‘I can’t recall a customer conversation that hasn’t started with AI’: Avanade CEO

Chris Howarth says AI is driving virtually every customer discussion as the organisation invest in its workforce and responds to rising demand for sovereign cloud capabilities

“I can’t recall now in the last six months a conversation with customers that hasn’t started with this topic.”

That is how Avanade CEO Chris Howarth describes the rapid rise of AI, which he says has become the common thread running through almost every customer engagement, regardless of sector or technology.

In an interview with CRN, Howarth says AI is not replacing Avanade’s traditional cloud, applications, data and security business, but increasingly acting as the catalyst behind customer investment across each of those areas.

“I can’t recall now in the last six months a conversation with customers that hasn’t started with this topic,” he says.

“It doesn’t always end there, but so much of what clients are interested in right now, and quite rightly, is how AI is going to impact their business.”

Building AI capability at scale

To meet growing demand, Avanade has invested heavily in developing what it calls forward deployed engineers (FDEs), specialists focused on rapidly building AI agents and agentic solutions alongside customers.

While recruiting experienced AI talent remains challenging, Howarth believes Avanade’s existing engineering base gives it a significant advantage.

“We’re on track by the end of August to have 500-plus FDEs available to the market,” he says.

“They’re not brand-new individuals. We already had 500 very talented engineers, but we’ve formally put them through training and certification.”

The company has also launched Frontier Studios, an AI transformation model designed to help customers accelerate AI adoption while supporting Avanade’s own sales organisation through internally developed AI tools.

“I particularly love AI examples in the sales area because they’re just so positive,” Howarth says.

“They can only really be focused on growth and doing more.”

Avanade invests in talent despite industry pressures

Although many technology firms have slowed recruitment amid economic uncertainty, Avanade continues to expand its workforce.

The company has recruited more than 3,000 onshore employees this year, including several hundred graduates, while total onshore headcount has risen to more than 16,000.

Howarth says maintaining that investment remains essential for a services-led organisation.

“Talent for us is still our most important asset,” he says.

The CEO also recently appointed former Microsoft and Zscaler exec Craig Milner as Avanade’s chief sales and partner officer, with further senior appointments expected in the coming months.

“Our ability to predict demand, understand what skills we’re going to need and bring in the right leaders is really important.”

Sovereignty climbs the agenda

In addition to AI, Howarth explains that digital sovereignty has become one of the biggest priorities for customers, particularly across Europe.

The topic spans organisations of all sizes, from large public sector bodies to smaller businesses seeking enhanced control over where their data resides and how it is managed.

Avanade has reportedly supported several large-scale sovereignty projects alongside Accenture, including work linked to NATO, while also helping organisations establish data governance frameworks suited to increasingly complex regulatory requirements.

Supply chain pressures felt through customers

While Avanade has avoided direct disruption from supply chain shortages, Howarth says the company has worked closely with customers navigating GPU constraints, tariff-related uncertainty and wider geopolitical disruption.

“When those challenges are challenges for our customers, they become our challenges,” he tells CRN.

He adds that organisations are increasingly looking to build more resilient supply chains while using AI and data to improve decision making as geopolitical uncertainty continues.