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The best Nintendo Switch controllers to buy right now

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The Nintendo Switch 2 is here, but we can’t just forget about the original Switch. We’ve still got love for the console, and its many millions of owners, so we’ll keep recommending the best controllers for the Switch right here.

Now, you may already know that the best Switch controllers aren’t the ones that come with the console. The removable Joy-Cons included with all non-Lite Switch consoles are convenient, given they can be detached for wireless use for up to two players with a pair, but their tiny shape doesn’t do them many favors. They aren’t comfortable to hold for long gaming sessions — especially if you have large hands. And, you’re definitely not alone if you’ve experienced Joy-Con drift.

In this buying guide, we’ll focus on wireless controllers that are both comfortable and reliable, as well as a few options that come with unique features designed that may match your unique play style. We’re not covering wired controllers that plug into the Switch’s dock here, as they’re mostly similar to each other and don’t offer substantial savings in many cases. (PowerA and PDP make decent ones that will do in a pinch, but they’re very basic. Unless you detest recharging your controllers, it makes more sense to go wireless.)

Also, if you buy a third-party wireless controller (as in, one not made by Nintendo), it likely won’t support HD rumble, motion controls, NFC for Amiibo, or be able to wake the Switch remotely. However, there are exceptions, which we feature below.

If you’re playing your Switch while docked, it’s hard to go wrong with the official Nintendo Switch Pro Controller. It’s the only traditional gamepad that includes every feature mentioned above, and it’s one of the most satisfying controllers to use that we’ve tested. The GuliKit KingKong 3 Pro and Max, meanwhile, offer more exhaustive customization, while the Hori Split Pad Pro is a Joy-Con upgrade for those who prefer to play in handheld mode. Then there’s 8BitDo’s PC-friendly Ultimate Bluetooth Controller and DualShock-esque Pro 2 controller, both of which are worth checking out.

A photo of a Nintendo Switch Pro controller.

$70

The Switch Pro Controller remains tough to beat, even to this day. It offers an unmatched set of features — including motion controls, NFC, and HD rumble — and is one of the most comfy gamepads available.

Nintendo Switch console shown with Hori’s Split Pad Compact controllers plugged in.Nintendo Switch console shown with Hori’s Split Pad Compact controllers plugged in.

$46

Much like the Split Pad Pro, the Compact version is bigger than the standard Joy-Con, making the Switch more comfortable to hold. The Compact, however, is smaller and more colorful.

What we’re looking for

We test Nintendo Switch controllers by playing with them with a standard grip — the same way most gamers do. We test how easy they are to connect to the Switch, as well as how reliably they stay connected. Then, we jump into a game. Since some controllers are better suited to specific genres than others, we try a variety of titles, including fighting games like Super Smash Bros. Ultimate, racers like Mario Kart 8 Deluxe, and shooters like Overwatch 2. We pay attention to how everything feels — buttons, triggers, analog sticks, the D-pad — noting whether anything seems off.

Does it support Bluetooth? Can you use it in wired mode? Are there alternate wireless modes, such as 2.4GHz? Ideally (but not always), a controller we recommend is compatible with other platforms, too.

Do the buttons, sticks, and triggers feel good and sturdy? Does the controller have a satisfying, well-balanced weight? Does it use premium materials for the casing and grips? Any connection issues or glitches?

Are there rear-facing buttons? Does it support macro settings? Can you remap buttons? Is there software support for tweaking controller settings? Does it have interchangeable buttons or sticks? Can you fine-tune vibration and sensitivity?

Is it priced fairly? Are the features and quality worth the money?

The best Nintendo Switch controller for TV mode

The Nintendo Switch Pro Controller sitting flat on a two-colored backdrop.The Nintendo Switch Pro Controller sitting flat on a two-colored backdrop.

