Understanding Technological Evolution

AI is rapidly moving from passive text generators to active decision-makers. To understand where things are headed, it’s important to trace the stages of this evolution. 1. 𝗟𝗟𝗠𝘀: 𝗧𝗵𝗲 𝗘𝗿𝗮 𝗼𝗳 𝗟𝗮𝗻𝗴𝘂𝗮𝗴𝗲 𝗙𝗹𝘂𝗲𝗻𝗰𝘆 Large Language Models (LLMs) like GPT-3 and GPT-4 excel at generating human-like text by predicting the next word in a sequence. They can produce coherent and contextually appropriate responses—but their capabilities end there. They don’t retain memory, they don’t take actions, and they don’t understand goals. They are reactive, not proactive. 2. 𝗥𝗔𝗚: 𝗧𝗵𝗲 𝗔𝗴𝗲 𝗼𝗳 𝗖𝗼𝗻𝘁𝗲𝘅𝘁-𝗔𝘄𝗮𝗿𝗲 𝗚𝗲𝗻𝗲𝗿𝗮𝘁𝗶𝗼𝗻 Retrieval-Augmented Generation (RAG) brought a major upgrade by integrating LLMs with external knowledge sources like vector databases or document stores. Now the model could retrieve relevant context and generate more accurate and personalized responses based on that information. This stage introduced the idea of 𝗱𝘆𝗻𝗮𝗺𝗶𝗰 𝗸𝗻𝗼𝘄𝗹𝗲𝗱𝗴𝗲 𝗮𝗰𝗰𝗲𝘀𝘀, but still required orchestration. The system didn’t plan or act—it responded with more relevance. 3. 𝗔𝗴𝗲𝗻𝘁𝗶𝗰 𝗔𝗜: 𝗧𝗼𝘄𝗮𝗿𝗱 𝗔𝘂𝘁𝗼𝗻𝗼𝗺𝗼𝘂𝘀 𝗜𝗻𝘁𝗲𝗹𝗹𝗶𝗴𝗲𝗻𝗰𝗲 Agentic AI is a fundamentally different paradigm. Here, systems are built to perceive, reason, and act toward goals—often without constant human prompting. An Agentic system includes: • 𝗠𝗲𝗺𝗼𝗿𝘆: to retain and recall information over time. • 𝗣𝗹𝗮𝗻𝗻𝗶𝗻𝗴: to decide what actions to take and in what order. • 𝗧𝗼𝗼𝗹 𝗨𝘀𝗲: to interact with APIs, databases, code, or software systems. • 𝗔𝘂𝘁𝗼𝗻𝗼𝗺𝘆: to loop through perception, decision, and action—iteratively improving performance.    Instead of a single model generating content, we now orchestrate 𝗺𝘂𝗹𝘁𝗶𝗽𝗹𝗲 𝗮𝗴𝗲𝗻𝘁𝘀, each responsible for specific tasks, coordinated by a central controller or planner. This is the architecture behind emerging use cases like autonomous coding assistants, intelligent workflow bots, and AI co-pilots that can operate entire systems. 𝗧𝗵𝗲 𝗦𝗵𝗶𝗳𝘁 𝗶𝗻 𝗧𝗵𝗶𝗻𝗸𝗶𝗻𝗴 We’re no longer designing prompts. We’re designing 𝗺𝗼𝗱𝘂𝗹𝗮𝗿, 𝗴𝗼𝗮𝗹-𝗱𝗿𝗶𝘃𝗲𝗻 𝘀𝘆𝘀𝘁𝗲𝗺𝘀 capable of interacting with the real world. This evolution—LLM → RAG → Agentic AI—marks the transition from 𝗹𝗮𝗻𝗴𝘂𝗮𝗴𝗲 𝘂𝗻𝗱𝗲𝗿𝘀𝘁𝗮𝗻𝗱𝗶𝗻𝗴 to 𝗴𝗼𝗮𝗹-𝗱𝗿𝗶𝘃𝗲𝗻 𝗶𝗻𝘁𝗲𝗹𝗹𝗶𝗴𝗲𝗻𝗰𝗲.

Watch credit card payment in 1980s. Click-clack imprinter. Metal merchant plate. Raised card numbers. Carbon paper form. Slide mechanism over. Physical impression made. One transaction: 3-5 minutes. Your card details on paper. Multiple copies. Merchant keeps one. You keep one. Stored in drawers. This was "secure payment infrastructure." Most of the world lived through this. Manual imprinters. Carbon copies. Phone authorizations. The evolution: • 1950s-1980s: Click-clack machines • 1980s-2000s: Magnetic stripe, electronic terminals • 2000s-2015: Chip cards, EMV standards • 2015-2020: Contactless, NFC 2020+: QR codes, mobile wallets Each generation built on what existed before. Some countries migrated layer by layer. Each transition constrained by protecting previous investment. Others leapfrogged. Built QR-based systems without being bound by card rails. Germany still prefers cash because decades of infrastructure created habits. China built Alipay and WeChat Pay on QR codes when card penetration was low. India built UPI the same way. QR codes. Mobile-first. Instant settlement. Different starting points. Same insight: design for what payments should be, not what they used to be. Which brings me to yesterday. I posted about cashless payments not working at India's AI Impact Summit. Mixed reactions. Dr. Martha Boeckenfeld reminded me Germany still runs on 50% cash. Others pointed out how far India has come. They're right. Yesterday's failure stung because we've come so far we expect it everywhere now. From click-clack taking 5 minutes to QR code taking 5 seconds. That expectation? That's actually privilege. We forget payments used to sound like this. And forgetting how far we've come is progress. Did you ever make a payment using one of these? What do you remember about it? Or are you young enough to have never seen one?

