Writer’s AI harness cuts token spend nearly 40% — without sacrificing accuracy

Enterprise AI is facing an ROI paradox. While throwing more compute at the strongest foundation model works well in product experiments, the costs become unbearable when the product is deployed in production.

A new paper from researchers at Writer provides a solution that is accessible to engineering teams. The study takes a systematic look at optimizing the different components of the orchestration layer that wraps around the foundation model, aka the AI harness. 

By optimizing the harness, the researchers show dramatic reductions in tokens per task, a drop in cost-per-successful-task by up to 61%, and quality that holds steady, all without changing the underlying foundation model.

Because the harness is fully under the developer’s control and requires no model fine-tuning, engineering teams can apply these findings to build highly cost-efficient AI applications.

The ROI crisis of tokenmaxxing

The current state of AI engineering is plagued by “tokenmaxxing,” an industry trend where developers rely on massive context windows and brute-force token consumption as a substitute for good system design. 

Rather than engineering elegant workflows, developers have imported a reflex from traditional software development: generate, run, fail, stuff the error and more context back into the window, and retry. 

“Teams tokenmaxx because it’s the cheapest fix in the moment, and because it’s literally how most engineers work today,” Waseem AlShikh, CTO and co-founder of Writer, told VentureBeat. Because this approach succeeds often enough on coding tasks, it has become the default reflex for every other agentic workload. The danger is that per-token price drops mask the underlying inefficiency. 

“Your invoice is tokens-per-task times price-per-token, and most teams only watch the second number,” AlShikh said. “In agentic workloads, tokens-per-task compounds — every loop iteration re-transmits the growing context — and it compounds faster than prices fall. The price cut becomes an anesthetic. It masks the fact that the loop itself is bleeding.”

Tokenmaxxing leads to several enterprise failure modes. Teams route simple tasks to premium frontier models by default. They use the LLM as a lazy search index, stuffing the context window with raw documents instead of retrieving exact answers. Most destructively, they build unconstrained agentic loops that spiral out of control when the model encounters an error. Because output tokens cost significantly more than input tokens across all major model providers, inefficient task execution acts as a silent budget killer.

The industry has introduced several efficiency techniques to curb these costs, but they largely fall short because they treat the model in isolation: 

  • Prompt compression condenses input text to save space, but ignores how the system sequences those inputs across complex workflows. 

  • Budgeted reasoning caps the computational steps a model can take, which often degrades output quality if the workflow isn’t intelligently routed. 

  • Terse coding forces models to output minimal code to save output tokens, but does nothing to solve inefficient tool calling. 

  • Speculative decoding uses a smaller draft model to speed up a larger model’s text generation, optimizing inference speed while failing to address bloated agent architectures.

These efforts fail because they optimize the engine while ignoring the transmission. They do not look at the orchestration layer, leaving underlying architectural inefficiencies unresolved.

Unpacking the harness: the levers of efficiency

The harness is the orchestration layer that routes, formats, and turns the underlying LLM into a working system.

The core levers of harness optimization include system prompt caching, interaction history compaction, tool management, retrieval strategies, and error management. These are the most accessible intervention points for engineering teams looking to improve AI performance. 

As the Writer researchers note in the study: “If the harness is the layer that composes model calls into work, it is also the layer that sets the price of work.”

Historically, developers have treated the harness as disposable glue code designed simply to connect an API to a user interface. The study signals that the harness must now be treated as a first-class object: a primary software artifact that requires its own testing, versioning, and rigorous design. 

For enterprises, this reframes the “own-versus-rent” decision. 

“Enterprises spend months on model evaluations and then rent their orchestration off the shelf — which means they’re optimizing the smaller lever and outsourcing the bigger one,” AlShikh said. “Whoever owns the harness owns your unit economics, and an open framework tuned for demos is not tuned for your invoice.” 

Inside the experiments

To isolate the impact of the orchestration layer, the researchers ran experiments on six foundation models spanning multiple vendors and weight classes: Claude Sonnet 4.6, Gemini 3.1, Gemini Flash 3.5, Qwen 3.6, GLM 5.1, and Writer’s own model, Palmyra X6. 

Their experiments compared a frozen, conventional production agent loop against the finished Writer Agent Harness on the same 22 locked enterprise tasks, spanning capabilities like grounding and retrieval, multi-step workflows, tool use, and content generation. By holding the models and tasks constant, they could isolate the effects of the orchestration layer itself.

The optimized harness drove a significant drop in costs, cutting the blended cost per task by 41%, from 21 cents to 12 cents. This was largely achieved by slashing token consumption, with the number of tokens per task falling 38%, from 14.2k to 8.8k.

The harness is designed to delegate tasks like search to specialized sub-agents. A sub-agent receives only the tool and the specific query it needs, retrieves the exact data, and returns a capped, clean summary to the main agent — keeping the primary context window from filling up with raw search results.

Task success rates held steady even as token use fell — moving from 78% to 81%, a gain the researchers describe as directional rather than statistically significant at their sample size, meaning quality didn’t suffer even as costs dropped.

End-to-end task latency also dropped significantly, reducing the median wall-clock time by 44%, from 48 seconds to 27 seconds, due to prompt caching and the elimination of dead-end reasoning loops.

However, the researchers also found limits to multi-agent orchestration. Smaller models like Gemini Flash 3.5 and Qwen 3.6 scored well below a usable reliability threshold on sub-agent delegation tasks (0.45 and 0.42, respectively) — the capability simply isn’t dependable yet on lighter-weight models.

Sub-agent orchestration only crossed a usable reliability threshold on the two strongest models tested: Writer’s own Palmyra X6 (0.86) and Claude Sonnet 4.6 (0.85).

The developer’s playbook: actionable takeaways and tradeoffs

The findings from the study translate into a playbook for enterprise developers building agentic workflows at scale. The first step is to implement what AlShikh calls the “Two-Zone Prompt” and “Context Offloading.”

Structure for system prompt caching (The Two-Zone Prompt): Modern LLM APIs offer prompt caching, but developers must structure their payloads correctly to trigger it. Developers must separate the “stable zone” from the “volatile zone.” Place static, unchanging elements (e.g., core rules, large tool schemas, and standard operating procedures) at the top of the prompt. Dynamic elements, such as the specific user query or recent conversational task state, must be appended at the bottom. This ordering allows the harness to reuse the cached prefix across hundreds of calls. “That single separation makes prompt caching actually work and stops you from re-paying for the same instructions on every one of an agent’s thirty steps,” AlShikh said.

Manage context with Context Offloading: Avoid context stuffing, where every turn of a loop is appended into a monolithic prompt until the window maxes out. Instead, move history and intermediate artifacts out of the window into retrievable storage, and pull back only what the current step needs. If possible, delegate tasks to single-purpose sub-agents to avoid context bloat. As AlShikh points out, “the biggest line item in agent spend isn’t reasoning — it’s re-sending things the model has already seen.”

Build resilient loops and redefine KPIs: Unmanaged agent loops drain API budgets rapidly. Teams must begin tracking Completions Per Million tokens (CPM) to understand their true task costs, but the harness itself must contain physical guardrails. “The core principle is that you never ask the model to police its own spending,” AlShikh said. “The fence has to live below the model, in code, on your side of the API.” This requires three hard checks:

  • Hard per-task token budgets: The run terminates when the budget is spent, no exceptions.

  • Generation fencing: Caps on steps, tool calls, and recursion depth to stop non-converging agents. 

  • Failure-spend governance: Cap what a run can spend after its first failed validation so a failing task doesn’t become your most expensive task.

Avoid unnecessary complexity: Optimizing the orchestration layer comes with engineering overhead. If you’re in the prototyping and exploration stage, that overhead isn’t justified — iterate fast with a strong model and a light harness. Once you’re scaling to millions of requests a day, the savings from harness optimization become substantial.

However, teams must be aware of “harness leverage.” Adding structural scaffolding requires the model to hold and obey that context. If a model is too small, it will spend its limited capacity parsing the scaffolding instead of doing the task, causing accuracy to drop and tokens to rise. The rule for adding complex orchestration features is strictly mathematical: “If a feature adds more coordination tokens than it removes task tokens for that specific model, cut it,” AlShikh said. “Nothing in the harness is free.”

The future of the enterprise harness

The era of tokenmaxxing and treating context windows like bottomless buckets is coming to an end. Throwing more compute at poorly designed systems is not a viable strategy for companies that need to demonstrate a return on their AI investments. 

As foundation models evolve to absorb planning, tool selection, and multi-step reasoning natively into their weights, the role of the harness will shift from compensating for model weakness to enforcing enterprise policy.

