EY Tech Takes: conversations with EY technology leaders on what’s now and what’s next

The evolution of business models has progressed from on-premise solutions to cloud computing and to agentic artificial intelligence (AI), marking a transformative shift in how organizations operate. This transition necessitates a comprehensive rethinking of sales strategies, customer engagement and operational delivery, with AI-first products leading the charge. Join us as we navigate the intricacies of adapting to this new era of AI-driven business models.

EY leaders:

• James W. Brundage, EY Global and Americas Technology Sector Leader
• Barak Ravid, EY Global Client Service Partner
• Michael Flynn, EY Technology Consulting Leader

Discussion topics:

• Delve into the key challenges organizations face as they integrate AI into their existing business structures.
• Discuss the need for simplicity in the user experience, the importance of seamless integration among AI systems and the shift from traditional software selling to the delivery of measurable solutions and impact.
• Highlight the critical balance between driving growth and managing customer expectations amid economic uncertainty, as well as the complexities surrounding enterprise renewals and pricing models in the AI landscape.

The transition from subscription and consumption models to outcome-based frameworks is reshaping how organizations approach revenue generation and customer engagement. Many companies are still in the early stages of this transformation, grappling with the complexities of defining success and measuring performance in this new landscape. One significant challenge is how to align key performance indicators with the evolving nature of recurring revenue; true stability and predictability in revenue streams will require a deeper understanding of customer outcomes and satisfaction. Join us as we delve into the future of business models in the age of AI.

EY leaders:

• James W. Brundage, EY Global and Americas Technology Sector Leader
• Malinda Gentry, EY-Parthenon Americas TMT and Telecommunications Leader
• Benjamin Thiesen, EY US Transaction Analytics Leader
• Barak Ravid, EY Global Client Service Partner
• Michael Flynn, EY Technology Consulting Leader 

Discussion topics:

• Explore the implications of integrating artificial intelligence (AI) and data-driven solutions into business strategies.
• Address the challenges of longer sales cycles, the necessity for detailed contracts with service level agreements and the critical role of data governance in managing risks associated with agent-to-agent interactions.
• As organizations strive to leverage AI for growth, the discussion underscores the need for a holistic approach that balances innovation with operational integrity so that businesses can adapt to the demands of an outcome-based economy while navigating regulatory complexities and market uncertainties.

As organizations increasingly integrate artificial intelligence (AI) into their operations, they face significant challenges in adapting their accounting frameworks to accommodate new business models, such as outcome-based pricing. Traditional metrics for revenue predictability and historical comparisons are becoming less relevant, prompting companies to rethink how they report and communicate their financial health, especially in the context of IPOs. Join us as we navigate these complexities and their implications for the evolving landscape of business operations.

EY leaders:

• James W. Brundage, EY Global and Americas Technology Sector Leader
• Malinda Gentry, EY-Parthenon Americas TMT and Telecommunications Leader
• Adam Blaylock, EY Americas Financial Accounting Advisory Services (FAAS) TMT Industry and Technology Sector Leader
• Benjamin Thiesen, EY US Transaction Analytics Leader 

Discussion topics:

• Emphasize the need for standardized non-GAAP metrics to instill investor confidence and the importance of developing frameworks that can adapt to the complexities introduced by AI.
• Explore the regulatory challenges posed by changes and ask whether regulators should revise accounting standards to reflect the new AI reality.