$70

The Good

  • High quality, sturdy build
  • Supports HD rumble, gyro motion, and NFC
  • Long battery life
  • Mobile and PC compatibility

Supported platforms: Nintendo Switch 2, Nintendo Switch, PC, Steam Deck, mobile, Apple TV / Connectivity: Bluetooth, wired / Connector type: USB-C / Mappable rear buttons: No / Software customization: No / Rumble: Yes, HD / NFC: Yes / Motion: Yes / Power: Built-in rechargeable / Console Wakeup: Yes (but not the Switch 2)

Ever since the Switch launched, Nintendo’s first-party Pro controller has been the best gamepad for the console. In many ways, it rivals the standard models from Sony and Microsoft in terms of comfort and build quality. And, it’s compatible with the Switch 2 (although it can’t wake the new console from sleep — you’ll need a Switch 2 Pro Controller for that).

Aside from the Joy-Cons, the Switch Pro Controller is the only wireless option that includes HD rumble, gyroscopic movement support, and an NFC reader for Amiibo cards and figurines. It’s one of a few controllers we’ve tested (aside from the Joy-Con and 8BitDo’s Ultimate series) that can power on the Switch without being plugged into it. The gamepad is built like a tank, and its battery life is so good that it sometimes seems like it’ll never run out. Nintendo says that it lasts around 40 hours per charge, so it’ll likely take casual gamers a long time to run down the battery.

A Nintendo Switch Pro controller on a textured surface.

Photo: James Bareham / The Verge

The buttons and triggers have a satisfying bounce, while its directional pad is responsive and clicky enough to satisfy retro gamers. The controller charges via USB-C, just like the Switch, and it’s compatible with a slew of other platforms you might game on, aside from Xbox and PlayStation.

Given the high price, we wish that it had other features, like programmable buttons or a 3.5mm headphone jack for audio, even if wireless audio transmission from the Switch to a controller isn’t possible. If you really want the ability to listen via wired headphones without connecting your controller with a wire, you’ll need to get the Switch 2 and its Switch 2 Pro controller.

The best Switch controller for handheld mode

$50

Hori’s Joy-Con alternatives offer a roomier, comfier grip for your Nintendo Switch in handheld mode without the added bulk of its Split Pad Pro version. They also feature two customizable rear buttons and are offered in multiple colors and designs but do not support rumble or Amiibo figures.

Supported Platforms: Switch, Switch OLED / Connectivity: Wired / Connector type: Joy-Con slots / Mappable rear buttons: Yes / Software customization: No / Rumble: No / NFC: No / Motion: No / Power: via Joy-Con slots / Console Wakeup: No

I’m sure there are some people who enjoy using Joy-Con controllers, but kids and small-handed folks aside, most people probably wouldn’t say they’re the most comfortable option. If you struggle with hand pain when you use the Switch, that’s where the Hori Split Pad Compact comes in.

The Split Pad Compact is a — you guessed it — a more compact alternative to the Split Pad Pro, which has unfortunately become tougher to find. Similarly, it comes in a variety of colorways, and it adds comfort to using the Switch in handheld mode. One half slides into each side of the Switch console like Joy-Cons, but unlike Nintendo’s default controllers, Hori’s gamepad features big, easy-to-reach buttons and generously sized triggers and analog sticks, all of which feel great in play. It also provides more grip than Joy-Con do, which is particularly useful for people who need to get a better handle on the console for fast gameplay or stay comfy over longer play sessions.

Nintendo Switch console shown with Hori’s Split Pad Compact controllers plugged in.

The Split Pad Compact fits in your Switch’s Joy-Con slots and doubles as a standalone controller with the optional attachment set.
Photo by Cameron Faulkner / The Verge

The Split Pad Compact doesn’t have batteries or sensors — or support for rumble, motion, IR, or NFC — so it’s completely useless when detached from the Switch. It’s only for handheld mode unless you purchase the Split Pad Compact Attachment that turns it into a wired controller. We don’t recommend most people go that route since the attachment usually (but not always) costs more than a Switch Pro Controller, which is a shame considering it doesn’t add any of the aforementioned features. It does add a 3.5mm headphone jack, however.

Read our Hori Split Pad Compact impressions.