“What never moves into the model is the ‘allowed’: budgets, permissions, data boundaries, audit trails, deterministic kill-switches,” AlShikh said. “Five years from now, the harness will be thinner but more important. There will be less scaffolding and more governance. However capable the model gets, someone external to it still has to define what it may spend, see, and touch. That layer belongs to the enterprise, and it should never be rented.”

The cleanup trap: Stop asking RAG to fix bad data

The enterprise technology ecosystem is caught in a costly cycle. Over the past two years, millions of dollars have been funneled into generative AI pilots, yet many of these initiatives stall out before ever reaching a live production environment.

When a project fails, the immediate instinct of technical leadership is often to blame the model: The context window was too restrictive, the latency was too high, or the reasoning capabilities simply were not there.

But as data engineers building the scaffolding for these systems, we often see a different reality: The model receives the blame, but the pipeline usually contains the root cause. Production gen AI rarely fails because of model limitations alone. More often, it fails because the enterprise data foundation underneath it is fundamentally unready.

This is what I call the ‘Cleanup Trap’: The false belief that an organization can pipe fragmented, inconsistent, and ungoverned legacy data into a large language model (LLM) orchestrator and simply “clean it up” or patch it at the retrieval layer.

The mirage of the retrieval layer

In a standard retrieval-augmented generation (RAG) architecture, the retrieval layer is tasked with pulling relevant business context to ground the model’s responses. Because modern frameworks make it simple to stand up a vector database and a basic embedding pipeline, leadership often assumes that the data engineering problem is solved.

It is not.

When an embedding model receives raw, unvalidated data directly from operational silos, the resulting vector space inherits the structural noise, duplicate records, and conflicting states present in the source systems.

If the core data pipeline suffers from silent degradation — schema drift, missing fields, delayed change-data-capture (CDC) synchronization — that degradation cascades directly into the vector store. An AI model cannot accurately synthesize customer intelligence if the data pipeline behind it is serving stale, contradictory profiles across disparate storage layers.

No amount of prompt engineering, semantic reranking, or vector hyperparameter tuning can compensate for a broken ingestion pipeline. If the foundation is compromised, the downstream application will hallucinate, expose unauthorized context, or fail to deliver deterministic value.

Shifting from ad-hoc patching to programmatic guardrails

To break out of the ‘Cleanup Trap,’ enterprise data teams must stop treating data quality as a post-processing step. They need to treat data readiness for AI with the same rigor they bring to traditional transaction processing.

This requires a deliberate architectural shift toward zero-trust data ingestion, structured validation frameworks, and automated anomaly detection before data ever reaches an AI orchestration layer.

1. Harden the ingestion pipeline

Data quality checks cannot exist as a nightly batch afterthought. If an enterprise AI application relies on real-time data to assist users, validation must happen inline.

Teams should implement explicit schema validation checks at the earliest ingestion point, such as the streaming ingress layer or the bronze landing layer of a medallion architecture. If an upstream operational database mutates a schema without warning, the pipeline should quarantine anomalous payloads rather than allowing corrupted metadata to pollute downstream AI contexts.

2. Use multi-tiered algorithmic validation

Static row-count validation rules are insufficient for AI readiness. True data health requires a multi-tiered approach.

This means pairing structural verification — null checks, type conformance, and schema validation — with statistical profiling to monitor for data drift. Tracking metric deviations across feature distributions helps ensure that historical context remains stable over time.

If a pipeline suddenly processes an unexpected spike in empty string variables or structurally deviant fields, automated alerts should trigger an immediate pause before vector database updates continue.

3. Decouple security and compliancemfrom the model

An LLM should never be the arbiter of data access control. Trying to enforce row-level security or personal data filtering through system prompts is a compliance risk.

Security must be managed within the data infrastructure tier. Enterprise data foundations should enforce strict access controls, tokenization of sensitive identifiers, and rigorous lineage tracing before information is indexed into vector stores or passed into an agent’s context window.

Technical alignment: A pragmatic blueprint

For technology leaders mapping their infrastructure roadmaps, AI readiness requires evaluating data pipelines against a strict operational checklist.

  • Can you trace a flawed AI response back to the exact pipeline execution, source record, and transformation step that produced it?

  • Does your data lake architecture have a programmatic mechanism to segment and quarantine corrupted or non-compliant data before it reaches production feature stores?

  • Are your operational systems and AI-facing vector databases tightly synchronized, or are your agents making automated decisions based on outdated snapshots?

These questions matter because production AI is not just a model deployment problem. It is a data reliability problem.

Building for the production era

The honeymoon phase of gen AI experimentation is ending. Enterprise leaders are demanding measurable, predictable, and secure business outcomes from their AI investments.

If an organization wants to transition from isolated, impressive-looking demos to resilient, production-grade AI systems, it must redirect its focus. Stop looking exclusively at the model tier.

The real competitive differentiator is not only the LLM an organization chooses. It is the engineering discipline, data governance, and pipeline resilience of the infrastructure built to feed it.

In the production era of AI, data engineering is no longer a backend function. It is the control plane for enterprise intelligence.

Naveen Ayalla is a senior data engineer.

Intuit scrapped its own AI agent architecture twice in four months. At VB Transform 2026, its AI VP called that the fast path

Intuit was an early pioneer in the usage of agentic AI, but its path to success has hardly been a straight line.

At VB Transform 2026, Intuit VP of AI Nhung Ho described how the company rebuilt its agent architecture twice in the span of about four months, first moving from a fleet of specialist agents to a central orchestration layer, then abandoning that layer for a skills and tools based system once the orchestrator itself started failing under its own complexity. The full second rebuild took 60 days, with a first working version in under 20.

The failure mode that forced the second rewrite was specific. Agents in the orchestrated system passed results to each other in natural language, and each handoff lost context the next agent needed to act correctly. 

“If you have 10 agents and they all are passing to each other, every time that pass happens, error compounds,” Ho said.

Why the orchestration layer broke down

Ho said the original push toward specialist agents came from a straightforward customer complaint. A fleet of capable agents is still something a customer has to manage, deciding which agent to use for which task. Intuit’s answer was a system that could take a task and route it internally, without asking the customer to pick an agent themselves.

That orchestration layer held up for about three months, which Ho described only half joking as roughly a year in the compressed timeline of agent development in 2026.

It broke for a structural reason rather than a capacity one. Passing outcomes between agents in natural language meant each downstream agent had to infer how the upstream agent reached its conclusion, and that inference degraded with each additional hop. A ten agent chain did not fail occasionally, it compounded errors by design.

That diagnosis is what sent Intuit back to a skills and tools architecture.

The 60-day rebuild, and what it took to get engineering buy-in

Rebuilding a production agent system in 60 days required more than an architectural decision. Ho said the harder problem was internal, convincing both leadership and the engineers who had built the original agents that scrapping recent work was the right call.

The pitch to leadership relied on evidence rather than argument. Ho’s team built a demo of the new architecture using real customer queries pulled from production, then showed it performing better than the existing system on the same tasks. 

“The best proof, at least my belief, is what are customers trying to do? And whatever system you build needs to address those problems,” Ho said.

Winning over engineering required a different case. Hundreds of engineers outside Ho’s core team had built the specialist agents being retired, and the ask was to take their agents apart into individual skills and tools instead. 

Ho said the motivating argument was scale. A standalone agent solved one narrow problem, while a shared skill or tool built into the new architecture could serve every customer who touched that part of the product. That shift also changed what partner teams were responsible for day to day, moving their focus from building agents to running evals, since evals became the only way to measure whether the new architecture was actually working.

Bringing a human into the loop, and feedback at a different scale

The clearest customer facing result of the rebuild is a feature that lets a live agent conversation pull in a human — though it’s currently in early testing, live to about 1% of Intuit’s customer base. “We’re going to be scaling it up in the next few weeks,” she said.

Ho said a customer can bring in an Intuit product support person mid conversation, or their own accountant, or one of Intuit’s own bookkeepers, and that person joins with the full context of what the agent has already done.

Ho drew a direct contrast with how most AI chat products handle the same situation. A general purpose assistant answering a tax question typically ends with a disclaimer to consult a professional. Intuit’s system is built to connect the customer to that professional directly, inside the same conversation.

That human handoff sits alongside a permissions model built for financial data specifically. Every action an agent takes on a customer’s financial data requires explicit permission first, though Ho said that requirement can ease over time as customers build trust in the system. Intuit keeps an audit log of everything an agent does that can be reversed if needed.

Feedback in the agentic AI era

The rebuild also changed how Intuit gathers and uses feedback, a shift Ho said is qualitatively different from what came before. 

“Feedback in the past used to be very, very sparse, and it was also very bimodal,” Ho said. “Either they loved it or they hated it, and usually it tends towards the negative.”

In a chat based system, every conversation functions as feedback, which Ho said moved the company from roughly 0.3% of customers ever giving explicit feedback to something close to 100%.

