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October2026
QuantumBlack
」
AIbyMcKinsey
TheAIoperating
system:AnewwayforCEOstoruntheenterprise
AnAloperatingsystemcanbecomeanenterprise's"secondbrain,"butonlyifCEOsrethinkhowmanagementitselfevolves.
ThisarticleisacollaborativeeffortbyAsutoshPadhi,BrianElliott,DanielSwan,KimBaroudy,andVikSohoni,representingviewsfromQuantumBlack,AlbyMcKinsey.
Ataglance
-Aladoptionisoutpacingenterprisevalue:McKinsey's2026StateofAlsurveyshowsthat40percentofrespondentsatlargecompaniesreportscalingAlagents,yetonly6percentsayAlgeneratesatleast5percentofEBIT.
-AnAloperatingsystem(AIOS)canunlockanincumbent'shiddenadvantage:Itputsthecompany'saccumulateddata,expertise,andinstitutionalknowledgetoworksoleadersfromtheC-suitetothefrontlinescanmakebetterdecisionsandtakefasteraction.
-ThevalueoftheAIOSissignificant:EarlyAIOSdeploymentshaveacceleratedplanningcyclesbyuptotentimes,achievedfirstvalueinabout12weeks,andreducedtimetoROlasthesystemextendstonewdomainsby50percent.
-TheAIOSreducestraditionalmanagementconstraints,requiringshiftsinhowthebusinessis
run:AsAlreduceslong-standingconstraints,CEOsneedtomovefromcalendar-drivenreviewsand
informationflowstowardcontinuousintervention,moredistributeddecisions,andgreateremphasisonhumanjudgment
ThefutureofmanagementintheAlageisstartingtolookprettydifferent.Considerthisscenario:
Tuesday,8:00a.m.:TheCEOofaglobalinsurerreturnstotheofficeafterattendinganindustrymeeting
whereshelearnedthatregulatorsinseveralmarketsplantocapmarginsoncertainretailproducts.Herfirstmove:Askthecompany'sAlOStoassessthecompany'sexposure.Withinminutes,thesystemhasreadthedraftrules,matchedthemagainstthefirm'sproductcatalog,andreturnedananswer:About140productsinsevencountriesaresubjecttothenewregulations,androughlyathirdareatriskofbreaching.Italso
flaggedanissueitcannotresolve-eachregulatordefinesmargindifferently.TheCEOroutestheanalysistothecountrybusinessunitleaderstovalidatebyendofday
9:15a.m.:TheGermanbusinessunitheadopenstheAIOS,whichhascodifiedthedraftrules-scope,
marginformula,threshold,timing-andreconciledtheregulators'definitionofmarginwithhowthebusinessmeasuresitacrosspricing,finance,andcommissionsystems.Herunsthemarginmodelagainstliveproductdata,challengesacostallocationassumptiontheregulatorisunlikelytoaccept,andrerunsthemodelwitharevisedassumption:Nineproductsarenowinbreach.By4:00p.m.,allsevencountryanalyseshavebeenrolledupintotheCEO'sview,withtheassumptionsbehindeverynumbervisible.
Wednesday,8:00a.m.:BeforetheCEOandherbusinessunitheadsmeetbyvideo,theAIOShasalreadymodeledtheoptionsforeachbreachingproduct-reprice,redesigncoverage,restructurecommissions,orwithdraw-andestimatedtheeffectsonvolumes,distributionpartners,andcapital.Leaderstestscenariosliveandalignonaplan:protectkeydistributionpartnerships,withnowithdrawalswithoutCEOapproval.Thesystemrecordsthosedecisionsasguardrails.
