Rethinking Automation ROI: A New Framework for Agentic AI
In brief
- Agentic automation-AI that can reason, adapt, and handle complex tasks-is gaining traction in businesses, but the way companies evaluate its value is outdated.
- Traditionally, investments in automation are justified by calculating hours saved multiplied by labor costs minus build costs.
- This model works well for rule-based tools like robotic process automation (RPA), which follow predictable, repetitive workflows.
- However, agentic automation offers far more potential benefits, such as handling exceptions and reworking errors, that the old ROI formula fails to capture.
- For example, while RPA might save time on routine tasks, agentic AI can also tackle unpredictable problems, reducing costs from human errors and rework.
- McKinsey research highlights a pattern where companies investing in agentic technology spend $1 on the technology but $3 on process redesign and $5 on building capabilities and adoption.
- This suggests that simply dropping an agent into an existing workflow won’t yield maximum returns-redesigning processes around the AI is key to unlocking its full value.
- The future of automation ROI lies in measuring not just time saved but also how well freed capacity translates into actual business results.
- Companies should focus on workflows where agents can handle both routine tasks and exceptions, ensuring that the real gains come from rethinking how work gets done, not just automating it as is.
Terms in this brief
- Agentic automation
- A type of AI that can reason, adapt, and handle complex tasks, unlike traditional rule-based tools. It's designed to solve unpredictable problems and improve processes beyond just saving time on repetitive tasks.
Read full story at AWS ML Blog →
More briefs
Local AI Model Running Made Possible with Mac Studio
Researchers have unlocked the ability to run advanced AI models directly on a Mac Studio using Apple's MLX framework and RDMA over Thunderbolt. This breakthrough allows developers to experiment with cutting-edge models like Muse Spark Open, which has nearly 1 trillion parameters, right from their desks. The system achieves impressive speeds, generating over 36 tokens per second during testing, surpassing average human reading speed. By leveraging the Mac Studio's M5 architecture and GPU Neural Accelerators, users can now scale computations across multiple machines for even better performance. This development democratizes access to large language models, enabling more widespread experimentation and innovation in AI without the need for costly cloud infrastructure. Moving forward, this technology could pave the way for more efficient and localized AI research and deployment.
Google Chrome Gets Major Code Overhaul
Google's Argon tool has revolutionized the Chrome codebase by separating core webpage handling from a 6 million-line legacy folder within Chromium's 40 million lines of code. This breakthrough allowed the team to deploy multiple clean code changes swiftly, finishing an extensive architectural refactor in weeks instead of months across hundreds of files. For users, this means webpages can smoothly transition between tabs, side panels, and floating windows without reloading, eliminating a major cause of browser crashes. The upgrade promises faster, more stable browsing for Chrome's billions of global users.
Google Breaks Key Quantum Computing Bottleneck
Google has made a major advance in quantum computing by solving a long-standing challenge known as the "magic state bottleneck." Their breakthrough, published in Science, involves a technique called "magic state cultivation," which they demonstrated on their Willow processor. This method reduces errors by 40x compared to previous approaches. Magic states are essential for achieving universal quantum computing, but creating them has been extremely resource-intensive, potentially consuming up to 95% of a quantum computer's capacity. The innovation allows Google to cultivate high-quality magic states more efficiently, freeing up computational resources for practical applications. This progress is crucial for scaling quantum computing beyond theoretical uses and toward real-world solutions. As quantum technology evolves, such breakthroughs will likely accelerate advancements across industries, from cryptography to material science.
Amazon Launches Two New AI Devices: Bee Frontier and Bee Eclipse
Amazon has introduced two new AI devices, Bee Frontier and Bee Eclipse, designed to help users remember important details from conversations. Bee Frontier is a wearable device that can be worn on the wrist or clipped onto clothing, offering features like real-time audio processing, up to seven days of battery life, and advanced noise filtering. It automatically turns off when no sound is detected for a set period, ensuring privacy. Bee Eclipse, on the other hand, attaches magnetically to the back of a phone, providing a compact way to capture important information without needing to wear anything. Both devices integrate with Alexa and Amazon.com, allowing users to get summaries and manage tasks hands-free. These tools aim to enhance everyday life by keeping users informed about their commitments while maintaining privacy. As AI continues to evolve, these devices represent a step forward in making technology more integrated and less intrusive.
AI Shopping Agents Reshape Retailer Strategies
AI-driven shopping agents are altering how online retailers interact with customers and handle payments. Companies like Amazon, Target, and Walmart are taking different approaches to these tools, which help users make purchases without direct merchant interaction. While agents offer convenience for shoppers, they challenge retailers by reducing visibility into customer behavior and preferences. For instance, Meta’s Muse and OpenAI’s dots enable tasks like bidding and grocery orders, but they also complicate marketing efforts as each AI model evaluates products differently. The use of such agents is growing rapidly, with monthly purchase increases of 43% since April. However, only 3% of eCommerce firms currently allow agent-mediated transactions, indicating limited merchant readiness. This shift raises concerns about payment errors and returns, prompting the Federal Reserve to highlight the need for clear authority in delegated purchases. As AI agents evolve, retailers must adapt their strategies to maintain control over customer relationships and payments while embracing the convenience these tools provide.