Ho said she has returned to writing code herself specifically to build models that analyze that feedback volume systematically, looking for where the system is falling short at a scale no manual review process could keep up with.

That volume comes with a tone most product teams aren’t used to hearing directly. Customers tell the agent exactly where it failed, in plain terms.

“They straight up tell you, ‘You suck. I hate this. This is not right,'” Ho said. “But they’re also willing to give the systems grace and correct it as well, and so the onus is on all of us to harvest this new piece of feedback and type of feedback, and actually improve the system.”

Brex built its AI agent policy by watching what agents actually do, not by writing rules first

OpenClaw has become one of the most widely adopted agentic frameworks, but it has yet to prove itself at enterprise scale. Agents need real credentials — API keys, OAuth tokens, service accounts — to work effectively, and Brex found that traditional guardrails couldn’t contain what those agents were doing with them.

Brex set out to overcome these limitations by building an internal platform it calls CrabTrap. The open-source HTTP/HTTPS proxy intercepts all network traffic, examines policy rules, and uses a LLM-as-a-judge to decide whether agent requests should be approved or denied. 

“What we noticed was that the network layer was an untapped enforcement point,” Brex co-founder and CEO Pedro Franceschi told VentureBeat. “Every request an agent makes is an opportunity to intercept, reason about, and make a policy decision.”

The takeaway Franceschi wants IT leaders to draw: agent governance should shift from SDK-level permissions and model guardrails toward a centralized network control plane that enforces and learns from real in-the-wild agent behavior.

How Brex targeted the transport layer

The “obvious fix” (at least initially) to the agent security gap was guardrails, and much of the early work has centered on scoped tools, per-action permissions, and human-in-the-loop approvals. But as agents evolve, each new capability means there’s another API to tune or surface to audit, Franceschi noted. 

“Any agentic system with multiple tools and access to the open internet creates an immediate tension for builders: The more capable you make an agent, the more dangerous it becomes, and the safer you make it, the less useful it is,” he said. 

Existing solutions to this tradeoff were “weak”: Fine-grained API tokens help at the margins but can still be misused and constrain functionality. Semantic guardrails (such as context, skills, or prompt steering) are easily bypassed by prompt injection, especially for agents connected to the internet.

Agents can be “defanged” when given read-only access or limited toolsets, but then they can’t do meaningful work, Franceschi said. On the other hand, granting broad write access and a large tool surface can result in hallucinations and real production consequences.

Model context protocol (MCP) gateways enforce policy at the protocol layer — but only for traffic using MCP. Meanwhile, guardrails from LLM providers are tied to a single model and can be “opaque” to customize with enterprise-specific policies. And powerful tools like Nvidia OpenShell offer more of a “per-sandbox egress control.”

“When we started, we hadn’t found a solution to deploying harnesses like OpenClaw safely,” Franceschi said. “Instead of waiting for the industry to catch up, we decided to own the problem and invent the necessary tools.”

Notably, they needed a platform that sat between every agent and every network request, and could make “nuanced decisions about what to allow,” he said. 

This made the transport layer a core architectural component and natural starting point, he said. 

By operating at this layer, CrabTrap is framework-agnostic, language-agnostic, and API-agnostic. It doesn’t require SDK wrappers or per-tool integration. Users set HTTP_PROXY and HTTPS_PROXY in the agent’s environment, and every outbound request routes through the proxy before it reaches a destination.

However, Franceschi emphasized, Brex didn’t start at the transport layer because it thought it was the only answer; rather, they believe in “security by layers.”

“The transport layer was simply an underinvested one, and we saw an opportunity to add meaningful enforcement there alongside everything else,” he said. 

The LLM-as-a-judge training loop

CrabTrap combines deterministic static rules with an LLM-as-a-judge for requests that fall outside known patterns, Franceschi explained. The judge only “fires on the long tail of unfamiliar endpoints or unusual request shapes,” which for a mature agent is typically fewer than 3% of requests.

The more pressing problem was how to know that a policy is the right one? With static rules, it’s “relatively straightforward” to reason about accuracy. But with an LLM judge, the system is nondeterministic, and users need confidence that the policy approves the right requests and blocks the rest.

“Our key insight was to bootstrap policy from observed behavior rather than write it from scratch,” Franceschi said. Beginning with real behavior and editing down based on real-world learnings turned out to be “dramatically more effective than starting from a blank page.”

Brex’s team built a policy builder (itself an agentic loop) that runs underlying agents in shadow mode, analyzes historic network traffic, samples representative calls, and drafts a natural-language policy that matches what the agent actually does. 

From there, they built an eval system that tests policy changes before they go live. CrabTrap compares historical audit entries against a draft policy and reports the exact changes to be made. Users can slice results by method, URL, original decision, and agreement status. 

All of this runs with concurrent judge calls, so replaying thousands of requests “takes minutes, not hours,” Franceschi said. Brex also developed a live feedback loop: Full audit trails are stored in PostgreSQL and queryable through the admin API and dashboard. In cases where a resource is continuously denied, the system can notify a human or an agent to propose a policy update for review. 

“That closes the loop between observed denials and policy refinement,” Franceschi said. 

Core challenges and roadblocks 

Of course, the build wasn’t without its challenges. A big one was latency: “Putting an LLM between an agent and every outbound API request sounds like it would grind things to a halt,” he said. 

However, it didn’t turn out to be as big a problem as expected. This was for two reasons: The LLM judge only activates on a small fraction of requests (the aforementioned 3%). Agents quickly settle into predictable traffic patterns; once observed, high-volume patterns become static rules. Second, by using small, fast models like Claude Haiku meant that, even when the judge did fire, added latency was “negligible.” This can be further reduced with local models and prompt caching, Franceschi said.

The harder and less obvious challenge was prompt injection, he said. The judge receives the full HTTP request and all content is user-controlled, so potentially, a crafted URL, header, or request body could manipulate the judge’s decision. 

Brex addressed this by structuring the request as a JSON object before sending it to the model, so all user-controlled content is “escaped rather than interpolated as raw text,” Franceschi said. 

Results, and where CrabTrap might evolve

Brex tracks a few factors to measure CrabTrap’s internal impact: Engagement with agents, network traffic patterns, and net promoter scores (NPS). The most meaningful result of CrabTrap has been “organizational confidence,” Franceschi said. 

Previously, the team had “real hesitation” when it came to deploying autonomous agents broadly across business operations, because the existing guardrail options didn’t provide enough assurance. 

“CrabTrap changed that calculus,” Franceschi said. They now have an enforcement layer they trust, increasing confidence around expanding agent deployment into more parts of the business and delegating more agent configuration and management to users. 

Franceschi described the policies derived from traffic as “surprisingly strong.” The team expected the policy builder to produce a “rough starting point” requiring heavy manual editing. In practice, though, pointing the platform at a few days of real traffic produced policies that matched human judgment on the “vast majority of held-out requests.”

Additionally, CrabTrap revealed how much noise agents generate. “The audit trail made this visible for the first time,” Franceschi said. They used denial logs and traffic analysis not only to tune policies, but to tighten agents themselves, remove tools, and cut out entire categories of requests that were wasting both time and tokens.

“The proxy became a discovery tool, not just an enforcement one,” he said. 

Areas for growth (and input from the open-source community)

Brex anticipates CrabTrap to continue to evolve, particularly as they have released it as open-source. “We hope the community helps shape it,” Franceschi said. 

Areas of improvement include deeper authentication functionality such as single-sign on (SSO), fine-grained role-based access control (RBAC); escalation workflows that allow agents to request additional permissions; and policy recommendations based on denial patterns.

Programmatic configuration, or developing API endpoints for “creating, forking, and applying” policies to agents, could allow the whole policy lifecycle to be automated rather than managed manually, Franceschi said. 

As for escalation, if an agent is continuously denied a given resource or endpoint, it should be able to route requests to humans or other AI agents for review and back that up with a rationale for why it needs access. 

“That turns CrabTrap from a hard enforcement boundary into something more like a managed permission system,” Franceschi said. 

Additionally, the policy was built to bootstrap from network traffic, but there is opportunity to incorporate additional signals around agent traces and resource-calling, as well as broader context on what agents are ultimately trying to accomplish. This can help produce more accurate and nuanced policies. 

Finally, there’s an “open philosophical question” about the right posture for CrabTrap: Should it be a fully transparent layer that the agent itself is unaware of, or should it operate more like a “well-intentioned manager”? (that is, the agent knows about the layer and can interact with it).

The open-source community can help shape these developments, and CrabTrap will only get better with more users, Franceschi said. Brex’s agents speak to a specific set of APIs; teams using CrabTrap with different agents, services, and policy requirements will surface “edge cases and patterns we can’t hit alone.”

“We have ambitious plans for where it could go, and we’d rather build in the open,” Franceschi said. 