The best Xbox-style controller for the Switch

GuliKit KingKong 3 Max controller on wooden deskGuliKit KingKong 3 Max controller on wooden desk

$45

The Good

  • Great ergonomics with Xbox-style shape
  • Deep customization options
  • Hall effect sticks and triggers
  • Supports HD rumble, NFC, and motion
  • Wide platform compatibility

The Bad

  • Lacks companion app for customizations

Supported Platforms: Switch, PC, Steam Deck, mobile, Apple TV / Connectivity: Bluetooth, wired / Connector type: USB-C / Mappable rear buttons: Yes / Software customization: No / Rumble: Yes / NFC: Yes / Motion: Yes / Power: Built-in rechargeable / Console Wakeup: Yes

On the surface, the GuliKit KingKong 3 Pro and KingKong 3 Max are similar to the last-gen models they replaced, which took design cues from Microsoft’s standard Xbox controller but rivaled the Switch Pro Controller in terms of build quality and features. We tested them on the Nintendo Switch, PC, and mobile, but you can also use them with other Bluetooth devices, including the Steam Deck and Apple TV 4K.

But there are several notable improvements and additions if you scratch deeper. They each have Hall effect dual-mode triggers (both can switch between analog and digital, but the KK3 Max exclusively adds physical trigger stops), in addition to RGB LED-surrounded Hall effect analog sticks. It should make them virtually impervious to drifting and waning responsiveness, as iFixit explains here. They each have GuliKit’s powerful magnetic vibration motors with two intensity levels and three distinct modes (including the Switch’s HD rumble). You can even customize the hot-swappable face buttons to match your preferred platform, and to the delight of tournament players, you can play with a 1,000Hz polling rate for reduced input lag on PC (wired or wireless via a dongle).

Additionally, both controllers feature detachable rear-facing paddles. You get two metal moon-shaped paddles with the KK3 Pro that protrude further from the controller than the extra four you get with the KK3 Max, which are longer and curved to match the contour of the controllers’ rear grips. The latter are similar to the paddles on the Xbox Elite Series 2 and even borrow the same installation technique — just push them into the designated holes on the back. They require a lot more force, though they won’t easily dislodge.

Photo of Gulikit KingKong 3 Pro and KingKong 3 Max

GuliKit’s newest Switch controllers offer ample customization.
Photo: Quentyn Kennemer / The Verge

The longer paddles are comfortably reachable once installed, but if you have larger hands, you may need to make adjustments for the shorter variety. They only need a light tap, but since they occupy the space where your fingers usually rest, it can lead to increased misfires while gaming. You can map each back button to emulate any other button on the controller — including the rear triggers — but you can’t configure them to execute combo presses or macros.

In summary, the KK3 Pro and KK3 Max offer a lot for the money. In fact, there may be no better option for interoperability and value in a single multiplatform controller right now. If we’re nitpicking, our biggest gripe is that GuliKit still hasn’t created an app to manage all of its settings more easily.

The best Switch controller that’s also great for PC and Steam Deck

Top-down shot of 8BitDo Ultimate Controller on an orange and yellow background. The controller has an asymmetric joystick design, like an Xbox or Switch Pro controller, and it’s black, with white legends on the A B X Y buttons.Top-down shot of 8BitDo Ultimate Controller on an orange and yellow background. The controller has an asymmetric joystick design, like an Xbox or Switch Pro controller, and it’s black, with white legends on the A B X Y buttons.

$50

The Good

  • Ergonomically similar to the Switch Pro controller
  • Uses GuliKit Hall effect sticks
  • Wirelessly compatible with mobile and PC
  • Shake to wake Switch

The Bad

  • Lacks NFC
  • Battery life falls short of Nintendo’s official gamepad

Supported Platforms: Switch, Switch 2 (with update), PC, Steam Deck, mobile, Apple TV / Connectivity: 2.4GHz, Bluetooth, wired / Connector type: USB-C / Mappable rear buttons: Yes / Software customization: Yes / Rumble: Yes / NFC: No / Motion: Yes / Power: Built-in rechargeable / Console Wakeup: Yes

8BitDo’s Ultimate Bluetooth Controller feels like a Switch Pro Controller in shape, with a similarly short grip profile that larger hands may not prefer. Both share Switch and Windows PC support, but 8BitDo gets a leg up with full Steam Deck compatibility. Its haptics are decent but not as good as Nintendo’s, and it’s missing Amiibo support, though it does feature customizable back paddles and motion controls — along with a hidden trick that allows you to wake a docked Switch by giving the controller a little shake.

