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Hello, Visionary CTOs! 🌟

AI isn’t waiting for anyone. CTOs are doubling down on outsourcing, AI agents are reshaping automation, and IT teams are sounding the alarm on deployment risks. The race is on—but are businesses ready to keep up?

This week, we’re diving into the biggest shifts shaping AI in 2025—from why companies are outsourcing AI development to the real-world challenges of implementing AI agents. If you’re a leader navigating this landscape, these insights could make or break your strategy.

Let’s separate the breakthroughs from the hype and get ahead of the curve.

📰 Upcoming in this issue

• Why CTOs Are Betting Big on AI Outsourcing in 2025 🤖💼

• How AI Is Actually Being Implemented in the Real World 🚀 

• AI Agents: The Next Big Leap or Just More IT Headaches? 🤖 

📈 Trending news

• Cisco’s New CTO for EMEA is Betting Big on AI and Security

• Why Humble Leadership Is the CTO’s Secret Weapon for Stronger Teams

• The Future of Data Management: Security, Scalability, and Governance in 2025

Why CTOs Are Betting Big on AI Outsourcing in 2025 🤖💼 read the full 1,947-word article here

Article published: February 3, 2025

As AI adoption accelerates, CTOs are increasingly turning to outsourcing to stay ahead. The global IT outsourcing market hit $541 billion in 2024 and is expected to grow at 8.6% annually, driven largely by AI development needs.

Why? Hiring in-house AI talent is costly and time-consuming—so companies are leveraging specialized outsourcing firms to cut costs, accelerate time-to-market, and access top-tier expertise. Custom AI solutions, AI-as-a-Service, and remote AI development teams are leading trends shaping the landscape.

With cyberattacks rising and AI integration becoming more complex, CTOs are also prioritizing data security, ethical AI, and seamless system integration when choosing outsourcing partners.

Key Takeaways:

• 💰 AI outsourcing cuts costs and speeds up deployment: Companies avoid high in-house expenses while launching AI-driven solutions faster.

• 🚀 Custom AI solutions are in demand: Businesses are ditching one-size-fits-all models in favor of tailored AI development.

• 🌍 Remote AI teams are the new norm: The best AI talent is now globally distributed, enabling 24/7 development cycles.

• 🔒 Security and compliance take center stage: With cybercrime costs projected to hit $24 trillion by 2027, CTOs are demanding AI partners with strong privacy measures.

How AI Is Actually Being Implemented in the Real World 🚀 watch the full 33-min video here

Video published: February 1, 2025

Implementing AI in the real world isn’t about flashy demos or futuristic predictions—it’s about solving real business problems today. In this interview, Antoine Shagoury, CTO of Kyndryl, breaks down how AI agents, automation, and open-source models are being integrated into enterprise operations right now.

One of the biggest takeaways? AI projects often fail because businesses don’t have their data in order. Instead of rushing into generative AI, companies need to start with automation, clean their data, and gradually scale up. Shagoury also explains how AI accelerates coding, enhances telecom sales, and personalizes customer experiences—while debunking the myth that AI alone can fix broken business processes.

Key Takeaways:

• 🤖 AI agents aren’t just automation: They orchestrate processes, analyze patterns, and enhance decision-making beyond traditional automation.

• 🛠 Most AI projects fail due to bad data: Companies must clean and structure their data before expecting AI to deliver results.

• 📈 AI in telecom is boosting sales: AI agents analyze customer usage, suggest better plans, and automate pricing offers in real time.

• ⚡ Nvidia is supercharging AI adoption: Kyndryl’s partnership with Nvidia and Dell is driving faster, scalable AI infrastructure.

AI Agents: The Next Big Leap or Just More IT Headaches? 🤖 read the full 1,456-word article here

Article published: February 4, 2025

As a CTO, you likely see AI agents as a game-changer—a way to automate operations, optimize workflows, and drive efficiency. But while 53% of CIOs and CTOs believe AI agents will be core to business operations within two years, only 29% of IT teams agree.

The divide is real: IT practitioners—the people who have to deploy and maintain these systems—are skeptical, citing complexity, security concerns, and past AI failures. While AI agents can enhance automation, true autonomous decision-making is still in its infancy, meaning teams will need customization, quality control, and continuous oversight.

To succeed, CTOs must bridge the gap—not just by pushing AI, but by educating teams, starting with practical use cases, and proving real value.

Key Takeaways:

• 🤖 AI adoption is accelerating: 93% of IT leaders are planning or deploying AI agents within two years (MuleSoft survey).

• ⚠️ IT teams see challenges ahead: Agents require significant customization, integration, and ongoing monitoring, making deployment resource-intensive.

• 💰 Past AI failures fuel hesitation: Many IT pros have seen overhyped AI projects flop, creating doubt about real ROI.

• 🔑 CTOs must drive buy-in strategically: Success depends on starting small, demonstrating quick wins, and integrating human oversight to build trust.

Why It Matters

AI isn’t just another tech trend—it’s a business-defining shift. The companies getting it right today will own the future. The ones struggling to deploy it? They’ll be left playing catch-up.

CTOs face a critical decision: Outsource AI or build in-house? Trust AI agents or stay cautious? Move fast or risk falling behind?

The winners won’t just adopt AI—they’ll master it. The question is, will you be one of them?

Rachel Miller
Editor-in-Chief
CTO Executive Insights