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Don’t believe the hype: AI is the future, but we’re not there yet
ai-augmentation

Don’t believe the hype: AI is the future, but we’re not there yet

AI’s future lies in pragmatic augmentation, not full automation. Companies must build solid foundations solving real problems to unlock true AI value.

August 6, 2025
5 min read
Gleb Tsipursky, opinion contributor  

AI’s future lies in pragmatic augmentation, not full automation. Companies must build solid foundations solving real problems to unlock true AI value.

A dangerous narrative is taking hold in boardrooms across the country — a story of effortless, overnight transformation powered by artificial intelligence. It is a seductive mirage shimmering in the desert of corporate ambition, promising untold riches and seamless automation from a technology that is still in its turbulent adolescence. This story sells a future that is as intoxicating as it is illusory, and it threatens to poison the well for everyone investing in this powerful new capability. This mirage is sold with breathless enthusiasm by reports such as McKinsey’s recent playbook, “Seizing the agentic AI advantage.” The article paints a dazzling picture of autonomous AI “agents” that will seamlessly orchestrate your entire business, delivering returns in under a year and creating exponential value. Yet this vision, while directionally fascinating for the distant future, is perilously disconnected from the messy reality of 2025. This level of hype is not just optimistic; it is actively harmful, setting the stage for a brutal crash into the trough of disillusionment that could undermine the real, tangible benefits of AI for years to come. The McKinsey article tempts us with a future where “no-code agent builders” allow any business user to create AI workers, which then form an “agentic AI mesh,” an interconnected ecosystem of programs autonomously negotiating, planning and executing complex workflows. It is a powerful fantasy. Imagine an AI agent in procurement autonomously identifying a supply need, negotiating terms with a vendor’s AI agent, and executing the purchase order without any human touching a keyboard. Now, imagine that agent misinterpreting a regional sales forecast and ordering $10 million of the wrong component, or the vendor’s agent exploiting a loophole in your agent’s programming to lock you into unfavorable terms. This is the core of the problem. The vision of full autonomy dramatically underestimates the monumental challenges of reliability, security and integration. As documented in Stanford University’s comprehensive AI Index Report, even state-of-the-art models exhibit surprising fragility and can fail in unpredictable ways. These agents must operate within a company’s tangled web of legacy systems — decades-old software, proprietary databases, custom-built applications — that were never designed for this kind of interaction. Granting an AI agent the keys to the kingdom in this environment is not a strategic advantage; it is a security nightmare waiting to happen. The governance frameworks required to prevent catastrophic errors, malicious exploits, or simple but costly “hallucinations” are monumental undertakings that the hype conveniently glosses over. The promise of an easy, no-code revolution is a fallacy when the underlying foundation is so complex and the cost of failure is so high. So, should we abandon AI? Absolutely not. We must simply look past the science fiction and focus on the incredible tools we have now. The true revolution is not in full autonomy, but in powerful augmentation. In my own work advising more than two dozen organizations on AI integration, the most profound successes have come from grounded, pragmatic projects that solve today’s problems. By targeting specific, repetitive tasks, generative AI delivers spectacular and measurable returns without the existential risks of the fully agentic vision. Consider a mid-size manufacturing firm here in Ohio. Its accounts payable department was drowning in a sea of paper invoices, each requiring manual data entry and a tedious three-way matching process against purchase orders and delivery receipts. We implemented a generative AI solution that ingests PDF invoices via email. The AI intelligently extracts key data — vendor name, invoice number, line items and totals — and automatically matches it against the purchase order in the company’s system. More than 80 percent of invoices now process automatically. The department’s role has transformed as well; they no longer perform mind-numbing data entry but act as supervisors, managing only the 20 percent of invoices the AI flags for exceptions, like a price mismatch or a missing order. The result was a clear-cut 43 percent improvement in accounting efficiency — and faster payments to suppliers. Or take the case of a regional insurance carrier. Its claims adjusters spent a significant portion of their day writing repetitive claim settlement letters. While each letter needed to be accurate and personalized, the underlying structure was largely the same. By implementing a generative AI tool, they automated the first draft. The system pulls structured data from the claim file — policyholder name, claim number, dates, settlement amounts — and generates a complete, contextually accurate letter based on a pre-approved template. The adjuster’s job shifts from author to editor. They review the draft, add a layer of human nuance, and approve it. This simple augmentation saved an average of 28 percent of the time spent per letter, freeing adjusters to handle more complex claims and spend more time speaking with customers. These case studies reveal the real path to AI value. It is incremental, focused and relentlessly pragmatic. It is about augmentation, not abdication. While one company chases the dream of a fully autonomous AI manager, another is saving thousands of man-hours by automating invoice processing. While one executive team puzzles over the governance of an “agentic mesh,” another is improving customer satisfaction by helping their claims team respond faster. The hype pushes us toward a dramatic, all-or-nothing transformation that is still a number of years away from being practical or safe for most enterprises. As Gartner’s Hype Cycle methodology consistently shows, after the “Peak of Inflated Expectations” comes the “Trough of Disillusionment.” The current frenzy is accelerating our descent into that trough. The companies that thrive will be those that ignored the siren song of total automation and instead got to work. They chose to build a solid foundation, brick by pragmatic brick, solving real problems and delivering measurable value. They are creating lasting advantages while their competitors remain lost in the mirage. Gleb Tsipursky, Ph.D., serves as the CEO of the hybrid work consultancy Disaster Avoidance Experts and authored the best-seller “Returning to the Office and Leading Hybrid and Remote Teams.”
Source: Originally published at The Hill on August 5, 2025.

