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Editor’s note: This is AI Impact, Newsweek’s weekly newsletter where each week, we will explore how business leaders are unlocking real value through artificial intelligence.<\/p>\n
Tap or click here to get this newsletter delivered to your inbox.<\/a><\/p>\n Core Intelligence<\/p>\n Effort No Longer Defines Value<\/p>\n The economics of IT services are starting to shift in a way\u00a0that\u2019s\u00a0hard to ignore. The amount of work\u00a0required\u00a0to build software is falling, even as the value of that software rises. That imbalance is beginning to reshape how services are priced,\u00a0delivered\u00a0and measured.\u00a0\u00a0<\/p>\n \u201cIf you believe that coding is going to become abundant, and it\u2019s already on that path,\u201d\u00a0Frank D\u2019Souza, co-founder and managing partner at Recognize and former CEO of Cognizant, said during\u00a0Newsweek\u2019s\u00a0recent \u201cAI Impact Forum\u201d webinar, \u201cyou would expect the value associated with coding to become significantly less.\u201d\u00a0<\/p>\n The value of the output, however, is increasing.\u00a0<\/p>\n That paradox changes the foundation of the services model. Revenue has long been tied to inputs\u2014hours\u00a0worked,\u00a0team size and effort\u00a0expended. As AI compresses the time and labor\u00a0required\u00a0to produce software, that linkage becomes harder to sustain.\u00a0<\/p>\n Work that once\u00a0required\u00a0large teams can now be done with fewer people, faster. As throughput increases, pricing based on effort becomes increasingly disconnected from the value delivered.\u00a0<\/p>\n \u201cYou\u2019re going to have to move away from input-based pricing to output-based pricing,\u201d D\u2019Souza said.\u00a0<\/p>\n This goes beyond pricing, though. It reflects where value now sits inside the work itself.\u00a0<\/p>\n As execution becomes cheaper,\u00a0value\u00a0moves\u00a0upstream. Defining the problem, setting\u00a0direction\u00a0and ensuring systems are reliable,\u00a0secure\u00a0and\u00a0work as intended\u00a0take\u00a0on greater importance.\u00a0<\/p>\n \u201cIn the past, we provided\u00a0the hands,\u201d\u00a0D\u2019Souza\u00a0said. \u201cIn the future, we have to provide the head.\u201d\u00a0<\/p>\n What clients are really buying is certainty. \u201cThey\u2019re not buying effort,\u201d he added.\u00a0<\/p>\n The structure of work is changing as well. Tasks can be broken into smaller components, executed in parallel and completed more quickly,\u00a0reducing the need for large teams.\u00a0<\/p>\n That combination\u2014more\u00a0work,\u00a0fewer people\u00a0required\u00a0for each project\u2014creates both opportunity and pressure. Firms that adapt\u00a0can\u00a0expand output and move faster. Those that\u00a0remain\u00a0tied to labor-heavy models risk falling behind.\u00a0<\/p>\n \u201cThis is not something you can ease into\u00a0over time,\u201d said\u00a0Dr. Ranjit\u00a0Tinaikar, former CEO of Ness Digital Engineering\u00a0and host of the \u201cAI Impact Forum\u201d\u00a0webinar\u00a0series. \u201cYou have to make decisions.\u201d\u00a0<\/p>\n The urgency reflects the scale of\u00a0what\u2019s\u00a0happening. AI is not simply improving how services are delivered. It is redefining how they are priced, how they are\u00a0structured\u00a0and where value is created.\u00a0<\/p>\n In that environment, the central question is no longer how much work a firm can deliver, but how much value it can create\u2014and how\u00a0that value is proven.\u00a0<\/p>\n You can\u00a0watch the discussion and\u00a0read the full article here:\u00a0Frank D\u2019Souza: AI Is Breaking the IT Services Model<\/a>.<\/p>\n Upcoming Webinars<\/p>\n How Is AI Reshaping Health Care Delivery and Strategy?<\/p>\n Health systems are entering a new phase of transformation as artificial intelligence moves from experimentation into everyday clinical and operational decision-making.<\/p>\n In this edition of Newsweek\u2019s AI Agenda, “How Is AI Reshaping Health Care Delivery and Strategy?”, taking place Monday, April 27 at 3:30 p.m. Eastern,\u00a0Suraj Srinivasan, Harvard Business School professor and member of the\u00a0Newsweek\u00a0Advisory Board, sits down with\u00a0Dr. Tom Mihaljevic, CEO and president of Cleveland Clinic, for a conversation on how one of the world\u2019s leading health organizations is integrating AI into care delivery\u2014and what that shift means for leadership priorities, operational strategy and the future of health care.