As Oracle pushes enterprise software beyond traditional SaaS, the new Fusion AI builder allows businesses to create results-driven AI applications with built-in governance and auditing capabilities.
The race to build enterprise AI has entered a new phase, and US technology giant Oracle believes the winner will not necessarily be the company with the smartest AI agent, but the company that can safely deploy AI agents within core business applications.
Oracle on Tuesday introduced the Oracle AI Agent Studio AI native builder experience within Oracle Fusion Applications, allowing customers and partners to build so-called Fusion Agentic Applications using natural language prompts, low-code tools, or professional development environments such as Visual Studio Code, OpenAI Codex, and Claude Code. The product helps companies move AI from experimentation to production by building governance, approvals, and auditing capabilities directly into workflows.
But Oracle says the announcement means much more than other AI development tools.
“We think this is the next generation of enterprise applications,” said Kaushal Kurapati, group vice president of application development at Oracle, in an interaction with some media outlets.
“Traditional SaaS applications are primarily reactive, with humans driving the work. What we’re building is an application that proactively monitors, coordinates, and executes work using teams of AI agents working towards business outcomes,” he added.
Unlike standalone AI assistants or copilots that respond to user prompts, Oracle’s agent applications combine multiple specialized AI agents that share context and memory to execute business processes while working together within enterprise systems and working within existing governance frameworks.
Kurapati said the biggest challenge facing companies today is not building AI models, but deploying them with enough confidence to automate business-critical operations.
“This is not a standalone agent or co-pilot next to enterprise software. It’s a full-fledged enterprise application. It’s proactive, monitors work, automatically prioritizes decisions, and operates with enterprise-level governance.”
This builder allows business users to create agent applications through natural language prompts, and developers can build using familiar coding tools integrated with Oracle’s AI Studio skills. Oracle also built testing, debugging, audit trails, human approvals, and model optimization into the development environment to simplify enterprise deployment.
Industry analysts say the focus on governance reflects the evolution of the enterprise AI market.
“The competition for enterprise agents has been quietly reshaping itself. The market is already saturated with agents. The competition is no longer about who builds the smartest agents, but about who owns the managed runtime that the agents are allowed to run on,” said Sanchit Vir Gogia, principal analyst and CEO of Greyhound Research.
Gogia said Oracle’s latest announcement is important because it enables both business users and professional developers to create Fusion Agentic applications, while ensuring that applications inherit enterprise security, authorization, and auditing capabilities from the start.
“Agents built this way are designed to inherit the security, authorization, and audit functionality that was born inside the system of record and that agents built externally would have to rebuild at great expense. If that design works, enterprises can move from AI recommending actions to AI performing the actions themselves, under the controls they already trust.”
Oracle’s focus on governance goes beyond security. Kurapati said the platform introduces a policy model that translates business policies written in natural language into executable code, reducing the non-deterministic behavior often associated with large language models. For high-impact decisions, the platform routes recommendations through a structured human approval workflow while maintaining a full audit trail and replay capabilities for compliance and debugging.
India is expected to play a key role in Oracle’s strategy as companies increasingly customize AI for industry-specific use cases. Kurapati said Oracle runs a dedicated Fusion Agent training program for system integrators in India on a quarterly basis and expects the country’s large developer ecosystem and global competency center to accelerate enterprise AI adoption.
“We are working with a huge developer base in India. These tools will enable them to build enterprise agent applications in minutes, test them, and deploy them within Fusion with confidence,” he said, adding that Oracle has already shown interest from Indian banks, lifestyle brands, and Fusion’s existing customers.
Holger Mueller, vice president and principal analyst at Constellation Research, said Oracle is “redefining next-generation application platforms for the AI era” by consolidating application, platform, and agent functionality into a single builder experience, rather than requiring enterprises to add governance controls after the fact.
For Oracle, the goal is no longer to build another AI assistant, but to redefine enterprise software itself.
“We agree that SaaS applications are being disrupted,” Kurapati said. “We’re the ones disrupting them. We believe this is what the next generation of enterprise applications will look like.”
