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EY Shifts Focus to AI-Native Operating Models

Artificial Intelligence AI-Native Operating Models Digital Transformation Ernst & Young CES 2026 Workflow Automation
January 21, 2026
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Article Summary

Ernst & Young Global LLP is observing a significant shift in how organizations are approaching artificial intelligence, moving away from 'bolt-on' experiments towards fully AI-native operating models. Companies are recognizing that simply adding AI to legacy processes rarely delivers substantial transformation. EY’s counsel centers on a radical redesign of workflows, prioritizing outcomes and data, rather than optimizing individual tasks. This approach, championed by Dan Diasio and Hyong Kim, emphasizes a fundamental rethinking of how work gets done, moving from hundreds of isolated use cases to a cohesive, AI-driven system. The critical element is abandoning the instinct to retrofit intelligence – a mistake that many organizations made when initially exploring AI. This ‘AI-native’ mindset demands stepping outside established comfort zones and embracing role evolution, rather than simply automating existing jobs. The conversation is increasingly about people and roles, aligning human expertise with the capabilities of AI. This requires a cultural shift, reframing AI’s impact – not as a job replacement, but as an opportunity for augmented human capability. This is driven by the need to avoid getting stuck in legacy assumptions and creating inefficient, siloed processes that ultimately hinder the true potential of AI.

Key Points

  • Companies are moving beyond ‘bolt-on’ AI experiments towards AI-native operating models.
  • The key is to fundamentally redesign workflows from the outset, prioritizing outcomes and data, rather than optimizing individual tasks.
  • A cultural shift is required – moving away from outdated assumptions and embracing role evolution rather than simply automating existing jobs.

Why It Matters

This news is critical for businesses and technology leaders contemplating AI adoption. EY's insights represent a widely-held, pragmatic approach to AI implementation, acknowledging the significant challenges organizations face when attempting to integrate AI into existing systems. The shift to ‘AI-native’ models recognizes that AI’s true value lies not just in automation, but in fundamentally reshaping business processes and organizational structure. Failure to adopt this mindset risks wasted investment and unrealized potential. Furthermore, the emphasis on culture and organizational change underscores the crucial, often overlooked, aspect of successful AI deployments, highlighting that technology alone isn’t enough; it requires a corresponding shift in thinking and behavior. This is especially important as AI becomes more prevalent, fundamentally impacting workforce dynamics and the skillsets required for success.

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