TheAloperatingsystem:AnewwayforCEOstoruntheenterprise2
Thursday,8:00a.m.:Line-of-businessheadsredesignproductswithintheguardrails.Alagentsgeneratecandidatedesignsandpricesandtesteachagainstthecodifiedruleandproductgovernancepolicies;
actuariesrefinetheoptions,compliancereviewsthem,andlineheadsdecide.Agentsthendraftpartner
communicationsforhumansign-off.Aseachchangeisapproved,product-levelforecastsupdateandrollintothegroupfinancialscenario,allowingtheCFOtowatchtheplanreshapeandstress-testit-whatif
regulatorsadoptthestricterdefinition?Afterlaunch,thesystemtrackseachproductagainstthethresholdandalertslineheadsbeforeitdriftstowardbreach.Thenextregulationwillbefaster:Therules,definitions,andmodelsareallnowpartoftheenterprise'ssecondbrain.
ThisAIOSscenarioisn'tafuturisticvision;companiesarebuildingittoday.AnAIOSisamanagement
layerthatfunctionslikea“secondbrain”fortheenterprisetohelpCEOs,businessleaders,andmanagersmakebetterdecisionsandactmoreeffectivelyandquickly.Itallowsincumbentstoharnesstheirgreatestuntappedadvantage:decadesofproprietarydata,operatingexperience,anddomainexpertise.
ThecapabilityiscrucialforcompaniestoescapethemireofhighAladoptionrateswithlowreturns.
McKinsey's2026StateofAlsurveyrevealsthat40percentofrespondentsatlargecompanieshavescaledAlagents.1Yetonly6percentattributeasignificantfinancialimpact(atleast5percentofEBIT)toAl,aboutthesameastheprioryear.²ThegapsuggeststhatthechallengeisnolongersimplygettingpeopletouseAl;itischanginghowtheenterpriseitselfworks.
ThesearestillearlydaysforAIOS,buttheresultshavebeenpromising.Ourexperienceshowsthat
companiescanaccelerateplanningcyclesbyuptotentimes,achievefirstvalueinaninitialdomaininabout12weeks,andreducetimetoROlasthesystemextendstonewdomainsby50percent.Othergainsinclude40percentimprovementsinproductivity,50percentsavings,andupto90percentreductionsinwork
streamcycletimes.
ThefullpoweroftheAIOScomesfromitsabilitytoharnessAltogeneratenewgrowth,business
models,andproductivity.ButthatpotentialrequirescompaniestobothbuildanAIOSthatharnesses
theintelligenceitalreadyhasandrethinkhowtorunabusinesswhentheAIOSreducestraditional
managementconstraints.Thisisthepathwaytodevelopingacompetitivemoatthatgrows.Thesooneracompanymoves,thelargerthatmoatcanbecome.
1Thesurveydefines"argecompanies"asorganizationswithannualrevenuesofmorethan$1billionand"scaling"asscalingAlagentsinoneormorefunctions
2DanTinkoff,LievenVanderVeken,MichaelChui,andTaraBalakrishnan,"ThestateofAlin2026:OntheroadtoROI,"McKinsey,August25,2026.
TheAloperatingsystem:AnewwayforCEOstoruntheenterprise3
TheAloperatingsystem:AnewwayforCEOstoruntheenterprise4
WhatisanAIoperatingsystem?
ThinkofanAIOSasasecondbrainfortheenterprise.Itisacontinuouslyoperatinglayerthatmaintains
enterprisecontext(thatis,theknowledgethatgivesdatameaning),reasonsacrossfunctions,recommendsorexecutesdecisions,andlearnsfromoutcomes.ItconnectstheCEO,C-suite,functionalleaders,
managers,andthoseonthefrontlinesinawaythat'sneverbeenpossiblebefore(Exhibit1).
Exhibit1
AnAloperatingsystemdrivesvaluecreationfromstrategytoexecution.
