IFS CEO Says Data Infrastructure Decides AI Success Over Models
Ai4
Generative AI pilot failures hit 95% because enterprise deployments require complex context graphs and pre-built governance layers rather than new foundation models.
## Background
This talk by Somya Kapoor, CEO of IFS Loops, was published on YouTube by Ai4 on August 16, 2026. According to the page description, the session explores why 95% of generative AI pilots fail to produce financial impact and shares eight hard-won lessons from live industrial production deployments across manufacturing, energy, field service, and supply chain.
## TL;DR
In this keynote, Somya Kapoor outlines the practical realities of transitioning AI agents from simple 'demoware' into enterprise-ready, industrial workflows. She explains that 95% of AI projects fail because teams focus on foundation models rather than downstream infrastructure, context layers, and governance frameworks. Through concrete case studies—such as achieving 60% autonomous purchase order processing in procurement—she highlights how starting with targeted workflows, constructing multi-source context graphs, and setting up strict guardrails and human escalation paths enable true production success. Ultimately, she demonstrates why an organization's orchestration and context layer, rather than the LLM itself, serves as its primary competitive moat.
## Atmosphere & style
The presentation carries a pragmatic, authoritative, and direct tone tailored for enterprise leaders tired of AI hype. Kapoor delivers her insights with the sharp, candid clarity of an experienced executive, contrasting flashy conference demos with the messy reality of industrial data and strict compliance. The atmosphere feels like a high-value masterclass—focused, actionable, and soberly realistic about the hard engineering work required behind the scenes.
## Key takeaways
- [00:04](https://www.youtube.com/watch?v=P_TBchosljc&t=4s) While building simple AI agent demos is easy, achieving production-grade deployments in complex industrial workflows remains extremely difficult, resulting in a 95% failure rate for market generative AI projects.
- [00:04](https://www.youtube.com/watch?v=P_TBchosljc&t=4s) Moving from a pilot to production requires extensive downstream infrastructure, including context layers, guardrails, exception handling, monitoring, and compliance with global data sovereignty rules.
- [02:10](https://www.youtube.com/watch?v=P_TBchosljc&t=130s) Organizations should avoid 'boiling the ocean' and instead start with targeted, high-impact, low-risk workflows focused on specific personas to demonstrate quick ROI.
- [02:10](https://www.youtube.com/watch?v=P_TBchosljc&t=130s) In a purchase order processing case study, narrowing the initial scope allowed a customer to go live within three months and achieve 60% autonomous PO processing.
- [04:00](https://www.youtube.com/watch?v=P_TBchosljc&t=240s) Constructing rich context layers via context graphs accounts for 80% of the data effort in real-world agent deployments.
- [04:00](https://www.youtube.com/watch?v=P_TBchosljc&t=240s) Pre-built, domain-specific context layers in vertical applications provide a key competitive moat over generic AI agent offerings.
- [05:27](https://www.youtube.com/watch?v=P_TBchosljc&t=327s) Operational governance, ownership frameworks, and human escalation pathways must be established before creating or deploying agents.
- [05:27](https://www.youtube.com/watch?v=P_TBchosljc&t=327s) Enterprise platforms should provide 60% to 70% of standard governance and guardrails out of the box, allowing teams to customize the rest.
- [06:40](https://www.youtube.com/watch?v=P_TBchosljc&t=400s) Organizations should treat AI agents like human interns, investing heavily in onboarding, evaluation frameworks (evals), and change management.
## Detailed walkthrough
Here is a detailed, faithful walkthrough of the transcript.
---
[00:04](https://www.youtube.com/watch?v=P_TBchosljc&t=4s) The Reality of Industrial Deployments and Moving Beyond Demo-ware
Somya Kapoor opens by addressing the widely cited statistic that 95% of generative AI projects in the market fail, while only 5% manage to succeed. While building AI agents and simple "demo-ware" is easy, achieving production-grade deployments in complex industrial workflows is an entirely different challenge. IFS supplies enterprise resource planning (ERP) and enterprise asset management (EAM) solutions across six highly regulated, asset-intensive industries: manufacturing, aerospace & defense, government, oil & gas, energy & utilities, and service environments.
