ISG Software Research Analyst Perspectives | Office of Revenue

Oracle, long known for its dominance in databases and enterprise software, has a new message for the business world: Artificial intelligence (AI) isn't just a technology trend, it's a business imperative. At the recent Oracle Industry and Application Analyst Event, company executives made their most compelling case yet for why non-technical executives should care about a deeply integrated tech stack—and that case rests squarely on the shoulders of AI. Over two packed days, Oracle executives explained how the company's ownership of the entire enterprise technology stack, from its Oracle Cloud Infrastructure (OCI) to its suite of enterprise applications in ERP, human capital management (HCM), and customer experience (CX), would ultimately benefit not only their customers, but also their customers’ customers. The story they told was not just about integration, but about how that integration unlocks real business value when combined with AI—and more specifically, with agent-based AI models. As part of this AI-forward strategy, the new Oracle AI Studio is a platform that enables enterprise experts to design and deploy their own AI agents. While Oracle has already shipped over 100 use cases and 50 pre-built agents within its applications, AI Studio is positioned as a tool for tailored innovation. In addition, Oracle discussed different types of agents to address different tasks such as generating content (authoring), answering questions (answer) and initiating subsequent actions (action). To this can be added orchestration agents so that, by using a series of different agents, AI can not only enhance understanding and decision-making but can link these to actions as well. Unlike many other providers, Oracle is not starting out by charging separately for the AI features embedded in its stack—at least not for models built with Oracle’s own large language models (LLMs). Custom agents or third-party models, however, may carry additional costs. The business benefit of these announcements was made more concrete in the context of the application areas; in my case, that was the CX group. Presentations from the leadership team of Oracle CX emphasized the value to sales and revenue generation of a unified technology and data stack. The CX team announced specific agents to assist sales and revenue teams to work smarter and be more responsive to customers. With the fusion unified business data model—a strong AI framework coupled with ownership of the complete stack—the CX team says that they are in a strong position to deliver application-layer agents designed to tackle activities within CX. One example given was to provide actionable information to sales and account teams to help identify upsell and cross-sell opportunities using data from systems such as ERP, order management, billing and subscription management, and third-party news feeds. Further, to do this autonomously, running in the background as a process that both identifies opportunities and recommends actions, and highlight this within the technology that account executives use in their daily work lives. In this way, Oracle argues that its embedded AI can identify customer behavioral patterns and trigger actions as part of an entirely automated sales and marketing play or as a hybrid approach using directed and recommended actions for human-led initiatives. Another example mentioned was for customer-facing operations, and the benefits are tangible. In a world where customer loyalty is hard-won and easily lost, Oracle demonstrated how its systems can insulate customers from the internal complexities of large enterprises. A change in a customer’s subscription plan, for example, automatically triggers updates in billing, fulfillment and financial accounting—a seamless experience for the customer and a streamlined process for the company. This approach underscores Oracle’s confidence in its vertically integrated model. By owning everything from the cloud infrastructure to the application layer, Oracle asserts it can deliver a uniquely optimized and cost-effective AI experience. The company is even using its own CX Cloud internally as the platform for its go-to-market efforts, a vote of confidence in a product that has often been overshadowed by Oracle’s ERP offerings. But Oracle also acknowledges the reality many enterprises face: entrenched systems from other providers, particularly in CRM and service management. Convincing these companies to switch will require more than technical superiority. Oracle will need to clearly articulate the added value of a unified stack, especially when change involves organizational upheaval. Still, for companies already invested in Oracle’s ERP Fusion, the argument is increasingly compelling. The promise of greater returns through the addition of Oracle CX—combined with AI-driven insights and automation—could be enough to tip the scales. But technology alone won't solve business challenges. Without strong executive sponsorship and a willingness to rethink business processes, the potential benefits could go unrealized. According to ISG Research, over one-half of enterprises will struggle to implement AI in sales and customer service through 2027, largely due to outdated CRM and sales automation systems. In that context, Oracle sees opportunity not just to sell software, but to reshape how businesses operate. As an Oracle ERP or industry customer, now is the time to start engaging with Oracle to understand how recent developments can finally deliver on the potential of a truly integrated front and back office. Have them articulate how they can help your enterprise leverage back-office data with front-office data to realize the potential of information you already have from existing customers. Regards, Stephen Hurrell

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