B2B Agentic AI Workflows


EDI, Event-Driven Architecture and the Ancestors of Agentic AI

Recent conversations at customer AI Roadshow in Dublin got me to thinking about the days when I was IT Manger for a start-up retail business. I was introduced to EDI. Electronic Data Interchange — the ability to send a structured purchase order from one company’s system to another without a human typing it in. It was, genuinely, transformative. Before EDI, someone had to pick up the phone, read out an order number, and hope the person on the other end wrote it down correctly.

EDI removed the human from the data transfer. That was the revolution.

But here’s what EDI couldn’t do: think.


The First Generation: EDI — Moving Structured Data Between Systems

EDI was brilliant at one thing — moving a known, structured message from point A to point B, reliably, at scale.

A purchase order goes out. An invoice comes back. A shipping confirmation follows. Every field in its place. Every transaction logged. The pipes worked.

What EDI required, though, was that both sides agreed on the format in advance. EDIFACT. X12. Fixed-width files. The message had to be perfectly structured, perfectly mapped, and perfectly expected. If something fell outside the agreed schema, the transaction failed. There was no interpretation. No judgement. No handling of the unexpected.

EDI moved data. It didn’t move meaning.

And it was entirely reactive. Something happened upstream — a human placed an order, a warehouse confirmed a shipment — and EDI carried the news downstream. The system itself initiated nothing. It waited.


The Second Generation: Event-Driven Architecture — Systems That React

Event-Driven Architecture was the next evolution. Instead of scheduled batch transfers between agreed parties, EDA introduced the idea of a continuous stream of events — things that happened — flowing through a system in real time.

A sensor reading changes. An event fires. A customer clicks “buy”. An event fires. A stock level drops below threshold. An event fires.

Systems subscribed to the events they cared about and responded accordingly. Kafka, RabbitMQ, AWS EventBridge — the plumbing of the modern enterprise. EDA made systems faster, more loosely coupled, and far more responsive than the batch-and-transfer world of EDI.

But EDA still had a fundamental constraint: the responses were pre-programmed.

When the stock level drops below threshold, the system does exactly what it was told to do — raise a replenishment order, send an alert, update a dashboard. The logic was written by a developer, tested, deployed, and fixed. The system reacted, but it didn’t reason.

If the stock drop happened because of an unusual combination of factors — a supplier delay, a seasonal spike, and a logistics disruption all at once — the pre-programmed response might be exactly wrong. The system would fire its rule. The rule would execute. And nobody would know it was the wrong call until the consequences arrived.

EDA moved meaning. It still couldn’t interpret it.


Now the Grandchild – The Third Generation: Agentic AI — Systems That Reason

This is where we are now. And this is why it’s different.

Agentic AI in business promises to not just just move data. And not just react to events. But reason across context, construct execution plans appropriate to situations, and take action — using tools, calling systems, adapting when the outcome isn’t what was expected.

The same scenario that would have broken an EDI transaction or misfired an EDA rule — the supplier delay, the seasonal spike, the logistics disruption, all at once — is exactly the kind of multi-signal, ambiguous situation an agentic system can handle. Because it holds all of that context simultaneously. It weighs it. It decides.

What makes this possible is the LLM at the centre of the agent. The LLM is the part that EDI and EDA never had.

Natural language understanding means that events described in unstructured form — a technician’s note, a customer complaint, a supplier email — can now trigger workflows. Not just structured data events. Any signal. Reasoning across context means the agent doesn’t just react to one event; it holds multiple events simultaneously and reasons across them. The order, the stock level, the maintenance alert — connected. Dynamic planning means that instead of following a pre-defined decision tree, the agent constructs a plan appropriate to the specific situation, novel exceptions included. And natural language output means the agent doesn’t just act — it explains. The shift supervisor gets a recommendation in plain English with the reasoning visible. Trust is built.

Tool selection is the final piece. The LLM decides which tools to call and in what order. The workflow isn’t hardcoded. It’s reasoned.

EDI moved structured data between systems. EDA moved events between systems in real time. LLMs move meaning.


The Family Tree

It helps to see this as a lineage, not a replacement.

GenerationTechnologyWhat it movedWhat it couldn’t do
1stEDIStructured data between agreed partiesHandle the unexpected
2ndEDAEvents between loosely coupled systemsReason about what they meant
3rdAgentic AI
B2B Agentic Workflows
Goals, plans and actions across systems and across organisationsStill being discovered

Each generation inherited the infrastructure of the one before. Agentic AI runs on top of the event streams that EDA built. EDA ran on top of the integration patterns that EDI established. You don’t throw away the pipes. You add a brain.


The Democratisation Wave

There’s a second story running alongside the technical one, and it matters just as much.

EDI required specialists. You needed someone who understood EDIFACT schemas, VAN networks, and trading partner agreements. It was powerful, but it was not accessible. The people who could build EDI integrations were a small, expensive, specialist group.

EDA democratised some of that — cloud-native event brokers, managed Kafka, serverless functions. A competent developer could wire up event-driven workflows without a decade of integration experience. But it was still firmly in the hands of engineers.

Agentic AI is doing something different. It’s democratising the building of intelligent workflows to people who have never written a line of code.

n8n, Make, Zapier AI — visual workflow builders with LLM nodes — mean a marketing manager can build an agentic workflow in an afternoon. Microsoft Copilot Studio puts a drag-and-drop agent builder on top of the M365 data layer without IT involvement for every use case. Salesforce Agentforce puts CRM-native agents in the hands of sales operations teams, not engineers. ServiceNow puts ITSM agents in the hands of process owners who understand the work. And DataRobot — an AI and ML platform that has evolved rapidly into agentic territory — allows data teams to build, deploy, and govern agents on top of existing model infrastructure. For organisations that already have a mature ML practice and want to extend it into agentic workflows without starting from scratch, it is particularly powerful.

These are just the established names. The startup ecosystem is moving fast — new agentic workflow builders are appearing monthly, each with their own approach to orchestration, tool calling, memory, and governance. The space is genuinely exciting. It is also, right now, genuinely fragmented.

Which brings us to the standards problem.


The Standards Problem — And Why It Matters

EDI had this problem too. In the early days, every organisation implemented EDI slightly differently. EDIFACT versus X12. Different field mappings. Different interpretations of the same schema. Trading partners had to negotiate bespoke integration agreements with every counterparty. The technology worked. The interoperability didn’t — not without significant effort.

EDA had the same growing pains. Kafka versus RabbitMQ versus Pulsar. Different event schemas. Different serialisation formats. Different approaches to ordering, delivery guarantees, and error handling. The ecosystem fragmented before it consolidated.

Agentic AI is at exactly that point right now.

Every platform has its own way of defining tools. Its own agent memory model. Its own approach to multi-agent orchestration. Its own security and governance primitives. An agent built in LangChain doesn’t natively interoperate with one built in AutoGen. A tool wrapped for Copilot Studio doesn’t automatically work in n8n. The capability is real. The standards are not yet.

This is not a reason to wait. It is a reason to build with portability in mind — and to watch one emerging standard very closely.


MCP — The Standard That Could Change Everything

Model Context Protocol, introduced by Anthropic and rapidly gaining adoption across the industry, is the most important standards development in agentic AI right now. And it maps almost perfectly onto what EDI did for data exchange — and what event schemas did for EDA.

MCP is a standard protocol that defines how an AI agent connects to external tools, data sources, and systems. Instead of every agent builder implementing bespoke integrations with every tool, MCP provides a universal connector layer. Build an MCP server for your system once, and any MCP-compatible agent can use it.

Think about what that means in practice. For the agent builder, instead of writing custom integration code for every tool the agent needs to call, you connect to MCP servers. The agent discovers what tools are available, what they do, and how to call them — dynamically, at runtime. For the tool owner, instead of building integrations for every agent framework that might want to use your system, you build one MCP server. Any compliant agent can connect. For the enterprise, instead of a fragmented estate of bespoke agent-to-tool integrations that nobody fully understands, you have a governed, discoverable, auditable layer of MCP servers that defines exactly what your agents can and cannot do.

This is the EDI moment for agentic AI. EDI gave us agreed schemas for business documents. MCP gives us an agreed protocol for agent-to-tool communication.

The analogy goes further. EDI worked best when the underlying data was clean and the trading partners had agreed on what the fields actually meant — not just their format. MCP works best when the tools behind the servers are well-behaved, well-documented, and governed. The protocol solves the connection problem. It doesn’t solve the data quality problem or the governance problem. Those are still yours to own.

MCP also does something that matters enormously for any enterprise running multiple agents across multiple systems. It makes multi-agent architectures composable. Consider a manufacturer running a maintenance agent, a production scheduling agent, and a procurement agent in parallel. Without MCP, connecting them into a coherent workflow requires custom orchestration code that understands the internals of each agent — change one and you potentially break the others. With MCP, each agent exposes its capabilities as MCP tools. Other agents can discover and call those capabilities through the standard protocol, with a standard contract, logged and auditable. Three systems. One control plane. Connected through a standard that didn’t exist two years ago.

The pattern is the same as every democratisation wave in technology history.

EraWhat got democratisedThe tool that did it
1990sDesktop publishingPageMaker, Word
2000sWeb presenceWordPress, Dreamweaver
2010sData visualisationTableau, Power BI
2020sAgentic workflowsn8n, Copilot Studio, Agentforce

Each wave put powerful capability into the hands of people who previously had to ask a specialist. Each wave also created a new class of problems — because power without understanding is just faster chaos.


B2B Agentic Workflows — The Next Frontier

Most of the conversation about agentic AI is pointing inward. Automated reports. Automated configurations. Automated competitive analysis. Internal workflows made faster, smarter, less dependent on human intervention. That’s real, and it matters.

But it’s only half the story. Possibly the smaller half.

Because EDI was never an internal tool. It was born as a between-business protocol — two organisations’ systems talking directly to each other, without human intermediaries on either side. If the lineage holds, agentic AI follows the same arc. And the scenario that makes that concrete isn’t hard to imagine. It’s already forming.

Consider a retailer. Its demand forecasting agent is reading sales velocity, seasonal patterns, and external signals continuously — and generating a forward-looking inventory position without being asked. That signal reaches the procurement agent, which reasons across current stock levels, lead times, and supplier terms, and decides to place an order. That order doesn’t go to a human at the supplier. It goes to the supplier’s availability agent, which checks production schedules and fulfilment capacity and responds — or negotiates. Behind that, the supplier’s manufacturing scheduling agent has already slotted the order into the production run. And further upstream, the supplier’s own procurement agent is talking to their suppliers.

Agent talking to agent, all the way up the chain. Each one reasoning locally. The chain reasoning collectively.

This is B2B Agentic — and it is categorically different from EDI. EDI moved a deterministic message between agreed parties. B2B Agentic moves a reasoned decision across organisational boundaries, without a human initiating either side of the transaction. The demand signal propagates. The factory schedules. And at no point did a person decide to place an order.

That’s not science fiction. The components exist today. What doesn’t exist yet is the inter-enterprise trust and governance framework that makes it safe to run at scale. Who owns the decision when two agents from different organisations get it wrong together? How do you audit a transaction that involved reasoning, not just data transfer? What does liability look like when the purchasing agent acted autonomously on a signal the forecasting agent generated?

These are the questions that will define whether B2B Agentic scales cleanly or creates a new class of enterprise risk. MCP is a candidate for the protocol layer. The governance model is still being written.