Taking agents into real production requires significantly more downstream infrastructure than a basic demo. Organizations must account for context layers, guardrails, exception handling, system monitoring, scaling, token consumption, data access security, and global data sovereignty rules.
- **Success vs. Failure Rate:** 95% of market generative AI projects fail, while only 5% succeed in production.
- **IFS Target Industries:** Manufacturing, Aerospace & Defense, Government, Oil & Gas, Energy & Utilities, and Service environments.
- **Production-Grade Requirements:** Beyond basic task scripts, production requires robust context layers, guardrails, exception routing, observability, token optimization, data access security, and regional data sovereignty compliance.
---
[02:10](https://www.youtube.com/watch?v=P_TBchosljc&t=130s) Lesson 1: Start with Targeted, High-Impact Workflows
The first major lesson is to avoid trying to "boil the ocean." Organizations should select specific, high-impact, low-risk workflows with quick deployment cycles. Instead### The Reality of Deploying AI in Industrial Environments
Somya Kapoor begins by highlighting a widely acknowledged statistic in the tech space: building AI agent demos is relatively effortless, but deploying them into production-grade industrial environments is extraordinarily difficult. IFS specializes in enterprise resource planning (ERP) and enterprise asset management (EAM) software across heavily regulated, asset-intensive industries including manufacturing, aerospace and defense, government, oil and gas, energy and utilities, and field services. Building functional agents in these environments requires going far beyond simple demo software ("demoware"). Kapoor notes that roughly 95% of generative AI projects in the market currently fail, while only 5% successfully achieve production deployment.
```
+-----------------------------------------------------------------+
| PRODUCTION REALITY |
| |
| +--------------------+ +------------------------------+ |
| | DEMOWARE | | CONTEXT LAYER | |
| | (Easy to build) | | GUARDRAILS & ESCALATION | |
| +---------+----------+ | MONITORING & EVALUATION | |
| | | DATA ACCESS & SOVEREIGNTY | |
| v +--------------+---------------+ |
| 95% Pilot Failure | |
| v |
| 5% Production Success |
+-----------------------------------------------------------------+
```
The gap between a working demo and an enterprise-ready system boils down to complex downstream infrastructure needs. Beyond basic model selection, organizations must build an intricate context layer, implement strict guardrails, design robust exception handling and monitoring systems, manage scaling and token consumption, and enforce data access security alongside regional data sovereignty constraints.
- Stat: 95% of GenAI projects fail to reach production, while only 5% succeed.
- IFS Key Vertical Focus Areas: Manufacturing, Aerospace & Defense, Government, Oil & Gas, Energy & Utilities, and Field Services.
- Production Deployment Requirements: Context layers, guardrails, exception handling, monitoring, scaling/token optimization, data access security, and regional data sovereignty.
---
[02:10](https://www.youtube.com/watch?v=P_TBchosljc&t=130s) Lesson 1: Start with a Focused Workflow
The first major lesson is to avoid "boiling the ocean" when selecting an initial use case. Successful deployments focus on high-impact, low-risk workflows that can be implemented rapidly to demonstrate clear return on investment (ROI). Rather than trying to automate an entire end-to-end domain immediately, organizations should target discrete tasks within specific personas—such as procure-to-pay purchase order (PO) processing in procurement, financial reconciliation in field service, or part material replenishment in asset lifecycle management.
Kapoor shares a concrete case study involving purchase order processing in an industrial setting. By narrowing the scope to autonomous PO handling, a customer who purchased the platform in January was live in production by April. The system achieved 60% autonomous PO processing without requiring complex manual automation scripts. Once trust and ROI are established on a tight, persona-based workflow, the deployment can naturally expand into adjacent tasks—moving from supplier order management to inventory replenishment, sourcing management, and eventually onboarding management.
- Purchase Order Case Study: January purchase $\rightarrow$ April live production $\rightarrow$ 60% autonomous PO processing without script-writing.
- Targeted Scenarios: Supplier order management (Procurement), financial reconciliation (Field Service), and material replenishment/part association (Asset Management).
- Expansion Path: Persona-centered expansion starting from single-task PO handling to full inventory replenishment, sourcing, and onboarding.
