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The news behind the software that runs companies, explained for everyone.

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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Your reading room

Companies in this story
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Our file on Gartner

  1. 4 NovFiled later

    Gartner says cheaper open AI models can do nine in ten AI agent steps. CFOs sign the contracts that price each step.

  2. 2 NovFiled later

    Gartner found AI drove staff cuts at 47% of surveyed supply chains, averaging 10.5%. Supply chain managers run the smaller teams.

  3. 25 OctFiled later

    AWS announced $1 billion for engineers who build AI inside client firms. Gartner advises clients to plan the exit before they arrive.

  4. 25 OctFiled later

    Forrester sees AI taking 20% of tech spend in 2027. Just 22% of those it polled saw AI lift EBITDA.

  5. 22 OctFiled later

    Microsoft added new controls for European cloud customers. A Gartner analyst said he "would not call this complete control."

All 13 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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