It also comes with a charging dock, which stores the 2.4GHz dongle when not in use. The included dock is handy for charging the battery. Speaking of, it typically lasts around 22 hours, which is still pretty generous but comes well short of the 40-hour mark set by Nintendo’s official controller.

The Ultimate controller comes in several variants, but we recommend the Bluetooth model over the 2.4GHz or wired options for a couple of reasons. One because it’s the only version of the Ultimate that’s compatible with the Switch. Plus, it includes both 2.4GHz connectivity and GuliKit Hall effect sticks, which the 2.4GHz-only version lacks. The analog sticks offer just the right amount of resistance and sport a comfortable concave top, but they’re just a tad short on the sides. All of the buttons offer great travel, though, and the analog triggers have a satisfying amount of resistance when pulled.

A hand picking up the white 8BitDo Ultimate Bluetooth Controller from its charging cradle.

The 8BitDo Ultimate is a terrific alternative to Nintendo’s official pro controller.
Image: 8BitDo

As for tweaks, you can customize button mapping profiles, macros, vibration intensity, and stick and trigger sensitivity using the Ultimate Software app on mobile or PC. The controller has a dedicated button that lets you swap between three profiles on the fly, plus an extra turbo button you can either reconfigure or remap. When it comes to Switch controllers, 8BitDo sets the standard for the breadth of these options and how to access them, which is another reason it’s high on our list.

A well-rounded Switch controller that looks like a DualShock

The 8BitDo Pro 2 wireless controller for the Nintendo Switch and other platforms sitting on a two-toned backdrop.The 8BitDo Pro 2 wireless controller for the Nintendo Switch and other platforms sitting on a two-toned backdrop.

$42

The Good

  • Nostalgic design and layout
  • Hall effect analog sticks
  • Remappable buttons, including back paddles
  • Available in a variety of translucent colors

The Bad

  • Lacks NFC
  • Larger hands may feel cramped

Supported Platforms: Switch, Switch 2 (with update) PC, Steam Deck, mobile, Apple TV, Raspberry Pi / Connectivity: Bluetooth, wired / Connector type: USB-C / Mappable rear buttons: Yes / Software customization: Yes / Rumble: Yes / NFC: No / Motion: Yes / Power: Built-in rechargeable / Console Wakeup: No

The 8BitDo Pro 2 is another great option with Hall effect sticks for the Nintendo Switch, especially if your hands are happiest with a PlayStation-style controller layout. The Pro 2 has a comfortable grip, a crisper D-pad than the Switch Pro Controller, and two easy-to-press paddle buttons on the underside.

It has rumble support (though not HD rumble) and motion control for games like The Legend of Zelda: Tears of the Kingdom and Overwatch 2, both of which allow for gyroscopic aiming. PlayStation gamers will also appreciate that the left analog stick is located toward the bottom — just like on Sony’s controllers — rather than above the D-pad as on the Switch Pro.

The new transparent blue and green 8BitDo Pro 2 controllers on a wooden desk against a brick wall.

You can get the 8BitDo Pro 2 in a variety of fun styles.
Image: 8BitDo

With 8BitDo’s Ultimate software on a mobile device or a Windows computer, you can customize the Pro 2’s button mapping and the sensitivity of its triggers and analog sticks. You can even save up to three control scheme profiles and cycle through them with a button located between the analog sticks.

On its rear, there’s a switch that lets it toggle between Nintendo Switch, X-input for PC, DirectInput, and macOS modes, each with its own control customizations and Bluetooth profile. This controller offers a lot for around $40 (or slightly more if you want one of the incredibly cool translucent blue, purple, or green editions).

Read our 8BitDo Pro 2 review.

An adapter that lets you use your own controllers

A Nintendo Switch tablet sitting inside of its dock. Next to it is Sony’s DualShock 4 controller, which can be used with the Switch by way of the 8BitDo USB Adapter.A Nintendo Switch tablet sitting inside of its dock. Next to it is Sony’s DualShock 4 controller, which can be used with the Switch by way of the 8BitDo USB Adapter.