---
[04:00](https://www.youtube.com/watch?v=P_TBchosljc&t=240s) Lesson 2: Context Layers Are 80% of the Data Work
Data access remains a primary bottleneck, but simply feeding raw enterprise data into a Large Language Model (LLM) does not yield practical results. The real work—accounting for roughly 80% of deployment effort—is building a rich context layer through context graphs. Kapoor observes that while 90% of vendor booths at industry conferences claim to offer AI agents, vertically specialized applications provide a distinct moat by delivering pre-built context layers tailored to specific industrial workflows out of the box.
These context graphs allow secure integration across heterogeneous enterprise environments. For instance, an agent might need to connect an ERP system simultaneously with SharePoint, financial accounting platforms, or third-party maintenance software. In global deployments, the orchestration layer must guarantee that data flowing across these disparate systems is strictly managed, processed safely, and governed under appropriate regional security frameworks.
- Enterprise Systems Integrated: ERP, EAM, SharePoint, financial systems, and specialized maintenance platforms.
- Core Engineering Effort: 80% of data implementation consists of constructing the context layer rather than basic model prompt engineering.
---
[05:27](https://www.youtube.com/watch?v=P_TBchosljc&t=327s) Lesson 3: Governance and Escalation Before Agent Creation
Before writing code or building an agent, organizations must map out its operational governance framework. This includes establishing clear ownership, defining training responsibilities, and constructing explicit escalation pathways for exceptions. Unlike simple single-task demos, live production environments involve continuous data streams across multiple global regions and operational sites, making initial execution errors and edge-case exceptions inevitable.
Deploying agents successfully requires building structural "gates" and guardrails throughout the business workflow. Platform selection should prioritize solutions that deliver 60% to 70% of standard governance, guardrails, and exception-handling frameworks out of the box, allowing enterprise teams to focus their effort on customizing the remaining 30%.
- Governance Requirements: Explicit agent ownership, defined training protocols, exception escalation paths, and workflow gates.
- Implementation Strategy: Rely on platforms offering 60%–70% pre-configured governance features, extending the remaining 30% for company-specific workflows.
---
[06:40](https://www.youtube.com/watch?v=P_TBchosljc&t=400s) Lesson 4: Treat Agents Like Interns and Invest in Change Management
Kapoor emphasizes that AI agents should not be evaluated like traditional static SaaS software, but rather treated like human interns joining the organization. They require structured onboarding, ongoing training, evaluation frameworks (evals), and constant feedback loops before they can safely transition to autonomous execution. The primary barrier to agent adoption is rarely the underlying
## Notable quotes
> 95% of gen AI pilots fail to produce measurable financial impact. The reason is rarely the model. — Somya Kapoor
> 80% of deployment effort goes to data, governance, and workflow integration, not AI. — Somya Kapoor
> The infrastructure underneath the agent is where deployments live or die. — Somya Kapoor
> [00:04](https://www.youtube.com/watch?v=P_TBchosljc&t=4s) building AI agents and simple "demo-ware" is easy, achieving production-grade deployments in complex industrial workflows is an entirely different challenge. — Somya Kapoor
> [02:10](https://www.youtube.com/watch?v=P_TBchosljc&t=130s) avoid trying to "boil the ocean." — Somya Kapoor
> [02:10](https://www.youtube.com/watch?v=P_TBchosljc&t=130s) Organizations should select specific, high-impact, low-risk workflows with quick deployment cycles. — Somya Kapoor
> [04:00](https://www.youtube.com/watch?v=P_TBchosljc&t=240s) simply feeding raw enterprise data into a Large Language Model (LLM) does not yield practical results. — Somya Kapoor
> [04:00](https://www.youtube.com/watch?v=P_TBchosljc&t=240s) while 90% of vendor booths at industry conferences claim to offer AI agents, vertically specialized applications provide a distinct moat — Somya Kapoor
> [05:27](https://www.youtube.com/watch?v=P_TBchosljc&t=327s) Before writing code or building an agent, organizations must map out its operational governance framework. — Somya Kapoor
> [06:40](https://www.youtube.com/watch?v=P_TBchosljc&t=400s) AI agents should not be evaluated like traditional static SaaS software, but rather treated like human interns joining the organization. — Somya Kapoor
## Video description
Somya Kapoor - CEO, IFS Loops
95% of gen AI pilots fail to produce measurable financial impact. The reason is rarely the model.
