Hi there readers,

This week, we’re exploring a pivotal development in AI: the rise of AI agents as the next frontier in software and service delivery. AI agents, as you’ll read, are more than just tools—they’re changing the very fabric of how software applications will be built and deployed. As Deloitte’s latest research released just last week highlights, forward-thinking organizations are already moving to integrate multi-agent AI systems, and this trend is set to shape the way we all work. 

In this issue’s feature article, we delve into what it means to use confidential AI agents and how businesses are deploying them to safeguard sensitive data. As thought leader Jeremiah Owyang notes, data privacy and control are paramount as AI agents become integral to decision-making across industries. With the confidential AI agents offered by Opaque, companies like ServiceNow are building privacy-preserving workflows that ensure data sovereignty while unlocking AI’s full potential.

Whether you’re in financial services, tech, or insurance, understanding the role of confidential AI agents is essential to navigating this new landscape. We hope this issue offers valuable insights into a technology that is set to transform business operations within the next few years.

Dig in and enjoy,

— Rishabh Poddar, Co-Founder & CTO, Opaque Systems

The Rise of Confidential AI Agents in Business

AI agents are quickly becoming a transformative force in software development, echoing the impact of service-oriented architectures, containers, and microservices in previous eras. These autonomous programs, equipped with advanced cognitive abilities, are reimagining how businesses organize workflows and leverage data. Deloitte’s recent research highlights that AI agents and multi-agent systems are already “reshaping industries” by expanding the capabilities of generative AI, unlocking efficiency and productivity on a new scale.

An AI agent functions as a cognitive web service, capable of processing natural language and connecting multiple data sources to execute complex tasks. According to Deloitte, “AI agents address key limitations of typical language models by reasoning, planning, remembering, and acting on behalf of the user.” This evolution moves beyond transactional language models to systems with “the ability to understand context, plan workflows, and integrate with external tools to achieve specific goals.” 

With this shift, privacy and data sovereignty have become critical considerations, especially as agents handle sensitive or regulated data.

Jeremiah Owyang, a prominent thought leader in AI, emphasizes the importance of privacy-first strategies as AI agents become central to business processes. He notes that as AI agents increasingly assist in decision-making across stages from awareness to purchase, maintaining data privacy and control will be “paramount” to ensuring these agents serve businesses without compromising sensitive information. And as agents continue to fully disrupt other familiar concepts—from websites to advertisements—that data control will be even more essential.

Opaque’s confidential AI agents offer a path forward, enabling privacy-preserving data pipelines that protect data sovereignty. In use by customers such as ServiceNow, these agents allow organizations to integrate and process sensitive information within “agentic workflows” that ensure data remains under the control of its rightful owner. Built on confidential computing, Opaque’s AI agents allow data to be accessed and analyzed without exposure, even as they pull insights from varied sources.

This approach is particularly valuable for industries that require advanced data management. Confidential agents can support non-deterministic queries, which allow AI to interact with unstructured, sensitive data sources while maintaining privacy throughout. In financial services, AI agents can process information across institutions to detect emerging fraud patterns, ensuring each organization’s data remains private. In insurance, meanwhile, they enable streamlined handling of customer data across regions, providing a trusted framework for scaling AI applications globally.

Looking ahead, AI agents are poised to be essential in building privacy-centric applications that set a new standard for data-driven decision-making and—as Deloitte states—providing companies with “new ways of working and new horizons of innovation.” In short, this technology is not just about enhancing productivity—it’s about transforming software to align with privacy-first values, giving businesses confidence to innovate responsibly.

In the Lab

The Latest Happenings at Opaque Systems

LinkedIn: Sanchit Shangari on Empowering AI with Confidentiality: The Next Frontier in Data Privacy
AI expert, Sanchit Shangari shared a LinkedIn post on Opaque’s role in the future of confidential AI and data privacy. “The current era of AI innovation is all about empowering organizations to leverage data responsibly and securely,” he wrote. “Modernizing data privacy opens up opportunities to innovate at scale, allowing AI to drive meaningful insights across departments, companies, and regions without compromise.”