<\/p>\n Register for free right now<\/a>.<\/p>\n Will Today\u2019s Software Companies Become Tomorrow\u2019s Services Companies?<\/p>\n As artificial intelligence begins to take on more of the tasks traditionally performed by humans, a deeper question is coming into focus: what happens to \u201cwork\u201d itself\u2014and who, or what, delivers it?<\/p>\n In this session of Newsweek\u2019s AI Impact Forum, “Will Today\u2019s Software Companies Become Tomorrow\u2019s Services Companies?”, taking place April 30 at 11 a.m. Eastern,\u00a0Dr. Ranjit Tinaikar, host of the series, sits down with\u00a0Tiger Tyagarajan, former CEO of Genpact and now a senior advisor and board member to technology and services companies, as well as private equity and venture capital firms, for a strategic conversation on how AI is blurring the line between software and services\u2014and what that shift means for business models, competition and the future of work.<\/p>\n Register for free right now<\/a>.<\/p>\n Prompt Injection<\/p>\n What\u2019s one recent insight you\u2019ve learned about AI?<\/p>\n \u201cThere is a growing understanding of how AI can play a role for care teams at\u00a0large in\u00a0clinical oversight. There are ways to develop algorithms to\u00a0identify\u00a0trends that are much more sensitive and\u00a0identified\u00a0earlier, allowing us to intervene in a much more proactive way.\u00a0<\/p>\n The engagement of patients can be recognized in real time with the support of AI as well. Encouraging patients in keeping them engaged is a constant battle and developing AI tools that\u00a0assist\u00a0our care teams in seeing what they need to see when they need to see it allows for us to deliver the right care at the right time.\u201d\u00a0<\/p>\n Have your own lesson to share? Email us at:\u00a0ai.newsletter@newsweek.com<\/a><\/p>\n Run Log<\/p>\n AI use case of the week<\/p>\n By Adam Mills<\/p>\n Finding the right citation can\u00a0sometimes\u00a0take longer than understanding the underlying research. For Josh Meier, a senior generative AI author at Pluralsight, an online education company, building course material can mean digging through academic journals and databases to\u00a0locate\u00a0a source that supports a specific point. That\u00a0process\u00a0can take hours.\u00a0<\/p>\n AI has become\u00a0a first\u00a0step in that workflow. Instead of starting with traditional search, Meier prompts models to retrieve relevant papers from specific databases or to break down dense research into high-level explanations. The output\u00a0isn\u2019t\u00a0treated as final. He reviews the sources, verifies the\u00a0details\u00a0and uses the results to guide further investigation.\u00a0<\/p>\n The immediate benefit is speed. What once required\u00a0extended\u00a0searching can be narrowed quickly, freeing up time for analysis and course development.\u00a0More important is how the work is structured. By introducing AI into the process, Meier adds a layer that can surface connections or sources he might not have\u00a0encountered\u00a0through manual search alone.\u00a0<\/p>\n \u201cI don\u2019t need the AI to research for me,\u201d he said. \u201cBut it enables me to access research more quickly, efficiently and equitably.\u201d\u00a0<\/p>\n Used this way, AI functions less as a replacement for research and more as a retrieval layer\u2014accelerating the process of finding relevant information while leaving verification and judgment with the human.\u00a0<\/p>\n Have an AI use case to share with us? Email us at: ai.newsletter@newsweek.com<\/a><\/p>\n Context Window\u00a0<\/p>\n \u25a0\u00a0Nissan is repositioning its future lineup around \u201cAI-defined vehicles,\u201d a step beyond software-defined vehicles, aiming to bring AI-driven safety, autonomy and in-car intelligence to 90 percent of its models, part of an effort to regain competitiveness amid rising pressure from Chinese automakers and a rapidly shifting global market.