which are superior to the existing most advanced algorithms. At the same time, the model maintains a compact size and has a relatively low computational complexity. These results highlight the effectiveness of feature learning based on geometric perception in medical image analysis and Alzheimer’s disease diagnosis.