TheAlorchestrationlayerenablesinformationtomoveup,down,andacrossalllevelsofanenterprise
What
Valuecreation
How
Alforgrowth,Alforproductivity,andAlforinnovation
agenticworkflowsandworkflowsforagenticAl
ReinventionwithCleansheetredesignofdomains,functions,
Valuecapture
withagents
Changemanagementandcapabilitybuildingintheagenticworld:fasterinsights,betterdecisions,andsuperiorexecution
"Secondbrain"Ontology,semanticunderstanding,Alandmachinefortheenterpriselearningmodels,agenticAl,always-onaccess
Strategiclevel
Functionallevel
Executionlevel
Alorchestrationlayer
McKinsey&Company
Peopleateachlevelseetheinformationrelevanttotheirresponsibilities,askquestions,usejudgment,makedecisions,anddelegate.Informationmovesup,down,andacrosstheenterprise.Thesystemalsolearns
andexpandsastheenterpriseusesit.Asnewbusinessdomainscomeontothesystem,theycanreuseandextendexistingcapabilities(seesidebar,"ElementsoftheAIOS").
AnAIOSconnectstheCEO,C-suite,functionalleaders,managers,and
thoseonthefrontlinesinawaythat'sneverbeenpossiblebefore.
TheAloperatingsystem:AnewwayforCEOstoruntheenterprise5
ElementsoftheAIOS
TheAloperatingsystem(AIOS)shouldbebuiltonanopenarchitecturethatkeepsthecompanyincontrolofitscoreintelligence(theenterprise's"brain")whileallowingtheunderlyingtechnologytobeswappedoutasitevolves.
Theexistingestate:
-Infrastructure:Existingcomputeinfrastructurecansupporttheinitialdeployment.Whilesoftwareasaservicecangetcompaniesstarted,thetarget-statepreferenceistouseacompany'sowncloudoron-premisesdeployment
-Storageanddata:Structuredandunstructureddataacrossexistingenterprisesystemsandplatforms,includinglegacysystems,canstaywheretheyare.Adddataproductsasneeded,andconnectthemvirtuallytothesemanticlayer.
-Largelanguagemodels(LLMs):Mostcompaniessourcemodels,includingopen-weightLLMs,from
manyproviderstoavoiddependenceonasingleone(ensuretheLLMmodelsarenotallowedtotrainonyourdata,oryoumayslowlyloseyourenterprise's"brain”andproprietaryknowledgetotheLLMs).
AIOSontop:
-Semanticlayer:ThislayerprovidesAlwithcontext-aconsistentunderstandingoftheenterprise(itsentities,relationships,definitions,policies,andbusinesslogic).Ontologiesandknowledgegraphscanmakecriticalpartsofthatcontextexplicit,persistent,andreusable.Itskeypurposeandmeasureofvalueareitsabilitytoextendthecontextwindowoftheagentssotheycanoperatelikeexperiencedemployees,dramaticallyenhancingtrustintheirinterpretation,recommendations,andactions.
-Analyticsandmodels:Deterministicmachinelearningmodelsandanalyticaltoolshaveasignificantroleincreatingvalueandextendingthecapabilitiesofagentsviatoolcalls.Productizeexistingmodelsandaddnewonesasneededtoreimaginehigh-trustworkflows.
-Agentdefinitionandorchestration:Agentsaredeclarativeorcodedandarebuilttobereused.Agentsleverageallthelayersbelowtoserveupanswerstohumansinaneasy-to-digestway.DifferentLLMmodelscanbeselectedandorchestratedaccordingtotheproblemtheyarebestequippedtosolve.Dynamicallyoptimizingacrossmodelsforperformanceandcostremainsanevolvingcapability.
-Experiencelayer:Thislayerconnectsintelligencetoactionbybringinginsights,decisions,andexecutiontopeoplewheretheyworkthroughexistingsystemsorconversationalagenticinterfaces.
TheAloperatingsystem:AnewwayforCEOstoruntheenterprise6
AnAIOSisnotanexecutivedashboard,whichreportsonwhathashappened;rather,itprovidesareal-
timeviewofwhatishappeningnowandwhatcouldhappen,offeringrecommendationsandenabling
collaborationacrosstheenterpriseinnearrealtime.Itconnectstolivesystems,andtheinterfaceoperatesasacockpitsoexecutivescanmakedecisionsandactquickly(table).
