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  • IBM: How robust AI governance protects enterprise margins Ryan Daws
    To protect enterprise margins, business leaders must invest in robust AI governance to securely manage AI infrastructure. When evaluating enterprise software adoption, a recurring pattern dictates how technology matures across industries. As Rob Thomas, SVP and CCO at IBM, recently outlined, software typically graduates from a standalone product to a platform, and then from a platform to foundational infrastructure, altering the governing rules entirely. At the initial product stage, exert
     

IBM: How robust AI governance protects enterprise margins

10 April 2026 at 21:57

To protect enterprise margins, business leaders must invest in robust AI governance to securely manage AI infrastructure.

When evaluating enterprise software adoption, a recurring pattern dictates how technology matures across industries. As Rob Thomas, SVP and CCO at IBM, recently outlined, software typically graduates from a standalone product to a platform, and then from a platform to foundational infrastructure, altering the governing rules entirely.

At the initial product stage, exerting tight corporate control often feels highly advantageous. Closed development environments iterate quickly and tightly manage the end-user experience. They capture and concentrate financial value within a single corporate entity, an approach that functions adequately during early product development cycles.

However, IBM’s analysis highlights that expectations change entirely when a technology solidifies into a foundational layer. Once other institutional frameworks, external markets, and broad operational systems rely on the software, the prevailing standards adapt to a new reality. At infrastructure scale, embracing openness ceases to be an ideological stance and becomes a highly practical necessity.

AI is currently crossing this threshold within the enterprise architecture stack. Models are increasingly embedded directly into the ways organisations secure their networks, author source code, execute automated decisions, and generate commercial value. AI functions less as an experimental utility and more as core operational infrastructure.

The recent limited preview of Anthropic’s Claude Mythos model brings this reality into sharper focus for enterprise executives managing risk. Anthropic reports that this specific model can discover and exploit software vulnerabilities at a level matching few human experts.

In response to this power, Anthropic launched Project Glasswing, a gated initiative designed to place these advanced capabilities directly into the hands of network defenders first. From IBM’s perspective, this development forces technology officers to confront immediate structural vulnerabilities. If autonomous models possess the capability to write exploits and shape the overall security environment, Thomas notes that concentrating the understanding of these systems within a small number of technology vendors invites severe operational exposure.

With models achieving infrastructure status, IBM argues the primary issue is no longer exclusively what these machine learning applications can execute. The priority becomes how these systems are constructed, governed, inspected, and actively improved over extended periods.

As underlying frameworks grow in complexity and corporate importance, maintaining closed development pipelines becomes exceedingly difficult to defend. No single vendor can successfully anticipate every operational requirement, adversarial attack vector, or system failure mode.

Implementing opaque AI structures introduces heavy friction across existing network architecture. Connecting closed proprietary models with established enterprise vector databases or highly sensitive internal data lakes frequently creates massive troubleshooting bottlenecks. When anomalous outputs occur or hallucination rates spike, teams lack the internal visibility required to diagnose whether the error originated in the retrieval-augmented generation pipeline or the base model weights.

Integrating legacy on-premises architecture with highly gated cloud models also introduces severe latency into daily operations. When enterprise data governance protocols strictly prohibit sending sensitive customer information to external servers, technology teams are left attempting to strip and anonymise datasets before processing. This constant data sanitisation creates enormous operational drag. 

Furthermore, the spiralling compute costs associated with continuous API calls to locked models erode the exact profit margins these autonomous systems are supposed to enhance. The opacity prevents network engineers from accurately sizing hardware deployments, forcing companies into expensive over-provisioning agreements to maintain baseline functionality.

Why open-source AI is essential for operational resilience

Restricting access to powerful applications is an understandable human instinct that closely resembles caution. Yet, as Thomas points out, at massive infrastructure scale, security typically improves through rigorous external scrutiny rather than through strict concealment.

This represents the enduring lesson of open-source software development. Open-source code does not eliminate enterprise risk. Instead, IBM maintains it actively changes how organisations manage that risk. An open foundation allows a wider base of researchers, corporate developers, and security defenders to examine the architecture, surface underlying weaknesses, test foundational assumptions, and harden the software under real-world conditions.

Within cybersecurity operations, broad visibility is rarely the enemy of operational resilience. In fact, visibility frequently serves as a strict prerequisite for achieving that resilience. Technologies deemed highly important tend to remain safer when larger populations can challenge them, inspect their logic, and contribute to their continuous improvement.