What other builders can learn from CrabTrap

The response has been stronger than expected. CrabTrap has more than 700 stars on GitHub. Franceschi said Brex has also heard from OpenAI, Y Combinator CEO Garry Tan, and programmer Pete Steinberger, all expressing interest in deploying similar internal infrastructure.

The broader lesson: “Don’t let infrastructure gaps become excuses to wait,” Franceschi advised. There are “real blockers” for every enterprise looking to seriously deploy AI agents, including security concerns, lack of tooling, or unclear guardrails. 

“It’s tempting to sit on your hands until the industry catches up,” he said. “The lesson from CrabTrap is that you can own those problems directly.”

Amazon AGI director says AI agent reliability, not capability, is blocking enterprise deployment at VB Transform 2026

The enterprise AI industry has a math problem. Cisco data shows 85% of enterprises are piloting AI agents, but only 5% have shipped them to production. At VB Transform 2026 on Tuesday, Bryan Silverthorn, Director of AGI Autonomy at Amazon, explained why that gap persists — and why the answer isn’t better benchmarks.

Silverthorn, who joined Amazon through its acquisition of Adept AI and now leads multimodal agent training inside the company’s AGI lab, argued that reliability must be broken into four distinct dimensions: consistency, robustness, predictability, and safety — a framework he credits to research from Princeton.

“It unpacks different factors that I see tangled together in almost every eval I’ve ever seen,” he said.

Why AI agents pass internal evals but fail real customers in production

The framework matters because agents routinely ace internal evaluations and then collapse in the wild. Silverthorn described a customer that deployed an agent for software QA involving serial number extraction from screens. It worked flawlessly for two months — then began intermittently reading wrong numbers. The culprit: the underlying vision encoder behaved differently depending on where the serial number appeared on screen, and a software change imperceptible to humans triggered the failure.

The lesson, Silverthorn said, is about measurement, not just models. “The models have to be better. Obviously, we’re working hard on making the models better,” he said. But the deeper takeaway, he added, is that teams need to identify their dimensions of variability and match measurement rigor to the stakes of the application. VentureBeat’s own proprietary research, presented before the session, reinforces the point: half of surveyed companies shipped agents that passed internal evals but failed real customers, and enterprises overwhelmingly track uptime while ignoring accuracy — checking the pulse without checking the diagnosis. A related finding underscored how few guardrails exist: most enterprises default to the model makers’ own evaluations and little else, leaving their testing strategy, as I described it on stage, a coin flip between trusting the vendor and trusting nothing.

Inside Amazon’s ‘intern’ framework for managing autonomous AI agents

Silverthorn’s most memorable prescription was cultural, not technical. Inside Amazon’s AGI lab, researchers literally call their agents “interns” — as in, “I’ll have my intern talk to your intern.” The joke carries a serious operational philosophy. Agents, like interns, are powerful but occasionally clueless, capable of amazing work and spectacular derailment.

Managing them, he argued, requires management skills rather than software skills: asking what could go wrong, adding backups and undo capabilities, and consciously deciding what risk you can accept. “You can ask the intern, ‘Hey, what might you do wrong here? How might you mitigate your negative outcomes?'” he said. Amazon’s lab has embraced that trade-off, accepting agents occasionally running the wrong experiment in exchange for research velocity — including one agent running experiments around the clock on its own high-level research plan.

What enterprise leaders should do before deploying agents at scale

Silverthorn was candid about the limits of today’s technology. Self-improving AI remains “a loaded term,” he said — Amazon uses AI to improve its models constantly, but fully autonomous self-improvement is distant. Computer use remains a core focus of his lab, with a commercial trucking customer already using browser automation to stitch together warranty claims across fragmented systems**, though he stressed that no future agent will rely on computer use alone — it will work alongside MCP, APIs, and other tools to complete end-to-end workflows**. And LLM-as-judge techniques, while promising, are just one of several strategies for aligning agent capability with acceptable risk.

For enterprises stuck in pilot purgatory, the path forward starts with a mindset shift: stop asking whether your agent can do something impressive once, and start asking whether it can do it correctly a thousand times in a row.

In other words, the enterprises that escape the 85% ceiling won’t be the ones with the smartest agents. They’ll be the ones with the best managers.

ACRouter picks the smartest AI model per task, beating Opus-only setups by 2.6x on cost

Model routing is becoming a key component of the enterprise AI stack, dynamically sending prompts to the right AI model to optimize speed and costs. However, current frameworks mostly treat routing as a static classification problem, which severely limits their potential.

A new open-source framework called Agent-as-a-Router tackles this bottleneck, treating the router as a dynamic, memory-building agent. It uses a Context-Action-Feedback (C-A-F) loop to track model successes and failures and update the behavior of the router. 

The researchers also released ACRouter, a concrete implementation of this paradigm. In their tests, ACRouter significantly outperformed static routers and the expensive strategy of defaulting to premium models, all without requiring teams to train massive models or write endless heuristics.

For real-world applications, this framework provides the option to replace hard-coded AI infrastructure with self-optimizing systems that can adapt to changes in user behavior and foundation models used in the enterprise AI stack. 

The economics of routing and the information deficit

Single-model setups are useful for experiments but detrimental when scaling AI applications. AI engineers use model routing to map tasks to cheaper and faster open models when possible, while reserving expensive frontier models for complex reasoning. 

Currently, developers rely on two main mechanisms for this task. The first is heuristics-based routing, which relies on hard-coded manual rules. For example, a developer might write a rule dictating that if a prompt contains certain keywords, it is routed to GPT-5.5. Otherwise, it goes to a self-hosted open source model like Kimi K2.7. 

The second mechanism is static trained policies. These are machine learning classifiers trained on historical datasets that look at the prompt’s embeddings and predict the best model based on past training data.

Both approaches are static. When the researchers tested these existing mechanisms on real-world coding and agentic workflows, they found a hard ceiling on accuracy. The key finding shows that static routers suffer from a severe information deficit. Because they only evaluate the input text and never see if the model actually succeeded in executing the task, they guess blindly when faced with complex edge cases.

This results in three distinct points of failure. First, static routers suffer from a frozen information state, meaning they cannot accumulate new execution feedback during deployment. Second, they fail in out-of-distribution (OOD) generalization. They break down during day-two operations when enterprise data or user behavior shifts because their training data no longer matches reality. Finally, they are highly vulnerable to model churn. A static classifier trained on today’s models may become obsolete when a better model drops the following week.

Agent-as-a-Router: A self-evolving system

The core thesis of the Agent-as-a-Router is that a truly effective router must acquire and accumulate execution-grounded information during deployment, essentially learning on the job. 

The researchers achieved this through the C-A-F loop. When a new prompt arrives, the router examines the prompt and task metadata, such as the programming language or difficulty. It then searches its historical memory for similar tasks to see which models succeeded or failed in the past. The router uses this context to select the target model and execute the task. Finally, the system observes the real-world outcome, extracts a success or failure signal, and writes this feedback back into its memory to inform future routing decisions.

Consider an automated enterprise data analytics pipeline. The router receives a SQL generation task and sends it to an open-source model like Kimi. The model hallucinates a column name and fails to compile the SQL. The C-A-F loop observes the compiler error, registers it as feedback, and logs it. The next time a similar obscure SQL query arrives, the router checks its context and routes the task to a more advanced model like Claude Opus 4.8. 

ACRouter

The researchers developed ACRouter as the concrete instantiation of this framework. It is composed of three core components: the Orchestrator, the Verifier, and Memory. This architecture is supported by a tool layer to physically execute the C-A-F loop.

The Memory module powers the context phase. Built on a vector store, it retrieves relevant past interactions and updates the historical database with new outcomes. The Orchestrator handles the action phase. It processes the user prompt alongside the retrieved memory to select the most capable target model from the available pool. The Verifier manages the feedback phase by evaluating the chosen model’s output to generate a clear success or failure signal.

The tool layer hooks the Verifier into real-world execution environments, like a Python code interpreter, an agentic sandbox, or a database engine. The tool layer allows the system to execute the generated code or query and observe the exact outcome, providing the verifiable signal the router needs to learn.

The Orchestrator itself is lightweight. Instead of a massive, computationally heavy large language model, the researchers trained a sub-billion parameter adapter based on Qwen 3.5 (0.8B parameters), which means it can be self-hosted on a device of your choice.

ACRouter in action: Outperforming the frontier baselines

To stress-test the framework, the researchers introduced CodeRouterBench, an evaluation environment comprising roughly 10,000 tasks with verified scores across eight frontier models, including Claude Opus 4.6, GPT-5.4, Qwen3-Max, and GLM-5. The evaluation was split between in-distribution (ID) tests (covering nine single-turn coding dimensions like algorithm design and test generation) and an out-of-distribution (OOD) agentic programming testbed. The OOD tasks were qualitatively different, requiring multi-step planning, file navigation, and iterative debugging to see if the router could adapt to fundamentally new domains.