$19

The Good

  • Inexpensive
  • Allows you to use any Bluetooth controller

The Bad

  • Requires sourcing your own controller
  • Only works in docked mode

There are many other devices that allow you to use third-party controllers, but 8BitDo’s might be the best value. Instead of spending $70 on multiple Switch Pro Controllers, the $19.99 8BitDo Wireless Bluetooth USB Adapter 2 lets you turn a Bluetooth controller you already own into a wireless Switch (or Switch 2) controller. It plugs into your Switch dock and supports a wide variety of models, from the latest Xbox and DualSense controllers to last-gen gamepads for the Wii and PlayStation 3. (Note: the first-gen model can’t connect to most Xbox Bluetooth controllers due to a Bluetooth incompatibility, so make sure you get the latest model.)

To our surprise, the PS5 DualSense controller we tested it with worked incredibly well, with better-than-average rumble and more responsive motion controls than many dedicated Switch controllers offer. What’s more, so long as you’re using one of the newer Xbox Series X or S controllers, an Xbox One Bluetooth controller, a DualSense, a DualShock 4, or the Switch Pro Controller, you can customize their button mapping, analog stick sensitivity, and more within 8BitDo’s computer and mobile app.

Photo of two 8Bitdo USB Wireless Adapter 2 units on wooden table

8BitDo’s dongle supports most Bluetooth controllers, including official Xbox and PlayStation gamepads.
Image: 8BitDo

8BitDo has an extensive support page that lists the steps required to set up your specific controller, as well as which features of those controllers it supports. That said, it’s best if you know the Switch’s button layout by heart if you plan to use either a PlayStation or Xbox controller with this adapter, as the layout on your controller will not match the on-screen prompts in games.

If you already have a controller you really like and don’t mind jumping through a few small hoops to connect it, 8BitDo’s affordable adapter deserves a spot in your entertainment center. If you plan to use more than one third-party controller at a time, you’ll need an adapter for each controller (and a USB hub), but if you have a lot of controllers sitting around, it might be worth it.

Other Switch controllers we tested

Nitro Deck / Nitro Deck Plus

We like CRKD’s Nitro Deck around here. It’s a cradle-style controller that holds the Switch between a pair of Hall effect sticks, outfitting it with a standard array of face buttons, four programmable back buttons, turbo functionality, gyro motion controls, and rumble. It has passthrough charging, though not passthrough video, which would allow it to double as a dock for TV gameplay. The step-up Nitro Deck Plus adds said functionality (with a USB-C to HDMI adapter), along with Bluetooth connectivity and adjustable vibration intensity / analog sensitivity. We’ve found these to be notable improvements, but we wish the passthrough solution was more elegant and that CRKD could solve the ergonomics (particularly on the right side, where the analog and button placement can cause discomfort).

We recently tested the GameSir T4 Cyclone Pro ($49.99) for consideration. It offers a few of the same functions as the GuliKit KingKong 3 — including remappable buttons, Hall effect sticks, and two distinct macro buttons — along with dedicated vibration motors in the triggers, which is something the GuliKit doesn’t match. That said, it falls just short due to mushy-feeling buttons. GameSir considers the extra padding under the buttons a feature that makes the impact softer, but we felt it takes away from the experience. Also, although it’s perfectly usable with the Switch, the Pro’s button labeling takes after Microsoft’s, which may not be ideal for those who have trouble memorizing inputs. We also found resyncing with the Switch to be a chore after switching from a mobile device or a Windows PC.

PowerA GameCube Style Wireless Controller

We also recently tried several wireless PowerA controllers, including the GameCube Style Wireless Controller ($59.99) and a Pikachu-themed version of the standard PowerA Enhanced Wireless ($44.99). We like the fun design of PowerA’s controllers, but they don’t live up to the quality of the models we recommend above, which is a shame considering some cost nearly as much. The GameCube-style wireless controller is a pretty faithful recreation of the original if you fancy a pure Super Smash Bros. experience, but it’s barebones with no rumble, NFC, or IR. It’s an easy way to get the old-school feeling back if you don’t already have a Bluetooth-based alternative to use with 8BitDo’s USB Adapter 2.

We’ll be testing both the 8BitDo Ultimate 2 and the Pro 3 controllers, which are compatible with the Switch and Switch 2, among other platforms. We’re also getting our hands on the EasySMX S10 controller.

