Author Archives: Manish Kumar

Manish Kumar
Manish is the Global Head of Data and Analytics at Robosoft Technologies, bringing over 20 years of expertise in the field. He is a seasoned professional specializing in Business Intelligence, Data Science, Cloud Engineering, and Advanced Analytics. Manish has a proven track record of developing and implementing enterprise-scale Generative AI solutions across a wide range of industries, including retail, e-commerce, telecommunications, finance, and manufacturing. His focus is on leveraging data-driven insights to create solutions that not only meet business objectives but also align seamlessly with IT strategies, ensuring comprehensive and impactful outcomes.
AI & Automation

Enterprise Conversational AI: Why AI Fails Before It Ever Gets to the Model

Enterprise Conversational ai blog featured image

Most enterprise AI programs don’t fail because they chose the wrong model. They fail because nobody solved the harder problem first. 

Your organization already possesses the answers to most of its critical business questions. They exist in contract negotiations finalized two years ago, in customer service transcripts from last quarter, in the Slack thread where your best engineer explained exactly why a product decision went wrong. The knowledge is there. The intelligence is not, because the two have never been properly connected. 

This is the defining challenge of enterprise AI in 2026. 

The Real Reason AI Pilots Don’t Scale 

IDC research puts a stark number on the gap: only 1% of organizations have reached optimized AI maturity. The other 99% are running pilots that impress in demos and stall in production. 

The conventional explanation blames data quality, change management, or unclear use cases. These are real, but they’re symptoms. The root cause is more fundamental: enterprise AI systems are being evaluated on their intelligence, while the integration layer, the infrastructure that determines what the AI can actually see, access, and act on, is treated as an afterthought. 

Consider what sits outside the reach of most enterprise AI deployments today: the customer contracts living in SharePoint, the pipeline data locked in Salesforce, the financial models in SAP, the project history in Jira, the institutional knowledge exchanged daily in Slack and email. Each system has its own authentication, its own API logic, its own access controls. Connecting them isn’t a configuration task. It’s an architectural undertaking. 

Organizations that treat enterprise AI as a technology purchase rather than a services engagement consistently arrive at the same destination: a sophisticated model with nowhere meaningful to look. 

From Retrieval to Action: The Agentic Difference 

The first generation of enterprise chatbots was built around retrieval. Ask a question, get an answer, maybe get a link. 

Agentic AI operates on a different principle entirely. It doesn’t wait to be asked, it reasons, plans, and acts. 

Here’s what that distinction looks like in practice. A project manager asks about the status of a deal. A retrieval-based system provides the last status update. An agentic system does something categorically different: it identifies that the project margin has dropped below threshold, checks the relevant executive’s availability in Outlook, schedules a briefing, and pre-generates a report showing margin trends and contributing factors, before a human has processed the initial answer. 

The problem isn’t just flagged. The response is already in motion. 

This is the shift that separates enterprise AI as a productivity feature from enterprise AI as a strategic capability. And it depends entirely on the quality of the integration layer beneath it. 

Why This Is an Integration Problem, Not an LLM Problem 

Choosing a large language model is the easiest decision in an enterprise AI deployment. The hard decisions come before and after: What data can the system access? Under what permissions? How does it authenticate across systems? How does it handle a workflow that spans four platforms and three departments? What happens when a step fails mid-execution? 

These are not model questions. They are architecture questions, and they require a fundamentally different set of competencies to answer well.

Our Head of Data & Analytics quote, on enterprise conversational AI deployments.

A production-ready enterprise conversational AI system must:

  • Connect securely to heterogeneous platforms with different APIs and authentication frameworks 
  • Understand business logic deeply enough to orchestrate coherent multi-step workflows 
  • Enforce role-based access controls that reflect real organizational boundaries, finance accessing financial projections, HR accessing employee records, neither accessing the other’s domain 
  • Maintain comprehensive audit trails that satisfy compliance and governance requirements 
  • Degrade gracefully when a system is unavailable or a workflow hits an unexpected state 

Off-the-shelf tools don’t navigate this complexity. The organizations consistently achieving measurable returns from enterprise AI share a common trait: they invested in deep integration architecture before they optimized for AI performance. 