The baseline results revealed why a single-model strategy is flawed: no single model dominates every category. For example, while Claude Opus 4.6 achieved the highest average performance, it was outperformed in algorithm design by GLM-5 (an 86% relative improvement) and in test generation by Qwen3-Max (a 111% improvement), despite Opus costing roughly 12 times as much as smaller models like Kimi-K2.5. 

In the benchmarks, static routers continuously failed by sending a specific niche coding task to a model ill-equipped for that exact syntax. The static router had no way to know the code was failing to execute. In contrast, ACRouter adjusted its strategy after receiving negative feedback signal from the execution environment. 

According to the researchers’ benchmarking, ACRouter sits firmly at the Pareto frontier of cost and performance. On both the ID task streams and the complex OOD agentic tests, ACRouter achieved the lowest cumulative regret, a metric measuring sub-optimal routing decisions over time. On the in-distribution test set, ACRouter cost $13.21 across the full task run, compared to $34.02 for always defaulting to Opus — a 2.6x savings.

It dynamically matched tasks to the most capable model for that specific niche, suggesting that enterprises can achieve or exceed frontier-level accuracy across diverse workloads without paying a premium price for every query. 

Caveats, limitations, and how to get started

While the Agent-as-a-Router paradigm solves the information deficit, it is not a blanket solution for all AI workflows. 

The framework shines in verifiable tasks where the Verifier gets a clear success or failure signal from the environment, such as coding or data retrieval. It is effective for applications with distribution shifts and domains where different models excel in completely distinct niches. 

Conversely, the setup is overkill for trivial tasks where any model will suffice, or for low-volume applications that do not justify the engineering overhead. It is also unsuitable for subjective domains, such as creative writing, where a correct answer cannot be easily verified and feedback signals are impossible to standardize.

The researchers open-sourced the code on GitHub and released the orchestrator model weights on Hugging Face under the Apache 2.0 license. The router is compatible with Claude Code, Codex, and OpenCode.

DeepSeek cut prices 75%. The 100x problem remains

DeepSeek’s recent decision to drastically cut pricing on its V4-Pro model by 75% should have been unequivocally good news for enterprise AI vendors and developers. Instead, many are discovering that cheaper models don’t automatically translate into healthier margins.

The reason is simple: While inference costs plummet, agent systems are voraciously consuming tokens faster than prices are declining. For the last 2 decades, software economics was dictated by the same rule. Infra became cheaper every year whereas applications became more capable. AI was initially hypothesized to follow the same pattern. As frontier models improved and token prices dropped, many assumed inference would become a negligible operating expense.That assumption has begun crumbling exponentially. 

A chatbot usually turns one user question into one model call. An agent turns it into a chain of planning, retrieval, tool use, verification, summarization, and follow-up decisions. The user sees one answer. The vendor pays for the loop. That is the 100x problem: The same user-visible request can cost a lot  more to serve as an agentic workflow than as a chatbot or retrieval-augmented generation (RAG) response. In longer-running workflows, the multiplier is higher. Falling model prices help, but they do not fix a product architecture that turns one prompt into dozens of billable operations.

The scale of what is now at stake is clear in how model providers themselves are pricing developer relationships. OpenAI’s proposed program to give every Y Combinator startup $2 million in API credits — a number that would have funded an entire seed round in any prior tech cycle, and when the same cohort got by on a few thousand dollars of AWS credits — is less a recruiting perk than an admission of what it now costs to run an AI-native company through its first year of product. For established enterprises retrofitting agents into existing product lines, the absolute numbers are larger still.

What token amplification is

In a single-turn chatbot, one user message produces roughly one model call. Input-to-billed ratio is about 1:5.

In a multi-step agent rolled out across customer support, sales operations, finance, legal review, and engineering, that ratio routinely lands at 1:700 or higher. Every loop iteration carries forward the cumulative conversation, tool outputs, and reasoning traces. Each step appends; nothing is dropped.

A “simple” agent query like “What did our top customer ask about last week?” typically touches seven priced operations before returning an answer:

  1. User prompt (~50 tokens)

  2. System prompt and tool definitions (~3,000 tokens, repeated on every call)

  3. Retrieval (~5,000 tokens of context)

  4. Model call #1 — tool selection (8,000 in / 200 out)

  5. Tool execution (~4,000 tokens returned)

  6. Model call #2 — summarization (12,000 in / 400 out)

  7. Model call #3 — follow-up decision (12,400 in / 100 out)

One sentence in, roughly 35,000 input tokens billed. Somewhere between $0.10 and $0.40 per query on a frontier model. Multiply that by a million queries a month — the table-stakes volume for any enterprise B2B feature — and the line item is six figures.

Why this breaks the existing AI business model

The dominant pricing story for enterprise AI has been seat-based SaaS: Pay per-user per-month, deliver agent capability, capture margin. That model assumes a reasonably bounded cost-per-user.

Token amplification breaks the assumption. A power user running 50 agent invocations a day on a $40/seat plan can cost more in inference than the plan charges. Token amplification shatters the traditional SaaS pricing model. When a power user’s daily agent activity costs more in inference than their monthly subscription fee, vendor gross margins turn negative, a paradox that compounds as customers deepen their agent adoption, the very usage curve vendors are selling to their boards. Several vendors are now privately reporting negative gross margins on heavy users, mirroring recent cloud expenditure reports from the Bessemer ‘Supernova’ cohort, where the correlation between AI-agent adoption and gross margin contraction has moved from a theoretical risk to a primary P&L headwind.

The visible symptoms have started leaking into public coverage. Bloomberg this week documented a widening gap between Salesforce’s Agentforce marketing demos and the capabilities actually shipping to customers. This is the kind of gap that opens predictably when promised functionality is technically possible but uneconomical to serve at the price the seat plan implies. Salesforce is the most-watched case, not a unique one.

“For my team, the cost of compute is far beyond the costs of the employees.” — Bryan Catanzaro, VP of Applied Deep Learning, Nvidia

The strategic implication is not “AI is expensive.” It is that the dominant business model assumed by most AI-native company plans does not survive contact with agentic workloads.

A simple example

Consider an enterprise software vendor charging $40 per-user per-month for an AI-enabled support assistant. A traditional chatbot might cost only a few cents per user per day in inference, leaving healthy gross margins.

Now replace that chatbot with a fully agentic workflow capable of investigating tickets, querying internal systems, drafting responses, validating outputs, and escalating exceptions. If a heavy user executes 50 to 100 agent requests per day, inference consumption can increase by an order of magnitude. What was once a negligible infrastructure cost becomes a material operating expense.

This creates an unusual dynamic: The customers receiving the most value from the product are often the customers generating the highest inference costs. In extreme cases, vendors can find themselves with their most engaged users contributing the least profit. The result is a growing realization across enterprise software that agent adoption and margin expansion are no longer automatically aligned.

Agent orchestration is the new moat

The technical responses are known and converging. They are not novel, but they are critical for survival

  • Cost-aware routing: This technique involves a small classifier model that decides which tier (Haiku, Sonnet, Opus equivalents) handles each query. Well-tuned routers cut inference bills by around 60% without any degradation in quality

  • Prompt caching: Anthropic, OpenAI, and Google now offer 75 to 90% discounts on cached prefixes. 

  • Context discipline: You can truncate tool outputs, prune reasoning traces, and cap tool depth to prevent your agent from going down a rabbit hole

  • Speculative decoding: for self-hosted deployments, this technique guarantees 2 to 3X effective throughput on the same GPUs.

“Organizations using orchestration-led governance report stronger productivity gains — a holistic orchestration layer is associated with six times greater productivity impact than compliance‑only approaches” — IBM

The companies building this layer well are starting to look less like microservice operators and more like financial trading systems: Every routing decision priced, every path with its own P&L, every tenant on a metered budget.

What enterprise leaders should actually do

Four moves separate the companies that will still have margin in 24 months from the ones that won’t:

  1. Make inference cost a first-class metric. Track it per-feature, per-tenant, per-query class the same way cloud cost was tracked starting in the mid-2010s.

  2. Budget like a media buyer. Set cost-per-thousand-queries ceilings per feature. Cap them. Alert on overruns. Engineering will not enforce this on its own.

  3. Treat the router as core infrastructure, not an optimization. It is the new load balancer.

  4. Audit prompts quarterly. A 4,000-token system prompt that grew organically over six months is a six-figure bill in slow motion. Most teams have never read their own production prompts end to end.

  5. Negotiate volume commits early. Frontier-model vendors now offer reserved-instance-style prepaid commits at substantial discounts. List price is the worst price any enterprise will ever pay.

