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

Agentic AI vs Generative AI: Key differences and why it matters

What is Agentic AI vs Generative AI-key differentiator factors

Artificial Intelligence (AI) has advanced in leaps and bounds in recent years, fundamentally changing how enterprises leverage technology. AI is now at the center of transforming operations, customer engagement initiatives, product development, and even new business models, rendering a sizeable impact far-reaching across industries. What began as machine learning based models solving classification problems has matured into powerful Generative AI (Gen AI) models creating human-like content, suggesting code, and enabling hyper-personalized experiences. Above all, the developments in Gen AI have primarily changed how enterprises engage with their own data, content, and customers.

However, as enterprises engage in more complex workflows and processes, they seek AI solutions that can provide more than just ‘reply’ or ‘automation’. As a result, we are seeing a new class of AI systems emerge from the foundation of Generative AI and Machine Learning (ML), we are seeing “Agentic AI”. Agentic AI builds upon the foundational technologies of Gen AI and Machine Learning but adds a critical layer—goal-directed autonomy. Essentially, it can reason, plan, modify plans, and initiate a sequence of actions autonomously to execute multi-step processes efficiently. In this article, we’ll explore Agentic AI vs Generative AI—how they differ, and what these differences mean for enterprises.

Agentic AI vs Generative AI: Key differences

Generative AI can implement single-step tasks that require fluency, variety, or creative iteration. However, it falls short on intelligent decision-making, goal-driven autonomous execution, or dynamic (or in “real-time”) adaptation to new information without continuous human intervention, where Agentic AI excels. Let’s look at what is Agentic AI vs Generative AI.

Generative AI: Reactive and prompt-aware

What is Generative AI?

Generative AI refers to a class of artificial intelligence models that generate new content based on learned patterns from massive datasets. These systems are often based on large language models (LLMs) – such as GPT-4, LLaMA, Claude, or Gemini – that have all been trained from billions of parameters to generate human-level text, realistic images, lines of code, synthetic voice-overs, and the list goes on. Their strength lies in pattern recognition and generation of patterns, not decision-making.

Real-world applications of Generative AI

Generative AI is already deeply embedded in enterprise workflows:

  • Customer support: AI chatbots can answer queries, generate responses, escalate issues, or route inquiries as needed.
  • Content engines: Automatically generate product descriptions, ad copies, scripts, and social media content.
  • Personalization engines: Help in personalized outreach using CRM data or product recommendations through dynamic text generation.
  • Software development: AI-assisted programming through code suggestion tools, such as GitHub Copilot or Tabnine, to assist with software development.
  • Language translation: Multilingual content generation at scale.

Technical foundations of Generative AI

The backbone of Generative AI lies in:

  • Natural Language Processing (NLP): Processing and understanding text and speech data to generate human-like text and speech by combining computational linguistics.
  • Multimodal generation: Generate output with modalities, such as images, videos, and audio, through text prompts.
  • Massively scaled training datasets: Gen AI systems can pull together knowledge from literature, code repositories, customer data, and more.
  • Reinforcement learning with human feedback (RLHF): Optimizing ML models using human feedback to self-learn and adapt.

Gen AI models are trained on billions of parameters and fine-tuned using feedback loops that optimize their understanding of context, syntax, semantics, and intent.

Limitations of Generative AI

  • Reactive by design: It requires user prompts or inputs to initiate any action.
  • Stateless behavior: Most Gen AI models do not retain context between sessions unless externally integrated.
  • Lacks decision-making: Cannot independently plan or optimize actions toward a goal.
  • Limited reasoning: Often lacks the ability to weigh multiple outcomes or infer logical sequences.
  • Non-autonomous: Cannot execute tasks beyond generating content in response to prompts.

Agentic AI: Autonomous and goal-aware

What is Agentic AI?

Agentic AI systems use AI to do three key things: perceive their environment, process the data or information it gathers, and act autonomously to achieve complex goals based on that data or information. These systems are the next evolutionary step in AI systems as they are proactive, adaptive, and collaborative, capable of executing actions without requiring prompt-by-prompt human intervention.

Think of an autonomous agent not just as a bot, but as a digital executive assistant with the capacity to:

  • Understand goals
  • Break them into sub-tasks
  • Make strategic decisions based on changes in conditions
  • Collaborate with APIs, databases, and even other agents

Real-world use cases of Agentic AI

  • Procurement agents: Evaluating vendor options, comparing quotes, creating purchase orders, and initiating approval workflows.
  • Sales assistants: Research prospects, prioritize leads, personalize outreach, log data in a CRM, and schedule appointments autonomously.
  • Recruitment agents: Screening resumes, scheduling interviews, initiating follow-ups, and even sending offer letters.
  • Intelligent agents in finance: Managing compliance workflows, preparing audit documents, or running simulations of risk assessments.

