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VIEWPOINTARTHURLLITTLE
2026
THEAIFIRST
ORGANIZATION
HowITcanhelpreshape
theoperatingmodelforAl
AUTHORS
IntegrationofAlagentsintoenterprisesisgatheringpace,butmostinitialmovesfocusonquick-win
productivityandefficiencyimprovements,which
onlydeliverafractionofAI'struepotential.
Redesigningtheentireorganizationaloperating
modelaroundAlandhumansworkingincombination—becoming"AlFirst"—istheultimategoal.InthisViewpoint,weexplorewhat'sneededtomakethis
transformation,focusingonthekeyroleof
theITfunctioninensuringsuccess.
MichaelMajster
VolkerPfirsching
FlorenceCarlot
JoeriSamyn
Charles-AntoineBattaille
VIEWPOINT
ARTHURD.LITTLE
WHATITMEANSTOBECOMEAIFIRST
AsorganizationsstarttointegrateAlagents,theytypicallybeginbyidentifyingusecases
thatcouldquicklydeliverproductivityor
efficiencyimprovements,thenrunningsome
pilotsandscalingup.Mediaheadlinesabout
largecompaniesmakingAl-relatedheadcount
reductionsaretestamenttowhat'shappening.Butwhatthistypicallydeliversisasetofisolatedefficiencygains,basedonanoperatingmodel
thatincorporatesAlagentsbutfundamentallyremainsunchanged.Insomecases,companies
thatdownsizedstartedrehiringwhentheyfound
outthatAlagentsdidn'tdoaswellaslike-for-likehumansubstitutes.
QuickwinslikethisexploitonlyafractionofthetransformationalpotentialofAI.Organizationslookingtoreapthefullbenefitsandstayahead
ofthecompetitionneedtoshiftfromlookingatAlasjustatechenablertowardredesigningtheentireoperatingmodelaroundhowAland
humanscanbestworkincombination(seeFigure1).Thisisnotsolelyanopportunityfordigitallymatureorganizations.Alcreatesarareopportunityfordigitallaggardsaswelltoleapfrogpartsofthetraditionaldigital
transformationjourneybyredesigningpriority
processesdirectlyaroundAl-enabledwaysofworking.
EarlyAlimplementationsoftenstartwiththe"human-Alsandwich"model,inwhichAlsits
inbetweenhumanswhoframethetaskatthestartandrefinetheoutputsattheend.One
stepfurtherthanthisisthe“humanintheloop”model,inwhichAlagentshavegreaterend-
to-endtaskresponsibility,butwithhumans
actingascheckersorapprovers.Inbothcases,theworkflowsthemselvesremainbasically
unchangedfromtheprevioushuman-only
versions.Whatorganizationsneedtoreapthefullbenefits—let'ssayupto50%ratherthan10%-20%gains-istoredesignworkflows
entirelyaroundanewoperatingmodelinwhichhumansandAlagentstakeonnewrolesinan
orchestratedsystem,buildingonthestrengths
ofeach.Forexample,whenanAlagentdrafts
aresponsetoacustomerinquiry,whichistheneditedandapprovedbyahumanbeforesending,theworkflowisessentiallythesameandthe
benefitsarelimited.WhentheAlagentresolvescustomerinquiriesautonomouslywithincarefullysetguardrailsandonlyescalatestohumansin
unusualorsensitivecases,theworkflowandrolesaredifferentandthebenefitsarepotentially
muchgreater.What'smore,thiswayofworkingismoredynamicandflexibletosuitchangingworkloads.
Figure1.MovingfromindividualAlaugmentationtoanagenticoperatingmodel
AGENTICOPERATINGMODEL
Upto50%directionalgains
Source:ArthurD.Little
THEAIFIRSTORGANIZATION
VIEWPOINT
ARTHURD.LITTLE
ThisiswhatbecomingAIFirstmeans:ifAI
capabilitiesexistedfromdayone,howwould
wedesignouroperatingmodel?Beyondthis,AIFirstalsomeanscreatingentirelynewprocessesandrolesthatdidn’texistbefore,suchasagentlifecyclemanagement,AIplatformownership,
security,monitoring,escalation,andhuman
oversight.Thesecapabilitiesneedtobedesignedintotheoperatingmodelfromtheoutset.
Attheorganizationlevel,AIFirstrepresents
athirdwaveofoperatingmodelevolution
(seeFigure2)—notareplacementforproductorientationbutratheritsnextevolutionafter
theeconomicsofknowledgeworkandsoftwaredeliveryhavechanged.