The next 24 months

The structural shift underneath agentic AI is not that it is expensive. As DeepSeek’s price cut today underscores, frontier inference unit costs are dropping roughly 3X per year, and the curve is not slowing.

The shift is that amplification is outrunning the price cuts. Cutting per-token costs 75% does not help a company whose agents are doing 700X more tokens per user query than its pricing model assumed. For the first time since the cloud era began, architecture decisions are again financial decisions in real time. A prompt redesign is a margin event. A poorly bound agent loop is an outage with a credit card attached.

The companies that survive the next 24 months of AI infrastructure pricing will not be the ones running the cheapest model. They will be the ones whose agents are smart and know what they cost to think.

That is the 100X problem. And it is arriving faster than the price cuts can hide it.

Maitreyi Chatterjee is a senior software engineer at a big tech company.

Devansh Agarwal works as an ML engineer at a leading tech company.

OpenAI introduces ChatGPT Work, a cloud-based AI agent that manages tasks across email, Slack and calendars

OpenAI on Thursday launched ChatGPT Work, a new AI agent embedded inside its flagship chatbot that aims to transform ChatGPT from a question-and-answer tool into an autonomous work platform capable of executing complex, multi-step tasks across users’ email, calendars, code repositories, and messaging apps.

The product is powered by OpenAI’s latest flagship model, GPT-5.6, and is designed to go far beyond generating text. ChatGPT Work can gather context from connected apps, files, and workflows to produce finished documents, spreadsheets, presentations, reports, and websites. The agent takes a stated outcome, breaks it into smaller steps, and stays with complex projects for hours, completing them independently.

The launch marks OpenAI’s clearest attempt yet to reposition ChatGPT as a workplace platform rather than a chatbot — and it arrives at a moment of extraordinary financial significance for the company. Last month, OpenAI confidentially submitted a draft S-1 registration statement to the SEC, initiating what could become one of the largest technology IPOs in history, with reported valuations clustering between $730 billion and $852 billion and annualized revenue that has blown past $25 billion.

In a short demonstration and conversation with VentureBeat on Friday, Ty Geri, a product manager at OpenAI who helped build ChatGPT Work, said the product’s mission is to democratize the kind of agentic AI capabilities that OpenAI’s internal engineering tool, Codex, has already demonstrated. “What’s really exciting is we’ve seen how much Codex has been able to push the frontier of what we can get done with these AI tools, as opposed to just getting information or answers or guidance,” Geri said. “Our internal adoption of Codex is literally an exponential curve across every single product function and every single use case.”

Why OpenAI built a persistent virtual machine that works from the beach

The core architectural bet behind ChatGPT Work is a persistent cloud-based virtual machine that runs on OpenAI’s servers, always available to the user regardless of which device they happen to be on. That marks a deliberate departure from competitors whose agents require a local machine to remain powered on and connected.

“What’s really exciting about ChatGPT Work is that it’s a virtual machine in the cloud that’s always on for you, and this is available across all of our paid tiers,” Geri said. “All Plus users are getting this. I think that’s a very unique aspect of this.”

The mobile-first aspect of the launch is something Geri described as “missing from the market.” He pointed to the ability to create a website on a phone and share it with collaborators as a particularly novel capability. “Sites are new in general to Codex. They launched in Codex about a week and a half ago, but now we’re launching also in web and mobile. You can create a site on your phone at the beach and share it with your friends,” he said.

ChatGPT Work will roll out beginning with Pro, Enterprise, and Edu users, and will expand to Plus and Business users over the next few days. In the interview, Geri emphasized that the availability of the product to Plus subscribers — not just premium tiers — is central to OpenAI’s strategy. “It’s accessible to all paid plans, including Plus users, which in my opinion is a really big feat, and really part of that OpenAI mission, which is about bringing all this power to as many people,” he said.

How MCP plugins connect ChatGPT Work to Slack, Gmail, and GitHub

The product relies on MCP-based plugins to connect to external services like Gmail, Google Calendar, Slack, and GitHub. When asked whether the plugin architecture is based on the Model Context Protocol standard, Geri confirmed: “These are all based on MCP.” He added that connecting multiple Gmail accounts — a frequent user request — “is definitely on the roadmap.”

The experience is designed to be action-oriented from the first interaction. ChatGPT Work offers a personalized onboarding flow that surfaces different suggested use cases depending on the user’s role. Geri demonstrated how the system, detecting his role as a product manager, immediately suggested tasks like evaluating AI systems, building research artifacts, and managing his calendar. “You can start with a simple task like catch me up on Slack or Teams or read today’s calendar,” Geri said. He described a scenario where the system reviewed his calendar, identified scheduling conflicts, flagged meetings requiring preparation, and then — on his instruction — declined, accepted, or rescheduled events directly.

Users can also customize the agent by teaching it their writing style, organizing outputs into projects, and — in a lighter touch — choosing a virtual pet that accompanies them in the interface. The interface also introduces a hosted website feature that allows users to build and share interactive sites directly through ChatGPT Work, turning what would typically be a static slide deck into a dynamic, collaborative artifact. “Now we suddenly have a collaborative interface that’s actually more exciting and more accessible than a slide deck, which has all these formatting restrictions,” Geri said.

Scheduling 10 bug bashes at once: what agentic productivity looks like in practice

Geri’s own usage of ChatGPT Work illustrates the breadth of tasks the system can handle. In the run-up to the product’s launch, he needed to organize pre-release testing sessions — known internally as “bug bashes” — across dozens of features and team members.

“I just come to ChatGPT Work and say, ‘Set up a bug bash for all the distinct features in ChatGPT Work. Add all the people that worked on that feature,’ and it can check Slack, it can check GitHub, it can check Docs, and find a time that works for the four highest contributors to that feature,” Geri said. “It went and scheduled 10 bug bashes, all coordinated across all those different people. That would have taken me 30 minutes at least.”

But Geri pushed back against the characterization that ChatGPT Work is limited to rote administrative work. He described using it for analytically complex tasks like identifying the biggest causes of user churn for specific product features and generating product solutions — work he said would previously have taken months. “Things that we would have spent three months doing, we can now spend a week doing — and do much more, and make a much better product,” Geri said. “Bugs that we would have found three or four weeks from now, we can now find within two days and fix for our users.”

He also described handing off the tedium of product testing itself. “It used to be that even though like the most interesting part of my job is like what to test, I would actually end up having to spend most of my job doing the testing, which is like me taking a mouse and like clicking on the same thing over and over again, like five times,” Geri said. “Instead, now I can define what do we want to test, and ChatGPT Work or Codex can actually go test it for me, deliver me that bug report, and then we can work on fixing that bug.”

What OpenAI says about data privacy when AI reads your Slack and email

When pressed on data privacy concerns — given that ChatGPT Work pulls sensitive information from workplace tools like Slack, Google Drive, and email — Geri said privacy “is incredibly important, and the most important part of this is it’s always in the user’s control.”

He pointed to OpenAI’s existing enterprise security infrastructure, noting that “enterprise accounts have ZDR, and users can always opt out of letting their conversations help improve future models, which many users do.” The comment aligns with assurances OpenAI made when it first launched ChatGPT Enterprise in August 2023, when the company wrote in a blog post that it does “not train on your business data or conversations.”

The privacy question carries additional weight now because of the sheer volume of sensitive workplace data ChatGPT Work is designed to access. Unlike a chatbot session where a user voluntarily pastes text into a prompt, ChatGPT Work actively reaches into connected systems — reading Slack messages, scanning calendar invitations, pulling GitHub commit histories — to assemble context for its tasks. That represents a fundamentally different data surface area than anything OpenAI has offered before, and one that enterprise security teams will scrutinize carefully before granting access.

ChatGPT Work enters a three-way arms race with Anthropic and Microsoft

ChatGPT Work lands squarely in the middle of what has become the defining competitive battlefield in enterprise AI: the race to build autonomous workplace agents that can go beyond generating text and actually execute tasks.

The product arrives months after Anthropic took Claude Cowork out of preview and into general availability in April, bringing its AI agent to web and mobile platforms aimed at helping enterprise users monitor and manage long-running AI-driven tasks from anywhere. Meanwhile, Microsoft made Copilot Cowork generally available worldwide on June 16, built in partnership with Anthropic to move beyond chat and into execution. The three products — ChatGPT Work, Claude Cowork, and Microsoft Copilot Cowork — now compete directly for the attention of enterprise IT departments and individual knowledge workers alike.

The convergence is striking. All three products share a remarkably similar vision: a persistent AI agent running in the cloud that can break complex tasks into steps, connect to workplace tools via plugins, and produce finished outputs rather than just conversational replies. All three work across desktop, web, and mobile.