Introducing AI Confidential, the Podcast That Explores the Future of AI and Data Sovereignty
In today’s rapidly evolving tech landscape, AI is at the heart of transformation across industries. From finance to high tech, leaders are racing to harness its power while navigating complex challenges like data sovereignty, regulatory compliance, and privacy. But what if there was a way to solve these problems without sacrificing innovation? On our new podcast, AI Confidential, host and Opaque CEO Aaron Fulkerson explores this question with visionaries from AMD, Accenture, Google Cloud, Microsoft Azure, NVIDIA, and others to uncover how confidential computing unlocks AI. Stay tuned for the inaugural season, launching next week. In the meantime, check out the podcast’s trailer for an early look.

Opaque at RiskStream to Discuss Multi-User Confidential Data
Tomorrow, Co-Founder and President of Opaque, Raluca Ada Popa will lead a conversation at Riskstream’s Q4 2024 education session—covering the transformative potential of multi-user confidential data applications in the insurance sector. This session will focus on emerging technologies that assist with privacy preservation and data obfuscation, showcasing tangible ways that the insurance industry can leverage these technologies, share data, and utilize AI/LLMs to improve efficiency. Raluca’s talk will feature insights from Opaque’s use case with RiskStream.

Opaque's AI Confidential Webinar on December 5th: Empowering a New Era of Data Privacy and Responsible AI
Organizations need to embrace Confidential AI solutions without compromising privacy of their most valuable asset—data—in this increasingly data-centric AI world. Stay tuned for a webinar on December 5th at 11 a.m. PT, hosted by Rishabh Poddar, Co-Founder & CTO of Opaque, and Giorgio Natili, VP and Head of Engineering. Learn how Opaque’s Confidential AI platform will shape the future of innovation and responsible AI.

Code for Thought

Worthwhile Reads

💼 Knowledge workers are increasingly turning to GenAI to tackle rising workloads. By automating tasks like content creation, programming, and customer service to enhance productivity, assistive AI tools are allowing workers to focus on strategic, higher-value work. A recent Thomson Reuters report reveals that knowledge workers will save as many as 12 hours per week by the end of this decade, with the help of these tools. In this context, as GenAI tools optimize workflows across industries and handle more sensitive data, confidential computing becomes essential in making this productivity shift both impactful and safe. 

🤖 Agentic AI is predicted to be the preferred AI. GenAI is evolving into a digital “agent” that can autonomously handle tasks like filling out forms or booking trips, streamlining workflows and saving time. While this emerging technology offers significant benefits, it raises questions about the balance between useful automation and overreliance on AI, as well as potential privacy concerns around AI handling sensitive tasks. As these AI agents manage increasingly sensitive data, the need for confidential AI solutions becomes clear. Opaque’s confidential AI agents set a new standard with privacy-preserving data pipelines, further safeguarding data sovereignty.

🏛️ The tech industry is preparing for a revamp as Donald Trump returns to the White House. On AI, President Elect Donald Trump has vowed to roll back an executive order from President Biden aimed at putting safety guardrails on the emerging technology, adopt a lighter approach to antitrust oversight, and rethink government investment in domestic chip production. It’s unclear who Trump will appoint to lead AI policy, but Vice President-elect J.D. Vance, with his Silicon Valley experience, could play a major role—potentially reshaping tech regulation and innovation in the U.S. for years to come. As the regulatory landscape changes and guardrails shift, a potential acceleration of AI adoption increases the need for solutions that prioritize data privacy, especially in high-stakes applications.

🧑‍💻 Employers look to AI tools to plug skills gaps and retain staff. Concerns about AI's disruptive effects on the workplace often dominate conversations about how the emerging technology will impact the labor market. For some employers and educators, AI is already helping to smooth out the acquisition of skills and improve existing jobs. Specifically, companies like Johnson & Johnson and DHL are leveraging AI to assess employee skills, identify gaps, and support internal hiring and training. However, experts warn of the high-stakes when handling large datasets—emphasizing the need for privacy-conscious solutions like confidential AI to make data-driven decisions and assess skills, without compromising sensitive information.