What This Looks Like in Production

Turning 250GB of Stranded Data into a 30-Second Answer 

A leading New York-based renewable energy company had a data problem that will sound familiar: large volumes of unstructured documents, siloed across multiple systems and formats, producing slow, manual, and unreliable reporting. The intelligence existed. The access didn’t. 

We built a conversational analytics platform that changed the fundamental question from “who do I ask?” to “what do I want to know?” The system processes 250GB of unstructured data, makes over 3,000 documents and reports searchable through natural voice or text, and achieves 85–90% accuracy on proprietary data. Information retrieval that previously required 1–2 hours of manual effort now takes under 30 seconds. 

Decision-makers can now query complex datasets in plain language, “What’s our energy production trend this quarter?” and receive accurate, sourced answers without waiting for a reporting cycle. The bottleneck between data and decision has been effectively removed. 

Resolving Customer Friction at Scale

A major U.S. credit provider was absorbing a growing volume of customer complaints tied to basic account services. Customers who couldn’t or wouldn’t use the mobile app were defaulting to live agent calls for transactions that should have been self-service. Agents were overwhelmed. The experience was deteriorating. 

We deployed an Intelligent Virtual Assistant using Amazon Lex and Connect that lets customers access their accounts through natural conversation, by phone or chat, in English or Spanish. The system handles authentication, balance inquiries, payments, and account updates without agent involvement. Agent workload dropped significantly as routine queries shifted to self-service, and the architecture is built to scale conversational AI across both voice and chat channels as the business grows. 

Rebuilding HR Operations Around Intelligence 

A services organization replaced its fragmented HR workflows with a coordinated system of five specialized AI agents, each purpose-built for a distinct function within talent operations. 

The results were structural, not incremental. HR query response time dropped from hours to seconds. Candidate matching shifted from keyword filtering to vector-based skills and experience analysis, surfacing better-fit candidates earlier in the pipeline. Automated agents now handle job description generation, resume standardization, and candidate gap analysis, work that previously consumed recruiter time that could have been spent on relationship-building and strategic hiring decisions. 

The team didn’t just get faster. They got to do different, higher-value work. 

The Governance Imperative

Enterprise conversational AI systems access sensitive data and execute actions on behalf of employees. The governance architecture is not optional; it is the system. 

Role-based access control must be enforced at the integration layer, not the application layer. This means connecting to identity and access management systems, defining and enforcing permission policies that reflect real organizational structure, and maintaining audit trails detailed enough to answer the question “who accessed what, when, and why” under regulatory scrutiny. 

Permissions must also be dynamically updated as roles change, as organizational structures evolve, and as new data sources come online. Static governance frameworks become liabilities in organizations that move fast. The architecture must move with them. 

The Path from Pilot to Production

The organizations that successfully scale enterprise AI share a consistent pattern. They start with a specific, measurable business problem. 

“Reduce customer service resolution time by 40%” is a strategy. “Implement conversational AI” is a purchase. 

From there, the progression looks like this: 

Assess before you build

Can your critical systems be accessed programmatically? Is your data governance consistent enough to support AI workflows? Are your authentication frameworks ready for agent-level access? These questions determine your actual starting point, which is often different from where leadership assumes the organization is. 

Win where the integration is tractable

Internal knowledge access and employee-facing workflows are higher-value, lower-complexity starting points than customer-facing or regulated use cases. Prove the model internally before exposing it externally. 

Measure what matters

Task completion rates, time saved per workflow, reduction in manual escalations, direct impact on business outcomes. AI accuracy is a proxy metric. Business impact is the real one. 

Build for continuous improvement

The organizations extracting the most value from conversational AI have stopped thinking of it as a project. They have cross-functional teams iterating on the system continuously, based on user behavior, new data sources, and evolving business priorities. 

The Window Is Open, But Not Indefinitely 

Early adopters of agentic enterprise AI are accumulating a structural advantage: faster decisions, lower operational overhead, and compounding returns as their systems learn and expand. Organizations still operating basic retrieval chatbots are not standing still; they are falling behind relative to competitors who have solved the integration problem. 