Update, July 24th: Updated to reflect current pricing / availability. We’ve swapped the Split Pro Compact in as the best controller for handheld mode, swapping out the bulkier Split Pad Pro that’s tougher to find in stock at the moment. Also, we’ve added a mention of the 8BitDo Ultimate 2 and Pro 3 controllers we intend to test soon.

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Artificial Intelligence

Ronnie Sheth, CEO, SENEN Group: Why now is the time for enterprise AI to ‘get practical'

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Before you set sail on your AI journey, always check the state of your data – because if there is one thing likely to sink your ship, it is data quality.

Gartner estimates that poor data quality costs organisations an average of $12.9 million each year in wasted resources and lost opportunities. That’s the bad news. The good news is that organisations are increasingly understanding the importance of their data quality – and less likely to fall into this trap.

That’s the view of Ronnie Sheth, CEO of AI strategy, execution and governance firm SENEN Group. The company focuses on data and AI advisory, operationalisation and literacy, and Sheth notes she has been in the data and AI space ‘ever since [she] was a corporate baby’, so there is plenty of real-world experience behind the viewpoint. There is also plenty of success; Sheth notes that her company has a 99.99% client repeat rate.

“If I were to be very practical, the one thing I’ve noticed is companies jump into adopting AI before they’re ready,” says Sheth. Companies, she notes, will have an executive direction insisting they adopt AI, but without a blueprint or roadmap to accompany it. The result may be impressive user numbers, but with no measurable outcome to back anything up.

Even as recently as 2024, Sheth saw many organisations struggling because their data was ‘nowhere where it needed to be.’ “Not even close,” she adds. Now, the conversation has turned more practical and strategic. Companies are realising this, and coming to SENEN Group initially to get help with their data, rather than wanting to adopt AI immediately.

“When companies like that come to us, the first course of order is really fixing their data,” says Sheth. “The next course of order is getting to their AI model. They are building a strong foundation for any AI initiative that comes after that.

“Once they fix their data, they can build as many AI models as they want, and they can have as many AI solutions as they want, and they will get accurate outputs because now they have a strong foundation,” Sheth adds.

With breadth and depth in expertise, SENEN Group allows organisations to right their course. Sheth notes the example of one customer who came to them wanting a data governance initiative. Ultimately, it was the data strategy which was needed – the why and how, the outcomes of what they were trying to do with their data – before adding in governance and providing a roadmap for an operating model. “They’ve moved from raw data to descriptive analytics, moving into predictive analytics, and now we’re actually setting up an AI strategy for them,” says Sheth.

It is this attitude and requirement for practical initiatives which will be the cornerstone of Sheth’s discussion at AI & Big Data Expo Global in London this week. “Now would be the time to get practical with AI, especially enterprise AI adoption, and not think about ‘look, we’re going to innovate, we’re going to do pilots, we’re going to experiment,’” says Sheth. “Now is not the time to do that. Now is the time to get practical, to get AI to value. This is the year to do that in the enterprise.”

Watch the full video conversation with Ronnie Sheth below:

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Apptio: Why scaling intelligent automation requires financial rigour

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Greg Holmes, Field CTO for EMEA at Apptio, an IBM company, argues that successfully scaling intelligent automation requires financial rigour.

The “build it and they will come” model of technology adoption often leaves a hole in the budget when applied to automation. Executives frequently find that successful pilot programmes do not translate into sustainable enterprise-wide deployments because initial financial modelling ignored the realities of production scaling.

“When we integrate FinOps capabilities with automation, we’re looking at a change from being very reactive on cost management to being very proactive around value engineering,” says Holmes.

This shifts the assessment criteria for technical leaders. Rather than waiting “months or years to assess whether things are getting value,” engineering teams can track resource consumption – such as cost per transaction or API call – “straight from the beginning.”

The unit economics of scaling intelligent automation

Innovation projects face a high mortality rate. Holmes notes that around 80 percent of new innovation projects fail, often because financial opacity during the pilot phase masks future liabilities.