The ancestors built the pipes. The current generation added the brain. The next frontier is teaching that brain to do business across organisational boundaries — reliably, safely, and at scale.


The Critical Caveat

Here’s the thing that gets lost in the excitement about low-code agent builders.

The tool is not the answer. The tool is the last ten percent.

A marketing manager who wires up an agentic workflow in Copilot Studio in an afternoon has built something that runs on top of data. If that data is ungoverned, siloed, or untrustworthy — the agent will be fast, autonomous, and wrong. In a B2B Agentic world, that problem doesn’t stay inside your firewall. It propagates upstream, downstream and crossstream.

The democratisation of the interface doesn’t democratise the need for foundations.

EDI required clean, agreed data schemas. EDA required reliable, well-defined events. Agentic AI requires trustworthy data, well-behaved tools, clear governance, and someone who owns the outcome. The new hire arrives fluent in n8n. They can build an agent before lunch. But if nobody has done the work to make the underlying data and systems agent-ready, they’ve built a very sophisticated way to automate a bad process.

The low-code builder is the interface. The foundations are still the foundations.


What This Means in Practice

If you’re thinking about agentic AI in your organisation, the lineage matters.

The organisations that got the most out of EDI were the ones that had clean master data and agreed standards before they plugged in the integration. The organisations that got the most out of EDA were the ones that had well-defined events and reliable systems of record before they started subscribing to streams.

The organisations that will get the most out of agentic AI — and that will be ready when B2B Agentic arrives — are the ones that have data their agents can actually use: authoritative, accessible, reasonably clean. Systems that expose safe, well-defined actions: APIs, automations, tools with clear contracts. Governance that decides where autonomy is allowed and where a human stays in the loop. And someone who owns the agent as a product, not a side project.

The technology has changed dramatically across three generations. The discipline required to use it well has not.

Agentic AI is the most capable generation yet. It can reason, plan, adapt, and explain. It can handle the unexpected in ways that EDI and EDA never could. And if B2B Agentic develops as the lineage suggests it will, the boundaries of what agents can do — and who they can do it with — are about to expand significantly.

The ancestors built the pipes. The next generation will build the trust layer.

Just like EDI and EDA before, B2B Agentic Workflows will become cross-organizational pipelines – now with intelligence built in.


Those Who Carry Out the Plans Should Make the Plans

A flowchart depicting an iterative cycle with stages: Define, Design, Improve, Deploy, emphasizing team collaboration and continuous improvement.

Why project success needs people readiness, not just data readiness

In what feels like another life, I studied Business and Finance. I was young, curious, and absorbing everything I could about how organisations worked and why some of them worked better than others. It was during that time I came across Peter Drucker and Tom Peters. Drucker shaped how I thought about organisations and the people inside them. From Peters, one line lodged itself somewhere permanent.

“Those who carry out the plans should make the plans.”

I’ve thought about that line in boardrooms, on project reviews, at customer events, and in conversations where someone is explaining, with complete confidence, why the new system is going to transform the business. I think about it every time I see an AI deployment that looks impressive on a slide and doesn’t survive contact with the people it was built for.

It’s not a line about technology. It’s a line about respect — for the expertise, the context, and the judgement of the people who actually do the work. And it is, in my experience, the most frequently ignored principle in the management of change.


This Failure Mode Is Not New

Let’s be honest about something. The failure mode we’re describing when we talk about AI projects ending up in the PoC graveyard is not new. It is not a product of machine learning complexity, data pipeline debt, or foundation model hype. It is a pattern that has been repeating itself across every major wave of enterprise technology for the last thirty years.

ERP systems that were technically correct and operationally ignored. CRM platforms that the sales team logged into once and then routed around via spreadsheets. Lean manufacturing programmes that consultants designed, managers approved, and shop floor workers gently buried. The technology changed. The failure mode didn’t.

In each case, the pattern was the same. A solution was designed by people who understood the technology and approved by people who controlled the budget. The people who were going to use it every day — the ones who knew where the edge cases lived, where the workarounds had evolved, and why the process worked the way it did rather than the way the manual said it should — were consulted late, informed later, and left to figure it out for themselves once the project team had moved on.

IT projects have been going live or dying for decades. What has changed is the amplification. AI deployments carry bigger expectations, bigger investment, and bigger visibility than a CRM rollout ever did. The failure, when it comes, is correspondingly louder — and the case study about what went wrong gets written faster.


The Quiet Failure

There is a specific kind of AI failure that deserves its own name. Not the dramatic kind — the model that produces obviously wrong results, the bias scandal, the infrastructure collapse. The quiet kind. The proof of concept that worked beautifully in the demo, received senior sign-off, and then never made it to production.

The PoC graveyard is full of technically impressive work. Models that performed well on the test set. Dashboards that visualised the right things. Business cases that stacked up on a spreadsheet. None of it survived — not because the technology failed, but because the organisation wasn’t ready to receive it.

Nobody had been asked whether the process the model was designed to improve was actually the process people ran. Nobody had involved the support team who would have to explain the system’s recommendations to confused customers. Nobody had thought about what happened when the model got it wrong and someone needed to know why.

The people who would carry out the plan had not been asked to make it. And so, quietly and without drama, they didn’t carry it out either.


The Half of Readiness Nobody Talks About

There is a conversation I have frequently about data readiness — about EDA¹, about the gap between data storage and data strategy, about the things that have to be true before a model can do useful work. That conversation is important and underserved, and it is a prerequisite for AI that’ll deliver value.

But data readiness is only one side of the coin. The other side is people readiness. And in my experience it receives a fraction of the attention.

People readiness asks different questions to the ones we usually focus on. Do the people who will use this system understand what it is doing and why? Do they trust it enough to act on its recommendations — or will they systematically override it, quietly and without logging the fact that they’ve done so? Do they have a genuine channel to raise concerns, flag errors, and feed back what they’re seeing on the ground — and do they feel ownership over the system, or merely obligation toward it? These are not soft questions. They are the questions that determine whether the technical work translates into business value or sits on a server being politely ignored.

There is also the black box problem. People do not trust what they cannot see into. If a system produces a recommendation and nobody can explain why — not in general terms, not in the language of the person being asked to act on it — then the most rational response is to ignore it. Not because the person is resistant to change, but because professional judgement requires understanding. A clinician, an underwriter, a logistics manager, a credit analyst — none of them can be expected to stake their reputation on an output they cannot interrogate. Explainability is not a technical nice-to-have. It is a precondition for trust, and trust is a precondition for adoption. Drucker’s observation that culture eats strategy for breakfast was not a warning about bad strategies. It was a warning about what happens when the human layer is treated as a variable rather than a foundation — and it applies here with full force.

An AI system without people readiness is like a well-engineered road built in the wrong direction. The construction is sound. Nobody uses it. The route everyone actually takes is the muddy path that existed before the contractors arrived.


Inclusion Is Not a Ceremony

When organisations talk about involving users in an AI deployment, they often mean something narrower than they should. A workshop near the start. A sign-off meeting near the end. A training session the week before go-live. Boxes ticked. Change management complete.

That is not inclusion. That is notification with a collaborative wrapper around it.

Genuine inclusion means the people closest to the process are in the room when the use case is defined. It means their knowledge of how the work actually happens — not how it is documented, but how it is actually done, with all its workarounds, exceptions, and institutional memory — shapes the design. It means their concerns about what happens when the model is wrong are taken seriously as design constraints, not managed as resistance to be overcome.

The winemaker who walked in with a printout challenging Clare’s model — a story I wrote about in an earlier post on data readiness — was not being obstructive. He was being exactly what a domain expert is supposed to be — the person who knows things the model doesn’t, and who will not pretend otherwise just because the accuracy metric looked good. That challenge made the system better. It surfaced a failure mode in Premium recall that would have cost the winery real money. It earned the model a place in the operation rather than a quiet demotion to the corner of a server room.

That dynamic — expert challenge leading to system improvement — is only possible when the people who carry out the plans feel authorised to question them.


A Trophy Is Not a Deployment

An AI system that goes live and then stays static is not a deployment. It is a trophy.

Real-world conditions change. The distribution of incoming data shifts. The business process the model was trained on evolves. Edge cases accumulate. The model that was fit for purpose in January is carrying assumptions from January into December, and nobody has checked whether those assumptions still hold.

The feedback loop is not a nice-to-have that gets added in a later phase. It is the mechanism by which the system earns continued trust, adapts to reality, and improves over time. And it only functions if the people using the system have a genuine channel to report what they are seeing — the errors, the gaps, the cases where the recommendation didn’t match the operational reality — and confidence that those reports will be acted on.

This is continuous improvement applied to AI. It is not a new idea. It is Toyota’s production system, Deming’s quality cycle, ITIL’s Continual Improvement practice — the basic principle that the people closest to the process are its best source of intelligence about where it is failing. ITIL frames this as a structured loop: identify opportunities, take action, measure outcomes, and feed the learning back in. The same logic applies here, with one important addition. What is new is the requirement to apply it to a system that learns — which means that the feedback the frontline provides does not just inform the next process review. It shapes what the model learns next.

Those who carry out the plans should not just make them. They should improve them. Continuously. With a mechanism that makes their input count.


When Change Has Actually Taken Hold

Throughout my career I have always taken pleasure in watching technology, when done right, change a business for the better. Seeing people work in a different, more productive way after a deployment — there is a quiet pride in that moment. A successful AI deployment in a business process does not look like a technology project that has gone live. It looks like a change that has taken hold. It becomes just the way things are done now. Over time, this new way becomes part of the fabric of the organisation — and then it disappears. It stops being the AI project. It is simply how work gets done. Quiet AI. Boring AI. That is what success looks like.

The people using the system understand what it is doing well enough to work with it intelligently — to know when to trust it, when to question it, and when to escalate. They have been part of the design process in a meaningful enough way that the system reflects how they actually work, not how someone assumed they worked. They have a channel to feed back what they are seeing, and evidence that the channel is listened to.

To achieve this, the leaders overseeing the deployment cannot simply hand it over to a technology team and declare it done. They have to accept that adoption is a longer and less linear process than implementation, and that their job after go-live is to create the conditions for it — removing blockers, taking concerns seriously, celebrating the early wins that build confidence in the wider team, and building a feedback loop worth listening to.

And somewhere in the governance structure, someone owns the agent — or the model, or the system — not as infrastructure to be maintained but as a product to be evolved. Someone who can answer, six months after go-live, whether the system is doing what it was supposed to do, what it has learned, and what the next iteration looks like.

None of this is complicated. Most of it has been known for decades. Tom Peters was writing about it before the internet existed. The reason it keeps being rediscovered is that the technology changes faster than the organisations adopting it do — and in the rush to demonstrate capability, the human layer gets treated as an afterthought rather than a foundation.


Closing Thought

AI is not different from any other technology introduction in the most important way: it succeeds or fails on adoption, and adoption is a human problem before it is a technical one.

Data readiness matters. Model selection matters. Infrastructure matters. But none of it delivers value if the people who are supposed to use the system don’t trust it, weren’t involved in building it, and have no way to improve it once it’s live.

The PoC graveyard will keep filling up as long as organisations treat change management as the last item on the project plan rather than the first.

Those who carry out the plans should make the plans. It was true when Tom Peters wrote it. It is still true now.

Create the future with all your stakeholders. No black boxes. No PoC graveyards.

Change management has to be built in, not bolted on. And it starts and ends with your people.