The question is no longer whether conversational AI belongs in the enterprise. It does. The question is whether your organization will treat it as a technology feature or an architectural capability, and whether you have the right partner to build it properly from the ground up. 

Robosoft Technologies designs, builds, and deploys production-grade conversational AI systems for enterprises that are ready to move beyond pilots. Our work sits at the intersection of deep integration architecture, AI orchestration, and enterprise governance because that’s where the real returns are.

Your data already holds the answers. Let’s build the AI systems to unlock them. Connect with our Data & AI team.

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AI & Automation

Agentic AI vs Generative AI: Key Differences and Why It Matters for Enterprises

agentic ai and generative ai

At Robosoft Technologies, we work with global enterprises navigating the shift from digital transformation to enterprise‑scale AI adoption. Across industries, we see a consistent pattern: while Generative AI has delivered measurable productivity gains, many organizations struggle to convert AI‑driven intelligence into execution at scale. 

Our experience building and scaling complex digital platforms where experience design, engineering, data, and operations converge has shown us that the next phase of enterprise AI will not be defined by better answers alone. It will be defined by AI systems that can act, adapt, and execute responsibly within real business environments. 

This perspective shapes how we view the growing distinction between Generative AI and Agentic AI, and why this distinction is becoming increasingly important for enterprise leaders.

Over the past two years, Generative AI adoption has accelerated rapidly. AI copilots, chatbots, and content engines are now embedded across marketing, customer service, product development, and IT teams. These systems have improved speed, efficiency, and access to information. Yet for many CIOs and digital leaders, a fundamental limitation is becoming clear: execution still depends heavily on humans. 

Generative AI can generate insights, content, and recommendations, but people continue to coordinate workflows, manage handoffs, resolve exceptions, and drive outcomes across enterprise systems. The gap between AI‑generated output and business execution remains largely manual. 

This execution gap has led to the emergence of Agentic AI, a new class of AI systems designed to move beyond generation and into autonomous execution. As enterprises shift from AI experimentation to scaled deployment, understanding the difference between Agentic AI and Generative AI is no longer optional.

Head of Technology quote

To understand generative AI vs agentic AI, it helps to start with what Generative AI does best.  

Generative AI represents a major advancement in how organizations work with data and knowledge. It excels at creating text, code, images, and summaries, and delivers value across customer support, content creation, personalization, and software development. Its core strength lies in fluency and pattern recognition. 

However, Generative AI is inherently reactive and prompt‑driven. It operates within defined tasks and requires human direction to move work forward. While it augments individual productivity, it does not independently plan or execute multi‑step business processes. As a result, it enhances work but does not fundamentally change how workflows through the enterprise. 

Agentic AI builds on Generative AI and machine learning but introduces goal‑directed autonomy. Instead of responding to prompts, agentic systems are designed to understand objectives, decompose them into tasks, and initiate actions across enterprise applications. These systems can adapt to changing conditions, retain context over time, and learn from execution outcomes. 

In practice, Agentic AI behaves less like an assistant and more like a digital execution layer. It can take a business goal, determine the required steps, interact with APIs and data sources, monitor progress, and adjust its approach in real time. Over time, it builds institutional memory and improves decision‑making. 

The distinction becomes clear in real enterprise use cases. In sales operations, Generative AI may draft outreach emails or summarize account data. Agentic AI can go further researching prospects, prioritizing leads, personalizing communication, updating CRM systems, scheduling meetings, and escalating risks autonomously.

In procurement, agentic systems can evaluate suppliers, compare quotes, generate purchase orders, and trigger approvals. In recruitment, they can screen candidates, schedule interviews, and manage follow‑ups. In finance and compliance, they can support audit preparation, policy checks, and exception handling. 

These are not isolated automations. They represent end‑to‑end workflow ownership. In more advanced scenarios, multiple AI agents operate together as a coordinated system. One agent may monitor inventory, another forecast demand, another negotiate with vendors, and another manage logistics. These agents share context, collaborate, and adapt dynamically much like a cross‑functional human team. 

