AI Models on the Verge of Commoditization as 'Agentic' Systems Emerge

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AI Models on the Verge of Commoditization as 'Agentic' Systems Emerge
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Leading AI labs warn that large language models (LLMs) like OpenAI's could become commonplace by 2025 due to rapid advancements in AI agents and open-source competition. The focus is shifting from LLMs to 'agentic' systems that can execute tasks autonomously, integrating LLMs for a more proactive user experience.

Executives at leading AI labs warn that large language models (LLMs), like those developed by OpenAI and big tech firms, risk becoming commonplace by 2025. This shift is driven by rapid advancements in next-generation artificial intelligence agents and the emergence of nimble, open-source rivals. Last week, Chinese AI firm DeepSeek released R1, a reasoning model that claims to outperform OpenAI's o1 model in both cost-effectiveness and performance.

This open-source model, freely available on the web, signals a growing trend towards accessible and competitive AI solutions.Meanwhile, the tech industry is buzzing with discussions about a transition from LLMs to so-called 'agentic' systems. These systems can execute tasks on your behalf, integrating LLM technology to provide a more proactive and autonomous user experience. LLMs, while foundational to today's generative AI applications, are expected to become increasingly commoditized as technology progresses and training and operational costs decline. Experts believe that the focus will shift towards building sophisticated systems that leverage these models for practical applications.Thomas Wolf, co-founder and chief science officer of Hugging Face, a popular platform for open-source AI projects, predicts that LLMs will be seamlessly integrated into intelligent systems connected to vast databases. He envisions a future where AI becomes ubiquitous, akin to the internet revolution, with a focus on building internet-native companies that utilize AI for innovative solutions. Matt Calkins, CEO of U.S. software firm Appian, agrees that AI models are heading towards commoditization, arguing that many companies will achieve competitive AI capabilities, potentially leading to a lack of differentiation among early adopters. This shift in the AI landscape is already evident in the rise of open-source models like DeepSeek's R1, which challenges the dominance of proprietary LLMs and paves the way for a more democratized AI future

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