PALO IT is a technology services company that helps organisations develop and implement digital solutions. The widespread adoption of generative AI created both an opportunity to improve software delivery and a challenge to the company’s existing business model, which was based largely on selling human delivery time.

In response, PALO IT launched a company-wide transformation to develop an AI-enabled operating model. It trained its workforce in prompt engineering, AI tools and new delivery methods, and created Gen-e2™, a methodology and set of toolkits for using generative and agentic AI in enterprise software development.

The company also redesigned its workforce structure, delivery approach and value proposition around outcomes rather than effort. It focused its resources on selected markets and clients, while developing partnerships across the AI ecosystem.

The new model has supported faster delivery and productivity improvements in selected client engagements. PALO IT’s experience illustrates how technology companies can respond to AI disruption by combining workforce development, new methodologies and changes to their operating and commercial models.