For enterprise leaders, this distinction directly impacts AI investment strategy. Generative AI is best suited for use cases focused on creation, insight, and communication. Agentic AI becomes essential when the objective is execution, coordination, and measurable business outcomes. 

Organizations that rely solely on Generative AI will continue to see incremental productivity gains. Those that adopt Agentic AI will begin to reshape operating models, reduce decision latency, and lower the cost of coordination. This marks a shift from AI‑assisted work to AI‑enabled execution. 

Agentic AI also introduces new challenges. These systems are still maturing and require careful architectural design. Persistent memory, planning logic, orchestration, monitoring, and fail‑safe mechanisms are critical. As autonomy increases, governance, accountability, transparency, and human oversight become even more important.

Head of Data and Analytics quote

At Robosoft, we don’t look at Agentic AI as just another technology layer it’s a transformational enterprise capability. Through our work across digital experience, platform engineering, and data ecosystems, we’ve seen that the real value of autonomous AI doesn’t come from adding more agents. It comes from knowing where autonomy truly drives leverage and where human judgment must remain at the center. 

AI for the enterprise must be designed to scale, integrate, and prove measurable ROI. Without that, Agentic AI risks becoming just a collection of isolated agents solving narrow tasks useful, but not a real differentiator for the business. 

That’s why we focus on reimagining how workflows through the organization, rather than simply layering AI on top of existing processes. We combine Generative AI for insight and expression with Agentic AI for execution, built on architectures that are scalable, governed, secure, and aligned to tangible business outcomes. 

The next phase of enterprise AI won’t be defined by who can generate the best answers, it will be defined by who can execute better, faster, and more intelligently at scale, with AI embedded into the operating fabric of the organization.

For enterprise leaders, the question is no longer whether to adopt AI. The real question is how to design AI systems that can operate responsibly at scale, deliver measurable value, and continuously improve over time. 

At Robosoft, we partner with CIOs and digital leaders to identify where autonomy can create meaningful impact across workflows, platforms, and customer journeys while ensuring the right balance of governance, control, and human oversight. 

If you’re rethinking how AI fits into your operating model and want to move beyond experimentation toward enterprise-grade, ROI-driven AI, we’d be glad to start that conversation.

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AI & Automation

Beyond the soloist: how multi-agent systems conquer complexity

agentic ai handling complex problems

Large Language Models (LLMs) are powerful but struggle with complex, multi-step tasks that require reasoning, planning, or domain-specific expertise. Multi-agent systems address these limitations by structuring AI as a team of specialized agents, each handling a distinct function. 

Some agents focus on real-time data retrieval, others on structured problem-solving, and some on refining responses through iterative learning. 

So, how do these AI agents interact, and what makes them a game-changer for enterprises leveraging AI-driven decision-making? Let’s explore.

Multi-agent systems

how multi agent systems functionPopular multi-agent frameworks 

  • Autogen 
  • Crew AI 
  • LangGraph 

Applications of Multi-Agent systems in complex problem-solving 

The image below illustrates the power of multi-agent LLM collaborating to solve complex tasks across various domains. It highlights six scenarios: math problem-solving, retrieval-augmented chat, decision-making, multi-agent coding, dynamic group chat, and conversational chess. By automating chat among multiple capable agents, these systems can collectively perform tasks autonomously or with human feedback, seamlessly incorporating tools via code when required.

Applications of Multi-Agent systems in complex problem solving

Image: Automated agent chat examples of applications built using the multi-agent framework 

Each scenario demonstrates specialized agents or components, such as assistants, experts, managers, and grounding agents, working together to enhance problem-solving, decision-making, and task execution. This demonstrates how multi-agent systems can leverage complementary skills to enhance problem-solving, decision-making, and task execution in various domains. 

Example of multi-agent LLM in action 

Let’s take a food ordering use case:

  • Past (human-driven mode) → users manually scroll through menus, apply filters, and place order
  • Present (co-pilot mode) → AI suggests options based on preferences, but users still take actions
  • Near future (auto-pilot mode)  AI fully understands user intent and automates ordering with a simple prompt. 

Current process (too many steps) ↓

Current online food ordering process, too many steps.

