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The State of AI Job R= eplacement=
Plus: Agents Spread Out; Oracle Lives on th= e Edge ‌ ‌ ‌ ‌ ‌ ‌ ‌ ̴= 4; ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ = ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ = 204; ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌= ; ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ &= #8204; ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ R= 04; ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌= ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ &#= 8204; ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ̴= 4; ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ = ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ = 204; ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌= ; ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ &= #8204; ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ R= 04; ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌= ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ &#= 8204; ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ̴= 4; ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ = ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ = 204; ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌= ; ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ &= #8204; ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ R= 04; ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌= ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ &#= 8204; ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ̴= 4; ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ = ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌
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3D"CIO
August 11, 2= 025
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3D"Northwestern PRESENTED BY
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Happy Monday, and welcome to CIO Upside.

Today: Companies are feeling pressure on all sid= es to find some way to gain ROI from AI. Workers may be on the chopping blo= ck. Plus: How to keep your agents from getting out of your reach; and Oracl= e=E2=80=99s recent patent could cut latency in edge computing.

Let=E2=80=99s jump in.

3D"Fired
Photo via cyano66

AI might be gunning for your job = are increasing.

Faced with pressure from stakeholders and compet= itors, many companies have pushed forward with slashing positions that they= believe the tech is capable of handling. Last week, telecommunications fir= m Altice cut 1,000 employees, or 16% of its workforce, with AI creating red= undancies among some jobs as the company cut costs.

Altice=E2=80=99s decision is=20 far from singular. Major firms like= Klarna, UPS, Duolingo and Cisco have used AI to replace workers. Though th= e tech comes with its fair share of risks, companies are leveraging it to r= educe labor costs, increase productivity and garner returns on their invest= ments in the tech.

Some may be feeling the squeeze of stakeholder s= crutiny and competitive pressure, said=20 Lisa Highfield, principal director = of research and advisory services at HR research firm McLean & Co.

=E2=80=9CWhen we see headlines such as 100 jobs = laid off because of AI capabilities, competitors are bound to pay attention= to that, and they don't want to fall behind that curve,=E2=80=9D Highfield= said.

Questions remain, however, about whether AI is r= eady to become a member of the team rather than simply a tool. Highfield sa= ys it depends on the job and its specific tasks:

  • Jobs involving =E2=80=9Crepetitive, low-complexity knowledge tasks,=E2= =80=9D such as answering frequently asked questions, summarizing, entering = data and scheduling, will likely be the first to go. Assistant and clerk po= sitions, for example, may have a =E2=80=9Chigh exposure rate=E2=80=9D to AI= =2E
  • Additionally, anything with =E2=80=9Cclear rules and delineated answe= rs,=E2=80=9D such as writing templates or coding, is also ripe for automati= on.
  • Many positions may have bits and pieces of their jobs automated, but = =E2=80=9Cnot necessarily the entire job holistically,=E2=80=9D said Highfie= ld. =E2=80=9CJob security around that is really dependent on how much of yo= ur tasks are correlated to AI.=E2=80=9D

Enterprises seeking automation need to look with= in their specific industries and organizations to figure out where it=E2=80= =99s a good fit, said Highfield. =E2=80=9CWe really need to understand how = AI applies to our industry and the goals and tasks within an organization.=E2= =80=9D

Plus, many jobs themselves are in a period of ch= ange in the wake of AI. In the same way that lamplighters were replaced wit= h electricians and mathematicians no longer need to do long division by han= d, new opportunities will be revealed as others fade. =E2=80=9CIt=E2=80=99s= not just cutting jobs, it=E2=80=99s what jobs are we creating,=E2=80=9D sa= id Highfield.

However, enterprises also need to understand the= risks associated with making the leap into AI, said Highfield. Along with = potential brand and reputation damage, enterprises open themselves up to re= gulatory scrutiny and declining workforce morale. The tech itself still has= issues, too, including a propensity for data security slip-ups, hallucinat= ion and bias, especially as tasks become more complex.

Many companies may be better off= starting with upskilling and augmentation of jobs, rather than replacing t= hem with AI entirely, she said. =E2=80=9CThere=E2=80=99s a shift towards pr= oviding capabilities within the organization for our workers so that they c= an work with the technology.=E2=80=9D

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Photo via Northwestern Information Systems

You=E2=80=99ve delivered results.= But AI is redrawing org charts, and execution-only roles are disappearing.= =20 If you're not shaping the agenda, you r= isk being written out of it.

Northwestern's MS in Information Systems is for = professionals who can see the ceiling but refuse to hit it.=20 The course develops the leadership skil= ls you need to shift from tactical delivery to strategic influence in s= uch areas as:

Choose from eight specializations, including art= ificial intelligence and information security. The program is online, paced= for working professionals, and taught by industry experts.=20 Most students finish the degree while w= orking full-time, typically in two or three years.

