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Enterprise software, read for what it costs and who signs for it.

AI at work

Gartner said vendors call AI agents employees for one reason. Headcount budgets are bigger.

Emily Rose McRae, Senior Director Analyst at Gartner, told diginomica on Wednesday that vendors want "access to headcount budget."

ERP LEADERS news desk · · First reported by diginomica.com · Edition no. 3

Software competes for an IT budget that is being squeezed. The employee framing moves the same purchase to a business function's labour budget, where the number is larger and a different person signs it off.

Harvard Business Review research cited by diginomica found that treating agents as people reduces staff accountability, weakens review quality and raises costs. Tina Shah Paikeday of Findem told diginomica that people quietly shift responsibility to the AI.

Rick Rider, Senior Vice President of AI Innovation at Infor, argued that each agent needs governance, risk and compliance controls written around the exact work it is allowed to do.

There is a second reason the label matters. A salary is a fixed, forecastable cost. An agent is consumption, and consumption does not respect a budget line unless something stops it.

Which budget line pays for your agents, and who signs it off?

Sources

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Companies in this story

Our file on Gartner

  1. 10 Sept

    Gartner says a third of AI job cuts will reverse. Rehiring costs more.

  2. 8 Sept

    Server prices up 125%. Lead times reaching 18 months.

All 3 Gartner stories

For your next steering committee

Questions for your own programme. They are not findings about any company in this story.

  1. 1Ask which AI tools already touch your ERP or finance data, including the ones nobody approved.
  2. 2Ask what each tool is allowed to change, and who reviews what it changed.
  3. 3Ask how the result is measured, and who decides to switch a tool off.

Issue 01 of the ERP LEADERS brief puts a timeline, the three-number review and six questions on one page. Read issue 01

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