80% of deployment effort goes to data, governance, and workflow integration, not AI. Yet most teams spend their time evaluating models and chasing the latest foundation release. The infrastructure underneath the agent is where deployments live or die.
Somya Kapoor, CEO of IFS Loops, has spent years deploying AI agents in real industrial environments across manufacturing, energy, field service, and supply chain. In this session, she shares eight hard-won lessons from live production deployments, not pilots that quietly died in a sandbox.
You will leave knowing how to identify the right workflows, build governance before agents go live, and understand why your orchestration layer, not your model, is your real competitive advantage.
If you are ready to move from pilot to production, this is the session you cannot afford to miss
Somya Kapoor, CEO of IFS Loops, argues that moving generative AI from basic demos to industrial production requires narrow workflow selection, dedicated context engineering, and pre-established governance frameworks. In heavily regulated, asset-intensive sectors, overcoming the sector's high pilot failure rate depends on downstream infrastructure and change management rather than model selection alone.
Overcoming the Industrial AI Pilot Failure Rate (0:04)
Kapoor highlights that while building generative AI demos is relatively simple, an estimated 95% of generative AI projects in the market fail, with only 5% successfully reaching production. This gap is especially pronounced across the asset-intensive, heavily regulated sectors served by IFS enterprise resource planning (ERP) and enterprise asset management (EAM) platforms, including manufacturing, aerospace and defense, government, oil and gas, energy and utilities, and field services.
According to Kapoor, moving beyond "demoware" requires substantial downstream engineering that basic task scripts cannot provide. Industrial organizations must build dedicated context layers, operational guardrails, exception handling routines, system monitoring, and scaling capabilities. Production deployments must also actively manage token consumption, enforce data access security, and comply with regional data sovereignty mandates across multi-site operations.
Prioritizing Discrete High-Impact Industrial Workflows (2:10)
Rather than attempting to automate entire business functions at once, Kapoor advises organizations to avoid "boiling the ocean" and focus on targeted, low-risk, high-impact workflows that demonstrate measurable return on investment. Recommended starting points include discrete tasks tied to specific personas, such as purchase order (PO) handling in procurement, financial reconciliation in field service, or material replenishment and part association in asset lifecycle management.
In an industrial case study cited by Kapoor, a customer implemented autonomous PO processing within procurement between January and April. The targeted deployment achieved 60% autonomous PO processing in live production without requiring manual script development. Kapoor notes that once initial workflows establish user trust and ROI, deployments can expand across persona-related responsibilities, progressing from purchase orders to inventory replenishment, sourcing management, and vendor onboarding.
Engineering Context Graphs Across Heterogeneous Systems (4:00)
Data access remains a primary bottleneck for enterprise AI, yet Kapoor stresses that simply feeding raw enterprise data into a large language model yields poor results. Instead, constructing a robust context layer via context graphs represents roughly 80% of the total data engineering effort. Kapoor observes that while many vendors claim to provide autonomous agents, vertically specialized applications maintain an advantage by supplying pre-built context layers configured for specific industrial processes.
These context graphs unify disparate, multi-source enterprise architectures by linking ERP and EAM core systems with external data repositories, including SharePoint, financial platforms, and specialized third-party maintenance software. In globally distributed deployments, this context orchestration layer ensures that multi-source enterprise data is accessed securely, integrated safely, and processed under applicable regional compliance frameworks.
Establishing Upfront Governance and Incremental Onboarding (5:27)
Kapoor argues that organizations must establish governance, ownership, and escalation paths before writing agent code. Because enterprise production involves continuous data streams across global operating sites, system exceptions and edge cases are inevitable. Organizations need predefined operational gates and clear escalation pathways to human supervisors. To minimize development overhead, Kapoor advises adopting software platforms that provide 60% to 70% of standard governance and guardrail frameworks out of the box, allowing internal teams to focus on customizing the remaining 30%.
