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Innovation at enterprise scale

Indian Management

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September 2025

This three-part series addresses the defining challenge of modern business leadership: how to accelerate innovation while building unshakeable stakeholder confidence. As transformative technologies reshape entire industries, executives can no longer choose between moving fast and building trust—they must master both.

- DENISE HOLT, AIX GLOBAL MEDIA AND LEARNING LAB CENTRAL AND IRENE YAM, IY MEDIA AND [AUTHOR] BUILD A WORLD-CLASS CUSTOMER ADVISORY BOARD

Innovation at enterprise scale

While the global technology industry fixates on LLMs and Agentic AI as the next breakthrough, forward-thinking enterprises are quietly positioning themselves for a more fundamental paradigm shift. The convergence of Active Inference AI and the Spatial Web Protocol represents not just another technological advancement, but a complete redefinition of how digital intelligence integrates with the physical world.

For management, this presents an unprecedented opportunity. Rather than following Western AI trends that often misalign with local business contexts, enterprises can leapfrog traditional approaches by adopting co-building strategies that leverage these transformative technologies.

The Agentic AI distraction: Why the industry got it wrong

The overhyped promise

The current AI landscape is dominated by discussions of Agentic AI systems—autonomous agents designed to perform complex tasks independently. Yet for all the excitement, these systems consistently fall short in real-world applications, particularly in the diverse and complex business environments that characterise the market.

Traditional Large Language Models (LLMs) and agent-based systems suffer from fundamental limitations that make them poorly suited for enterprises. They require massive computational resources that strain energy budgets, operate as “black boxes” that provide little transparency for decision-making, and depend on static training data that fails to adapt to rapidly changing local conditions.

Widely regarded as two of the godparents of modern AI, Fei-Fei Li and Yann LeCun have both expressed thoughtful skepticism about the current trajectory of Agentic AI. Fei-Fei Li has emphasized that spatial intelligence represents the next frontier. At the same time, Yann LeCun has pointed out that today's AI systems still lack the ability to make their own discoveries .

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