What distinguishes OpenAI’s approach is its raw consumer distribution advantage. ChatGPT has reached 900 million weekly active users, and OpenAI now has 50 million paying subscribers. More than 9 million paying business users rely on ChatGPT for work, and 92% of Fortune 500 companies now use ChatGPT. By making ChatGPT Work available to Plus subscribers at $20 a month — not just Enterprise or Pro customers — OpenAI is betting that broad accessibility will drive adoption faster than any competitor can match.

OpenAI’s product manager says AI is a partner, not a replacement — with a caveat

When asked about the potential impact on the labor market, Geri was careful with his framing. He declined to speak broadly about workforce disruption but offered his personal experience as a product manager whose day-to-day work has been substantially reshaped by the tool.

“My job is not to schedule bug bashes and find out who contributed to a specific feature. That’s a task I do in my job, but that’s not my job,” Geri said. “My job is to make an amazing product.” He described ChatGPT Work as “a partner” and “an extension of me, certainly not a replacement,” adding: “Everybody feels far more productive than before, but is also almost working harder than before, because you get to work on all the things you want to work on as opposed to the drudgery around it.”

But Geri was also careful not to minimize the sophistication of the work the agent can handle. “I also don’t want to say that it’s only doing mundane tasks because, like something like hill climbing retention curves on a given feature is not mundane. It’s actually really hard to do,” he said. The distinction matters. If ChatGPT Work were merely automating calendar invitations and expense reports, it would be a convenience tool. The fact that Geri describes it compressing three months of analytical product work into a single week suggests something with far greater implications for how teams are structured and staffed.

An IPO-bound company needs ChatGPT Work to prove enterprise AI can generate revenue

The timing of ChatGPT Work’s launch is impossible to separate from OpenAI’s IPO trajectory. The company needs to demonstrate that it can convert its massive consumer user base into durable enterprise revenue — a narrative that becomes significantly more compelling with a product explicitly designed around professional workflows.

OpenAI said it is generating $2 billion in revenue per month, growing four times faster than Alphabet and Meta did at comparable stages, with enterprise now making up more than 40% of revenue and on track to reach parity with consumer by the end of 2026. But OpenAI remains heavily loss-making, and the company does not expect to reach profitability until around 2030, with internal projections suggesting losses of $14 billion in 2026 alone.

The competitive dynamics are unprecedented. Anthropic filed for its own IPO on June 1 at a $965 billion valuation, setting up simultaneous public listings from the two most prominent AI startups in history. Whether both can sustain their lofty valuations under the scrutiny of public market investors will depend in large part on whether products like ChatGPT Work and Claude Cowork deliver measurable productivity gains to paying enterprise customers.

The launch also caps a product trajectory that began with ChatGPT Enterprise in August 2023, accelerated through the release of OpenAI’s Operator agent in January 2025, and continued through Operator’s deprecation and shutdown on August 31, 2025, when its capabilities were folded into the ChatGPT agent framework. ChatGPT Work is the consolidation of those efforts into a single, unified product — one that pairs GPT-5.6’s three model variants (Sol for power, Luna for speed, and Terra for balanced everyday use) with a persistent cloud environment and an expanding library of MCP plugins.

The future of work may already be running in the cloud

When asked whether ChatGPT Work signals a shift toward a new kind of operating system — one where users interact with their computers primarily through an AI agent rather than through traditional mouse-and-keyboard interfaces — Geri stopped short of making sweeping predictions. But he hinted at the direction OpenAI sees ahead.

“Anybody who has worked with Codex or now ChatGPT Work will realize how exciting it is to interact with your environment and your computer via the agent,” he said. “Especially in the desktop app, where the model has access to your entire machine and can interact with websites on your behalf — it’s really able to be an extension of you and a real partner, and that certainly feels like the future.”

At the end of the interview, Geri circled back to something personal. “I’ve never enjoyed work as much as I have in the last month using ChatGPT Work and Codex,” he said — a striking admission from a product manager who, until recently, spent a meaningful share of his days clicking through the same interface five times in a row just to see if it would break. OpenAI is now asking 900 million users to believe that feeling scales. For a company weeks away from one of the largest public offerings in history, the answer to that question is worth roughly $850 billion.

Wall Street is debating the AI buildout. Enterprises just answered: 86% say their GPUs run at half capacity or less

Enterprise companies are running AI agents ahead of the controls needed to manage them — and they deployed that way knowingly. That is the central finding from VentureBeat Research’s June survey of 573 technical leaders at companies with 100 or more employees, fielded across five parallel surveys of the agentic stack. 

Enterprises are now retrofitting to catch up with their own standards, and they are budgeting for it: Roughly six in 10 enterprises plan to switch or add vendors in each of five control layers within the next 12 months, and roughly a third — depending on the layer — plan to move within the quarter, the research finds.

There are five main layers where enterprises are building: identity for agents (which agent is allowed to do what, under whose credentials); evaluation of agent output (whether the work is any good); cost telemetry (what each agent costs to run); the context layer (the business data and definitions agents draw on to answer); and the orchestration control plane (the software that coordinates multi-step agent work).

Enterprises are already paying the price for deploying agents ahead of adequate control functions. Fifty-four percent of companies had an agent security incident or near-miss caught before harm in the past 12 months. Twenty-seven percent exercise only reactive control of agent spend — they learn what an agent costs when the invoice arrives, with no per-agent budget or ceiling in place.

Here are the five findings that anchor the set — one finding per layer of the tech stack — and what the data suggests doing first in each.

Expensive hardware is idle: 86% of GPU operators report utilization of 50% or less

Eighty-six percent of enterprises that run their own GPUs report utilization of 50% or less. Wall Street has spent the quarter debating whether the AI buildout is overbuilt. This is buy-side measurement, from the enterprises doing the buying, and the research says the most expensive hardware in buildings of these enterprises runs at no more than half its capacity.

The measurement gap compounds it: A minority 44% rigorously track what their AI compute actually costs and returns. Everyone else is only estimating. And the enterprise shopping process continues regardless: 45% of these enterprises say the emerging compute option they are most likely to evaluate in the next 12 months is an AI-specialized cloud (CoreWeave, Lambda, Crusoe, Nebius). However, under 2% of these enterprises report using one of these neoclouds today.

Moreover, roughly one in three companies appears to be considering a hedge against Nvidia: Asked which emerging compute option they are most likely to evaluate in the next 12 months, 32% of enterprises named non-Nvidia accelerators (AWS Trainium, Google TPUs, AMD), while 28% named next-generation Nvidia GPUs. The data suggests that enterprises should measure the utilization and per-workload cost of the GPUs they already own before committing budget to new compute — whether that’s an AI-specialized cloud contract, new accelerators, or more GPUs. 

Most deployed “agents” do single-prompt work: 71% say a quarter or fewer complete multi-step tasks on their own

Seventy-one percent of enterprises say a quarter or fewer of their deployed “agents” can complete multi-step work on their own; the rest are single-prompt chatbots. Only 10% say true agents are the majority of what they run. To be sure, the respondents reported that they are in a position to know these things: 81% said they recommend or decide AI purchases at their companies.

That finding — that most agents are actually just chatbots in trenchcoats — lands amid adoption claims across the industry running well ahead of what enterprises are actually running. Gartner predicted 40% of enterprise applications will be integrated with task-specific AI agents by the end of 2026, up from less than 5% in 2025. It also warned that the most common misconception is referring to these AI assistants as agents, a misunderstanding known as “agentwashing.”

Meanwhile, Zapier’s enterprise survey said 72% reported deploying or testing autonomous agents; and Writer’s 2026 survey has 97% of executives saying their company deployed AI agents in the past year. 

Those surveys asked whether companies have deployed something called an AI agent, and companies said yes. Our survey asked the people running those deployments a harder question: Of the agents you have in production, how many can complete a multi-step task without a person driving each step? The gap matters for two practical reasons. First, the inflated adoption figures are the benchmark boards and vendors use to pressure technical leaders into moving faster — and this data says the real bar is far lower than the headlines suggest. Second, the label determines the bill: A single-prompt chatbot with a human reading every answer needs none of the identity, evaluation, and cost controls this report covers, while a true multi-step agent needs all of them. 

66% let agents push to production on automated evals alone — or are engineering toward it. 5% fully trust those evals

Two-thirds of enterprises fall into one of two camps: 34% already allow an AI agent to push a code or system change to production based on automated evaluation results alone, with no human reviewing it, and another 33% are actively engineering their pipelines to allow that within the next 12 months. Only five percent fully trust the automated evaluations that would make that decision.

The distrust is earned. Half of enterprises shipped an agent that passed internal evaluations and then caused a customer-facing failure in the past year; a quarter watched it happen more than once. Asked to name the biggest weakness in their current evaluations, more enterprises chose “poor alignment with real-world outcomes” than any other answer — 29% of respondents.