Functionalandproject-basedorganizations
weredesignedaroundspecialistscarcityand
hierarchicalcoordination.Digitalandproduct-orientedmodelsaddressedslow,fragmented
digitaldeliverythroughpersistentcross-
functionalteams.AsAImakesmoreexecution
capacityavailablethroughautonomousagents,thecriticalconstraintsshifttowarddefining
intent,integratingcontext,exercisingjudgment,andassuringoutcomes.Theeffectiveunitof
productionincreasinglybecomesahybridhuman-agentsystemorganizedaroundanend-to-endoutcome.
AIFIRSTREPRESENTSATHIRDWAVEOF
OPERATINGMODELEVOLUTION
Theresultisneitherahierarchy-freeorganizationnortheendofproductownership.However,wheretheworkallows,itdoesmeanaflatternetwork
ofsmalleraccountablehumancoresthatsteer
agentsanddrawdynamicallyonsharedplatformsandspecialistexpertise.Crucially,AIislikelyto
unbundlerolesasweknowthemtoday:activitieshistoricallypackagedintonarrowjobprofilescanberedistributedbetweenhumansandagents,
thenrecombinedintobroaderhumanprofiles
spanningdomaininsight,productthinking,
technicalfluency,orchestration,andevaluation.WithAI,specialistknowledgebecomesless
valuablethanjudgment,requiringdifferentskillsetsfromhumanworkers.
Managementshiftsfromallocatingtasks
primarilytopeopletowardsettingoutcomes,
configuringautonomyandguardrails,monitoringperformance,andinterveninginexceptions.
Humanjudgmentremainsessential,especially
wheretrust,ambiguity,ormaterialriskisinvolved.
Figure2.ThreewavesofevolutiontowardtheAIFirstorganization
1
2
3
PrimaryconstraintOperatingmodel
TeamdesignRoles
CoordinationRoleofIT
FUNCTIONAL/PROJECTERADIGITAL/PRODUCTERAAI-FIRSTERA
Specialistcapacity&coordination
Slow,fragmenteddigitaldelivery
Humanjudgment,context&accountability
Functions&temporaryprojects
Persistentproductteams
Adaptiveoutcomenetworks
Largespecialistgroups&handovers
Cross-functional“two-pizza”teams
Smallhumancoreswithelasticagentcapacity
Narrow,function-definedjobs
Cross-functionalbutdistinctroleprofiles
Broaderprofilesthatcombinedomain,product,technical&orchestrationskills
Hierarchy,detailedplans&escalation
Productownership,agilerituals&platforms
Objectives,protocols,guardrails&exceptionhandling
Technologyprovider&operator
Platformenabler&productpartner
Enterpriseorchestrationlayer&ecosystemsteward
Source:ArthurD.Little
THEAIFIRSTORGANIZATION3
THEAIFIRSTORGANIZATION
VIEWPOINTARTHURD.LITTLE
ITHASACENTRAL
ROLEASARCHITECTANDSTEWARDOF
THEENTERPRISE
ORCHESTRATION
ENVIRONMENT
Atthesametime,anAlagentisnotthesame
asahumanworkerandhaslimitationsthat
needcarefulcontrol,suchasitsfundamental
relianceonprobabilisticratherthandeterministicproblem-solvingapproaches.
Theseimplicationsreachbeyondindividual
workflows.Theychangehowtheorganization
combinespeople,technology,andexternal
capabilities-andthereforehowitstructuresteams,roles,andcoordination.Suchhuman-
agentsystemscanonlyfunctionatenterprisescaleifagentscansecurelyaccesstrusted
knowledge,data,applications,andtoolsthroughshared,observable,andgovernablefoundations.ITthereforehasacentralrole:notastheownerofeveryAlsolution,butasarchitectandstewardoftheenterpriseorchestrationenvironment.
HowshouldITgoaboutadaptingtothisrole?
HOWITCANHELP
DRIVETHECHANGE
Fromproduct-basedhierarchiestoAl-enabledoutcomenetworks
Productorientationisnotnew:manylarge
enterpriseshavealreadymovedawayfrom
projectdeliverytowardpersistent,cross-
functionalproductteams.AlFirstcanbeseen
asthenextevolutionoftheproduct-oriented
model,shapedbyaneweconomiccontext
inwhichimplementationandanalysiscan
increasinglybeperformedbyagents.End-to-
endownershipandcustomerfocusremain,but
smallerhumanteamscancommandbroader
capabilitiesbyorchestratingagents,reusable
services,andspecialistsondemand.Thetarget
remainsnetwork-basedandproduct-oriented,
butthedesignassumptionschange(seeFigure3).
