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The new kid on the block is the LLM-driven “agent”, which embodies ideas popularised by Peter Norvig and Stuart Russell in their 1995 textbook. AI generated image
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Forbes India•12-10-2026, 15:29
The AI Bandwagon: Why Businesses Must Look Beyond the LLM Hype
  • •Businesses often adopt AI trends blindly driven by fear of missing out, mirroring historical tech bubbles like the dotcom crash.
  • •While large language models dominate current conversations, many impactful AI innovations rely on alternative architectures such as deep reinforcement learning and computer vision.
  • •The emergence of agentic AI introduces new risks, including autonomy-related failures, infinite loops, and significant security vulnerabilities.
  • •Pragmatic approaches, such as using open models for local challenges in agriculture and healthcare, offer better value than building costly sovereign LLMs.

Key Questions Answered

The bandwagon effect describes the impulse among corporate leaders to adopt trends like generative AI due to FOMO without carefully weighing costs or consequences, mirroring how historical tech bubbles led to massive financial losses and the dotcom bust.

Venkatagiri suggests that instead of funding a costly sovereign LLM, India should pragmatically embrace free models and focus on building affordable solutions for local problems like public healthcare and small-scale agriculture.

Enterprises are moving away from endless experimentation and pilot projects toward demanding measurable returns on investment, with corporate boards increasingly focused on financial outcomes and bottom-line impact rather than just tech demos.