“If a pilot demonstrates that automating a process saves, say, 100 hours a month, leadership thinks that’s really successful,” says Holmes. “But what it fails to track is that the pilot sometimes is running on over-provisioned infrastructure, so it looks like it performs really well. But you wouldn’t over-provision to that degree during a real production rollout.”

Moving that workload to production changes the calculus. The requirements for compute, storage, and data transfer increase. “API calls can multiply, exceptions and edge cases appear at volume that might have been out of scope for the pilot phase, and then support overheads just grow as well,” he adds.

To prevent this, organisations must track the marginal cost at scale. This involves monitoring unit economics, such as the cost per customer served or cost per transaction. If the cost per customer increases as the customer base grows, the business model is flawed.

Conversely, effective scaling should see these unit costs decrease. Holmes cites a case study from Liberty Mutual where the insurer was able to find around $2.5 million of savings by bringing in consumption metrics and “not just looking at labour hours that they were saving.”

However, financial accountability cannot sit solely with the finance department. Holmes advocates for putting governance “back in the hands of the developers into their development tools and workloads.”

Integration with infrastructure-as-code tools like HashiCorp Terraform and GitHub allows organisations to enforce policies during deployment. Teams can spin up resources programmatically with immediate cost estimates.

“Rather than deploying things and then fixing them up, which gets into the whole whack-a-mole kind of problem,” Holmes explains, companies can verify they are “deploying the right things at the right time.”

When scaling intelligent automation, tension often simmers between the CFO, who focuses on return on investment, and the Head of Automation, who tracks operational metrics like hours saved.

“This translation challenge is precisely what TBM (Technology Business Management) and Apptio are designed to solve,” says Holmes. “It’s having a common language between technology and finance and with the business.”

The TBM taxonomy provides a standardised framework to reconcile these views. It maps technical resources (such as compute, storage, and labour) into IT towers and further up to business capabilities. This structure translates technical inputs into business outputs.

“I don’t necessarily know what goes into all the IT layers underneath it,” Holmes says, describing the business user’s perspective. “But because we’ve got this taxonomy, I can get a detailed bill that tells me about my service consumption and precisely which costs are driving  it to be more expensive as I consume more.”

Addressing legacy debt and budgeting for the long-term

Organisations burdened by legacy ERP systems face a binary choice: automation as a patch, or as a bridge to modernisation. Holmes warns that if a company is “just trying to mask inefficient processes and not redesign them,” they are merely “building up more technical debt.”

A total cost of ownership (TCO) approach helps determine the correct strategy. The Commonwealth Bank of Australia utilised a TCO model across 2,000 different applications – of various maturity stages – to assess their full lifecycle costs. This analysis included hidden costs such as infrastructure, labour, and the engineering time required to keep automation running.

“Just because of something’s legacy doesn’t mean you have to retire it,” says Holmes. “Some of those legacy systems are worth maintaining just because the value is so good.”

In other cases, calculating the cost of the automation wrappers required to keep an old system functional reveals a different reality. “Sometimes when you add up the TCO approach, and you’re including all these automation layers around it, you suddenly realise, the real cost of keeping that old system alive is not just the old system, it’s those extra layers,” Holmes argues.

Avoiding sticker shock requires a budgeting strategy that balances variable costs with long-term commitments. While variable costs (OPEX) offer flexibility, they can fluctuate wildly based on demand and engineering efficiency.

Holmes advises that longer-term visibility enables better investment decisions. Committing to specific technologies or platforms over a multi-year horizon allows organisations to negotiate economies of scale and standardise architecture.

“Because you’ve made those longer term commitments and you’ve standardised on different platforms and things like that, it makes it easier to build the right thing out for the long term,” Holmes says.

Combining tight management of variable costs with strategic commitments supports enterprises in scaling intelligent automation without the volatility that often derails transformation.

IBM is a key sponsor of this year’s Intelligent Automation Conference Global in London on 4-5 February 2026. Greg Holmes and other experts will be sharing their insights during the event. Be sure to check out the day one panel session, Scaling Intelligent Automation Successfully: Frameworks, Risks, and Real-World Lessons, to hear more from Holmes and swing by IBM’s booth at stand #362.