Persistentownership,customerfocus,and
business-ITintegrationremainessential.Wheresuitable,asmallerandbroaderhumancorecanaddressalargerscopebydrawingdynamicallyonAlagents,sharedplatforms,andhuman
specialistsratherthanembeddingonepersonforeverynarrowlydefinedrole.Theaccountableteamremainsstable,butthecapabilitiesand
executioncapacityarounditbecomemorefluid.
Figure3.TheAl-enabledproductnetworkorganization
VALUECREATION
Valuecreationtomeetstrategiccompanygoals
·Fullyintegratedproduct-orientedteamscoveringallproduct-relevantexpertise(business&IT)
·Fullend-to-endproduct&budgetresponsibility
.OverarchingIT/AIstrategy
&alignmentbetweennodes
Tech
capabilities
IT/AIGOVERNANCE
Creationofcross-productITprerequisites&standards
·IT/Algovernance
·Enterprisearchitecture
·Strategicresource/vendor/partnermanagement
IT/AIENABLEMENT
Provisionofbasicinfrastructure&ITcapabilities
·Platforms
·Knowledgemanagement
·Skillsdevelopment/trainings
authorityProduct
EXTERNALNETWORKNODES
CENTRALNODES
&SUPPLERS
Source:ArthurD.Little
VIEWPOINT
ARTHURD.LITTLE
THEAIFIRSTORGANIZATION5
ITLEADERSMUSTBESEENTOLIVEOUTAIFIRSTINTHEIROWNBEHAVIORS
TheITfunctionbecomespartofanetworkofinterconnectednodescomprisinginternal
andexternalparties,centeredonvaluecreationthroughproductsandservices.Workflowsarenotcentrallystandardizedbutratherproduct-adapted.Modulararchitecture,reusableagentcapabilities,andsharedplatformsallowteamstoaccessbroaderskillsandelasticexecution
capacity.Thenetwork-basedmodelallowsfor
amoreefficientdistributionofworkforce,be
ithumanoragenticAI,sothatenterprisescan
bemoreadaptable.Hierarchyisusedlessfor
routinecoordinationandmoreforaccountability,resourcechoices,andexceptionhandling.
TheprimaryroleofIThereisecosystem
stewardshipratherthandigitalcapability
custodianship.Insteadofprovidingtechnical
solutionstohumanemployees,ITactsas
anenablerofhuman/AIcollaborationinan
orchestratedsystem.Ithelpsthebusiness
innovatesafelywithAIthroughcommon
platforms,governance,reusablecapabilities,
andcross-functionalproductteams.Itactsasagrowthdriverandinnovationacceleratorfornewproducts,businessmodels,processes,anddigitalrevenuestreams.Anditnurtureskeydigitalskills,capabilities,andculture.
ThesefeaturesarevitalforanAIFirstorganizationforseveralreasons:
-AIsolutionsneedtobedevelopedand
refinedbytheteamsdeployingthem.
IT’sroleistoenablerapidandsafesolutions
viasecureAIplatforms,models,dataaccess,monitoring,andgovernance.
-AI-enabledprocesses,incorporating
newrolesforhumansandAIagents,
areinherentlycross-functional.
Forexample,anAI-basedmarketingprocesscouldinvolvenotjustmarketingbutalso
productdevelopment,sales,dataengineering,security,IT,andlegal.
-AIsolutionsrarelyhaveadefinedendpoint,sotheydon’tlendthemselvestotraditionalcentralizedprojectmanagementapproaches.AIagentsarecontinuouslylearning,and
human/AIcollaborativesystemsrequirecontinuousrefinementandupdating.
ThechangingroleoftheCIO
IftheroleofITshiftsfurtherawayfromonlydeliverytowardenablement,ITleadershiphastoevolvewithit.ThesuccessorotherwiseofaCIOwillnotsolelybemeasuredbyITsystemreliability,security,cost,andproject-deliveryperformance.Increasingly,
successwillalsobemeasuredbyhowwellITcansupportgrowthandchangeoforganizational
capability,alloweasyandsafeaccesstoAI-basedandothertechnologytools,andenablespeed
andagility—allwhilekeepingcostsundercontrolandexercising“smartstandardization”tolimit
unnecessaryduplicationandincompatibility.
