At Oracle AI World last year, Simon de Montfort Walker was discussing how frontier models could only cover 60% of industry application needs, with the remaining 40% being a technical challenge. This year, sitting at the same event, his focus had shifted. De Montfort Walker, Executive Vice President of Industry Applications at Oracle, argued that the model is no longer the center of gravity in this ecosystem; the application is. Applications contain vast amounts of enterprise-level logic—authority matrices, usage rights, and deterministic input/output processes. Generic models reach 100% effectiveness on use cases precisely because they become users of this application logic, rather than replacements for it.
Consequently, Oracle is placing greater emphasis on its application business. Over the past year, the work has focused less on the models themselves and more on their runtime environment: what is running, where, who is running it, and within what boundaries it operates.
From Design to Runtime: Where the Risk Shifts
De Montfort Walker used a financial regulatory analogy to explain this shift. At a financial services summit in London last week, he described traditional compliance assurance:
"Regulator, here is how our system will work. Here is the input, here is the output, and here is why you should feel comfortable."
However, in living, breathing systems, while design time is important, runtime is the moment when certainty is truly required. If the runtime is not designed appropriately, the system may behave differently each time. Telemetry data, guardrails, and the collaboration of deterministic and probabilistic components are needed to ensure outcomes align with expectations.
The practical implication is that the bottleneck in enterprise AI governance is shifting from what the system looks like to who monitors it once it is running.
The Brigade System: When Building Becomes Cheap
De Montfort Walker noted that many functionalities have suddenly become inexpensive, making production applications easier to create and allowing smaller teams to be highly efficient. However, previous working methods are no longer effective; the process weight has shifted to non-development activities: How do we package this properly? How do we industrialize it?
He cited designers as a prime example. Previously, Oracle had excellent design teams focused on user interaction, but they had to package designs for others to code. Now, designers act as full-stack engineers—pairing with design partners, industry experts, and large token volumes to produce near-working applications. These are then handed off to another team responsible for architecture, hardening, and running through all security toolchains. This is the "brigade system": one team generates, while another handles architecture, hardening, and security.
Lessons from APEX
De Montfort Walker also acknowledged the risks. Oracle witnessed this scenario on its own low-code platform, APEX: when people who had never built applications suddenly could, "all of a sudden you had 30 applications that no one was using." When building is cheap, the business case and a common platform become significantly more important.