¹ EDA — Exploratory Data Analysis: The process of examining a dataset before building a model — profiling its structure, spotting missing values, identifying outliers, and understanding distributions. Think of it as the due diligence phase: the work that tells you whether your data is actually fit for the purpose you have in mind, before you commit to building anything on top of it. Finding the signal in the noise.

Cool Story: Why Business Acumen and Domain Knowledge Are the Missing Ingredients in AI Strategy

Illustration of a presenter at a podium with an analysis chart, and seated audience members appearing distracted and disengaged, indicating lost communication signals.

I’ve seen many customer presentations. You know the ones: the pitch is well rehearsed, the content is polished and the delivery is flawless. At that point I watch the room. I’m checking the attention span. I see disengagement. Phones being scrolled, emails that could wait being sent, faces just saying “This isn’t relevant.”

However, the presenter goes home thinking he’s done a good job. In fact, so good he thinks — no one asked any questions.

When my boys were troublesome teenagers they’d say in a rebellious way, with more than a hint of sarcasm, “Cool story dad.” This was teenager speak for — what you’re saying is just not important to me.

I believe customers need more than that Cool Story. This is why business acumen and domain knowledge matters.


The Comfort Zone Problem

Here’s what I observe in the technology channel every day. Vendors and partners are deeply comfortable talking about servers, storage, networking, and cloud. They know the architecture. They know the benchmarks. They know the competitive positioning. Ask them about IOPS, latency, or core counts and they’ll talk for an hour.

But walk into a room with a CFO, an Operations Director, or a Head of Supply Chain — and ask them to have a conversation about how AI can genuinely help their business — and the comfort zone disappears fast.

Because that’s not a technology conversation. That’s a business conversation. And most of the technology channel hasn’t been trained to have it.

The result? Another Cool Story. Well rehearsed. Polished. Flawless.

And completely irrelevant to the person sitting across the table.


What Business Acumen Actually Looks Like

I’ll be honest — I take this for granted. I probably shouldn’t.

My first degree was in Business and Finance. Before I spent thirty years in enterprise technology I worked in the motor industry, retail, and pharma. I’ve sat on both sides of the table — as someone trying to run a business and as someone trying to help businesses use technology better.

That background gives me a lens that I’ve come to realise isn’t as common as it should be.

When I walk into a customer conversation I’m not thinking about products, features, feeds and speeds. I’m thinking about how the business actually makes its money, and where value is quietly being left on the table. I’m thinking about which decisions are being made badly, or not being made at all, and which processes are broken, slow, or dependent on people doing work they shouldn’t need to do by hand. Above all, I’m thinking about what good would actually look like, in terms a board would recognise — not in terms a vendor slide deck would recognise.

These aren’t AI questions. They’re business questions. And they’re the questions that determine whether an AI conversation goes somewhere real or becomes another Cool Story.


The Discovery Conversation

The most important AI conversation isn’t about models or infrastructure. It’s the discovery conversation — the one where you sit with a business leader and genuinely explore where AI and data analytics can make a difference.

Not future promises. Not theoretical possibilities. Real, practical impact. Here and now.

That conversation requires two things that most technology partners simply don’t have enough of. Business acumen — understanding how organisations work, how value is created, how decisions get made, and how to quantify the cost of a problem worth solving. And domain knowledge — understanding the specific industry, its language, its constraints, its regulation, and what good looks like in that context.

You cannot have a credible AI conversation in pharma if you don’t understand what a clinical trial looks like. You cannot have a credible AI conversation in retail if you don’t understand margin pressure, shrinkage, and the brutal reality of demand forecasting. You cannot have a credible AI conversation in manufacturing if you don’t understand what unplanned downtime actually costs.

Generic AI knowledge is becoming table stakes. Contextual judgment is the differentiator.


AI Is Not a Catalogue Item

Some can be forgiven for thinking AI is a catalogue of use cases. Scroll through any vendor presentation and you’ll find them — neatly packaged, impressively labelled, complete with ROI estimates and customer logos.

If only it was that simple.

Use cases can be interesting. They can be positive pointers to possible business solutions. They can spark a conversation, open a door, or help a business leader see what’s possible in their industry. I’m not dismissing them.

But here’s the problem. A catalogue of use cases is someone else’s answer to someone else’s question. And the moment you lead with it, you’ve already made a fundamental mistake — you’ve started with the solution before you’ve understood the problem.

The real work starts somewhere else entirely.

It starts by understanding the business. Its processes. Its people. And understanding the data — not just the data that exists, but the data that’s missing and hasn’t even been acquired yet. It means following the processes and the way decisions actually get made, not how the org chart says they should be made, but how they really get made. The friction that everyone knows about but nobody has fixed. The data that exists but nobody trusts. The process that runs on spreadsheets and institutional memory because nobody ever got around to doing it properly.

That understanding cannot come from a use case catalogue. It can only come from a conversation — a genuine discovery conversation, grounded in business acumen and domain knowledge, where the right questions get asked and the answers actually get heard.

A use case tells you what AI has done for someone else.

Business acumen tells you what AI can do for this business, right now, with the data and processes and people that actually exist.

That’s the difference. And it’s everything.


The Golden Process

In my AI Reality framework I talk about finding the Golden Process — the business process that is ready for AI right now. The one where the data exists, the problem is real, the ROI is quantifiable, and the organisation has the appetite to act.

You cannot find the Golden Process from a slide deck.

You find it by asking the right business questions, listening carefully to the answers, and having enough domain knowledge to recognise the opportunity when it appears.

A partner who only knows technology will walk past the Golden Process every time. Not because they’re not intelligent. But because they’re looking at the wrong map.

The right map isn’t a product catalogue. It’s an understanding of how the business works and where it hurts.


What the Room Looks Like When You Get It Right

I presented at a Partner event recently. I talked about AI Reality — practical AI, data readiness, real use cases, honest outcomes. No hype. No future promises. Just what’s working now and why.

Not one person was on their phone.

Afterwards they asked for my slides. I pointed them to my blog site. “It’s all here,” I said. “And I wrote it.”

The LinkedIn connection requests came in before I’d left the building.

That’s what happens when a room full of people hear a business conversation instead of a technology pitch. They lean in. They engage. They want more.

Because it’s relevant. Because it’s real. Because it respects their intelligence and their time.

No Cool Story. Just signal.


The Evolution of the Technology Partner

Let me take you back thirty years.

A technology partner’s job was straightforward. Understand the product. Know the speeds and feeds. Build the relationship. Win the deal. Rack the kit. Repeat.

And for thirty years — that was enough. Customers needed servers. Partners sold servers. Customers needed storage. Partners sold storage. Networking. Cloud. Virtualisation. Each wave brought new products to learn, new certifications to collect, and broadly the same conversation to have.

“Here’s what it does. Here’s what it costs. Here’s why ours is better than theirs.”

It worked. For a long time it worked very well.

But something has shifted. And the Partners who haven’t noticed yet are about to find out the hard way.


The World Changed. The Conversation Didn’t.

AI didn’t just bring a new product category. It brought a fundamentally different kind of customer conversation.

Because the customer isn’t asking “what does it do?” anymore.

They’re asking “what problem does it solve — for my business, in my industry, with my data, right now?”

That’s a different question. And it requires a different kind of partner to answer it.

The technology partner who built their career on product knowledge, competitive positioning, and relationship selling isn’t suddenly irrelevant. But they are incomplete. Because the customer has moved on — and the conversation they want to have requires something that thirty years of selling servers simply doesn’t build.

Business acumen. Business domain knowledge. The ability to walk into a room and talk about outcomes before products.


What Good Looks Like Today

The most relevant technology partner in 2026 isn’t the one with the most certifications. It isn’t the one with the biggest product portfolio or the most competitive pricing.

It’s the one who walks into a customer conversation and demonstrates — before a single slide is shown — that they understand their business, and that they’re genuinely interested in making it run better.

That partner leads with the problem, not the product. The first question isn’t “let me tell you about our AI portfolio.” It’s “tell me about the process that’s costing you the most time, money, or risk right now.”

That partner speaks the language of the business, not IOPS and latency. The CFO cares about margin. The Operations Director cares about throughput and efficiency. The Risk Director cares about compliance. Speak their language, not yours — because the conversation that lands in a board meeting sounds nothing like the conversation that lands in a data centre.

That partner understands the industry, not generically but specifically — the regulatory environment, the competitive pressures, the operational realities, the difference between what the industry says it does and what it actually does.

And that partner connects AI to outcomes. Not “here’s a large language model,” but “here’s how three organisations in your sector reduced their claims processing time by 40 percent — and here’s what had to be true about their data before that was possible.”

That last point is the real test, because earning the follow-up meeting is what separates the partner who gets invited back from the one who gets a polite thank you and a door that doesn’t open again. Not by being impressive. By being relevant.


How to Be the Most Relevant Partner on the RFP

Here’s the uncomfortable truth about most RFP responses: they look identical.

Same structure. Same claims. Same case studies. Same promises about partnership and innovation and transformation. The customer reads three responses and struggles to remember which was which.

The partner who stands out on an RFP isn’t the one with the longest list of capabilities. It’s the one who demonstrates — clearly, specifically, and credibly — that they understand the customer’s business well enough to solve their actual problem.

That starts with showing you’ve done the homework. Reference their industry. Reference their specific challenges. Show that you understand the context, not just the requirement — because anyone can respond to what the RFP says, but the best partners respond to what it means.

It means leading with outcomes, not outputs. Don’t describe what you’ll deliver. Describe what will be different when you’re done, in terms the business cares about — time saved, risk reduced, revenue protected, decisions improved.

It means being honest about the prerequisites. The partners who win long-term trust are the ones who tell the truth about what has to be true before AI delivers value — data readiness, process clarity, governance, stakeholder alignment. Customers have been burned by partners who promised transformation and delivered complexity. Honesty is a differentiator.

And it means demonstrating domain credibility. Reference real outcomes in their sector. Use their language. Show that you’ve been in rooms like theirs before, and that you know what good looks like from the inside.

The best RFP responses don’t just answer the question. They reframe it. They show the customer something about their own problem that they hadn’t fully articulated. That’s the moment a partner stops being a vendor and starts being an advisor.

The most relevant partner on the RFP isn’t the one who answered the question best.

It’s the one who made the customer think: “These people actually understand us.”


The Gap — And What To Do About It

The gap between what AI can deliver and what most organisations are actually getting from it isn’t a technology gap. The technology is good enough. In many cases it’s extraordinary.

The gap is a translation gap. Between AI capability and business outcome. Between what the technology can do and what the business actually needs.

Closing that gap requires people who can have the business conversation first and the technology conversation second. Who understand the industry they’re working in deeply enough to know where the problems are. Who can sit with a business leader and ask the questions that matter — and understand the answers.

That’s not a certification. That’s not a product training. That’s thirty years of paying attention.

But it can be developed. It starts with curiosity — genuine curiosity about how businesses work, how industries operate, and what keeps leaders awake at night. It continues with discipline — doing the reading, asking the questions, building the domain knowledge that makes the conversation credible.

And it shows up in the room. Every time.


The Bottom Line

It’s no longer a conversation about products, features, feeds and speeds.

Business wants to know how Data and AI can help their business. Reality, not future promises.

The technology partners who will thrive in the AI era aren’t necessarily the ones with the deepest technical knowledge. They’re the ones who combine enough technical literacy to be credible with enough business acumen and domain knowledge to be useful.

The ones who walk into a room and have the conversation that matters.

The ones who earn the follow up meeting.

The ones whose audience isn’t on their phones.