Finally, Kapoor asserts that organizations should not evaluate AI agents like static software-as-a-service applications. Instead, enterprises should treat incoming agents like human interns. Safe transition toward autonomous execution requires formal onboarding programs, continuous training protocols, evaluation frameworks (evals), and structured feedback loops, alongside substantial organizational investment in human change management.
Kapoor concludes that enterprise agent adoption depends on treating AI systems as evolving operational roles governed by strict structural boundaries. Deployments succeed when organizations prioritize specialized context layers, focus on narrow initial use cases, and apply disciplined onboarding practices rather than relying on ungrounded models or premature end-to-end automation.
Somya Kapoor: 95% of gen AI pilots fail to produce measurable financial impact. The reason is rarely the model.
Somya Kapoor: 80% of deployment effort goes to data, governance, and workflow integration, not AI.
Somya Kapoor: The infrastructure underneath the agent is where deployments live or die.
[0:04] Somya Kapoor: building AI agents and simple "demo-ware" is easy, achieving production-grade deployments in complex industrial workflows is an entirely different challenge.
[2:10] Somya Kapoor: avoid trying to "boil the ocean."
[2:10] Somya Kapoor: Organizations should select specific, high-impact, low-risk workflows with quick deployment cycles.
[4:00] Somya Kapoor: simply feeding raw enterprise data into a Large Language Model (LLM) does not yield practical results.
[4:00] Somya Kapoor: while 90% of vendor booths at industry conferences claim to offer AI agents, vertically specialized applications provide a distinct moat
[5:27] Somya Kapoor: Before writing code or building an agent, organizations must map out its operational governance framework.
[6:40] Somya Kapoor: AI agents should not be evaluated like traditional static SaaS software, but rather treated like human interns joining the organization.
Original transcript
[0:04] Uh hi everyone. I'm going to talk today about
lessons learned in deploying AI agents in
[0:09] industrial environments. Um like everybody
talks, I think this stat is very familiar.
[0:14] We've been hearing everybody kind of bring
that up. It's very easy to build AI agents,
[0:20] very difficult to get them deployed
in production grade environments,
[0:24] especially for industrial workflows. Uh does
anybody know about IFS in the room here?
[0:32] There we go. Yes, we do know one candidate
over there. IFS provides ERP software to
[0:38] industrial grade to industrial solutions in
the market. We serve about six industries,
[0:44] manufacturing, aerospace defense, uh you know,
government, oil and gas, energy and utilities,
[0:50] and service environments. So, these environments
are highly regulated, asset intensive environments
[0:57] where we provide uh ERP and EAM solutions to them.
So, building agents in these environments is even
[1:04] more difficult, let alone building a demo where.
Now, this stat is probably familiar. I mean,
[1:09] it came out a year ago. 95% of projects are
failing in the market. Uh and 5% of them are
[1:15] succeeding. So, today I'm going to talk about
our customers using AI agents within their
[1:22] environments, industrial environments, and how
they're using them and how they're evaluating
[1:27] the Agentic platform as they're deploying this.
So, uh the reality of building agents is building
[1:34] the demo where, super easy. We all have done
it. Uh but actually the downstream aspect of
[1:40] taking them production grade ready is a lot more.
You have to have the context layer in there. You
[1:46] have to think about the guardrails, the exception
handling, the monitoring aspect of it. You have
[1:51] to see the scaling, the token usage uh elements,
uh or data access security. Now, there is more,
[1:59] uh, data sovereignty. A lot of discussions going
around that as well. So, when you're doing global
[2:05] deployments, all of these elements have to be
thought about it in much, much more details.
[2:10] So, the eight lessons that we have learned, uh,
we do have customers in production using us for
[2:15] procurement, for field service workflows, for
asset life cycle management workflows, and this is
[2:22] how they're evaluating Aera solutions. The first
one is you got to start with a workflow, right?