See also: Klarna backs Google UCP to power AI agent payments

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FedEx tests how far AI can go in tracking and returns management

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FedEx is using AI to change how package tracking and returns work for large enterprise shippers. For companies moving high volumes of goods, tracking no longer ends when a package leaves the warehouse. Customers expect real-time updates, flexible delivery options, and returns that do not turn into support tickets or delays.

That pressure is pushing logistics firms to rethink how tracking and returns operate at scale, especially across complex supply chains.

This is where artificial intelligence is starting to move from pilot projects into daily operations.

FedEx plans to roll out AI-powered tracking and returns tools designed for enterprise shippers, according to a report by PYMNTS. The tools are aimed at automating routine customer service tasks, improving visibility into shipments, and reducing friction when packages need to be rerouted or sent back.

Rather than focusing on consumer-facing chatbots, the effort centres on operational workflows that sit behind the scenes. These are the systems enterprise customers rely on to manage exceptions, returns, and delivery changes without manual intervention.

How FedEx is applying AI to package tracking

Traditional tracking systems tell customers where a package is and when it might arrive. AI-powered tracking takes a step further by utilising historical delivery data, traffic patterns, weather conditions, and network constraints to flag potential delays before they happen.

According to the PYMNTS report, FedEx’s AI tools are designed to help enterprise shippers anticipate issues earlier in the delivery process. Instead of reacting to missed delivery windows, shippers may be able to reroute packages or notify customers ahead of time.

For businesses that ship thousands of parcels per day, that shift matters. Small improvements in prediction accuracy can reduce support calls, lower refund rates, and improve customer trust, particularly in retail, healthcare, and manufacturing supply chains.

This approach also reflects a broader trend in enterprise software, in which AI is being embedded into existing systems rather than introduced as standalone tools. The goal is not to replace logistics teams, but to minimise the number of manual decisions they need to make.

Returns as an operational problem, not a customer issue

Returns are one of the most expensive parts of logistics. For enterprise shippers, particularly those in e-commerce, returns affect warehouse capacity, inventory planning, and transportation costs.

According to PYMNTS, FedEx’s AI-enabled returns tools aim to automate parts of the returns process, including label generation, routing decisions, and status updates. Companies that use AI to determine the most efficient return path may be able to reduce delays and avoid returning things to the wrong facility.

This is less about convenience and more about operational discipline. Returns that sit idle or move through the wrong channel create cost and uncertainty across the supply chain. AI systems trained on past return patterns can help standardise decisions that were previously handled case by case.

For enterprise customers, this type of automation supports scale. As return volumes fluctuate, especially during peak seasons, systems that adjust automatically reduce the need for temporary staffing or manual overrides.

What FedEx’s AI tracking approach says about enterprise adoption

What stands out in FedEx’s approach is how narrowly focused the AI use case is. There are no broad claims about transformation or reinvention. The emphasis is on reducing friction in processes that already exist.

This mirrors how other large organisations are adopting AI internally. In a separate context, Microsoft described a similar pattern in its article. The company outlined how AI tools were rolled out gradually, with clear limits, governance rules, and feedback loops.

While Microsoft’s case focused on knowledge work and FedEx’s on logistics operations, the underlying lesson is the same. AI adoption tends to work best when applied to specific activities with measurable results rather than broad promises of efficiency.

For logistics firms, those advantages include fewer delivery exceptions, lower return handling costs, and better coordination between shipping partners and enterprise clients.

What this signals for enterprise customers

For end-user companies, FedEx’s move signals that logistics providers are investing in AI as a way to support more complex shipping demands. As supply chains become more distributed, visibility and predictability become harder to maintain without automation.

AI-driven tracking and returns could also change how businesses measure logistics performance. Companies may focus less on delivery speed and more on how quickly issues are recognised and resolved.

That shift could influence procurement decisions, contract structures, and service-level agreements. Enterprise customers may start asking not just where a shipment is, but how well a provider anticipates problems.

FedEx’s plans reflect a quieter phase of enterprise AI adoption. The focus is less on experimentation and more on integration. These systems are not designed to draw attention but to reduce noise in operations that customers only notice when something goes wrong.

(Photo by Liam Kevan)

See also: PepsiCo is using AI to rethink how factories are designed and updated

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