In a remarkable shift towards a robust artificial intelligence framework, Dell Technologies has adopted a comprehensive AI strategy that prioritizes innovation and operational excellence. This change has significantly transformed Dell’s operational landscape, culminating in a revenue increase of nearly $30 billion over the past two years. The company’s evolution serves as a guiding blueprint for Chief Information Officers (CIOs) striving to develop infrastructure capable of supporting artificial intelligence and managing a sophisticated network of AI-driven agents.

At the heart of Dell’s ambitious strategy lies the principle of self-consumption; the company operates as an early adopter of the technologies it manufactures. This self-referential approach involves leveraging AI capabilities to drive its own operations while simultaneously crafting infrastructure to bolster AI applications for its clients.

John Roese, Dell’s Chief Technology Officer and Chief AI Officer, articulated this philosophy in a dialogue with Okta’s CEO Todd McKinnon, emphasizing that “You cannot do AI with the infrastructure of the past.” Roese noted that Dell made a pivotal decision to act as “customer zero,” an aggressive early adopter of AI technologies. He commented, “If we’re going to build for this new space, we sure as heck better understand what this space is as a firsthand participant in it.”

This proactive approach not only required a cultural shift within Dell but also necessitated a strategic reorganization, empowering Roese to assume dual responsibilities as both CTO and Chief AI Officer. This leadership structure was designed to drive AI adoption from the top down, as previous consensus-based initiatives had proven ineffective.

“Doing that was not trivial,” Roese explained. “It required us to lean in, to be bleeding edge in terms of thinking, but also very pragmatic about ensuring we didn’t compromise our core business.” The commitment to leading the charge in AI adoption has successfully catalyzed two years of double-digit revenue growth following a downturn in 2024, wherein revenues had plummeted nearly 15%. Roese noted that alongside revenue growth, operational costs have also decreased, a trend previously unseen for the company.

“Our revenue grew dramatically: approximately $10 billion in the first year and around $20 billion in the second, all while our costs went down,” Roese revealed. “We’ve never seen that happen. Typically, increased revenue is accompanied by rising costs. However, when we redesigned for the AI era—addressing people, processes, and technology—we were able to decouple those two variables.” This innovative approach has fundamentally altered the financial structure of Dell, enabling it to flourish in an evolving market landscape.

Central to Dell’s AI strategy is a concept termed the “two-year rule.” Roese explained that the company operates under the premise that all AI-related decisions should be revisited every two years, acknowledging the fast-paced nature of technological advancements. This rule reflects a dynamic approach, enabling Dell to adapt swiftly to the ever-changing landscape of AI.

In addition, Dell’s infrastructural architecture includes a critical element: the assignment of a managed digital identity to every AI agent employed by the company, regardless of whether these agents operate on internal or external platforms. Roese emphasized the importance of this control, stating, “I don’t care if the agent’s in a third party or a SaaS provider; I want control.” This control mechanism presents a fail-safe or “kill switch” for the company, allowing it to deactivate any agent misbehaving, even if it isn’t operating on Dell’s infrastructure.

Roese described the operational model of Dell as a dual-tiered system: an inner ring that Dell fully owns and manages, and an outer ring composed of third-party and SaaS platforms where Dell exerts control over its agents. The integration of identity and access management systems links these two tiers, providing seamless operational oversight.

Roese articulated a clear definition for what qualifies as an agent within the context of Dell’s strategy: “We believe agents are software systems capable of executing autonomous tasks.” He criticized vendor-provided agents operating behind APIs, suggesting they fall short of true agency, viewing them merely as tools. “The intelligence and reasoning,” he stated, “will occur on our side until they reveal the underlying capabilities.” This perspective encourages an active approach to AI integration, promoting a proactive rather than reactive stance in technology adaptation.

For CIOs navigating this evolving landscape, Roese’s overarching strategy provides a compelling framework for integrating AI agents within existing infrastructures. He urges IT teams to reassess their operational models, as many infrastructures were established prior to the advent of generative AI. “If you have an existing infrastructure and IT strategy, this is a very good time to pause,” Roese advised. “It’s a great moment to stop and rethink every aspect—from identity and access control to data telemetry and infrastructure choices.” This holistic reevaluation, although daunting, presents an exciting opportunity for transformative growth.