[2:29] Uh, what our customers learned is don't boil
the ocean. Pick workflows that are high impact,
[2:36] uh, in nature, but actually quick to deploy,
low risk ones. For instance, in procurement,
[2:42] it is procure to pay scenarios. How do you do
supplier order management? In in field service
[2:47] management, it's about financial reconciliation
areas. In asset, it's about material replenisher
[2:54] in terms of finding the right part and associating
and doing maintenance on those parts, right? So,
[2:59] pick small elements of workflow in a big scenario
to go live and don't boil the ocean. Kind of get
[3:05] your team together in terms of variance, in terms
of understanding what are the outcomes you want
[3:10] to drive out of it. For our PO processing, if I
pick up with that scenario in industrial, we had
[3:15] to see how many POs you were successfully able
to process in a period of time. We had customers
[3:22] that actually bought the solution in Jan, and
they were live in April seeing 60% of PFP,
[3:30] POs autonomously processed without the need of,
you know, kind of writing automation scripts on
[3:36] that piece, right? So, that's number one rule is
pick the right problem to show the right ROI in
[3:42] a short period of time and stay focused on it.
Then you can go ahead and build more. So, our
[3:47] supplier order kind of got built into inventory
replenisher, which further got built into sourcing
[3:53] manager, which got built into onboarding manager,
right? So, pick based on a persona and the outcome
[3:59] that you want to drive using that element. The
second lesson that we learned is it's not about
[4:06] um you know, data access, right? Data is
definitely a bottleneck in every environment.
[4:10] You can't take data and just put it through an
LLM. It's actually building the context layer
[4:15] in that scenario, and that is the 80% of the work.
So, using platforms that automatically provide
[4:22] these context graphs is the key differentiator in
picking an agentic solution in market. Yes, there
[4:28] are a lot of agent builders. I mean, just looking
at the show floor as we're walking through here,
[4:33] they're probably 90% of booths that's are saying
we deliver AI agents at various levels, right? So,
[4:39] picking a platform from a verticalized application
solution like ours is the benefits that you get is
[4:46] we're already build this context layer for you
for the workflows that you want to deployed,
[4:50] and then you have to just go ahead and configure
and deploy and kind of extend them further. So,
[4:55] that gives you an ability to get access to the
data. Either you connect to our ERP system in
[5:00] conjunction with SharePoint. You connect our
ERP system in conjunction to our financial
[5:05] system in the market. You connect our ERP
system, our asset systems to your, you know,
[5:10] maintenance software system out there. So, there's
multiple arenas where you need to make sure the
[5:15] data that you're getting, especially in a global
environment, it's managed and it's processed
[5:21] and it's secure. So, that is the first element
of the hurdle that you have to get through.
[5:27] The third lesson we learned is again, it's
not about building agents, it's the governance
[5:32] aspect of it. Before you build any agent, you
have to look at who is going to own that agent.
[5:39] Who is going to train that agent? Where is my
escalation path going to be when exceptions happen
[5:45] because there are going to be exceptions that
happen every time. Again, like I said, building
[5:51] a demo where very easy because it's one process,
one task, quick fix. It's not the data. When you
[5:57] have data flowing in across regions, multiple
sites, trying to do the same thing in a different
[6:03] arena, you need to add guardrails. There is going
to be exceptions. It's not going to be perfect on
[6:08] day one. So, how do you manage that escalation
path that's good as it as goes through and what
[6:13] kind of gates are you adding during the whole
workflow process is the key critical element of
[6:19] defining it. So, before even building the agent,
it's the governance aspect of it. Again, looking
[6:25] for platforms that provide this out of the box or
get you 60 to 70% of common arena and then you get
[6:32] to the 30% of extending that gives you the moat um
to kind of get these deployed fast in the market.
[6:40] The fourth lesson is you have to look at agents
like not historical SaaS software. It's actually
[6:46] an intern coming within your environment. You
have to train them. There has to be feedback loops
[6:52] involved before they become a full-fledged
employee. They are going to go autonomous.
[6:57] It is not actually the technology that's a
barrier. It's actually the change management.
[7:03] We have seen repetitively when the um
management is bought into it and they're
[7:08] doing the change management, they're changing
the process, they're bringing the right data in,
[7:13] they're evolving the teams, the team is up
skilling themselves, these agents do become
[7:17] autonomous. We actually have a customer Epidion,
which has gone uh a manufacturing firm in Nordics,
[7:23] which has gone from a 40% automation to almost
90% in 6 months of autonomously moving their
[7:32] whole supply chain autonomously down. They had
three people manning those inboxes across sites
[7:39] and they had 13 sites over there. Now, that
work can be done by half a resource. So
[7:44] how you kind of leverage these resources post
that we leave it up to the business to decide,
[7:49] but we have customers actively deploying this
in industrial scale and seeing the benefits. So
[7:55] thinking about agents as same as you're onboarding
an employee on day one is absolutely critical.