Because when you get it right — when the conversation is real, relevant, and grounded in genuine understanding of the business — nobody needs to check their emails.

They’re too busy thinking about what you just said.

That’s not a Cool Story.

That’s AI Reality.

Part 2: When the Model Gets It Wrong – Clare, the Winery, and the Cost of Blind Trust

Chart illustrating the bias-variance trade-off, showing prediction error versus model complexity, including sections for underfitting and overfitting, accompanied by a model comparison table detailing metrics.

There is a moment in every data science project where the model produces a result that doesn’t feel right. Not wrong enough to be obviously broken. Just wrong enough to make you pause. You look at the output, you look at the data, and something doesn’t add up. That moment is not a failure of the model. It is an invitation to think. The practitioners who take that invitation seriously are the ones who build systems worth trusting. The ones who don’t are the ones who find out the hard way that a model left unquestioned will eventually answer a question nobody wanted to ask.


The Bottle That Started the Argument

Clare’s random forest classifier had been running for three weeks when the winemaker walked in with a printout.

A 2019 reserve vintage — hand-harvested, barrel-aged, the kind of wine the winery staked its reputation on — had been flagged as Standard. Not Premium. Standard. The model had looked at its chemical profile, compared it against everything it had learned, and placed it in the middle tier.

The winemaker was not pleased.

Clare looked at the numbers. The acidity was slightly elevated for that varietal. The residual sugar sat at the lower end of the Premium range. On paper, the model had not made an obviously unreasonable call. But the winemaker knew that vintage. He had watched it develop. The chemical snapshot the model had seen was a moment in time, and that moment had not told the whole story.

If Clare had not questioned the result, the wine would have been priced accordingly. A Premium vintage sold at Standard margin. Revenue lost. Reputation quietly eroded. Nobody would have known — until the wine won an award the following year, and someone went looking for more of it at the price they remembered.

The model’s own numbers supported the winemaker’s instinct. Premium recall across the test set was 0.58 — meaning four in ten genuine Premium wines were being misclassified. That is not a rounding error. That is a systematic commercial leak. And it was visible in the confusion matrix before a single bottle hit the shelf, for anyone willing to look.

Always question the model. Not because models are wrong, but because they are not always right in the ways you expect — and the consequences of uncritical trust compound quietly until they don’t.


When the Stakes Rise

The winery’s problem was commercial. A mislabelled bottle costs margin. That is recoverable.

Now consider the same logic applied somewhere less forgiving.

A clinical prediction model assesses patient risk from incoming diagnostic data. It has been trained on historical cases and performs well on aggregate accuracy metrics. But accuracy is an average, and averages hide the distribution of errors. The model misclassifies a subset of high-risk patients as low-risk. They are triaged accordingly. The cost of that error is not a margin shortfall. It is a missed diagnosis.

In healthcare, algorithm selection must account for disease prevalence and risk tolerance in ways that pure accuracy metrics do not capture. Missing a high-risk patient carries a categorically different cost from issuing an unnecessary diagnostic test. The confusion matrix Clare used in the winery — precision, recall, the asymmetry of error types — becomes a clinical instrument. The domain priority is not balanced accuracy. It is minimising the consequences of the most dangerous failure mode.

Public sector applications carry a different kind of weight. Algorithmic decisions in government — benefits eligibility, sentencing guidance, resource allocation — must withstand scrutiny regarding fairness, bias, and transparency. An opaque model that produces accurate aggregate outcomes may still embed and amplify historical inequities present in its training data. High predictive accuracy does not confer fairness. And in public decision-making, a model that cannot explain itself is a model that cannot be held accountable.

Financial institutions sit at the intersection of both pressures. Regulatory frameworks demand explainability. Credit decisions, fraud detection, and risk assessment carry legal accountability. A model that cannot be audited cannot be deployed — regardless of how well it performs on a test set.

The common thread is this: algorithm choice is shaped by accountability, transparency, regulatory compliance, and stakeholder trust, not solely by predictive accuracy. Clare’s logic map holds in every environment. But in high-stakes contexts, the interpretability question is not a preference. It is a constraint.

Trusted AI systems tend to mirror the traits we associate with reliable human decision-makers. When stakeholders perceive a model’s recommendations as misaligned with domain logic — when the output feels wrong to the people who know the problem best, the way the winemaker felt when he saw that printout — acceptance declines regardless of technical performance. The winemaker did not need to understand random forests. He needed to trust the result. And on that day, he didn’t.


Business Constraints Are Real Constraints

A model that cannot be deployed is not a model. It is an academic exercise.

Clare’s winery operates on practical terms. There is no dedicated ML infrastructure, no model monitoring pipeline, no team of engineers to retrain the classifier when the harvest changes the distribution of incoming data. The model has to run on available compute, be maintained by people with other responsibilities, and produce outputs that a non-technical winemaker can act on without a statistics degree.

These are not edge cases. They are the normal conditions under which most real-world models operate.

Computational cost is a genuine selection criterion. A model requiring significant infrastructure to train and serve introduces cost and operational complexity the organisation may not sustain. In enterprise environments this extends further — cloud compute costs, latency requirements, batch versus real-time inference, and the overhead of version control and retraining schedules all sit within the scope of algorithm selection.

Team capability shapes what is maintainable. A model built by a specialist that nobody else understands becomes a liability the moment that specialist leaves. Interpretable models are easier to hand over, easier to audit, and easier to debug when something unexpected happens.

Maintenance burden is the constraint most often underestimated. Models are trained on historical data. The world changes. Distributions shift. A wine classifier trained on three years of data from a specific terroir will degrade as growing conditions evolve. The simpler the model, the lower the cost of keeping it current.

Clare’s random forest was the right choice for her context. In a different context — regulated environment, higher interpretability requirements, leaner team — logistic regression might have been the more responsible choice precisely because of its constraints, not despite them.


Too Tight, Too Loose, or Just Right

Clare’s model had performed well on the test set. But the bias-variance results told a more complicated story — and this is where the pipeline revealed something the accuracy number alone would never have shown.

The base random forest achieved a training accuracy of 1.0000. Every single training example classified correctly. That sounds impressive. It isn’t. It is a warning sign. The model had memorised the training data — its patterns, its noise, its sampling accidents — rather than learning the underlying relationship between chemistry and quality. When cross-validated against unseen folds, accuracy dropped to 0.6857, a generalisation gap of 0.3143. Well beyond the threshold that signals a problem.

This is overfitting. High variance. The model is too loose — it has fitted itself so precisely to what it has seen that it struggles with what it hasn’t.

Logistic regression told the opposite story. Training accuracy 0.6450, cross-validation mean 0.6356, a gap of just 0.0094. What it learned from training data held up cleanly across every fold. It is not memorising. It is generalising. The trade-off is that its linear assumptions leave predictive performance on the table — particularly for Premium recall, where the true decision boundary in the data is not a straight line.

This is the bias-variance trade-off made real. Not a textbook diagram. Actual numbers from Clare’s actual data.

Clare attempted to close the gap by constraining the random forest — limiting tree depth, requiring minimum samples at leaf nodes, reducing the features considered at each split. The gap narrowed from 0.3143 to 0.2221, and training accuracy came down from 1.0000 to a more credible 0.8835. Better. But not solved. The overfitting in the base model ran deeper than these constraints alone could fix.

The final comparison told the full story clearly:

Logistic regression: test accuracy 0.61, CV mean 0.64, gap 0.009. Honest, stable, consistent. Random forest base: test accuracy 0.75, CV mean 0.69, gap 0.314. Impressive on paper, unreliable under scrutiny. Random forest regularised: test accuracy 0.70, CV mean 0.66, gap 0.222. Better behaved, but the overfitting problem persists.

The model with the highest test accuracy had the worst generalisation profile. The model with the lowest test accuracy generalised almost perfectly. Neither is definitively the right answer — the choice depends on what the winery can tolerate, what the winemaker needs to trust, and what Clare is prepared to stand behind.

That is not a statistical question. It is a judgement call. And it is exactly the kind of call that separates a data scientist from a model runner.


Always Question the Model

Clare did not discard her classifier after the winemaker’s challenge. She documented the edge case, flagged it for review at the next retraining cycle, and added a human review step for wines scoring within a defined confidence margin of a class boundary. The model remained useful. It also remained accountable.

The bias-variance results reinforced what the winemaker’s challenge had already suggested: the model’s confidence in its own outputs was not fully earned. A training accuracy of 1.0 is not mastery. It is a model that has stopped learning and started remembering. The discipline is in knowing the difference.

That is the lesson Clare carried out of the winery and into every subsequent project. Not blind trust. Not reflexive scepticism. A structured, ongoing interrogation of what the model knows, what it doesn’t, and where the consequences of its errors are highest.

Supervised learning is a rigorous analytical discipline, not a collection of tools. Performance metrics quantify error according to defined priorities. Algorithm selection balances statistical performance with operational feasibility. And deployment is not the end of the process — it is the beginning of a new one.

The data told Clare what the wine was. The model learned to say it again. But Clare never stopped asking whether it was right.

That habit — more than any algorithm, any metric, any architecture — is what makes the difference between a model that serves a business and one that quietly misleads it.

Always question the model. The ones worth trusting can take it.

Part 1: From Clusters to Predictions – How Clare Chose the Right Algorithm

Part 1: From Clusters to Predictions – How Clare Chose the Right Algorithm

A flowchart illustrating an algorithm decision logic map and confusion matrix, detailing steps for selecting algorithms based on supervised or unsupervised learning, task type, data size, interpretability, and corresponding algorithms such as linear regression, random forest, and neural networks, accompanied by a confusion matrix showing true positives, false negatives, false positives, and true negatives.

As I’ve studied AI and Machine Learning, I’ve come to realise it’s called data science for a reason. And that reason is simple: it’s not easy. Finding the right signal in the noise takes a genuinely analytical approach, logical thinking, and a willingness to sit with uncertainty before reaching for an answer. There’s no shortcut through the discipline. I’ve learned that the hard way more than once working on assignments late in to the night. In this post, our data scientist hero Clare faces exactly that challenge. She has her clusters, she has her labels, and now she has to decide how supervised learning — and which algorithm — will predict wine quality with the fewest errors.


The Work Doesn’t End With the Clusters

When we last left Clare, she had done something quietly impressive. Working through the winery’s historical tasting data with an unsupervised learning approach, she had let the data organise itself. No labels, no guidance — just structure emerging from pattern. Three clusters had formed, and the winemaker had given them names that meant something: Premium, Standard, and Reject.

That was discovery. What Clare needs now is prediction.

The distinction matters more than it first appears. Unsupervised learning asks the data what it contains. Supervised learning asks a model to learn from what the data already knows, so it can make decisions about data it has never seen before. Clare’s clusters gave her the labels. Now those labels become the target. The question sitting on her desk is straightforward to state and genuinely hard to answer: given the measurable chemical properties of a new vintage, can a model predict its quality grade before it ever reaches the tasting panel?

That shift — from discovering structure to predicting outcomes — is the conceptual foundation of supervised learning. The model is given inputs and known outputs. It learns the mapping between them. Then it applies that mapping to inputs where the output is unknown. The discipline lies in how rigorously that estimation is made.

Clare opens her notebook. The data is ready. The labels exist. Now she has to make some decisions.


Reading the Target

The first decision in supervised learning is not which algorithm to use. It is what kind of thing you are trying to predict.

Clare’s target variable is wine quality grade: Premium, Standard, or Reject. That is not a number on a continuous scale. It is a category. And that single observation rules out an entire family of approaches before she has written a line of code.