Table
Whattheenterprise's'secondbrain'enables
FromtraditionalpracticestoanAloperatingsystem
Analyticsexplainpastperformanceandinformdecisions
Intelligenceanticipatesoutcomes,surfacesoptions,andrecommendsactions
Periodicmeetingsandreviewsareinformedby
Always-onsensingofperformance,risks,and
historicalandcurrentdata
opportunitiesenablesuserstotestandinterrogate
Insightsinformdecisionsthatareexecutedthroughestablishedhumanreporting
structuresanddigitalworkflows
Insightsareimmediatelytranslatedintodecisionsandcoordinatedhumanandagentexecution
withindefinedguardrails;resultsarefedbackintothesystem
Learningiscapturedthroughreviews,
Continuouslearningfromdecisions,actions,and
experience,andperiodicmodelupdates
outcomesimprovessubsequentrecommendations
Activityandprogressaretracked
Execution,outcomes,andgeneratedvaluearetracked
Insightsanddecisionsaretailoredtoindividualfunctionsandlevels
SharedenterpriseintelligenceconnectsdecisionsfromtheCEOthroughmanagement,thefrontline,andback
NewAlsolutionsarelargelybuiltaroundtherequirementsofeachusecase
Reusablecontext,models,agents,andworkflowsmakeeachnewsolutionfasterandlesscostlytobuild
AtonelargeUSretailer,forexample,districtmanagersalreadyhadextensiveperformancedataand
dashboardsacrossmorethan7,000stores.ThenewAIOScapability,however,synthesizedallthedataintoasinglepersonalizedviewthatdiagnosedlikelycausesofperformancegaps,recommendedactions,andhelpedmanagersprioritizewhichstorestovisit.
TopstrategicprioritiesforbuildingtheAIoperatingsystem
CEOsoftenfacetwotraps.ThefirstisassumingthatAlissopowerfulthatitmakestransformationalmosteffortless.Thesecondisbelievingthatyearsoffoundationaltechnologyworkmusthappenbeforethe
companycancreatevalue.
Inourexperience,bothtrapsareavoidable.CEOscanstartwithafewhigh-valuebusinessproblemsandbuildthetechnologytheyneedastheygo.Theworkiscomplex,buttheydon'tneedalargetechnologyinvestmenttomoveahead;mostcompaniescanworkwithwhattheyhave.
Thekey,however,isthatCEOsandtheirtopteamsneedtobecloselyinvolvedindesigningandbuildingthesystemtoensureitreflectsthebusiness'sstrategicpriorities:
-Protectyouradvantages.Alldecisionsshouldbedrivenbyasimplerule:Ownthecontext;rentorreplacethetechnology.Institutionalknowledgeandexperienceneedtobeportableacrosstechnologiesso
thecompanycanprotectwhatmakesitdistinctive.Therecanbeastrongtemptationtoworkwithaparticularvendortoacceleratedeployment.Butifthatcomesatthecostoflosingcontrolovercoreassetsorbeinglockedintoasingleenvironment,thedangerscanquicklyoutweighthebenefits.
-Limitoperatingsystemsprawl.ThewholepointofanAIOSistoprovideanintegratedviewoftheentirebusiness.IfeachfunctionhasanindependentAIOSoreachusecasehasitsowntechstack,itbecomesdifficulttoprovideanintegratedview.Becausefunctionshavedifferentlevelsoftechnicalmaturityandwillprogressatdifferentrates,leadersshouldaccommodateonetothreeAloperatingsystems.
-ReimagineeveryprocesswithAl.MuchofthefirstwaveofgenerativeAlhasfocusedonimproving
existingactivities.Trueprofit-and-loss(P&L)valuerequirescompaniestoredesignworkflowsendtoend.Thekeyistobeclearaboutthedecisionsthatmatterandwhatcorrespondingdata,insights,andAlsystemsareneededtomakethem.Thehighestvalueoftencomesfromreimaginingworkflowsthatcrossorganizationalboundaries.
