
Oracle Overhauls Cloud Software Portfolio with Agentive App Architecture
Oracle Revamps Cloud-Based Software Suite to Leverage Artificial Intelligence
Oracle Corporation is introducing "agentic apps" as part of its cloud-based software suite, designed to work across its entire software suite. This move is aimed at enabling humans to ask the system for business outcomes, rather than relying on individual AI agents. The changes are part of a broader trend in the corporate software industry, where specialized software providers are adapting their offerings to be used by AI agents that can perform tasks on behalf of human users.
Oracle's shares have declined by approximately 40% this year, driven by investor concerns that AI tools will replace complicated business software. However, Oracle's executives argue that embracing AI tools is crucial to keeping its software ahead of the curve. The company is updating its Fusion suite of software, which includes core business functions such as production planning, customer collection, and human resources.
The goal of these updates is to enable humans to focus on business questions, such as reducing production costs or minimizing supply chain disruptions, while AI agents handle tasks like data entry and gathering. This shift is expected to emphasize human skills such as negotiation and risk assessment, while automating routine tasks like invoicing and purchase order processing.
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According to Steve Miranda, executive vice president of applications development at Oracle, the data needed for business decisions is scattered across various applications and third-party software. Teams of AI agents will take on tasks to reach business outcomes, while human employees will focus on high-value skills like decision-making and weighing pros and cons.
Investor Takeaway
Oracle's move to integrate AI agents into its cloud software suite may alleviate investor concerns about the company's relevance in an AI-driven market.
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