AI-powered future (frictionless experience) 

a customer ordering food online using voice command and multi-agent systems processing the request with minimum intervention from the user

AI understands, searches, personalizes, and completes the order—all in seconds. 

The multi-agent system handles the budget, dietary preferences, and location and finalizes the order. Minimal user input. Just confirm with a simple “Yes.” 

Advantages of multi-agent systems 

  • Saves time.
  • Reduces cognitive load.
  • Creates personalized experiences.
  • Makes technology adapt to humans (not vice versa).

This way we’re shifting from clumsy interfaces to intuitive conversations. The future isn’t about more features. It’s about making AI feel truly effortless, intelligent, and personal. 

Now, imagine this seamless AI-driven approach transforming industries: 

  • Travel – itineraries, analyzing budget or creating marketing campaign banners.  
  • Healthcare – distributed diagnosis and care coordination. 
  • Finance – stock market simulations. 
  • Customer support – instant, context-aware resolutions. 
  • And countless B2B & consumer applications. 

multi-agent systems statistics

Traditional software apps 

  • Operates on predefined rules and generates fixed outputs. 
  • Interacts with specific databases via rigid business logic. 
  • Updates are manual and infrequent. 

 AI agents 

  • Leverages LLMs to dynamically interpret and respond, continuously refining outputs.  
  • Connects to multiple (often siloed) data sources and tools for comprehensive decision-making. 
  • Learns from new inputs over time to improve performance.

Considerations for enterprises

Enterprises should build agent-driven solutions when dealing with proprietary data or specialized workflows. This offers tighter control, customization, and strategic value. Begin with internal use cases to refine processes, establish guardrails, and build trust. As workflows stabilize, scale to customer-facing use cases for maximum impact. Focus on high-value areas where multi-agent systems can significantly enhance efficiency and user experience. 

Ready to leverage multi-agent systems for next-gen LLM-powered chatbots or any other AI/ML initiatives? Our experienced team deeply understands your needs, tracks market trends, and delivers tailored, high-impact solutions using the right multi-agent framework.

Contact us for AI services

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AI & Automation

Generative AI investments: how to estimate funding for GenAI projects

generative ai investment guide for CIOs

In a Jan 2024 survey by Everest Group, 68% of CIOs pointed out budget concerns as a major hurdle in kickstarting or scaling their generative AI investments. Just like estimating costs for legacy software, getting the budget right is crucial for generative AI projects. Misjudging estimates can lead to significant time loss and complications with resource management.

Before diving in, it’s essential to ask: Is it worth making generative AI investments now, despite the risks and the ever-changing landscape, or should we wait? 

Simple answer: Decide based on risk and the ease of implementation. It’s evident that generative AI is going to disrupt numerous industries. This technology isn’t just about doing things faster; it’s about opening new doors in product development, customer engagement, and internal operations. When we speak with tech leaders, they tell us about the number of use cases pitched by their teams. However, identifying the most promising generative AI idea to pursue can be a maze in itself. 

This blog presents a practical approach to estimating the cost of generative AI projects. We’ll walk you through picking the right use cases, LLM providers, pricing models and calculations. The goal is to guide you through the GenAI journey from dream to reality. 

Choosing Large Language Models (LLMs) 

When selecting an LLM, the main concern is budget. LLMs can be quite expensive, so choosing one that fits your budget is essential. One factor to consider is the number of parameters in the LLM. Why does this matter? Well, the number of parameters provides an estimate of both the cost and the speed of the model’s performance. Generally, more parameters mean higher costs and slower processing times. However, it’s important to note that a model’s speed and performance are influenced by various factors beyond just the number of parameters. However, for this article’s purpose, consider that it provides a basic estimate of what a model can do.  

Types of LLMs 

There are three main types of LLMs: encoder-only, encoder-decoder, and decoder-only. 