Thomas addresses one of the oldest misconceptions regarding open-source technology: the belief that it inevitably commoditises corporate innovation. In practical application, open infrastructure typically pushes market competition higher up the technology stack. Open systems transfer financial value rather than destroying it.

As common digital foundations mature, the commercial value relocates toward complex implementation, system orchestration, continuous reliability, trust mechanics, and specific domain expertise. IBM’s position asserts that the long-term commercial winners are not those who own the base technological layer, but rather the organisations that understand how to apply it most effectively.

We have witnessed this identical pattern play out across previous generations of enterprise tooling, cloud infrastructure, and operating systems. Open foundations historically expanded developer participation, accelerated iterative improvement, and birthed entirely new, larger markets built on top of those base layers. Enterprise leaders increasingly view open-source as highly important for infrastructure modernisation and emerging AI capabilities. IBM predicts that AI is highly likely to follow this exact historical trajectory.

Looking across the broader vendor ecosystem, leading hyperscalers are adjusting their business postures to accommodate this reality. Rather than engaging in a pure arms race to build the largest proprietary black boxes, highly profitable integrators are focusing heavily on orchestration tooling that allows enterprises to swap out underlying open-source models based on specific workload demands. Highlighting its ongoing leadership in this space, IBM is a key sponsor of this year’s AI & Big Data Expo North America, where these evolving strategies for open enterprise infrastructure will be a primary focus.

This approach completely sidesteps restrictive vendor lock-in and allows companies to route less demanding internal queries to smaller and highly efficient open models, preserving expensive compute resources for complex customer-facing autonomous logic. By decoupling the application layer from the specific foundation model, technology officers can maintain operational agility and protect their bottom line.

The future of enterprise AI demands transparent governance

Another pragmatic reason for embracing open models revolves around product development influence. IBM emphasises that narrow access to underlying code naturally leads to narrow operational perspectives. In contrast, who gets to participate directly shapes what applications are eventually built. 

Providing broad access enables governments, diverse institutions, startups, and varied researchers to actively influence how the technology evolves and where it is commercially applied. This inclusive approach drives functional innovation while simultaneously building structural adaptability and necessary public legitimacy.

As Thomas argues, once autonomous AI assumes the role of core enterprise infrastructure, relying on opacity can no longer serve as the organising principle for system safety. The most reliable blueprint for secure software has paired open foundations with broad external scrutiny, active code maintenance, and serious internal governance.

As AI permanently enters its infrastructure phase, IBM contends that identical logic increasingly applies directly to the foundation models themselves. The stronger the corporate reliance on a technology, the stronger the corresponding case for demanding openness.

If these autonomous workflows are truly becoming foundational to global commerce, then transparency ceases to be a subject of casual debate. According to IBM, it is an absolute, non-negotiable design requirement for any modern enterprise architecture.

See also: Why companies like Apple are building AI agents with limits

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  • AI’s software development success and central management needs Joe Green
    A survey carried out by OutSystems, The State of AI Development 2026 [email wall], argues that AI has moved into early production phase for many enterprises, primarily inside the IT function. The survey was based on the responses of 1,879 IT leaders, and warns that adoption of AI is in danger of running ahead of governance and integration. The shortfall is a gap between what IT leaders want agents to do and what their organisations can safely control. The report’s authors urge companies to ad
     

AI’s software development success and central management needs

8 April 2026 at 18:43

A survey carried out by OutSystems, The State of AI Development 2026 [email wall], argues that AI has moved into early production phase for many enterprises, primarily inside the IT function.

The survey was based on the responses of 1,879 IT leaders, and warns that adoption of AI is in danger of running ahead of governance and integration. The shortfall is a gap between what IT leaders want agents to do and what their organisations can safely control. The report’s authors urge companies to address the controls or guardrails on AI systems, and also stress the importance of integrating new, AI technology into an organisation’s existing platforms.

OutSystems says 97% of its respondents are exploring some form of agentic strategy, with 49% of them describing their current abilities as “advanced” or “expert.” Nearly half of those surveyed say that over half of agentic AI projects have moved from pilot into production, with Indian companies most successful in implementing the technology: 50% of Indian companies say their AI projects are 51% to 75% successful.

Companies are considering where agents should be deployed first, and under what controls, but although “cost reduction or efficiency gains” is the most cited expectation for AI’s effects, only 22% found their deployments most effective in that regard. Instead, the most effective area gains in a business stemmed from equipping software developers with AI tools described as “generative AI-assisted.”