Linear regression predicts continuous numerical outputs — price, temperature, yield, revenue. It is the right tool when the answer sits anywhere along a spectrum. Classification algorithms predict discrete categorical outputs. They assign an observation to one of a defined set of classes. Clare’s problem is a multi-class classification problem. Linear regression is off the table.

This is not a trivial distinction. Applying linear regression to a categorical target produces nonsense. Treating category labels as if they were ordered numbers — as if Reject equals one, Standard equals two, and Premium equals three — imposes a mathematical relationship the data does not actually contain. The model learns the wrong thing. Weak conceptual understanding at this stage leads to flawed modelling decisions later, and Clare knows it.

She writes classification at the top of her notebook and moves on.


The Logic Map

Professional guidance frameworks for algorithm selection begin with a logic map. The questions are simple. The discipline is in answering them honestly.

Is the problem supervised or unsupervised? Clare’s problem is supervised. She has labelled data. The clusters gave her that.

Is the target continuous or categorical? Categorical. Three classes. Classification confirmed.

How many samples are available? Clare’s dataset contains 1,599 wines — modest by enterprise standards. That steers her toward algorithms that generalise well on smaller datasets rather than those demanding millions of observations.

Are the features interpretable? Clare will need to explain her model’s recommendations to the winemaker. If the model flags a batch as Reject, there will be a conversation. Interpretability is not a nice-to-have. It is a functional requirement.

Is computational cost a constraint? At 1,599 wines and eleven features, this is a modest workload — Clare’s Dell Precision 7 laptop handles the full pipeline without breaking a sweat. Compute is not the bottleneck here. That matters, because it means her selection criteria can focus entirely on what the model learns and how well it explains itself, rather than what the hardware can afford to run.

Each answer narrows the field. By the time Clare reaches the end of the logic map, she is not choosing between dozens of algorithms. She is choosing between a handful of serious candidates.


Shortlisting the Candidates

Clare’s shortlist takes shape around four candidates, each considered on its own terms.

Logistic regression is the natural starting point. It is interpretable, computationally inexpensive, and well understood. For a three-class problem it extends cleanly through a one-versus-rest approach. Its coefficients can be read directly — Clare can tell the winemaker that a unit increase in volatile acidity pushes a wine toward Reject with a quantifiable effect. The limitation is that logistic regression assumes a roughly linear relationship between features and the log-odds of class membership. If the true decision boundary is more complex, the model will underfit.

Decision trees offer a different kind of interpretability. The model produces a flowchart of decisions the winemaker can follow without any statistical training. They handle non-linear boundaries well and make no assumptions about feature distributions. The problem is instability — small changes in the training data can produce substantially different trees, and a single decision tree overfits easily.

Random forest addresses that instability by building many trees and aggregating their votes. It is more robust, typically more accurate, and handles real-world data noise gracefully. The trade-off is interpretability. The winemaker cannot follow the logic of a hundred trees simultaneously.

K-nearest neighbours classifies a new observation by finding the most similar training examples and taking a majority vote. It is intuitive but sensitive to irrelevant features and offers no explanatory power. Clare sets it aside.

Then there is the question that sits at the edge of her shortlist. Deep neural networks are capable of extraordinary things. But Clare’s dataset is modest, her compute is limited, and the winemaker is waiting for an explanation. Neural networks are opaque by nature — the internal representations they learn do not translate into human-readable reasoning. Clare notes them for future reference and removes them from consideration.

She circles random forest as her primary candidate, with logistic regression as a baseline to measure against. The reasoning is sound. The decision is defensible. But before she commits, she needs to know whether her model actually works.


Did It Actually Work?

A model that produces predictions is not necessarily a model that produces good predictions. Clare runs both classifiers on a held-out test set — 320 wines the models have never seen during training — and looks at what comes back.

The first instinct is to reach for overall accuracy. Logistic regression scores 61%. Random forest scores 75%. Random forest wins — but Clare has learned not to stop there.

Her dataset is imbalanced. Of the 1,599 wines, 46.5% are Reject, 39.9% are Standard, and just 13.6% are Premium. A model that simply predicted Reject or Standard for everything would achieve a deceptively high accuracy figure while being commercially useless. The warning is in the numbers before the model even runs.

The confusion matrix gives her a more honest picture. It lays out, for each actual class, how many examples the model correctly identified and how many it misclassified — and crucially, what it misclassified them as. From it, two metrics earn Clare’s attention.

Precision asks: of all the wines the model predicted as Premium, how many actually were Premium? Recall asks: of all the wines that actually were Premium, how many did the model correctly identify?

The results are illuminating. Logistic regression finds only 26% of actual Premium wines — a recall of 0.26. Three quarters of the winery’s best bottles are being miscalled as Standard. Random forest improves this substantially, reaching a Premium recall of 0.58. Still not perfect, but it is now finding more than half the genuine Premium wines rather than missing most of them.

Reject performance is strong across both models — F1 of 0.73 for logistic regression, 0.81 for random forest. The majority class, with the most training examples, is the easiest to learn.

Standard sits in the middle, chemically and statistically. It is the hardest class to call cleanly, and both models reflect that. The soft boundaries the unsupervised clustering revealed — a silhouette score of 0.1892, indicating genuine overlap rather than clean separation — are still present in the supervised results. The models did not invent that difficulty. It was always in the data.

The winemaker asks Clare a pointed question: which error costs more — calling a Premium wine Standard and pricing it down, or calling a Standard wine Premium and disappointing a customer? That question does not have a statistical answer. It has a business answer. And it is exactly where algorithm evaluation and operational reality meet.

Clare documents both models. The random forest performs better across all three classes. But before she declares a winner, she runs one more check.


What Clare Learned

Clare closes her Jupyter Notebook with something that took longer to arrive than she expected: not confidence in the model, but confidence in the process.

Algorithm selection is not a guess dressed up in technical language. It begins with understanding what the data contains and what the prediction task actually requires. It follows a logic that can be stated, examined, and defended. It weighs interpretability, computational cost, and domain requirements alongside statistical performance. And it ends not with a declaration that the model is correct, but with evidence — real numbers, per class, honestly read.

The feature importance analysis added one final thread. The random forest’s three most influential predictors were alcohol, sulphates, and volatile acidity — in that order. These were precisely the features that defined the unsupervised clusters in the previous analysis. The supervised model, trained independently and without knowledge of the clustering work, arrived at the same conclusion the clusters had already reached. The data gave the same answer twice, through two entirely different methods. That is not coincidence. That is signal.

Supervised learning is not a collection of tools. It is a way of thinking about prediction — rigorously, honestly, and always in service of a decision that someone, somewhere, actually needs to make.

The data told Clare what the wine was. The model learned to say it again, about wine it had never tasted.

In Part 2, Clare’s model leaves the winery and enters environments where the stakes are higher, the constraints are harder, and the bias-variance results raise a question she wasn’t expecting.

Part 2: When the Model Gets It Wrong – Clare, the Winery, and the Cost of Blind Trust

AI Winter is Coming – Again

Infographic depicting the evolution of artificial intelligence from the 1980s to the present, highlighting key eras such as AI Winter, Quiet AI/Edge AI, and Frontier AI. Includes illustrations of mainframe computers, decentralized architecture, and hyperscale data centers, along with notes on investment, data availability, and technology challenges.

AI Winter is nothing new. We’ve been there before. The last AI winter was 1987 – 1993. Businesses over-invested in “expert systems” — expensive, specialised computers designed to mimic corporate decision-making. When these systems proved too difficult to maintain and update, the commercial market for AI collapsed. This time winter may come because Frontier AI is hitting a scaling ceiling it can’t engineer its way past. This post suggests the answer isn’t bigger. It’s smaller. And the proof of concept has been running quietly for twenty years.

If you want an overview of how AI actually developed — from 1950s foundations through to today — I’ve covered that in AI Didn’t Come From Nowhere. The short version: AI has been building for seventy years. ChatGPT didn’t start it. It just made it visible.

The Clock Got Reset

When ChatGPT launched in late 2022 it did something remarkable and something damaging simultaneously.

Remarkable — it made AI legible to everyone. For the first time, a non-technical person could sit down, ask a question, and feel the capability directly. That democratisation matters. It changed the conversation permanently.

Damaging — it reset the public clock to zero. Suddenly AI had a birthday. And a generation of business leaders started building AI strategies as if nothing had existed before that date.

I meet smart, senior people regularly who genuinely believe AI started with ChatGPT. That 2023 was year one.

It wasn’t. Not even close.

This is what I’ve called the Magpie Effect — organisations distracted by the latest glittering capability, dropping whatever was already working to chase the new thing. The frontier AI conversation feeds it perfectly. New model. New benchmark. New promise. The magpie pivots. The roadmap restarts. The quiet AI that was already delivering sits ignored in the corner.

But before we get to what came before, we need to talk about where frontier AI is heading. Because the ceiling that’s approaching makes the Magpie Effect not just wasteful — but genuinely risky.

The Scaling Wall

The Frontier AI story has been built on a single premise: scale it out and it gets better. Bigger models. More parameters. Larger data centres. More powerful GPUs. The scaling hypothesis held, the results were real, and the industry committed.

But scaling isn’t a strategy. Scaling by laws of physics and economics always has limits. It’s a phase. And this phase is approaching a physical wall that no amount of engineering enthusiasm will move.

A single large-scale AI training run consumes energy comparable to a small town. Inference at scale runs continuously — millions of queries, every day, globally, without pause. The major cloud providers are signing nuclear power agreements not because nuclear is cheap or fast, but because conventional grid capacity cannot keep pace with demand. Microsoft has already reactivated Three Mile Island. Amazon is investing in small modular reactors. They have run out of other options.

Data centre construction can’t keep up. From planning decision to operational facility takes four to seven years in most developed jurisdictions. Grid connection queues in the UK, the US, and across the EU are already measured in years. Water rights for cooling are becoming a site selection constraint. Liquid cooling manages the thermal symptom. It does not touch the energy consumption problem.

The ceiling is lower than the industry’s public projections suggest. The people closest to the infrastructure already know it. The investment cycle is still running hot enough that saying so publicly is commercially inconvenient.

Efficiency gains — model distillation, inference optimisation, new chip architectures — will buy time. They won’t move the ceiling. The physics and the economics don’t negotiate.

As I write this, I use Claude daily. Claude for many of us has become a genuine thinking partner — including in writing this post. I’m not dismissing Frontier AI. I’m being honest about its infrastructure cost and scalability limits. Even Claude will hit this ceiling. That’s not a criticism. It’s physics, it’s economics. It’s a practical viewpoint.


The Transistor Parallel

We’ve been here before.

In the 1940s the valve computer proved the concept. ENIAC, Colossus — genuinely capable machines. But enormous, power hungry, heat generating, and impossible to scale to meet the demand that was already visible. The resource constraint was real. The engineering community knew it.

The answer wasn’t a bigger valve. It was the transistor.

The transistor didn’t just miniaturise the valve. It changed the trajectory entirely. Compute escaped the specialist room. It went into consumer products, industrial equipment, vehicles, eventually into every pocket on the planet. Nobody called it a compromise. The smartphone was always a better destination than a room full of valves — we just couldn’t see it from inside the valve paradigm.

Frontier AI is the valve computer. Capable. Proven. Impressive. And running into the same kind of physical ceiling that made the transistor not just desirable but inevitable.