  1. Encoder-only model: This model only uses an encoder, which takes in and classifies input text. It was primarily trained to predict missing or “masked” words within the text and for next sentence prediction. 
  2. Encoder-decoder model: These models first encode the input text (like encoder-only models) and then generate or decode a response based on the now encoded inputs. They can be used for text generation and comprehension tasks, making them useful for translation. 
  3. Decoder-only model: These models are used solely to generate the next word or token based on a given prompt. They are simpler to train and are best suited for text-generation tasks. Models like GPT, Mistral, and LLaMa fall into this category. Typically, if your project involves generating text, decoder-only models are your best bet. 

Our implementation approach 

At Robosoft, we’ve developed an approach to solving client problems. We carefully choose models tailored to the use case, considering users, their needs, and how to shape interactions. Then, we create a benchmark, including cost estimates. We compare four or five models, analyze the results, and select the top one or two that stand out. Afterward, we fine-tune the chosen model to match clients’ preferences. It’s a complex process, not simple math, but we use data to understand and solve the problem. 

 generative AI investments

Where to start? 

Start with smaller, low-risk projects that help your team learn or boost productivity. Generative AI relies heavily on good data quality and diversity. So, strengthen your data infrastructure by kicking off smaller projects now, ensuring readiness for bigger AI tasks later.


Generative AI investments

In a recent Gartner survey of over 2,500 executives, 38% reported that their primary goal for investing in generative AI is to enhance customer experience and retention. Following this, 26% aimed for revenue growth, 17% focused on cost optimization, and 7% prioritized business continuity. 

Generative AI investmentsBegin with these kinds of smaller projects. It will help you get your feet wet with generative AI while keeping risks low and setting you up for bigger things in the future. 

Different methods of implementing GenAI 

There are several methods for implementing GenAI, including RAG, Zero Shot, One Shot, and Fine Tuning. These are effective strategies that can be applied independently or combined to enhance LLM performance based on task specifics, data availability, and resources. Consider them as essential tools in your toolkit. Depending on the specific problem you’re tackling, you can select the most fitting method for the task at hand. 

  • Zero shot and One shot: These are prompt engineering approaches. The zero-shot approach involves the model making predictions without prior examples or training on the specific task, suitable for simple, general tasks relying on pre-trained knowledge. One Shot involves the model learning from a single example or prompt before making predictions, which is ideal for tasks where a single example can significantly improve performance. 
  • Fine tuning: This approach further trains the model on a specific dataset to adapt it to a particular task. It is necessary for complex tasks requiring domain-specific knowledge or high accuracy. Fine tuning incurs higher costs due to the need for additional computational power and training tokens. 
  • RAG (Retrieval-Augmented Generation): RAG links LLMs with external knowledge sources, combining the retrieval of relevant documents or data with the model’s generation capabilities. This approach is ideal for tasks requiring up-to-date information or integration with large datasets. RAG implementation typically incurs higher costs due to the combined expenses of LLM usage, embedding models, vector databases, and compute power. 

Key factors affecting generative AI investments (Annexure-1)

  • Human Resources: Costs associated with salaries for AI researchers, data scientists, engineers, and project managers. 
  • Technology and Infrastructure: Expenses for hardware (GPUs, servers), software licensing, and cloud services. 
  • Data: Costs for acquiring data, as well as storing and processing large datasets. 
  • Development and Testing: Prototyping and testing expenses, including model development and validation. 
  • Deployment: Integration costs for implementing AI solutions with existing systems and ongoing maintenance. 
  • Indirect costs: Legal and compliance and marketing and sales. 

Elements of LLMs

LLM pricing  

Once you choose the implementation method, you must decide LLM service (refer table 1 below) and then work on prompt engineering — that’s part of software engineering. 

Commercial GenAI products work on a pay-as-you-go basis, but it’s tricky to predict their usage. When building new products and platforms, especially in the early stages of new technologies, it’s risky to rely on just one provider. 

For example, if your app serves thousands of users every day, your cloud computing bill can skyrocket. Instead, we can achieve similar or better results using a mix of smaller, more efficient models at lower cost. We can train and fine-tune these models to perform specific tasks, which can be more cost-effective for niche applications.  Generative AI providers and costing 2024In the above table 1, “model accuracy” estimates are not included because they differ based on scenarios and cannot be quantified. Also note that the cost may vary. This is the current (as of July 2024) cost listed on the provider’s website. 

