By Tony De Bos, Vice President, Governance, Risk and Compliance & Responsible AI at Kyndryl
Enterprises are racing to harness the transformative power of agentic AI — autonomous systems that can learn, adapt and drive business value across functions from finance and IT to marketing and supply chain. But the journey from innovation to real-world impact is fraught with challenges. According to the 2025 Kyndryl Readiness Report, a staggering 57% of agentic AI innovation efforts stall after the proof-of-concept phase.
Barriers to AI adoption
Why do so many AI initiatives fail? There are three critical barriers: complexity of technology environments, regulatory compliance and lack of coordination between business and technology teams. So, while generic AI tools may shine in demos, most crumble under the demands of real workflows. The result is AI that’s present but not transformative.
Organizations must confront these challenges head-on to close the gap between technology adoption and business transformation. They must establish robust AI trust and governance platforms to maximize operational efficiency and achieve positive business outcomes. These platforms help realize the true potential of agentic AI by advancing security, compliance and transparency across business processes.
A foundation of trust
Kyndryl’s new Agentic AI Digital Trust enables organizations to test, certify and monitor AI agents in risk-free virtual environments prior to deployment. By using Microsoft Fabric IQ, Microsoft Fabric Digital Twin Builder and Microsoft Fabric Real-Time Intelligence, enterprises can simulate agent behavior, stress-test various scenarios — and optimize reliability — minimizing business disruption.
Microsoft Fabric IQ serves as a foundational component of our Agentic AI Digital Trust service, enabling organizations to define and model business processes, assets and relationships across their digital ecosystem. This approach allows them to:
- Build, test, tune and secure AI agents before they enter production;
- Simulate agent behavior to identify vulnerabilities and compliance gaps;
- Demonstrate adherence to regulatory standards (such as the EU AI Act, NIST and ISO) with clear evidence;
- Generate audit trails and dashboards for transparent oversight; and
- Provide business leaders and regulators with proof of safe, explainable AI.
This combination of simulation, oversight and compliance tools helps organizations gain confidence in their AI deployments, while supporting innovation and operational resilience.
Benefits of digital twin simulation
Digital twins — virtual representations of real-world data processing environments — offer several practical advantages for organizations working with agentic AI. Microsoft Fabric Digital Twin Builder enables agent security and compliance testing in a controlled setting. It also provides visibility into agent interactions and the opportunity to stress-test operational scenarios before live deployment. Organizations can optimize reliability and reduce operational risk, and generate evidence packs that support stakeholder trust and transparency.
This approach supports enterprises in addressing a variety of operational challenges. Analyzing business process interdependencies can help organizations streamline workflows and identify bottlenecks. And with the ability to simulate potential attack scenarios, operators can validate security and identity access controls to help reduce the risk of breaches in production environments. Digital twins can also enhance performance and capacity planning — helping to enable cost optimization and scalability. Additionally, organizations can use digital twins to test resilience and recovery strategies, while digital impact simulation helps organizations forecast system changes and ongoing innovation.
The importance of centralized governance and compliance
Kyndryl Agentic AI Digital Trust centralizes governance and runtime protection for AI agents across hybrid and multi-cloud environments. It serves as the control plane for secure, transparent, and compliant adoption of agentic AI — comprehensively governing, managing, and scaling enterprise agents as they work alongside people. By training and certifying agents in digital twin environments, Kyndryl delivers demonstrable responsible governance. This builds unshakable customer confidence as organizations fully embrace AI-driven transformation.
As organizations continue to explore the potential of agentic AI, the need for secure, transparent and compliant adoption has never been greater. Kyndryl, in partnership with its alliances, is closing the trust gap — operationalizing real-time governance, security and compliance to help make AI safe, explainable and aligned with our customers’ business goals.