HOSHŌ DIGITAL

AGENTIC LLMs 

The Evolving World of Large Language Models (LLMs) 

Artificial intelligence (AI) is advancing at a pace that’s hard to keep up with, and large language models (LLMs) are at the forefront of this transformation. Last year, many organizations were just beginning to explore how to adopt generative AI technologies effectively. Now, LLMs have become mainstream, with up to 70% of organizations actively experimenting with or implementing LLM use cases. However, the AI landscape is evolving, and the role of LLMs is shifting in ways that could redefine their purpose and application. 

Leading enterprises are starting to rethink their reliance on massive, generalized LLMs. While these models are ideal for tasks like chatbots or scientific simulations, they can be overpowered and inefficient for many business-specific needs. Instead, businesses are exploring the use of smaller, specialized models tailored to specific tasks.

For instance, the LLM that analyzes financial data for missed revenue opportunities doesn’t need to be the same as the one answering customer inquiries. This trend towards "horses for courses" is driving the development of multiple, smaller models working collaboratively to address distinct use cases. 

Data the Backbone of LLM Success 

LLMs are only as good as the data they’re trained on. Poor-quality data leads to poor outcomes—a phenomenon often summarized as "garbage in, garbage out." Recognizing this, organizations have increased their investments in data lifecycle management to support generative AI initiatives. The process of fine-tuning LLMs on high-quality, domain-specific data is proving crucial for achieving meaningful results. 

Organizations are already leveraging this approach. By training AI on curated datasets, they’ve developed virtual assistants that help immigrants navigate paperwork processes effectively. These initiatives highlight how data quality and relevance can amplify the effectiveness of LLMs, turning them into indispensable tools for specific organizational needs. 

While the potential of LLMs is vast, scaling them to production remains a challenge. Many organizations struggle with data access, cleansing, and integration. Additionally, concerns about data security, regulatory compliance, and the ethical use of external data continue to pose significant barriers. According to recent surveys, over 55% of organizations have avoided certain AI use cases due to data-related issues. To navigate these challenges, businesses are leveraging vendor-provided, out-of-the-box models while building their capabilities for differentiated, data-driven AI solutions. 

The Rise of Agentic AI 

As LLMs evolve, the concept of agentic AI is gaining traction. This next generation of AI focuses on execution rather than augmentation. Unlike LLMs that answer questions or generate content, agentic AI models are designed to perform discrete tasks autonomously. For example, they could book flights based on user preferences, resolve customer support tickets, or deliver financial reports. These autonomous agents promise to streamline operations and work alongside human teams, handling repetitive tasks and enabling employees to focus on higher-value activities. 

The development of liquid neural networks—a flexible AI training method—could further revolutionize LLMs and their applications. These networks require fewer resources while maintaining high efficiency, making AI models more sustainable and adaptable. This innovation opens the door to embedding AI into edge devices and safety-critical systems, expanding the scope of LLMs and other AI technologies. 

Preparing for an AI-Driven Future 

The shift from large, generalized models to smaller, purpose-built ones represents a fundamental change in how AI is deployed. Organizations are increasingly investing in data, infrastructure, and talent to harness the potential of LLMs. Leaders must think beyond traditional approaches, embracing imaginative strategies to fully leverage AI’s capabilities. The ultimate goal? Transforming LLMs from tools that augment human intelligence to agents that execute complex, real-world tasks. 

As AI continues to evolve, enterprises will need to focus on three key areas: 

Data Optimization

Ensuring high-quality, secure, and well-organized data. 

Regulatory Preparedness

Navigating the ethical and legal implications of AI use. 

Sustainable Innovation

Balancing AI advancements with environmental and resource considerations. 

What’s Next? 

LLMs have already transformed industries, their future lies in specialization and integration. By building smaller, task-oriented models and adopting agentic AI, businesses can unlock new levels of efficiency and innovation.

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