And most of the checking happens before an agent ships, then stops. Once agents are live with real users, only 23% of enterprises run real-time quality checks on the answers those agents produce. Another 51% monitor system health only — uptime, request traces, and gateway logs — which tells them the agent is running, and nothing about whether its answers are right. The first move: Before removing human review from any workflow, test your evaluations against production outcomes rather than internal benchmarks, and instrument answer quality, not just uptime.

This finding is explored in more depth in VentureBeat’s related coverage of the evaluation gap, which found that larger enterprises are moving faster toward zero-human deployment while also failing more often — and outlines a regression-testing framework built on production outcomes rather than internal benchmarks.

69% run credential sharing somewhere in the agent fleet — and those companies get hit far more often

Sixty-nine percent of companies allow agent credential sharing somewhere in their agent fleet during runtime – meaning multiple agents operating under one API key or service account. Those companies were far more likely to get hit: Organizations with credential sharing anywhere in the fleet experienced a security incident or near-miss at a 63.5% rate (47 of 74), against 40.9% (9 of 22) where every agent has its own scoped identity. 

The takeaway for enterprises is this: Give every agent its own scoped identity, starting with the agents that touch production systems.

57% traced a confident, wrong agent answer to their own missing or inconsistent business context

Fifty-seven percent of enterprises traced at least one confident, wrong agent answer in the past six months to missing or inconsistent business context: wrong metrics, stale definitions, absent documents. Most of them watched it happen more than once.

Most enterprise companies are fixing this, even though they’ve moved forward with agent deployment already: 25% already run a governed semantic layer, or one governed definition of the business that every AI reads from, in production. However, 34% are still building one, and 41% haven’t started. The takeaway: Govern the definitions your agents answer from, metrics and entities first, before scaling the agents that depend on them.

The quarter where agent technology “portability” became a priority

One more shift is worth reporting with its limits stated plainly. In our spring orchestration survey wave, the top concern about provider-controlled orchestration was security and permissioning limits (32%). By June, vendor lock-in led at roughly a third, with security limits at 28%. 

Those are two snapshots one quarter apart, and here’s one possible explanation for why portability became a top issue for enterprises. Our June survey went into market after a June 12 U.S. Commerce Department export order took Anthropic’s Claude Fable 5 offline for enterprises for roughly three weeks. Meanwhile, Chinese company Z.ai released GLM-5.2’s open weights under an MIT license on June 16 at roughly one-sixth of GPT-5.5’s price; and Tencent’s Hy3 arrived July 6 under Apache 2.0; and OpenAI previewed GPT-5.6 on June 26 to a small group of government-vetted partners, opening it broadly on July 9 after the government’s review cleared. The open-weight releases in particular promise enterprises more control over their agents, and while we haven’t established a causal link here, the timing is worth noting.

The posture data matches the mood: 51% now expect their primary control plane for enterprise agents to be hybrid — provider-native plus external orchestration — by the end of 2026, up from 34% in the spring survey wave. Enterprises reporting that they rely purely on provider-managed agent services fell from 12% to 7%.

Five layers, no incumbents, 12 months

The synthesis across all five surveys reveals a huge “buying” window. In each of the five control layers, 57% to 64% of enterprises plan to switch or add vendors within 12 months — 64% in infrastructure and in evaluations, 59% in agent security, 57% in retrieval and context — and 26% to 38%, depending on the layer, plan to move within a quarter. No layer has an established incumbent: The most common evaluation tooling is the model provider’s built-in evals, tied with no dedicated tooling at all (17% each); 82% of respondents name provider-native or hyperscaler controls as their primary agent security layer; and provider-native retrieval leads the context technology layer (RAG, etc) as well. 

Most enterprises are defaulting today to the built-in tools that ship with the big AI platforms they already use: Anthropic, OpenAI, Google, Microsoft, and AWS. That holds true across every one of these agentic technology layers: enterprises are looking to their primary cloud and model providers to supply the guardrails, evaluations, and retrieval solutions already bundled into those providers’ offerings.

Those defaults are winning on convenience, and they’re also what the coming spending decisions will test. The survey didn’t ask which direction that money moves — toward the platforms’ built-in tools or toward the specialists challenging them — which is exactly why every contract in these five layers is worth watching over the next four quarters.

The Q3 survey wave will measure whether the enterprises made good on these budget plans: whether their agents gained scoped identities, whether evaluations got tested against production outcomes, whether GPU utilization rose, and whether the semantic layers under construction shipped.

VentureBeat will release the full Q2 reports across all five VB Pulse trackers at VB Transform, July 14–15 at Hotel Nia in Menlo Park, where we convene enterprise technical leaders building autonomous agents in production. 

Disclosure: VentureBeat produces both this research and VB Transform

Enterprise AI is entering an evaluation gap: Agents are gaining autonomy faster than companies can verify them

Enterprise AI teams are giving agents more freedom at the same moment their confidence in automated testing is collapsing.

Half of enterprises have deployed an AI agent or LLM feature that passed internal evaluations and yet still caused a customer-facing failure — one in four more than once — according to the June 2026 VB Pulse survey of 157 qualified enterprise respondents at companies with 100 or more employees.

The sample is self-selected rather than a probability sample, so the findings should be read as directional, not precise.

But enterprises are not responding by slowing automation: 66% of respondents already permit some production deployment without human review or are building systems intended to do so within the next 12 months. Only 5% say they fully trust the automated evaluations that would make those release decisions.

That mismatch is the evaluation gap: the autonomy ceiling is rising faster than the assurance beneath it. 

It also fits a broader thesis that will be explored at VB Transform 2026: enterprises ship agents first, while the control layers around identity, evaluation, cost, context and orchestration are arriving later. The next year will be a retrofit cycle, with buyers shifting budget toward the systems that make agentic deployments governable and dependable.

Why a passing evaluation is not a working agent

Traditional software testing usually asks whether a defined input produces an expected output. Agent testing is harder because the system may choose its own sequence of steps, call tools, retrieve data, alter state and respond differently from one run to the next.

An agent can make several individually plausible decisions and still reach the wrong result. It may retrieve the correct account but update the wrong field. It may draft a valid refund request but send it without approval. It may call five tools successfully before a sixth step leaks sensitive information or leaves a workflow incomplete.

The survey shows enterprises already recognize this limitation. The most common reason for distrusting automated evaluation is poor alignment with real-world outcomes, cited by 29% of respondents. Bias or inconsistency follows at 21%, lack of explainability at 18%, and data leakage or privacy concerns at 17%.

That hierarchy matters. Enterprises are saying the score often does not predict what happens when a customer, employee or business process encounters the agent in production — not that automated scoring is too slow or expensive.

NIST makes a similar point in its Generative AI Profile: measurements gathered in controlled environments may not transfer cleanly to deployment because behavior changes with prompts, users, context and operating conditions. Its guidance calls for field testing, post-deployment monitoring and clear processes for escalating failures.

Capability is not consistency

A single successful run proves that an agent can complete a task. It does not prove that it will complete the task reliably.

Anthropic’s guidance on agent evaluation distinguishes between measuring whether a system succeeds at least once across repeated attempts and whether it succeeds every time. That distinction is essential for customer-facing or operational workflows. A model that occasionally produces an excellent answer may still be unacceptable if the same task fails unpredictably on the next attempt.

Enterprise teams should therefore treat repeatability as a first-class metric. That means running the same scenario multiple times, varying phrasing and context, testing tool failures, and measuring whether the final business outcome remains correct even when the route changes.

The evaluation set also has to evolve. Every production incident should become a permanent regression test. Customer escalations, failed tool calls, incorrect approvals and data-handling mistakes should feed back into the pre-deployment suite rather than remaining isolated support cases.

Autonomy should expand by risk, not by ambition

The survey does not imply that every agent action should require a person. Human review cannot scale across millions of low-consequence decisions.

But zero-human operation should be earned by demonstrated reliability and bounded by the consequences of failure.

Low-risk actions such as drafting internal summaries or categorizing documents can tolerate broader autonomy. Financial transactions, customer communications, code deployment, access-control changes and data deletion need stricter thresholds, repeated consistency tests, policy checks, rollback mechanisms and clear human escalation paths.

The risk isn’t evenly distributed by company size, either. Larger enterprises — those with 2,500 or more employees — are moving toward zero-human deployment fastest, at 70% versus 64% for smaller companies, and they’re also shipping more agents that go on to fail a customer, at 54% versus 48%. 

That is the warning for enterprise leaders. Removing the human from the loop does not remove uncertainty. Without stronger assurance, it converts uncertainty into an automated production decision.

The market will keep pushing toward greater autonomy because the economic incentive is real. The organizations best positioned won’t be those that remove people fastest — they’ll be the ones that treat repeatability and regression testing as seriously as deployment speed.