Generative AI pricing based on the implementation scenario 

Let’s consider typical pricing for the GPT-4 model for the below use cases. 

Here are some assumptions: 

  • We’re only dealing with English. 
  • Each token is counted as 4 letters. 
  • Input: $0.03 per 1,000 tokens 
  • Output: $0.06 per 1,000 tokens 

Use case calculations – Resume builder 

When a candidate generates a resume using AI, the system collects basic information about work and qualifications, which equates to roughly 150 input tokens (about 30 lines of text). The output, including candidate details and work history, is typically around 300 tokens. This forms the basis for the input and output token calculations in the example below.

GenAI use case resume builder

Let’s break down the cost. 

Total Input Tokens: 

  • 150 tokens per interaction 
  • 10,000 interactions per month 
  • Total Input Tokens = 150 tokens * 10,000 interactions = 1,500,000 tokens 

Total Output Tokens: 

  • 300 tokens per interaction 
  • 10,000 interactions per month 
  • Total Output Tokens = 300 tokens * 10,000 interactions = 3,000,000 tokens 

Input Cost: 

  • Cost per 1,000 input tokens = $0.03 
  • Total Input Cost = 1,500,000 tokens / 1,000 * $0.03 = $45 

Output Cost: 

  • Cost per 1,000 output tokens = $0.06 
  • Total Output Cost = 3,000,000 tokens / 1,000 * $0.06 = $180 

Total Monthly Cost: 

Total Cost = Input Cost + Output Cost = $45 + $180 = $225 

How to calculate generative AI cost ROI

RAG implementation cost  

Retrieval Augmented Generation (RAG) is a powerful AI framework that integrates information retrieval with a foundational LLM to generate text. In the case of resume builder use case, RAG retrieves relevant data based on the latest information without the need for retraining or fine-tuning. By leveraging RAG, we can ensure the generated resumes are accurate and up-to-date, significantly enhancing the quality of responses. 

Generative AI RAG based cost 

Fine tuning cost

It involves adjusting a pre-trained AI model to better fit specific tasks or datasets, which requires additional computational power and training tokens, increasing overall costs. For example, if we fine-tune the Resume Builder model to better understand industry-specific terminology or unique resume formats, this process will demand more resources and time compared to using the base model. Therefore, we are not including the cost for this use case.

Summary of estimating generative AI cost 

To calculate the actual cost, follow these steps: 

  1. Define use case: E.g. Resume builder
  2. Check cost of LLM service: Refer to table 1. 
  3. Check RAG implementation cost: Refer table 3.
  4. Combine costs: LLM service, RAG cost, and calculate additional costs (Annexure-1) such as hardware, software licensing, development and other services. 

The rough estimate would be somewhere between $150,000 to $2,50,000. These are just the ballpark figures. The costs may vary depending on your needs, LLM service, location, and market condition. It’s advisable to talk to our GenAI experts for a precise estimate. Also, keep an eye on the prices of hardware and cloud services because they keep updating. 

You can check out some of our successful enterprise projects here. 

GenAI reducing data analytics cost

At Robosoft, we believe in data democratization—making information and data insights available to everyone in an organization, regardless of their technical skills. A recent survey shows that 32% of organizations already use generative AI for analytics. We’ve developed self-service business intelligence (BI) solutions and AI-based augmented analytics tools for big players in retail, healthcare, BFSI, Edtech, and media and entertainment. With generative AI, you can also lower data analytics costs by avoiding the need to train AI models from the ground up.

Image source: Gartner (How your Data & Analytics function using GenAI) 

Conclusion

Generative AI investments aren’t just about quick financial gains; they require a solid data foundation. Deploying generative AI with poor or biased data can lead to more than just inaccurate results. For instance, if a company uses biased data in its hiring process, say gender or race, it could discriminate against certain people. In a resume-builder scenario, this biased data might incorrectly label a user, damaging a company’s reputation, causing compliance issues, and raising concerns among investors.

While we write this article, a lot is changing. Our knowledge about generative AI and what it can do might differ. However, our intent of providing value to customers and driving change prevails.

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