The transistor moment for AI is smaller, distributed, efficient models — running where the work actually happens, without depending on infrastructure the planet cannot sustainably provide at the rate being demanded.

And here is the thing that gets lost in the Frontier AI conversation.

That transistor moment isn’t coming. It’s already here. It’s been here for twenty years. We just haven’t been paying attention to it.


The AI That Never Made the Headlines

While the world was discovering chatbots, a different AI had already been running quietly for years. Doing real work. Solving defined problems. Delivering measurable outcomes with ROI.

Netflix’s recommendation engine has been shaping what you watch since 2006. Gmail’s spam filter has used machine learning since 2004. Amazon’s demand forecasting and warehouse optimisation runs on ML models that have been refining themselves for over a decade. Google Maps learns from billions of journeys in real time.

Credit card fraud detection catches billions of fraudulent transactions annually using models that make decisions in milliseconds, invisibly, at the edge.

Aircraft engines predict their own failures. Factory production lines inspect their own output. Rail networks scan their own infrastructure at track speed.

None of this started in 2023. None of it needed a press release. None of it requires a nuclear power agreement or a seven year planning queue.

In my post on Machine Learning: The Backbone of Enterprise AI I looked at what this looks like in practice. DHL’s parcel inspection system uses computer vision models running at the edge — cameras over conveyor belts, ML models trained on millions of images, making pass/fail decisions on every parcel at line speed. Duos Technologies scans every railcar at track speed using AI-enabled imaging, catching defects before they become safety incidents. Factory quality control systems watch production lines continuously, catching defects too subtle for the human eye.

None of these run on hyperscale infrastructure. None send data to a cloud API and wait for a response. They run locally, efficiently, on hardware sized to the task — because the task is defined, bounded, and understood.

This is the transistor analogy for AI. Already in production. Already sustainable. Already delivering ROI.


The Right Tool for the Right Problem

The AI decisions that make genuine business sense share a common structure.

A defined problem — not “use AI” but “reduce defect escape rate on line 4” or “inspect every railcar at track speed without taking it out of service” or “predict supply chain disruption before it hits.”

A defined process — the AI is embedded in a workflow with a measurable before and after. It replaces or augments a specific activity with a specific outcome.

A defined return — because the problem is specific and the process is clear, the ROI calculation is straightforward. Not “we have AI” but “our cost per inspection dropped, our throughput increased, our safety incidents reduced.”

When AI is aligned to business process optimisation this way, the technology choices become obvious. Computer vision for inspection. Predictive models for maintenance. Anomaly detection for risk. Small, focused, efficient. Running on hardware sized to the job, not to the ambition.

The organisations getting genuine return from AI are overwhelmingly doing this. They’re not in the headlines. They’re on the production floor. They’ve been there for years.

I’ve written about what that structured approach looks like in practice in Getting AI Right First Time. The organisations that get AI right treat it as process optimisation first, technology second. Start small. Prove value. Escape the pilot graveyard. Make AI boring. That five step discipline is what separates durable capability from expensive experimentation.

The starting point is finding your critical process — the one business process that, if it stopped tomorrow, the business would stop with it. Name it. Find the friction within it. That friction is your AI use case shortlist. Not a vendor briefing. Not a capability demo. The process the business already depends on, and the specific points where better prediction, classification, or inspection removes a real constraint.

The Obvious Outcome

The Frontier AI scaling ceiling isn’t a maybe. It’s a when. Efficiency gains will buy time. The laws of physics and economics won’t be moved.

When it arrives, the organisations that built deep dependencies on hyperscale infrastructure for processes that didn’t require it will be most exposed. The expertise put to waste won’t be quickly rebuilt. The processes restructured around availability assumptions that stop being true won’t easily revert. That’s what winter looks like.

But for the organisations that chose the right tool for the right business problem — summer is already here.

Distributed. Local. Efficient. Sustainable. Aligned to real business processes. Delivering real ROI.

Not because they anticipated the ceiling. Because they were asking the right question from the start — not “how do we use AI” but “where does better prediction, classification, or inspection create measurable value, and what is the smallest, most reliable tool that delivers it.”

Electronics couldn’t scale with valves. It scaled with the transistor. And everything that followed — the PC, the phone, the computer in your car — emerged from that single shift in direction.

AI will follow the same arc. Not because anyone planned it. Because the ceiling makes it inevitable.

The quiet AI already running on the production floor isn’t the consolation prize.

It’s the destination.


From 22 Binders to a Box on the Workbench

Blueprint illustration of a distributed AI architecture, highlighting challenges such as slow distribution and high space usage, and benefits including localized inference and enhanced security.

How AI is following the same arc as every technology before it — and why that’s the most important thing happening in enterprise AI right now.


The 22 Binders Problem

In the 1990s I worked for Volvo Trucks, responsible for technical documentation. Every authorised dealership workshop had 22 steel binders crammed with service manuals, torque specifications, fault code references, and replacement procedures. Covering every model, every variant, every engine configuration.

Getting those binders to the right workshop, in the right language, at the right time was a logistical nightmare. Print runs. Translation cycles. Physical distribution across multiple countries. And the moment a binder left the building, you started losing control of it.

Because trucks don’t stand still. Specifications change. Procedures get revised. Safety-critical updates happen. So we’d issue interim service bulletins — printed updates mailed out to dealerships, hoping they’d find their way into the right binder, in the right place, before a technician needed them.

The knowledge was good. The people who wrote those manuals understood those trucks deeply. The content was authoritative, structured, procedural. But the distribution model was broken by design. The moment you printed something, the clock started on it becoming out of date.

I spent years managing that problem. I never solved it. The technology didn’t exist to solve it.

It does now.


The Sledgehammer Era

When generative AI arrived at scale it came in like a sledgehammer. Vast data centres. Enormous compute. Hundreds of billions of parameters. Everything centralised, everything cloud-dependent, everything expensive.

That was necessary. You needed that scale to prove the capability existed. GPT-4, Gemini, Claude — these required hyperscale infrastructure to demonstrate what large language models could actually do. The sledgehammer era wasn’t wrong. It was the only way to get here.

But it’s not the end state.

There’s a pattern in technology that repeats so reliably it’s almost boring once you’ve seen it enough times. A new capability emerges at scale, centralised, specialist, expensive. Then the algorithms get smarter. The hardware gets smaller. The economics shift. And compute escapes the specialist environment and goes where the work actually happens.

We’ve seen this cycle before. Several times.


The Transistor Moment

In the 1940s the valve computer proved the concept. ENIAC, Colossus — genuinely capable machines doing real computation. Enormous, power hungry, heat generating, fragile, requiring specialist environments and specialist people just to keep running.

Then the transistor arrived. It didn’t just miniaturise the valve. It changed what was possible. Compute escaped the air-conditioned room. It went into consumer products, industrial equipment, vehicles. Eventually into the Volvo workshop — diagnostic computers, engine management systems, electronic service tools.

Nobody staring at a room full of valves in 1955 predicted the smartphone. But it was inevitable once the transistor existed. The use cases emerged from the distribution.

We are at that moment with AI.

The evidence is already here. Models like Mistral 7B, Microsoft’s Phi-3, and Meta’s Llama 3.1 8B perform remarkably well on focused tasks. Quantisation techniques mean a model that needed 80GB of GPU memory two years ago runs comfortably in 8GB today with minimal quality loss. NVIDIA has put one petaflop of AI compute into a desktop machine — the GB10 Grace Blackwell — that sits on a workbench. Apple put a capable language model in a phone.

The sledgehammer is giving way to the scalpel. Smarter algorithms. Smaller models. Distributed inference. The transistor moment.


The Architecture That Changes Everything

So let me describe what I’d build for Volvo Trucks today.

A GB10 desktop in every dealership workshop. On it: a small language model, a local MCP server, and a local cache of the workshop knowledge base. No internet connection required. No cloud dependency. No data leaving the building.

The knowledge base lives centrally — one authoritative source, maintained by a team of technical authors with a proper authoring and approval workflow. Single version of the truth. When a torque specification changes, it changes once, in one place, approved by the right person. Overnight, a delta sync pushes only the changed content to every workshop box in every country. By morning every technician in Europe has the current procedure.

The technician doesn’t type freeform queries. They select from predefined prompt templates — fault code lookup, torque specification, replacement procedure, service interval. Each template fires a carefully engineered retrieval query behind the scenes, pulling the right content from the local knowledge base, passing it to the local model, generating a precise, grounded answer.

The model never wanders off domain. There’s no internet to reach out to. No risk of the model hallucinating — confabulating a procedure it half-remembers from training. The answer comes from the authoritative knowledge base, retrieved precisely, generated locally, watermarked with the sync timestamp so you know exactly which version of the truth informed it.

This isn’t a chatbot. It’s a precision workshop tool that happens to use an AI model internally. The AI is an implementation detail. The value proposition is the right answer, instantly, for a truck that needs to move.

And crucially — this couldn’t be done with a naive RAG implementation bolted onto an ungoverned file store. The intelligence isn’t in the retrieval mechanism. It’s in the governance that happened before retrieval was ever involved. The single version of truth. The approval workflow. The deprecation process that ensures superseded procedures stop being retrieved. The content discipline that technical authors like my 1990s self spent years trying to maintain manually.

The AI amplifies good knowledge management. It doesn’t replace it.


The Pendulum

I’ve watched enough technology cycles to see the pattern clearly.

The PC era distributed compute out of the data centre and into the hands of individuals. The internet centralised it again — everything running on servers you didn’t own. Mobile distributed it once more, putting capable compute in every pocket. Cloud AI is centralising again — everything phoning home to a hyperscale data centre to answer a query.

Each time, the dominant narrative says this is how it will always be now. Each time, the pendulum swings back. Not because the technology fails, but because the same forces reassert themselves: latency becomes unacceptable, data sovereignty pressure builds, cost economics shift, and capability catches up to the point where distribution becomes viable again.

We are at peak centralisation with AI right now. The distribution forces are already building. Sovereignty regulation is tightening globally. Edge hardware is catching up fast. Algorithmic efficiency is compressing capable models into deployable sizes. Enterprises are growing uncomfortable with sensitive data leaving their premises to answer a query.

The pendulum will swing. It always does.


The Control Plane

But there’s something different this time that could break the historical pattern — and it’s the idea I find most interesting in enterprise AI right now.

Every previous distribution wave eventually lost coherence. The PC era fragmented into version chaos, security nightmares, and unmanageable sprawl. Mobile created a device estate that IT departments are still trying to govern. Distribution without discipline becomes a different kind of problem — one that often ends up being worse than the centralisation it replaced.

The question is whether AI distribution can be done differently. Whether you can have local inference without local chaos.

I think you can. The architecture looks like this: local inference running in your server room, your data never leaving your premises, your domain knowledge locked in a governed local knowledge base. But the model’s values, safety alignment, and capability updates maintained centrally by the people who built it. The enterprise controls the execution environment. The model provider maintains the model itself.

Distribution without fragmentation. Sovereignty without chaos.

It’s the Volvo KB architecture applied to the model itself. Central truth. Distributed execution. The same principle that would have solved my 22-binder problem in 1993 — one authoritative source, pushed to the edge, with discipline about what changes and who approves it.

This isn’t a theoretical position. The infrastructure to do it exists today. What’s missing, in most organisations, is the governance thinking that makes it safe. And governance thinking, it turns out, is not a technology problem. It’s a knowledge management problem. Which is a very old problem indeed.