The report’s geography and sector data show that transitions to AI agentic workflows are unevenly distributed. India stands out as the market with the highest share of users considering themselves “expert”, while many organisations in Australia, Brazil, Germany, the Netherlands, the UK, and the US still identify as intermediate stage users. France and Germany are the most dubious of AI adoption, with Germany recording the highest share of leaders not using agentic AI in any form.

The sectors and functions invested in AI

Financial services and technology show the most movement from pilot to production, with many implementations in core business functions. The sector can be considered as having the most clear line of sight from automation to measurable returns in terms of income. The practical inference from the report’s findings would be for slower-moving sectors to copy the implementation workflows employed by the fintech industry: Start with narrow, high-volume workflows where performance can be measured and failures can be contained, and focus on the IT function.

According to the survey, generative AI-assisted development is now common in nine of the ten countries surveyed, alongside traditional coding, outsourced development, and SaaS customisation. It undercuts the notion that enterprises are moving into an AI-native or all-AI stack. In fact, most organisations add agents and AI-generated code on top of the processes already proven effective in their development environments.

Fragmented data no roadblock to AI progress

OutSystems finds that 48% of respondents see integration with legacy systems as the most important ability needed to expand agentic AI, and 38% say legacy systems are the main reason projects stall between pilot and production. Of the potential barriers to AI development that were offered as choices to the survey’s participants, more than 40% cited integration difficulties and legacy fragmentation the most problematic.

Organisations considering large data clean-up programmes (which many AI vendors advocate as a reason why deployments fail to reach production) may want to rethink, the report implies. The authors state agents can be built that can work well in complex data environments, as long as governance and integration are strengthened at the same time as AI implementation. Across the board, most sectors express “moderate trust” levels of agentic AI at around 50%, although responses from different business functions were not broken out in the survey results’ figures.

IT operations and software development

The financial returns are manifest mostly in IT functions themselves. The report says the most explored use cases are IT operations, at 55%, and data analysis, at 52%. Workflow automation follows at 36%, then customer experience at 33%. On realised return on investment, IT development and productivity lead by a margin, at 40%, ahead of operational efficiency at 22%. That distribution suggests that the first durable value from agentic AI is internal at developers’ desks rather than in customer-facing environments. Customer-facing deployments may still make sense, but the report indicates they require more trust in system performance, stronger controls, better orchestration, and an ability to create watertight oversight mechanisms.

Trust in and control of agents and governance

Trust in agentic AI, however, is improving. OutSystems reports that 73% of respondents express either high or moderate trust in letting agents to act autonomously, a rise of around 10% compared to a similar survey the company undertook last year. Trust in code or workflows generated by third-party AI tools is slightly lower, at 67%, a substantial increase from the prior year’s figure, when only 40% ‘mostly trusted’ generative AI to write code without human help.

Only 36% of respondents say they have a centralised approach to AI governance, while 64% say they lack such a facility, and 41% rely on rules implemented on a per-project basis. Two-thirds say building human-in-the-loop checkpoints is technically difficult because it requires orchestration that can pause agents – in effect inserting manual braking on operations that might be fully autonomous.

Many organisations appear to be deploying looser oversight models, although it is not clear if that is a result of greater trust in models or whether business functions are under pressure to deploy AI regardless of security or reliability concerns. If the trend to loosen oversight continues, the report’s authors note that agentic AI adoption may advance faster than the methods of accountability that many consider important.

Firms that want to scale agents in regulated or mission-critical settings should treat orchestration and auditability as part of the product, the survey’s findings state. When compliance checks consider a business’s operations, breadcrumb trails in the form of logfiles and defined responsibilities are considered important elements of any agentic AI rollout.

The report says 94% of leaders are concerned about “AI sprawl”, which is not defined, but could be inferred to be a lack of a centralised management platform that oversees all AI deployments in the enterprise. 39% are very or extremely concerned about the issue, and only 12% currently use a centralised platform to keep that sprawl under control.

The full survey can be accessed here.

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Want to learn more about AI and big data from industry leaders? Check out AI & Big Data Expo taking place in Amsterdam, California, and London. The comprehensive event is part of TechEx and co-located with other leading technology events. Click here for more information.

AI News is powered by TechForge Media. Explore other upcoming enterprise technology events and webinars here.

The post AI’s software development success and central management needs appeared first on AI News.

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