ITleadersmustbeseentoliveoutAIFirstintheirownbehaviors.Thismeans,forexample,usingAIroutinely,activelydrivingadoptionacrosstheirteamsandbuildingpracticalunderstandingofAIintheiroperationsanditsimplicationsforcost,risk,security,anddigitalsovereignty.Leadershipbyexampleisalwaysessentialtochange
behaviorsacrossawiderorganization.
Movingfromapurelydirectivetoa“servant”
leadershipstylecanbevaluableinunderpinningtherolechange.Focusingoncreatingtheconditionsforotherstosucceedalignswellwiththeneedtobuildplatforms,removebarriers,andfacilitateinnovationandcollaboration.Ofcourse,tobeeffective,this
leadershipstyleneedstobesupportedbystronggovernance,clearaccountabilities,andadequateauthoritytomaintaincontrol.Therolesofstrategicarchitectanddigitalecosystemstewardrequire
strongleadershipqualities,notjustresponsivenesstotheneedsofothers.
THEAIFIRSTORGANIZATION
VIEWPOINTARTHURD.LITTLE
HOWTOMAKETHETRANSFORMATION
TransformingtheITfunctiontoenablethe
shifttowardanAlFirstorganizationrequires
attentiontomultiplebuildingblocksstretchingacrossenterprisearchitecture,operatingmodel,andhumandimensions(seeFigure4).
Figure4summarizesthetargetedend-stateconditionsinITtransformation.There'susuallynoshortcut—focusingon,say,theoperatingmodelandneglectingthearchitectureor
humandimensionswillfailtodeliverthedesiredoutcomes,andviceversa.
Makingthetransitiontowardthisendstaterequiresacareful,balancedapproach:
-Buildastrongcaseforchangetosecure
theCEOmandate.TheCIOcannotdeliver
anAlFirsttransformationthroughITalone.
Thestartingpointmustbeabusiness-led
ambition,sponsoredbytheCEOandexecutiveteam,whichclearlyarticulateswhychangeisrequired,wherevaluewillcomefrom,andwhat
theorganizationispreparedtoredesign.
-Don'tfocusonlyonradicaltransformation.
WhiletheshifttowardAlFirstrequiresradical
changes,focusingonthesealoneislikelytofail.ThechangeportfolioneedstoincludeLower-risk,fasterincrementalproductivitygainsandprocess-drivenimprovementsaswellasradicalrethinks.Abalanced“and-
and-and"approachhelpsensurequickwins,maintainchangemomentum,andmitigatedownsiderisks.
-Maintainambidexterityandactively
capturetheeconomics.Businessesneedtomaintainastrongfocusonexploitingtoday'sbusinesswhilebuildingtomorrow'sAlenabledorganization.Thisisessentialtobeableto
"redesigntheplaneinflight"withoutincurringexcessiveoperationalandbusinesscontinuityrisksandcosts.Alcanallowcapacityto
scalethroughsoftwareandagentsrather
thanproportionalheadcount,butmodel
consumption,compute,data,integration,
monitoring,andhumanassurancecreatea
newcostbase.Thesecostsneedtobejustifiedbybenefits,andfreedhumancapacitymust
bedeliberatelyredeployedifproductivity
gainsaretotranslateintofinancialvalue.
Figure4.TargetstateforanITorganizationtosupportAlFirst
Deratingmo
Customerimpact
"obsession"
Highdegreeofself-org&Leanhierarchy
Collaboration
accountability
&E2E
focus
Activeskill,capability&talentmanagement
Leadershipenthusiasm
embracingchange,"servant"principle
Extreme,butsmart
Fullytransparent&
activelymanaged
(strategic)ITportfolioActiveserviceLifecyclemanagement
Strictbusiness
accountabilityfordemand/productsCloud-empowered
Agileimplementedinbusiness/IT
Strictproductorientation
inprocesses/roles
Decisionmechanismsdata/
Al-driven&fullysupporting
agileproductorganization
Business-IT-fusionprinciple
Ecosystemorchestrator.
Strongvendor&technologymanagementskills
Businesslayers
(models,processes,data,UX)
Buildingblocksof"ideal"IT
organizationtosupportAlFirst
Organization&governance
Application&technology
Ecosystem&sourcing
Skills&
talent
Leadership
Processes
Culture
Services
Source:ArthurD.Little
VIEWPOINT
ARTHURD.LITTLE
THEAIFIRSTORGANIZATION7
-Workbottom-upaswellastop-down.