Onemanufacturer,forexample,reimaginedsalesandoperationsworkflowstobuildanAIOSthat
automateddemandforecastingandproductionschedulingbasedondemand,inventory,andmachinestatusdata.ItalsocreatedAl-poweredrouting,planning,andpricingcapabilitiesthatreimagined
workflowsacrossboundaries.Theopportunitywasworth$140millionto$180millionayear.
TheAloperatingsystem:AnewwayforCEOstoruntheenterprise7
TheAloperatingsystem:AnewwayforCEOstoruntheenterprise8
-Buildsoyouradvantagegrowsandcompounds.ThevalueofanAIOSincreasesasitexpands.Every
decisionandoutcomethesystemcapturessharpensitsrecommendations.Anincumbentthatstarts
nowcanbuildaleadthatalatemover,evenonerentingthesamemodels,cannoteasilyclose.
Thefoundationofthiscompoundingadvantageisreusingenterprisecontext,agents,models,data
connections,andworkflows,whichrequiresdesigningforreusefromthebeginning.Criticaldata
definitionsandrelationshipsshouldbecodifiedandgovernedtoensureconsistencywhileallowingthesystemtoabsorbnewknowledgeandrelationshipsasitbuildssemanticunderstanding.3Thisapproachhelpsagentsaccesstherelevantsliceofknowledgeforthetaskathandratherthanparsetheentire
enterprisemodel,reducingunnecessarytokenconsumption(Exhibit2).
Thiseffortdoesnotrequireamassivedataexerciseatthestart.Leavethedatawhereitisandbuildrelationshipsontopasteamssolvebusinessproblems,andimprovedataatthesourceovertimeasitcreatesvalue.
Exhibit2
Theenterpriseontologyisbuilttoreuseexistingcomponentsandextendthecapabilityeasily.
Illustrativebusinessproblemandenterpriseontologies(simplified)
Business
Business
Business
Business
problem1
problem2
problem3
problem4
●Newontologycomponentuniquetoeachbusinessproblem●Reusableenterpriseontologycomponent
Eachproductteam
createsnewcomponentsandreusesasliceof
theexistingontology
(includingnodes,edges,hints),whilekeeping
trackofitsslice.
Theenterprisedata
teamturnsnew
ontologycomponents
intoreusableproducts.
McKinsey&Company
-IncorporateAleconomicsintotheoperatingsystem.Whiletokenunitcostshavedeclinedmorethan
95percent,Alspendatmanycompanieshasincreasedmorethanthreetimes.Thechoiceofmodel,thewaytasksarestructured,howmuchreasoningisconsumed,andhowmuchhumansupportisneededallaffecttheoftencomplexneweconomicsofAI.Caseinpoint:Thecheapestintelligencedoesnot
necessarilylowercostsiflowerqualitycreatesexpensivemistakes.
AnAIOSshouldthereforeincorporateAleconomicsintoitsdecision-makingprocesssothatbusinessleadershaveatrueviewintotheP&Ltrade-offsofanydecision.Thosetrade-offswillevolveas
largelanguagemodelsevolve.
SemanticunderstandingistheAloperatingsystem'sabilitytounderstandwhatacompany'sinformationmeansinabusinesscontext.Itisbuiltfromkeysources,includingontologiesandknowledgegraphsthatexplicitlydefineandconnectconcepts;metadata,schemas,and
semanticmodelsthatdescribedataanditsstructure;businessrulesandpolicesthatestablishparametersandconstraints;anddocumentsandinstitutionalknowledgethatprovideadditionalcontext.
TheAloperatingsystem:AnewwayforCEOstoruntheenterprise9
-Buildonthetechnologyyou'vealreadypaidfor.Mostcompaniesalreadypossessplentyofusabledataandplatformstostartmakingprogress.Modernapproachescanworkwithdataacrosssystemswithoutrequiringthecompanytofirstmoveeverythingintoanewenvironment.Thepracticalapproachisto
buildenoughoftheenterprise'ssecondbraintosolvethefirsthigh-valuebusinessproblems,butdesignitsoitcanexpandeasily.
