
""What the token economics will be as enterprises get up the learning curve remains to be seen, as the initial token burn rate is likely to be significantly higher," Shah said. "Also, security and risk are big challenges here, as ERP apps are tightly coupled, and one small change in approach that does not work well with the proprietary stack could break downstream workflows and become a disaster.""
"That means companies are likely to test such tools cautiously, especially for customizations that touch sensitive data. Shah said that enterprises will have to use this in a sandboxed environment to check for code hallucinations and to see what breaks in terms of business logic, security, or privacy."
The technology is primarily beneficial for new applications and modernizing legacy systems rather than completely redeveloping existing enterprise applications. Cost and governance are critical factors to consider. Enterprises face challenges with token economics, as initial token burn rates may be high. Security and risk are significant concerns due to the tightly coupled nature of ERP applications. Companies will likely test these tools cautiously, especially for customizations involving sensitive data, using sandboxed environments to identify potential issues.
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