What This Means

The use cases for distributed, domain-locked AI are not going to come from hyperscale thinking. They’re going to emerge from people who understand specific domains deeply — who know where the knowledge lives, what governance it needs, and what questions actually matter in that environment.

The Volvo workshop is one example. But the same architecture applies anywhere that has a bounded domain, authoritative knowledge, and real decisions being made by people who need the right answer quickly.

Consider a hospital ward. A clinician needs the current drug interaction protocol for a specific combination — not a general answer from a model trained on the internet, but the approved formulary for this trust, this version, signed off by the chief pharmacist last Tuesday. The architecture is identical to the workshop: local inference, governed knowledge base, delta sync, no data leaving the building. The AI is an implementation detail. The value is the right answer, for this patient, right now.

Or a field engineer on an offshore platform, no reliable connectivity, needing the current maintenance procedure for a specific valve configuration. Or a legal team needing to retrieve the approved contract clause library — not a hallucinated approximation, but the version that compliance signed off.

In each case the AI isn’t the interesting part. The interesting part is the governed knowledge layer underneath it — built by people who understand the domain, maintained with discipline, versioned and approved and auditable.

The sledgehammer era gave us the capability. The transistor moment gives us the distribution. What makes it useful is the same thing that always made the difference — knowing your domain, respecting your data, and being honest about what the technology actually does.

I learned that managing 22 steel binders for Volvo Trucks in the 1990s.

Some lessons don’t change.

The Plumbing Under the Hood: RAG, MCP and the Architecture Nobody Explains

A diagram illustrating the architecture of a large language model (LLM) with connections to various systems including CRM, ERP, HR, and SharePoint, displayed on a blueprint-style background.

I’m an under the hood type of guy. I hear high-level fluff and I just turn off. I need more. I need to be able to visualise how things work — and the effects of implementation. I guess that’s the Solution Architect in me. Years of seeing projects go south. Experience that says it’s just not that simple.

I learned a long time ago: if you want something doing, do it yourself.

So here it is. No fluff, no hand-waving. The no-nonsense guide to what RAG and MCP actually are, how they work, and why the distinction matters more than most people realise. Enjoy.


The Problem Every Enterprise AI Deployment Hits

Large language models are genuinely extraordinary. The breadth of knowledge, the reasoning capability, the ability to synthesise and explain — it’s real, and it’s useful. But they have a fundamental constraint that every organisation hits the moment they try to deploy one seriously.

They are frozen.

An LLM is trained on a vast corpus of data up to a point in time, and then the weights are fixed. The model doesn’t know what happened last Tuesday. It doesn’t know your organisation’s processes, your customer contracts, your current pipeline, or the policy document your HR team updated this morning. It is, for all its capability, a brilliant mind in a sealed room.

Every enterprise AI deployment is therefore really solving one problem: how do we get relevant, current, organisational knowledge into the model’s hands at the moment it needs to answer?

Two main solutions emerged. They look similar on the surface. They are fundamentally different underneath.


RAG: The Indexed Snapshot

RAG stands for Retrieval Augmented Generation. The name is less important than the mechanism.

Imagine you have a large knowledge base — policy documents, product guides, training materials, technical specifications. RAG takes all of that content and processes it in advance. Each document gets broken into chunks. Each chunk gets converted into a vector embedding — a numerical representation of the meaning of that text, not just its keywords. Those embeddings get stored in a vector database.

When a user asks a question, the question itself gets converted into a vector using the same method. The system then searches the database for the chunks whose meaning is closest to the meaning of the question — semantic similarity, not keyword matching. The most relevant chunks get retrieved and placed into the model’s context window alongside the original question. The model answers using that retrieved material as its working context.

Think of it as a library. Brilliantly organised, perfectly indexed, searchable by meaning rather than title. You walk in, the system finds the most relevant books, opens them to the right pages, and hands them to the model before it answers.

It’s powerful. For stable, curated knowledge bases it works extremely well.

But it has a ceiling, and the ceiling matters.

The library was shelved at a point in time. The moment your source documents change, your index is stale until you re-embed. And the quality of retrieval is entirely dependent on the quality of what went in. Poorly structured documents, inconsistent language, missing metadata — the embeddings become noisy and retrieval underperforms. The foundational principle holds here as firmly as anywhere in AI: weak data quality at the input stage leads to flawed outputs downstream. RAG doesn’t solve a data quality problem. It inherits it.


MCP: The Living Plumbing

MCP — the Model Context Protocol — is a different kind of answer to the same problem. And understanding the difference is where the real business thinking begins.

MCP doesn’t retrieve from a pre-built index. It connects the model to live systems through their APIs — and queries them in real time, at the moment of the conversation.

Here’s what that means practically. Your SharePoint isn’t indexed in advance — the model calls it directly and gets back whatever is there right now, including the contract template someone updated this morning. Your CRM isn’t embedded into vectors — the model queries it and sees the deal that moved stage an hour ago. Your HR system, your procurement platform, your service desk — all of them accessible, all of them current, all of them live.

The model doesn’t see a snapshot of your organisation. It sees your organisation as it actually is, right now.

And here is the point that changes how you should think about this entirely.

Most enterprise knowledge isn’t in one place. It never has been. It’s fragmented across Salesforce and SAP, ServiceNow and SharePoint, HR platforms and finance systems and procurement tools. Getting RAG to span those systems requires significant data engineering effort — ingesting, normalising, embedding, maintaining. It’s achievable, but it’s heavy.

MCP connects to all of them. Through their APIs. Simultaneously. The model becomes a single conversational interface across the entire technology estate — not just one knowledge base, but the living information fabric of the organisation.

That is not a chatbot connected to some documents. That is a fundamentally different proposition.


Not Competitors — Different Layers

It would be tempting to read this as RAG versus MCP. It isn’t.

They solve overlapping problems at different layers and with different trade-offs. RAG is the right tool for large, stable knowledge corpora where semantic similarity search matters — where you need the model to find relevant material even when the exact words don’t appear in the query. MCP is the right tool where data is live, dynamic, and distributed across operational systems.

And they can work together. A well-architected system might use MCP as the orchestration layer — the model deciding which tools to call — while one of those tools triggers a RAG pipeline for a specific stable knowledge base. The plumbing and the library, working in concert.

The practical guidance is straightforward. Start with MCP. It’s the lower point of entry — no vector infrastructure to provision, no embedding pipelines to build and maintain, no index to keep fresh. You’re connecting to systems and APIs you already have. Reach for RAG when you’ve hit the ceiling — when the corpus is large, messy, and semantic retrieval across unstructured content becomes essential.

Start simple. Earn the complexity.


Before You Lay The Plumbing — What Nobody Tells You

The pitch for both RAG and MCP is compelling. The reality, as always, has a few sharp edges worth knowing about before you commit.

RAG brings infrastructure with it. RAG isn’t just a software pattern you switch on. Behind every vector database is a compute and storage requirement that needs provisioning, maintaining, and scaling as your knowledge base grows. Embedding pipelines need to run continuously — every time source content changes, chunks need re-processing and re-indexing or your library goes stale. For organisations already managing data centre complexity, this is a real cost conversation that rarely appears in the vendor presentation.

MCP makes your legacy systems load-bearing. MCP’s power is connecting to live systems. But those live systems are now dependencies. The legacy HR platform with the flaky API. The procurement system that slows under load. The CRM with three years of inconsistent data entry. Once the LLM is reaching across your technology estate, it is only as reliable as the weakest system it touches. A timeout, a bad API response, a data quality problem in one system degrades the entire interface. What felt like a peripheral legacy problem just became front and centre.

Governance and security are not optional extras. When a model can traverse your entire technology estate — reading CRM data, querying HR systems, pulling procurement approvals — your entire technology estate needs to be ready for that conversation. Access controls, data classification, audit trails, API security, compliance boundaries. These cannot be bolted on after deployment. They need to be designed in from the start. MCP without a holistic governance and security view isn’t just risky. It’s an exposed surface at scale.

This is AI Reality. The plumbing is powerful. Lay it properly.


The Interface, The Plumbing, The Flow

Here is the frame I want to leave you with — because it’s the one that changes how you brief a customer, evaluate a vendor, or think about your own AI roadmap.

LLMs are becoming the interface to information. Not a search bar, not a dashboard, not a report. A conversational, reasoning interface that sits in front of your organisation’s entire data landscape and makes it accessible in plain language.

MCP is the plumbing. The connective tissue that links the interface to the living systems underneath — the CRM, the ERP, the HR platform, the document store, the data warehouse. Without the plumbing, the interface has nothing to work with. With it, the interface can see everything.

And once you have an interface and plumbing, something else becomes possible.

Agents.

Not models that answer questions. Models that act. That move through systems, make decisions, complete workflows, and hand off to humans at exactly the right moment. Agents ride the pipelines that MCP creates and turn information flow into work getting done.

That’s where this goes. And that’s what the next post is about.

Next: The Agentic Leap — when AI stops answering and starts acting.


The Interface. The Plumbing. The Flow.

LLM Sizing 101 – Part 3: Platform and GPU Selection

A schematic diagram illustrating the LLM sizing chain, featuring flowcharts that detail model size, precision, tokens per second, GPU count, node count, and platform specifications.

Mapping your sizing to Dell PowerEdge XE configurations

In Part 1 we nailed down the two fundamentals: parameters define how big the model is, and tokens define how much work you’re asking it to do.

In Part 2 we made it practical — translating a customer’s real-world requirements into a target tokens-per-second figure, and from there into a GPU count.

Now we make it concrete.

Building on the methodology from Part 2, we apply it to two representative scenarios — a 7B internal assistant and a 70B RAG system — and map everything to actual Dell PowerEdge XE platform configurations you can put in a proposal. But before we get to the reference designs, there’s a gotcha.


The Gotcha: Model Precision

There’s a variable that can silently double — or halve — your GPU count if you don’t nail it down early in the conversation.

Model precision.

When a customer says “we want to run a 70B model,” that sentence is incomplete. The question you need to ask immediately is: at what model precision?

Here’s why it matters so much. The memory footprint of a model is:

Model VRAM (GB) = number of parameters × bytes per parameter

And the bytes-per-parameter figure is entirely determined by precision:

PrecisionBytes per parameter70B model — weights onlyNotes
FP324 bytes~280 GBTraining only; rare in inference
FP16 / BF162 bytes~140 GBFull quality baseline
FP81 byte~70 GBRequires H100, H200, B300 class
INT81 byte~70 GBBroad hardware support
INT40.5 bytes~35 GBValidate quality before committing
FP40.25 bytes~17.5 GBB300/GB300 only; first-class inference precision

Run the same 70B model at FP16 versus INT4 and the weights footprint changes by 4×. That’s the difference between needing two 8-GPU nodes and needing one. It’s the difference between a £400k proposal and a £200k proposal. And it’s a variable that’s completely invisible if you skip the precision conversation.

How to find out

The good news: model precision is almost always discoverable before you size anything.

The model card. Every published model has a model card stating the native training precision — typically FP32, BF16, or FP16 — and whether pre-quantised versions exist. Llama 3.1 405B, for example, is published in BF16 with a separate FP8-quantised version available for single-node deployment. That’s not a footnote — it’s a hardware decision.

The deployment framework. When a customer tells you they’re using vLLM, TensorRT-LLM, or NVIDIA NIM, the framework makes precision explicit. NIM profiles are named by precision — tensorrt_llm-h100-fp8-tp2-latency tells you the precision, the GPU, and the parallelism strategy in one string. If the customer has already chosen a framework, ask what precision they’re deploying at — they’ll either know, or the question will prompt them to find out.