Whentheoldconstraintsfade:Rethinkinghowtomanageacompany
AstheAIOSbreaksdownoldconstraintsonmanagement,managementpracticesthemselvesneedto
change.WhiletheAlfieldissillevolvingquickly,CEOsandtheirtopteamsshouldstarttothinkthroughhowtheyandtheirteamsworkinafewkeyareas.
Managebyintervention,notbycalendar
Mostcompaniessillmanagethroughartificialcalendaring(forexample,quarterlybusinessreviews
andmonthlyperformancemeetings).Thoserhythmsemergedinpartbecausegatheringandanalyzinginformationandaligningondecisionstooktime.
InanAIOSworld,meetingsforsharinginformationandtrackingprogressbecomelessnecessarybecauseinformationiscontinuouslyavailable.CEOsshouldinsteadredesignthemanagementcalendararound
decisionpoints.Thatincludeseliminatingstandingreviewsanddefiningthehandfulofsignals,thresholds,andexceptionsthatshouldtriggerleadershipintervention.
KeyCEOquestions:
-Whattypesofdecisionstrulyneedin-personleadershipfocus?
-WhichdecisionscansafelyandreliablybedelegatedtoAlagents?
AstheAIOSbreaksdownold
constraintsonmanagement,
managementpractices
themselvesneedtochange.
Managecontinuously,notthroughcheckpoints
AnAIOScreatesanalways-onbusinessplan.Assignalscomein,leaderswillinterveneandallocateinrealtime.Analysisanddecisioncycletimescollapse.
Whenthesedynamicstakehold,thebusinesswillneedtosyncthespeedofitscontrolfunctionsand
frontlineoperationswiththatofitsAIOS.CEOswillneedtoidentifyoperationalchokepoints(forexample,last-miledeliveryandmanufacturingproductionissues)anddeterminewhichactionscanunblockthem.
KeyCEOquestions:
-Whatarethemostimportantoperationalchokepointstounblocksothatdecisionscanbeimplementedquickly?
-WhatincentivesandcontrolsareneededtoensurethatimportantdecisionsandactionshappeninsidetheAIOS(andnotinorganicshadowsystems)?
Manageforjudgment,notinformationflow
AsAlagentstakeonmoreexecution-leveltasks,thehumanedgecomesmorefromexercisingjudgmentinvarioussituations.Thatincludesframingdifficultquestions,interpretingambiguity,challenging
assumptions,innovating,andapplyingexpertisewheretheanswerisn'tobvious.
Executiveswillneedtospendlesstimegatheringandtransmittinginformationandmoretimeexercisingjudgment,communicatingintent,coachingpeople,resolvingexceptions,andimprovingperformance.
KeyCEOquestions:
-Howcanthebusinesscreateanalways-onlearningenvironment?
-HowcanthebusinessdevelopandgrowthesetofhumanskillsthatcreatesthemostvaluewithanAIOS?
Managethroughdirectconnections,notlayers
ACEOorbusinessleadercanidentifyanissueandengagedirectlywithsomeoneseverallayersdownto
addressit.TheAIOScangivepeopleclosertocustomersandoperationsamuchrichercontextfortheir
owndecisions,whichhistoricallyhappenedhigherintheorganizationbecauseinformationorexpertisewasscarce.Manylayersintheorganizationarelikelytobecomeunnecessary.
KeyCEOquestions:
-Howdoesadelayered,totallytransparentorganizationmaintainabusinessculture?
-HowdoestheAIOSsupportcoachinganddevelopmentsothatmanagerscanexpandtheirreportinglinesfromtento12peopletodaytoabout20to40?
-HowcanthebusinesscreateenoughtrustintheAIOSsothattheorganizationdoesn'tgravitatebacktore-creatinglayersofapproval?