Frequently Asked Questions (FAQ)

Understanding AI Hype vs. Reality

Q: What is the main danger of the current AI narrative in boardrooms? A: The primary danger is the narrative of effortless, overnight transformation powered by AI, which is often an illusory promise that can lead to disillusionment and undermine the real, tangible benefits of AI. Q: What does "agentic AI" refer to in the context of business transformation? A: Agentic AI refers to autonomous AI "agents" that can independently orchestrate complex workflows, negotiate, plan, and execute tasks, aiming to create exponential business value. Q: What are the potential risks of fully autonomous AI agents in business operations? A: Risks include misinterpretation of data leading to costly errors (e.g., incorrect orders), exploitation of agent programming by vendors, and significant security vulnerabilities due to integration with complex legacy systems. Q: Why is the "no-code agent builder" concept a fallacy in many current AI implementations? A: It's a fallacy because the underlying complexity of integrating AI agents with existing, often outdated, corporate systems makes the process far from simple or "no-code." The cost of failure in these complex environments is also very high. Q: What is the difference between AI augmentation and AI autonomy? A: AI augmentation focuses on enhancing human capabilities by providing tools to solve specific problems and improve efficiency, while AI autonomy aims for AI agents to operate and manage entire business processes without human intervention. Q: How does Gartner's Hype Cycle relate to the current AI adoption landscape? A: The current AI frenzy is seen as accelerating the descent into the "Trough of Disillusionment" after the "Peak of Inflated Expectations," a phenomenon well-described by Gartner's Hype Cycle methodology.

Pragmatic AI Implementation

Q: What is the recommended approach for achieving tangible AI value? A: The recommended approach is pragmatic and incremental, focusing on grounded projects that target specific, repetitive tasks to deliver measurable returns through AI augmentation. Q: Can you provide an example of successful AI augmentation in a business context? A: Yes, automating accounts payable by using generative AI to extract data from invoices and match them with purchase orders has shown significant efficiency improvements in manufacturing firms. Q: How has AI improved efficiency in accounting departments? A: Generative AI can automate the extraction of data from invoices and match them against purchase orders, processing over 80% of invoices automatically and freeing up staff for exception handling. Q: How can generative AI assist in customer service or client communications? A: In insurance, generative AI can automate the first draft of claim settlement letters, allowing adjusters to focus on reviewing, adding nuance, and engaging with customers directly. Q: What is the key takeaway for businesses looking to implement AI? A: Businesses should focus on pragmatic, problem-solving applications of AI for augmentation rather than chasing the elusive dream of full automation, thereby building a solid foundation and delivering measurable value.

Crypto Market AI's Take

The discourse surrounding AI in business, particularly the allure of fully autonomous "agentic AI," mirrors the early stages of understanding and adopting new technologies in the cryptocurrency space. While the potential for sophisticated AI agents to manage complex financial operations, analyze market trends, and even execute trades autonomously is a compelling vision, the original article rightly emphasizes the immense challenges in reliability, security, and integration. At Crypto Market AI, we believe in the power of AI to augment human decision-making, especially in the dynamic and often volatile world of cryptocurrency. Our platform leverages AI for sophisticated market analysis, providing insights that help traders make more informed decisions. We offer AI-powered trading bots that can execute strategies based on data-driven insights, but we always stress the importance of human oversight and strategic direction. Our approach is to provide powerful tools that empower our users, rather than promising a fully automated future that overlooks the critical need for human judgment and risk management. The focus on "pragmatic augmentation" discussed in the article aligns with our philosophy of delivering real, measurable value through AI by addressing specific needs and enhancing existing processes. For businesses and individuals looking to navigate the complexities of both AI and crypto, understanding this distinction is crucial for avoiding the pitfalls of overhyped expectations.

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