EN= TERPRISE AI

3D"Image
Photo via Igor Omilaev

Wrangling AI agents can feel like= herding cats.

While developers are keen to test a variety of p= latforms for building AI agents, doing so can become unwieldy for IT teams,= leading to agent sprawl. The push to adopt agents has prompted some enterp= rises to jump in hastily, and amassing disparate agents can lead to a bevy = of issues, said Amr Awadallah, CEO of=20 Vectara.

=E2=80=9CBecause each one of these agents is bei= ng built in a different way, there is no single pane of glass, from a manag= ement perspective,=E2=80=9D said Awadallah.

So how does agent sprawl happen in the first pla= ce? When developers test and build agents for multiple use cases on a numbe= r of different platforms =E2=80=93 such as using OpenAI, Google, AWS or ope= n-source options =E2=80=93 these agents are then only controllable by the d= evelopers who built them:

  • If one of those developers leaves the enterprise, =E2=80=9CIt=E2=80=99= s hard to have developers inherit and maintain each other's code,=E2=80=9D = Awadallah said.
  • Moreover, it creates a situation in which IT teams are unable to gove= rn these agents, he said, as they=E2=80=99re built on different platforms w= ithout one central system for observability. If something goes wrong, he sa= id, a web of sprawled agents makes the problem that much harder to diagnose= and fix.
  • That lack of governance can create problems with agent accuracy, secu= rity and performance, he noted, as well as rack up costs.

Preventing this sprawl relies on deploying a uni= form standard from the jump, said Awadallah. Picking one standard platform = to build and deploy agents allows developers the freedom of creativity whil= e giving IT teams the ability to manage them, he said. Additionally, to avo= id being too locked in to one platform if it jacks up prices, figure out ho= w much migration to another will cost if necessary, he added.

=E2=80=9CIf you're building AI agents en masse =E2= =80=A6 then spend the time and the exercise to come up with a common standa= rd that all of your developers are building with, versus letting the develo= pers go pick whatever they want to pick,=E2=80=9D he said. =E2=80=9COtherwi= se, you=E2=80=99ll end up in a mess a year from now.=E2=80=9D

If you=E2=80=99re already experiencing agent spr= awl, now is the time to get a handle on it, Awadallah said. Pick a standard= platform for building agents going forward, and start to untangle yourself= from the =E2=80=9Clegacy=E2=80=9D ones that were built on others, he said.=

=E2=80=9CIt only gets worse over= time,=E2=80=9D he said. =E2=80=9CTry to enforce the standard right away, s= o you don't have to pay the cost of it later on.=E2=80=9D

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3D"Photo
Photo via U.S. Patent and Trademark Office

There are times when the cloud is= n=E2=80=99t within reach.

Oracle might be trying to provide a stopgap: The= company is seeking to patent a system for=20 =E2=80=9Ccloud edge device virtualizat= ion=E2=80=9D that allows cloud services to operate closer to the source= of the data, rather than data needing to be transferred back to a centrali= zed cloud platform.

=E2=80=9CCurrent centralized cloud computing env= ironments may not meet time-sensitivity requirements when streaming data du= e to the inherent latency of their wide-area network connections,=E2=80=9D = Oracle said in the filing. =E2=80=9CRemotely generated data may need to be = processed more quickly.=E2=80=9D

Upon user request, Oracle=E2=80=99s tech creates= a =E2=80=9Cvirtual edge device=E2=80=9D emulating a physical edge device t= hat may be not easily accessible. That virtual device is used to run worklo= ads on the edge, providing cloud-like functionality without needing to be n= ear a data center or server farm.

This tech is particularly useful in situations i= nvolving large amounts of edge-computing devices, devices in remote areas w= ith limited internet access, and applications where latency needs to be min= imal.

Oracle=E2=80=99s tech highlights a growing need:= As Internet-of-Things devices continue to be deployed and bolstered with A= I, data processing and movement back and forth from centralized cloud envir= onments can quickly gum up the works. Systems like Oracle=E2=80=99s could r= educe friction in edge computing environments, allowing anything from smart= home assistants to factory robots to leverage AI seamlessly.

Plus, while Oracle trails cloud = hyperscalers like Amazon, Google and Microsoft, the company=E2=80=99s cloud= offerings are gaining ground in the wake of AI demand: In its most=20 recent earnings report, the compan= y=E2=80=99s cloud earnings for the quarter totalled $11.7 billion, up 14% y= ear-over-year.
According to CRN, the company hold= s 3% of total market share in the cloud services industry. But as AI contin= ues to quickly take root in the=20 physical world, tech like this cou= ld set it apart.

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Extra Upside

* Partner

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CIO Upside is written= by Nat Rubio-Licht. You can find them on X=20 @natrubio__.

CIO Upside is a publi= cation of=20 The Daily Upside. For any question= s or comments, feel free to contact us at=20 team@ci= o.thedailyupside.com.

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