[8:02] Looking at in where within the process you're
adding feedback loops and how you're training your
[8:08] agents from evaluations e-vals standpoint is
critical. So this is where an agentic platform
[8:13] that provides this out of the box for certain
workflows gives you an added advantage.
[8:20] The first the fifth part is you know
agents do have now the decision making.
[8:25] Unlike the historical RPA processes which we
have heard customers come back to say oh we
[8:29] have automated this. But for every change you
have to go again get an engineer to go change
[8:35] wait for nine months deployments and then go
upsell them. The the difference between that
[8:39] technology and this technology is the very fact
is there is decision making involved in here.
[8:44] So if you leave these agents loose they will start
making the decisions. There there was a scenario I
[8:51] think there was that what was that email scenario
at Entropic? What was it called? Black email?
[8:59] Blackmail email? Scenario at Entropic? So
there was a scenario at Entropic which was
[9:06] you know they let an agent loose on all the
emails and eventually in order to survive the
[9:11] get outcome of that agent was supposed to be that
you have to survive and keep yourself functional
[9:16] to a point when they started seeing
you know within the email interactions
[9:20] the employees were saying let's bring this agent
down. The agent self learned and made a decision
[9:24] and started blackmailing the maker of that agent
itself. So these agents do have a decision making.
[9:32] So observability and monitoring and having
supervisor agents monitoring each of these
[9:38] agents in a multi-orchestrated environment is
very, very critical. So, finding platforms that
[9:44] just don't let you build agents, but also give
you the guardrails, the supervisor, the eval's
[9:50] on top of each of these is super critical in kind
of building that workflow within an enterprise
[9:56] scenario. So, you can kind of know every
guardrail because these agents are on 24/7,
[10:00] unlike human beings. We all also have supervisors
at our jobs, but you know, they work during a
[10:07] during 8-hour shifts, or maybe 10-hour
shifts, or if you're in Silicon Valley,
[10:10] maybe 24-hour shifts. We don't know what
that is. So, that is also super critical.
[10:15] The sixth lesson is and I think we've heard this
during the sessions that I was sitting here is
[10:20] have human in the loop. If someone is coming
and saying you that their agents are autonomous
[10:24] on day one, they're lying to you because they
don't know your data from your enterprise. Uh
[10:30] so, there is a human in the loop and there is a
journey that that goes through, right? You start
[10:35] with a pilot, you do more rollouts, you scale
the system, and you keep evolving the system.
[10:42] In some scenarios, some customers
will reach autonomy in 6 months,
[10:46] some might reach in 9 months, some might take 18
months. It all depends on your people, process,
[10:52] and data within your environment that leads and
the complexity of the process that you've chosen.
[10:57] But there is autonomy. It will reach autonomy at
the end of it depending on how much you want to
[11:03] give the agent the autonomy. First, you'll start
with all the exceptions that are happening within
[11:07] your environment. The agents or the supervisor
agents will learn from those exceptions.
[11:12] The next time they'll evolve those processes
and they'll keep evolving to a point that you
[11:15] get to a complete uh autonomous rate. Now,
by fundamental rule itself, humans at a job
[11:22] are only 70% efficient, but we are expecting
100% autonomy from all these agents that we're
[11:29] deploying is a little bit unrealistic. But we
have seen that they get down to 95% of autonomy.
[11:35] So, the goal is not to replace human or a job,
but actually augmented and kind of train employees
[11:43] within your environment that are bringing a
subset of ability to manage these agents as
[11:50] well as humans because that's going to be the
reality of workforce moving forward as well.
[11:54] So, that's lesson number six that we have learned
in kind of building this agentic platform.
[12:00] Lesson number seven is models are not
are not your competitive advantage.
