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AI NewsThe End of AI Subsidies is Forcing Enterprises to Rethink AI Agent Economics
4:44 PM IST · July 17, 2026
Progress Software’s Chief AI Officer Ed Keisling says enterprises are reassessing AI deployments as discounted frontier models fade, exposing the true cost of running AI agents and accelerating a shift toward smaller, cheaper models.
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1Password has launched a new integration for Anthropic's Claude AI that allows the chatbot to sign in to websites using credentials stored in a user's 1Password vault without exposing passwords or one-time passcodes. The feature, called 1Password for Claude, is designed for browser-based AI tasks that require access to accounts. Alongside the integration, the company has also introduced Agentic Mode, a browser extension feature that limits AI agents to using only the credentials approved by users for a specific task.
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Progress Software’s Chief AI Officer Ed Keisling says enterprises are reassessing AI deployments as discounted frontier models fade, exposing the true cost of running AI agents and accelerating a shift toward smaller, cheaper models.
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CEO Srini Pallia said AI is creating new spending opportunities even as it compresses traditional IT budgets.
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The centre will exit its investments as companies mature, allowing founders to retain long-term control.
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