The GPU itself. Not all GPUs support all precisions. FP8 requires H100, H200, B300 or AMD MI300X class hardware. FP4 is exclusive to B300 and GB300 — it isn’t available on earlier generations. INT4 with hardware acceleration requires specific tensor core support. If the customer has already chosen a GPU, that constrains the precision options — and vice versa. The two decisions are linked.

The precision conversation in practice

When a customer names a model, these are the three questions that unlock the sizing:

“Are you using the native model weights, or a quantised version?” “What serving framework are you planning to use?” “Is some accuracy trade-off acceptable in exchange for a smaller hardware footprint?”

That last question is the most important one. Modern quantisation techniques — GPTQ, AWQ, SmoothQuant — preserve the vast majority of model quality for most enterprise inference workloads. The difference between BF16 and INT8 is typically imperceptible for summarisation, search, classification and code assistance. For complex multi-step reasoning or fine-tuned models, it’s worth validating. But for the majority of use cases, INT8 or FP8 is a legitimate production choice — not a compromise.

The rule of thumb: the bigger the model, the more gracefully it quantises — for most enterprise inference workloads. A 70B model at INT8 loses less proportionally than a 7B model at INT4.

Get precision wrong — or leave it undefined — and every GPU count in your proposal is built on a shaky foundation. Get it right, and you have a sizing conversation that’s grounded, defensible, and often more cost-effective than the customer expected.


Two Reference Designs

With precision established, everything else follows.

Sizing disclaimer: The reference designs below illustrate the methodology — they are not a substitute for your own sizing exercise. TPS figures, GPU counts and node recommendations are directional reference points based on representative workloads. Actual performance will vary with your specific model, serving framework, quantisation approach, batch configuration and workload pattern. Always validate against benchmark data for your environment before quoting or committing to a configuration.

These aren’t rigid prescriptions — they’re starting points you can adapt by adjusting the inputs and re-running the TPS maths from Part 2.


Reference Design A: 7B Internal Assistant

Use case: An internal productivity assistant — employees asking about policies, summarising documents, drafting emails. High concurrency, moderate latency sensitivity, cost-conscious.

1. Define the workload

ParameterValue
Concurrent users (peak)500
Average prompt400 tokens
Average response250 tokens
Target response time~8–10 seconds
Acceptable TTFT< 2 seconds
Model7B class

2. Establish precision and memory footprint

For a 7B model:

PrecisionWeights footprintFits on a single GPU?
FP16 / BF16~14 GBYes (48–80 GB class)
INT8~7 GBYes — comfortably
INT4~3.5 GBYes — with significant headroom

For a high-concurrency internal assistant, INT8 or mixed precision (weights in INT8, activations in FP16/BF16) is the practical default. It fits cleanly on a single GPU, leaves room for KV cache and batching overhead, and the quality trade-off is negligible for this kind of workload.

3. Translate to TPS

  • 250 output tokens ÷ 10 seconds = 25 tokens/sec per user
  • 500 users × 25 tokens/sec = 12,500 tokens/sec system TPS

4. Per-GPU TPS estimate

For a 7B model at INT8/mixed precision, batched decode on a high-end accelerator:

GPUApprox. TPS (7B, batched decode)
H100 80GB SXM~2,000–3,000
H200 141GB~2,500–3,500
L40S 48GB~1,000–1,500
B300 288GB~4,000–6,000 (est.)

Conservative estimate: 1,500 TPS per GPU on current generation; higher on B300.

5. GPU and node count

  • 12,500 TPS ÷ 1,500 TPS/GPU ≈ 8.3 GPUs
  • Add 25% headroom: 8.3 × 1.25 ≈ 10.4 GPUs → round up to 12 for a clean 3 × 4 configuration

6. Platform mapping

A 7B model at INT8 fits on a single GPU — no tensor parallelism required. Each GPU runs an independent model replica and you scale out horizontally across nodes. This is compact, balanced GPU server territory.

The Dell PowerEdge XE7745 is the natural fit for this workload class: a 2U platform supporting up to 4 high-memory GPUs, designed for exactly this kind of inference deployment. For organisations planning ahead with Blackwell, the XE7745 also supports NVIDIA RTX Pro 6000 Blackwell Server Edition GPUs — a professional-grade accelerator with 96 GB GDDR7 that offers significant headroom for a 7B workload and future-proofing for multi-model environments, at a lower power and cost envelope than data centre HBM-class GPUs.

“For a 7B internal assistant serving ~500 concurrent users, a small cluster of three PowerEdge XE7745 nodes gives you a responsive chat experience, capacity to grow, and the flexibility to host multiple models or environments — all in a standard rack footprint.”


Reference Design B: 70B RAG System

Use case: Knowledge-heavy workflows — legal, financial or engineering teams querying proprietary documents via a RAG pipeline. Quality matters more than raw user count. Concurrency is moderate.

1. Define the workload

ParameterValue
Concurrent users (peak)100
Average prompt2,000 tokens
Average response500 tokens
Target response time~12–15 seconds
Acceptable TTFT< 3 seconds
Model70B class

Prompts are longer here because RAG injects retrieved document snippets, conversation history and system instructions into every request. That longer context window drives up KV cache memory — which is why the platform choice shifts significantly compared to Reference Design A.

2. Establish precision and memory footprint

This is where precision has the biggest impact on the proposal — and where the B300 changes the calculus significantly:

PrecisionWeights footprintH100/H200 GPUs neededB300 GPUs neededNotes
FP16 / BF16~140 GB2 minimum1 (fits with headroom)Full quality; B300’s 288 GB changes the equation
FP8~70 GB1 minimum1Near-FP16 quality; requires H100/H200/B300
INT8~70 GB1 minimum1Minimal quality loss for most workloads
INT4~35 GB11Validate quality before committing
FP4~17.5 GBN/A — B300/GB300 only1 — with substantial headroomValidate quality for RAG use cases

A key implication for B300 deployments: with 288 GB of HBM3e per GPU, a 70B model at FP16 (~140 GB weights) fits on a single B300. That eliminates the need for tensor parallelism within the node for this model size, simplifying the architecture and reducing interconnect dependency.

For a legal or financial RAG workload where output quality is the primary requirement, FP16 or FP8 remains the right starting point. FP4 on B300 is increasingly viable but worth validating explicitly against the customer’s specific domain before committing.

3. Translate to TPS

  • 500 output tokens ÷ 15 seconds = 33 tokens/sec per user
  • 100 users × 33 tokens/sec = 3,300 tokens/sec system TPS

4. Per-node TPS estimate

For a 70B model running on high-end accelerators:

ConfigurationApprox. TPS (70B, batched decode)
4× H100 80GB (tensor parallel)~800–1,200
8× H100 80GB (tensor parallel)~1,500–2,500
8× H200 141GB (tensor parallel)~2,000–3,500
8× B300 288GB (HGX B300)~4,000–7,000 (est.)

Conservative estimate on an 8× H100 node: 1,500 TPS. On an 8× B300 node: significantly higher, with the added benefit that each GPU can host the full model independently.

5. Node count

  • 3,300 TPS ÷ 1,500 TPS/node (H100 baseline) ≈ 2.2 nodes
  • Add 25–30% headroom: 2.2 × 1.25 ≈ 2.75 → round to 3
  • Total: 3 nodes × 8 GPUs = 24 GPUs (H100/H200 baseline)

On B300 hardware, the same TPS target is achievable with fewer nodes — or the same node count delivers substantially higher capacity.

Three nodes also gives you operational flexibility — you can drain one for maintenance without collapsing capacity below the required TPS floor.

6. Platform mapping

For H100/H200 deployments, the Dell PowerEdge XE9680 with 8× H100 or H200 GPUs remains a proven reference platform for 70B inference, with NVLink and NVSwitch providing the fast GPU-to-GPU interconnect tensor parallelism requires.

For Blackwell deployments, the Dell PowerEdge XE9780 and XE9785 are the direct successors to the XE9680 — delivering up to 4× faster LLM performance with the 8-way NVIDIA HGX B300. The liquid-cooled XE9780L and XE9785L variants support higher GPU densities for rack-scale deployments.

Infrastructure note: B300 systems require liquid cooling, 800 Gb/s networking, and power densities that most existing facilities cannot support without upgrade. The B300 draws 1,400W TDP per GPU — 40% more than the B200, and double the H100. Factor facility readiness into any B300 sizing conversation before committing to a configuration.

“For a 70B RAG assistant used by specialist teams — legal, finance, engineering — the PowerEdge XE9680 with H100/H200 GPUs remains a strong proven choice. For organisations investing in Blackwell infrastructure, the XE9780/XE9785 with HGX B300 delivers significantly higher throughput and eliminates tensor parallelism requirements for 70B class models — but facility readiness for liquid cooling and power density must be confirmed first.”


The Platform Decision in Summary

WorkloadModelPrecisionCurrent PlatformBlackwell PlatformGPUs/nodeNodes
Internal assistant (high concurrency)7BINT8PowerEdge XE7745XE7745 (RTX Pro 6000 BW)4× GPUs3
RAG system (quality-first)70BFP16 / FP8PowerEdge XE9680XE9780 / XE9785 (HGX B300)8× GPUs3

The pattern is consistent: model size drives platform class, precision drives memory footprint, TPS drives node count. Miss any one of those three and the sizing is incomplete.

For organisations moving beyond 70B — frontier models, multi-tenant inference at scale, or combined training and inference workloads — the Dell PowerEdge XE9712 featuring NVIDIA GB300 NVL72 is the next step up. With 72 Blackwell Ultra GPUs and up to 40 TB of fast memory per rack (combining ~20 TB of GPU HBM3e across 72 GPUs and ~17 TB of Grace CPU LPDDR5X), it delivers exascale-class AI performance for workloads that have outgrown the per-node sizing conversation entirely. That’s a different discussion — but it starts with the same methodology.


Three Trade-offs Worth Raising

Once you’ve walked a customer through a reference design, three conversations typically follow.

1. Can we use a smaller model? Sometimes yes — and it’s worth exploring. A well-tuned 13B model can deliver surprisingly strong results for many enterprise use cases, at a fraction of the infrastructure cost of a 70B. The right answer depends on the use case, not just the budget.

2. Can we quantise to reduce the footprint? INT8 quantisation roughly halves the memory footprint with minimal quality loss for most inference workloads. INT4 goes further — but quality trade-offs become more noticeable and are worth validating before committing. FP4 on B300 hardware is the emerging sweet spot for next-generation inference: near-FP8 quality at half the memory cost, with hardware-accelerated compute — but it requires Blackwell Ultra infrastructure.

3. What about fine-tuning? If the customer plans to fine-tune as well as infer, size for fine-tuning — it’s the more demanding workload. Fine-tuning requires storing optimiser states and gradients alongside the model weights, which can triple or quadruple the VRAM requirement compared to inference alone. A platform sized for fine-tuning will handle inference comfortably.


What’s Next

With three posts, we’ve built a complete sizing chain:

  • Part 1: Parameters and tokens — the two dials that drive every sizing decision
  • Part 2: From tokens per second to GPU count — the maths that connects users to hardware
  • Part 3: Precision, platform selection, and reference designs — where the maths meets the metal

The natural next conversation is the one that follows a sizing recommendation: how does an on-premises PowerEdge deployment compare to cloud over three years? That’s the cost modelling discussion — and it’s where a well-sized on-premises platform often tells a very different story to the cloud bill the customer is currently paying.