A major company just publicly committed to replacing its hierarchy with an intelligence layer. The architecture we modeled from economic theory now has a real-world proof of concept.

Every platform era has a piece of infrastructure that becomes obvious only after someone builds it. For agentic AI, that moment is now.

The replacement is not a better suite. It is a different logic entirely.

The boundary of the firm is determined by coordination cost. We argue that agentic AI induces a structural change in how coordination costs scale: in prior modular systems, integration cost grew with ...