\u00a0[Newsweek<\/a>]\u00a0<\/p>\n \u25a0\u00a0U.K. lawmakers were told that China is backing global AI governance efforts, while the U.S. is pursuing a more deregulated, competitive approach, pointing to diverging strategies around regulation and international coordination. [The Guardian<\/a>]\u00a0<\/p>\n \u25a0\u00a0Anthropic is opposing an Illinois bill backed by OpenAI that would shield AI companies from liability if their systems\u00a0are\u00a0used to cause large-scale harm, exposing a growing divide between leading AI labs over how responsibility and accountability should be handled. [WIRED<\/a>]\u00a0<\/p>\n \u25a0\u00a0A Florida-based lab is using artificial intelligence to help utilities\u00a0anticipate\u00a0outages,\u00a0identify\u00a0weak points in the power\u00a0grid\u00a0and restore power more quickly during storms, with the goal of improving reliability and response times. [WFTV<\/a>]\u00a0<\/p>\n \u25a0\u00a0Tech employment has declined across major economies since 2022, with more than 500,000 roles \u201cmissing\u201d in the U.S. alone, but interest rates, outsourcing and post-pandemic corrections\u00a0appear to be\u00a0key drivers alongside AI, as demand for tech skills expands into other industries.\u00a0[The Economist<\/a>]\u00a0<\/p>\n \u25a0\u00a0Santa Clara University is launching a new AI center backed by a\u00a0nearly $25 million\u00a0donation to advance applied research in areas including health care,\u00a0robotics\u00a0and human-computer interaction, while expanding academic and industry collaboration around AI.\u00a0[GovTech<\/a>]\u00a0<\/p>\n Transfer Protocol\u00a0<\/p>\n Tracking executive moves across the AI landscape<\/p>\n Sony\u00a0SungChu, previously head of science and innovation at\u00a0Businessolver, has been appointed chief AI officer at Businessolver, where he will lead the company\u2019s artificial intelligence strategy and integration of AI across its platform,\u00a0operations\u00a0and customer experience.\u00a0<\/p>\n Christie\u00a0Mealo, previously senior vice president of AI products at 90NORTH (IPG Health) and a former leader of engineering and product teams at CVS Health, has been appointed chief AI officer at Medical Knowledge Group, where she will oversee the development of AI-driven capabilities across its life sciences and health care offerings.\u00a0<\/p>\n Sunil Senan, previously senior vice president and global head of data, analytics and AI at\u00a0Infosys, has been appointed global chief executive officer at\u00a0CEI, where he will guide the company\u2019s shift to an AI-first enterprise strategy and next phase of growth.\u00a0<\/p>\n Damian Leach, previously global chief information officer at Seaco, has been appointed chief AI and digital officer at\u00a0Vistra, where he will lead the integration of artificial intelligence and digital capabilities across the company\u2019s global operations.\u00a0<\/p>\n Julie Irish, previously chief information officer at\u00a0Couchbase, has been appointed chief information officer at\u00a0Alteryx, where she will lead the company\u2019s global IT organization and technology strategy to support growth and its AI-driven analytics platform.\u00a0<\/p>\n Magic Moment\u00a0<\/p>\n What\u2019s the most fun or unexpected way you\u2019ve used AI lately?<\/p>\n \u201cThe most unexpected shift in my recent workflow has been the total transformation of video storyboarding and wardrobe design. Gone are the days of tedious \u2018franken-shopping\u2019 found assets from the internet. Now, with just a few photos of our talent and their outfits, I can generate cohesive, professional wardrobe looks on the fly.\u00a0<\/p>\n To build out our scenes, I simply prompt the AI with the talent and our ONYX RCR 80V, describing the environment to generate high-fidelity frames. The real \u2018magic,\u2019\u00a0however, is the ability to create animatic motion storyboards. By turning these stills into 5\u00a0to\u00a010 second clips, I can test the visual flow against our music\u00a0selection\u00a0instantly.\u00a0<\/p>\n In the past, animating a storyboard would have been considered a massive waste of time and resources. Now, I can deliver a full animatic, edited to the beat of the soundtrack, in less than half a day.\u201d\u00a0<\/p>\n Experience some AI magic? Tell us about it at\u00a0ai.newsletter@newsweek.com<\/a><\/p>\n![\"\"](\"https:\/\/www.europesays.com\/ai\/wp-content\/uploads\/2026\/04\/Is-the-IT-Services-Industry-going-Extinct-1.png\"\/)
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