TransformationtoAIFirstmustbe
strategicallydriven,withacleardefinitionofambitions,targets,valuecreation,synergies,andmilestones.However,justasvitalisthatitshouldbedynamicallyinformedwithbottom-upusecases.Thisisespeciallyimportant
giventhefast-movingnatureofAItechnology.Relyingtoomuchontop-downstrategy
risksunrealisticgoalsanddelayedbenefits.Relyingtoomuchonbottom-upusecases
riskslimitedscalabilityandstrategicimpact.Aligningbothhelpsensuresuccess.
-Spendtimetounderstandbefore
redesigning.Oneofthebiggestbarriers
tochangeispoordataandintelligenceonworkflows,processes,anddecision-making,especiallythelessvisibleaspectsof“howthingsareactuallydone”asopposedto
theprescribedprocedure.ThisisespeciallyimportantwhenintegratingAIagents.Ifthecurrentwayofworkingisnotfullyvisible,itwillbedifficulttoredesignit.Thecurrent
operativesarethebestpeopletoensurethisisdoneproperly.
-Focusfirstonthebusinessareasand
domainsthatwilldeliverthemostvalue.
ThepotentialfieldofapplicationforAIishuge,
sofocusandprioritizationareimportant.
Toolssuchasheatmapscanbevaluable
foridentifyingthesweetspotswherethereisamatchbetweenAIsolutionmaturity
andpotentialvaluecreation.
-Don’tneglectthehumanside.AIintegration
clearlyisasourceofanxietyformany
employees.It’simportanttobeclearat
theoutsetthatthetransformationisnot
onlyaboutdownsizing,butalsoabout
usingexistinghumanresourcestodomore,throughchangingeveryone’srole.Leadersneedtoensurethattheyareclearaboutthesupporttheywillprovidetohelpemployeesthroughthechange,aswellasstressingthepositiveimplicationsformanyemployeesintermsofenrichingtheirjobtasks,removingdrudgery,andexpandingtheirscopeand
responsibilities.
Atthisstageofevolution,it’sfairtosaythat
few,ifany,traditionalcompaniescanbesingledoutashavingsuccessfullycompletedanAIFirsttransformation.However,Unileverisonenotableexampleofalargetraditionalcorporationthat
hasdeclareditselftobeonthetransformation
journeytowardAIFirst.IthighlightshowtheuseofAI-powereddigitaltwins,anAI-poweredglobalinnovationcenter,andanewAI-basedmarketinglifecyclearedrivingvaluecreation.Intermsof
AIFirstoperatingmodels,therearesomeusefulprinciplesemergingfromfirstmoversanddigitalnativesembarkingonsuchtransformation
(seesidebar).
VIEWPOINT
ARTHURD.LITTLE
THEAIFIRSTORGANIZATION8
Fouremergingdesignprinciplesfromfirstmovers
1.Humanaccountabilitywithagent-operatedexecution.Klarna’scustomerserviceagent
demonstratedhowagentscanexecutea
largeshareofroutineinteractions,while
itssubsequentreintroductionofgreater
humaninvolvementhighlightsthecontinuedimportanceofjudgment,servicequality,andescalation.Peopleremainaccountablefor
outcomesevenwhenagentsperformmuchoftheexecution.
2.Elasticteamsratherthansimplysmallerteams.ShopifyandDuolingoaretestingamodelinwhichteamsareexpectedtouseAIcapacitybeforeaddingconventional
resources.Astablehumancorecandrawonagents,sharedplatforms,andspecialists
ondemand,althoughtheachievabledegree
ofteamcompressiondependsonworkmodularity,verifiability,andrisk.
3.Roleunbundlingandrecombination.At
Shopify,productthinkingandAI-enabled
buildingareexpectedwellbeyondtraditionaltechnologyroles.
AtDuolingo,AI-supportedcontentand
softwareproductionpointtowardemployeesincreasinglydirecting,integrating,and
evaluatingworkthatpreviouslyrequiredseparatespecialistprofiles.
4.Flatterdecision-making,butamore
engineeredorganization.Cloudflarehas
enabledbroadAIusethroughacommon
internalengineeringstack,accesscontrols,
andsharedagentinfrastructure.This
illustrateshowdecentralizedexperimentationandexecutionrequirestrongerenterprise
foundationsforidentity,permissions,
interoperability,observability,andsecurity.
Theseexamplesshouldnotbetreatedasproventemplates.However,theyprovideearlysignalsofhowAIadvancestheproductmodel:persistentownershipremains,butteameconomics,role
boundaries,andcoordinati
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