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Workplace enters AI’s third wave

Sibahle Malinga
By Sibahle Malinga, ITWeb senior news journalist.
Johannesburg, 26 Oct 2026
Maureen Costello, VP for UKI and SSA at Google Cloud.
Maureen Costello, VP for UKI and SSA at Google Cloud.

The workplace is entering a third phase of artificial intelligence (AI), in which autonomous agents will move beyond assisting employees, to executing complex tasks and coordinating work across business functions.

This is according to Maureen Costello, VP for UKI and SSA at Google Cloud, delivering a presentation, titled: “The greatest in the agentic era is believing you can buy transformation”, at the Singularity Summit South Africa 2026, last week.

Costello said businesses are moving away from using AI primarily to generate content and respond to prompts, towards systems capable of carrying out assignments over extended periods with less human intervention.

She explored the transition from AI as a tool we interact with, to AI as a colleague capable of completing complex tasks independently. She described three stages in the evolution of workplace technology.

The shift marks a change in how work is organised, with employees increasingly able to delegate entire outcomes to AI agents, rather than direct every step of a process.

“We are entering the third wave of digital work. Wave one was software as a tool − you click the button. Wave two was AI's assistance − you prompted it step-by-step,” she explained.

“The emerging agentic workplace allows AI systems to undertake work lasting from minutes to several days, including coordinating information and activities across different business applications.”

According to Costello, this change could reshape how employees interact with workplace technology, shifting their role from guiding individual actions, to overseeing delegated assignments.

Redesign workflows

Costello said the transition was already reflected in the growing use of AI agents, which can execute tasks in the background, rather than simply respond to employees’ requests.

She cited figures showing AI token volumes on Google’s platform increased 14-fold between February and August 2026, while an MIT Technology Review figure she presented showed AI agent adoption rising from 10% to 69% over two years.

She also cited a global ROI study in which 94% of leaders deploying agents reported measurable gains in cost-efficiency and revenue growth.

However, Costello warned that introducing AI tools without changing business processes would limit the returns organisations could achieve.

She cited Deloitte’s 2026 State of AI report, saying 84% of companies had deployed AI tools without redesigning their workflows.

According to the figures she presented, the 16% of organisations that redesigned their workflows achieved 40% higher returns on the same technology stack and were nearly five times more likely to drive top-line growth.

“It's not just the AI you buy; it's the organisation you build. You cannot bolt an exponential agentic engine onto a linear 20th century chart and expect magic.”

Costello said leaders needed to rethink the structure of work, instead of simply adding AI tools to existing processes. She urged executives to experiment with agents, communicate transparently with employees about changes and establish that protects data, ensures compliance and maintains organisational trust.

“AI adoption should be treated as a workforce and organisational transformation, not solely a technology investment. As systems take on more operational responsibilities, human judgement, empathy and trust will remain important to business performance.”

Africa's opportunity

Costello said African businesses had an opportunity to develop AI-native operations without having to untangle the same volume of legacy technology infrastructure as more mature markets.

She pointed to the continent’s young population and the potential to use AI to support economic development and improve services.

Examples presented included AI models supporting disease research, chest X-ray screening for tuberculosis and agricultural tools providing localised climate insights to farmers.

Costello also highlighted initiatives using AI to expand access to educational support in African languages.

Costello’s closing message to business leaders was that the next phase of AI would require fundamental changes to how organisations operate, rather than simply using technology to accelerate existing administrative processes.

“Please do not use the most powerful technology in history simply to accelerate outdated bureaucratic processes. Put your people in control and redesign your workflows from the ground up. Do not just adopt AI; rethink how your organisation operates,” she concluded.

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