Technical foundations of Agentic AI

  • Planning and reasoning modules: These include symbolic AI, decision trees, and logic programming systems.
  • Memory systems: Persistent memory (e.g., Vector databases) and context-aware memory retrieval for long-term coherence.
  • Autonomous feedback loops: Continuous learning mechanisms that use prior execution cycles to learn and optimize strategies over time.
  • Multi-Agent orchestration: In this process, multiple AI agents work together, each responsible for a part of the workflow.

Multi-agent orchestration: When AI teams up

A hallmark of Agentic AI is multi-agent systems—autonomous AI agents, each with specialized roles, working together, often synchronously, to achieve a unified business goal.

For example, consider an automated supply chain:

  • One AI agent monitors the inventory
  • Another forecasts demand
  • A third AI agent handles vendor negotiations
  • Yet another manages logistics

Multi-agent orchestration- multiple autonomous AI agents working together

These AI agents share goals, exchange information, and adapt to real-time conditions, similar to a team of human employees. This is AI-driven orchestration, not isolated automation.

Agentic AI vs Generative AI: Why this distinction matters

Smarter AI Investment Decisions

Understanding the Agentic AI vs Generative AI distinction helps enterprise leaders invest in the right capability for the right use case:

  • Need content generation, summarization, or customer interaction? Generative AI fits.
  • Need to complete business tasks end-to-end, handle exceptions, and escalate smartly? You need Agentic AI.

Above all, decision makers and AI leaders can future-proof their AI roadmap by preparing composable, intelligent systems.

From point solutions to process automation

Most Generative AI implementations today are enhancements, not replacements—content suggestions, summarization, or support augmentation. They deliver short-term productivity gains. But Agentic AI can automate entire business processes, delivering:

  • Cost efficiency
  • Faster decision cycles
  • Scalable digital operations

This makes Agentic AI a core driver for digital transformation, not just another tool in the stack.

A side-by-side comparison: Agentic vs Generative AI

Here is the side-by-side comparison of Agentic vs Generative AI:

Agentic AI vs Generative AI differences

Agentic AI vs Generative AI: Challenges and considerations

Maturity and tooling

Agentic AI is still in its infancy. Unlike Generative AI—which has APIs, platforms, and SaaS tools—Agentic AI requires bespoke development. Standards for orchestration, memory management, and multi-agent interaction are still emerging.

Engineering complexity

Designing agentic systems involves:

  • Persistent memory & goal tracking
  • Dynamic planning under constraints
  • API/action management
  • Failover and recovery mechanisms

This demands full-stack AI expertise, not just prompt engineering.

Governance and risk

Agentic AI introduces new governance challenges:

  • Autonomy vs Control: What level of autonomy should AI agents have?
  • Transparency: Can these AI systems justify why they take specific actions?
  • Accountability: Who is responsible when things go wrong?
  • Ethics and Compliance: Is autonomous decision-making aligned with company values and industry regulations?

It’s not Agentic AI vs Generative AI—it’s Agentic AI and Generative AI

The choice between Agentic AI vs Generative AI is not binary. They are complementary. Generative AI is ideal for tasks that require expression, content, or ideas. Agentic AI is ideal when you need outcomes, execution, and autonomy.

Enterprises must:

  • Understand the capabilities and limits of each
  • Identify the right use cases for meaningful ROI
  • Work with partners who bring deep technical and domain expertise

Robosoft Technologies is uniquely positioned to help you move beyond experimentation into AI-led transformation:

  • Strategic AI consulting to accelerate adoption—AI readiness, use case discovery, data architecture assessment, and customer analytics
  • Scalable AI and data solutions—LLM model fine-tuning, CDP, Agentic AI automation, product and customer analytics platform, and cloud data migration.
  • We integrate AI solutions that are at the forefront of research, data-driven UX audits, and design to create intuitive, inclusive, and high-performing digital experiences—backed by strategy, emotional intelligence, and scalable design systems.

Want to see how Agentic AI can transform your business operations? Contact us for a consultation.

FAQs 

Q: What is Agentic AI vs Generative AI?

A: Generative AI systems are reactive and generate new content (text, images, lines of code, voice-overs, etc.) based on learned patterns from massive datasets. On the other hand, Agentic AI systems act autonomously to make decisions for achieving complex goals across multiple steps. 

Q: Is ChatGPT an Agentic AI?

A: No, ChatGPT is not an Agentic AI system. It is a Generative AI system based on LLMs that operates on prompt-based inputs to create new content. 

Q: What can AI Agents do?

A: AI agents can perceive their environment, process the data or information it gathers, and act autonomously to achieve complex goals based on that data or information. 

Q: What is orchestration in AI Agents?

A: Orchestration in AI agents refers to coordinating and managing multi-agent AI systems, each with specialized roles to achieve a unified goal.

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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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