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Relantic Radar: Enterprise AI Market & Economic Landscape

Core Technologies Unpacked: LLMs and the Dawn of Agentic AI

The strategic importance of this shift cannot be overstated. Agents represent the evolution of AI from a passive content generator to an active participant in business processes. They are the architectural pattern that bridges the gap between the potential of LLMs and the practical need for workflow automation. McKinsey describes them as "virtual coworkers" that can autonomously plan and execute complex workflows, unlocking the true economic value of AI in core business functions.

The Rise of Agentic AI

This potential is driving rapid experimentation, with Deloitte predicting that 25% of companies using GenAI will pilot autonomous agents in 2025, a figure expected to double to 50% by 2027. The industry-wide pivot to agentic AI is not merely another trend; it is a direct and strategic response to the value-capture problem and technological limitations of first-generation GenAI applications. It signals a fundamental shift from building "AI that talks" to engineering "AI that does."

Large Language Models (LLMs)

At the foundation of modern AI applications are Large Language Models (LLMs) that have revolutionized natural language understanding and generation. These models, trained on vast amounts of text data, can understand context, answer questions, and generate human-like text. The most advanced models in 2025 now incorporate multi-modal capabilities, processing not just text but also images, audio, and video, enabling more comprehensive AI systems.

Retrieval-Augmented Generation (RAG)

Retrieval-Augmented Generation combines the power of LLMs with external knowledge retrieval, allowing AI systems to provide more accurate and up-to-date information. This approach addresses the "knowledge cutoff" limitation of traditional LLMs by enabling them to access and reference current data sources, making them significantly more valuable for enterprise applications.

Multi-Agent Systems

The most sophisticated AI implementations now use multiple specialized agents working in concert. Each agent has a specific role and expertise, and they collaborate to solve complex problems. This architecture enables more robust and flexible AI systems that can handle a wider range of tasks than any single model could accomplish alone.

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