TheAloperatingsystem:AnewwayforCEOstoruntheenterprise10
HowtwocompaniesbuilttheirAIoperatingsystems
BeforebuildingitsAloperatingsystem(AIOS),
aglobalOEMcommittedtothreekeyprinciples.
Onewastokeepitsenterpriseknowledgeportable.Italignedonopen-standardformatsforits
architectureandontologiessoits“secondbrain”wouldnotbelockedintoproprietarysystems.
Second,itsetouttoreimaginethecompanyaroundAl,notsimplytoimplementAI.Thatcommitment
wasmostvisiblewhenitreimagineditsworkflows.Teamsredesignedtheworkflows,thenbuiltdigitaltwins,ontologies,andsemanticlayerstocodify
therelevantprocesses,policies,relationships,andinstitutionalknowledge.Thatallowedagentsto
understandthebusinesscontext,enablingthemtoexecutetheirtasksaccurately.Thecompanytied
agentperformancetobusinessoutcomesasthe
measureforsuccess.Withoutthattest,itwouldhavebeenimpossibletoknowifthecontexthadbeen
fullycaptured.
Third,thecompanyfocusedonreusabilityandhightrustfromthestart.Itbuiltdataproductsasinputs,codifiedtheknowledgelayer,andproductized
deterministicAl/machinelearning(ML)modelstobroadenthekindofworkAlagentscoulddowithahighdegreeoftrust.
Considerthebill-of-materialssourcingprocess.
Traditionally,ifaproductrequiresaparticular
stainlesssteelfastener,procurementmightlookforthesamecomponentatabetterpricefromanothersupplier.Understandingtheintentofandparametersforusingstainlesssteelscrews(forexample,thermalperformance,corrosionresistance,strength,and
weight),agentscouldinsteadexploreotheroptionswiththedesigner(forexample,galvanizedsteel
orplastic)andalternativesupplierstomeetthoserequirements.
thefinaldecisions.FortheOEM,thesereimaginedandagentifiedprocessesledtosignificantbusinessimpact,includinglowercosts,betterdesigns,and
fastertimetomarket.
OneUS-basedmanufacturerfollowedasimilar
approach.ItgroundeditsAIOSeffortonthreemainfoundations.Thefirstwastoownthecrownjewels-itsdata,models,businessrules,andinstitutional
knowledge.Itdidnotwantablackboxsolutionembeddedwithinavendorplatform.
Itssecondobjectivewastobuildforflexibility.Thatdidn'tmeanstartingfromscratch.Ituseditsexistingtechnologyinvestmentsbutdesignedthesystemsomodelsandothercomponentscouldbeswapped
outorexpandedasthetechnologyevolved.
Thirdwasstandardizinghowtheyworked.A
governance"harness"-asetofintegrationsandconfigurations-wouldprovideconsistentcontrolsandguidelinesacrossusecases.
Tobegin,thecompanyfocuseditseffortson
twodomains:pricingandplanning(financeand
production).Ratherthanrelyingontheprovenbuttime-consumingmanuaefforttobuildtheontologyandsemanticunderstandingcoretotheAIOS,it
usedAltoacceleratetheprocess.
Thatmeantidentifyingkeydecisionsandthe
dataneededtomakethem,extractingrulesand
experiencefromrecords,andcodifyingbusiness
rulesandinstitutionalknowledgethathadoften
livedinspreadsheetsorinemployees'heads.The
companyconnectedabout100internalandexternaldatasources,cleanedandlinkedthem,andcreatedasemanticrepresentationofhowthebusiness
makespricingandplanningdecisions.
Agentsextractintent,informthedesignwith
supportofAl/MLmodels,andrunpartsofthe
request-for-informationprocess,whileanalytical
modelscalculatethecostandimplicationsofthe
alternatives.Humansreviewthoseoptionsandmake
TheinitialphaseoftheAIOSwasupandrunninginabout16weeks.Institutionalknowledgethatoncesatinpocketsoftheorganizationcannowbemadeavailable,consistentlyan
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