[12:05] Uh this is a reality. I mean, you know, every
month we have a new model coming out. One day
[12:09] uh it's the frontier models, the second it's open
weight models, the third is open source models,
[12:15] and I don't know what will be there in the
future. Uh but these models are evolving. So,
[12:20] building a platform that can adapt to these models
uh or lets you bring your own model environment if
[12:26] that's what you're choosing to do is is a critical
element as you kind of choosing between platforms
[12:32] that are locking you into one model as opposed
to the others are not the right ones because
[12:36] the maturity of the models are going to change,
the pricing of the models are going to change,
[12:41] the token you can utilization of these models
are also going to change in over period of time.
[12:46] So, that is also one of the lessons
that we learned in kind of building
[12:49] our platform in the industrial environment is
that we're kind of giving these elements, too.
[12:56] Last but not the least, security. Yes, actually
people buy platforms that are secure, governed,
[13:02] and enterprise space. Building a demo wear
is relatively easy with any agentic solution.
[13:08] The guardrails, the governance, the security,
the data sovereignty in terms of what data is
[13:15] getting passed through which kind of models,
how you building an orchestrated LLM on,
[13:20] which data is getting routed to which LLM is
super super important in terms of how you're
[13:25] passing the data and building that filtering
elements of prompt prompt filtering data
[13:32] protection is is super super critical in kind of
how you're building your environment so to say.
[13:39] So, that is the total summary of the lessons
that we have kind of put together for building
[13:46] or picking a platform that actually serves
these eight lessons and you can pick any process
[13:52] procurement process field service management
processes asset life cycle management process
[13:58] in the environment and kind of go through all
these steps and kind of see it's very very valid
[14:02] as we get to. Number one, if you're picking a
process keep it very focused so that you can
[14:07] show ROI quickly so you build trust with your team
in leveraging that technology so they don't feel
[14:13] threatened from it as opposed to they feel they're
part of the journey itself. Lesson number two
[14:20] is data. Kind of bringing just bringing data
in from different systems is not good enough.
[14:25] Creating a contextual layer that kind of drives
this data builds a context graph on top of it
[14:30] and leverages the the following of the workflow is
super critical. Governance is number one. Building
[14:37] agents is absolutely easy but what kind of
e-vals what kind of guardrails that you're adding
[14:43] in with these agents? Where's the supervisor
agent monitoring them is super critical.
[14:48] As you're building these agents and business
processes always think about the business
[14:52] outcome. That is super critical because you
have to tie it to a role and a job to be done.
[14:58] Building automation for the heck of
building automation? I mean, we've been
[15:01] doing automation for the past 30 years in our
lives. That is not that is not the key element.
[15:07] It is to drive what kind of a role and
what productivity gain you want to get out
[15:11] by automating workflow is is is there because
these models or these solutions are not cheap.
[15:18] The the fifth point is a in the loop. You can't
remove human in the loop for industrial grade
[15:24] workflows in enterprise solutions at the
beginning of of any of these solutions.
[15:31] Over a period of time, as you provide
feedback, as they evolve, like any employee,
[15:36] they can get autonomous in nature. Uh model is not
your competitive advantage, but having a platform
[15:44] that gives you flexibility to keep changing these
models based on the evolution of how the market is
[15:50] going on is a key part. Uh uh security, of
course, and the last is plan your agents.
[15:58] Now, I'm actually reading is very
small on my screen. Uh for refinement
[16:04] refinement for every role. So, think about agents
at IFS, we're building a digital worker platform
[16:11] where each of the digital worker drives a business
outcome. If we have a supplier order manager,
[16:16] it does processing of POs. If we have the
financial reconciliation, it processes all the
[16:22] financial data out of the box. If you have a field
service one, it reduces your first time fix rate.
[16:28] If you have around asset material replenisher,
it finds parts, uh reduce part search downstream.
[16:34] We have customers that are saving millions
of dollars by deploying these agents
[16:38] within their environment and seeing massive
benefits um themselves. Uh I would reiterate
[16:46] the statement again. Uh agents themselves from a
technology standpoint are rarely the hard part,
[16:52] but actually going through the whole change
management and using and getting these used within
[16:58] your environment and upskilling your organization
to leverage this change that's coming is going to
[17:04] be a competitive advantage, because if you don't
do it and your competitors do, they will have an
[17:10] advantage that you will take time to get to. So,
with that, thank you so much for joining today.