Payments have evolved from paper and plastic to APIs and orchestration - giving rise to a new breed of players that simplify the complexity and connect the dots behind the scenes. Here's how we got here. 𝟭. 𝗜𝗻 𝘁𝗵𝗲 𝗽𝗿𝗲-𝟭𝟵𝟵𝟬𝘀 𝗲𝗿𝗮, banks owned the entire payments value chain -acquiring, processing, settlement. Merchant onboarding was complex, and domestic clearing systems ruled. 𝟮. 𝗧𝗵𝗲 𝗿𝗶𝘀𝗲 𝗼𝗳 𝗲-𝗰𝗼𝗺𝗺𝗲𝗿𝗰𝗲 in the late 1990s changed everything. Players like PayPal and Authorize made online payments possible, while banks began exiting the acquiring space or partnering with processors to keep up with demand. 𝟯. 𝗕𝗲𝘁𝘄𝗲𝗲𝗻 𝟮𝟬𝟬𝟬 𝗮𝗻𝗱 𝟮𝟬𝟭𝟬, specialized gateways and regional wallets began to scale, offering merchants greater flexibility and control. The launch of SEPA in Europe marked a push toward payment harmonization, while non-bank players started building infrastructure that bypassed traditional acquiring models altogether. 𝟰. 𝗧𝗵𝗲 𝘀𝗵𝗶𝗳𝘁 𝘁𝗼 𝗔𝗣𝗜-𝗱𝗿𝗶𝘃𝗲𝗻 𝗶𝗻𝗳𝗿𝗮𝘀𝘁𝗿𝘂𝗰𝘁𝘂𝗿𝗲 transformed payments from siloed systems into modular, developer-friendly tools. Merchant onboarding became faster, integrations simpler, and innovation more scalable. Open Banking regulations enabled direct access to bank data, while new credit models redefined consumer behavior. Payments evolved into a flexible, programmable layer of the digital economy. 𝟱. 𝗧𝗼𝗱𝗮𝘆, we’re in the age of seamless integration. Payments are embedded in everything - from ride-hailing apps to SuperApps. Real-time rails like SEPA Instant, UPI and PIX are live. CBDCs are in pilot. However, as payment ecosystems grow more fragmented - with new methods, regional schemes, compliance layers, and fraud risks -complexity has become a major bottleneck for merchants, fintechs, and even banks. Integrating multiple providers, maintaining uptime across systems, and ensuring regulatory compliance isn't just costly - it's unsustainable without the right foundation. This is where a new breed of infrastructure players like 𝗔𝗸𝘂𝗿𝗮𝘁𝗲𝗰𝗼 fit in - offering the tools to simplify complexity and still retain control. • 𝗪𝗵𝗶𝘁𝗲-𝗹𝗮𝗯𝗲𝗹 𝗽𝗮𝘆𝗺𝗲𝗻𝘁 𝗴𝗮𝘁𝗲𝘄𝗮𝘆𝘀 let banks, PSPs, and fintechs launch their own branded platforms fast - without building from scratch. • 𝗣𝗮𝘆𝗺𝗲𝗻𝘁 𝗼𝗿𝗰𝗵𝗲𝘀𝘁𝗿𝗮𝘁𝗶𝗼𝗻 enables merchants to route transactions dynamically across multiple acquirers, reducing costs and failed payments while improving UX. • 𝗕𝗮𝗻𝗸𝘀 can embed API-driven acquiring services into their offerings without the burden of a full-scale tech overhaul. In a world where growth brings fragmentation, the real challenge isn’t enabling payments - it’s managing them. The advantage will lie with infrastructure that can unify complexity, adapt in real time, and scale across borders without adding friction. Opinions: my own, Graphic source: Akurateco Payment Hub Subscribe to my newsletter: https://lnkd.in/dkqhnxdg

🌳 Design Patterns For Building Trust. With practical guidelines for designers on how to make products — AI and non-AI — more trustworthy, reliable and honest. In the noisy and polluted world today, trust doesn’t come for free. It doesn’t emerge by default. It must be earned and meticulously preserved — by being reliable, accountable and treating customers with respect. This holds true for people but it also for software. According to Anyi Sun, there are 5 psychological foundations of user trust: 1. Reliability 🔰 The degree to which the product consistently behaves as expected. It's a sense that that the product is dependable — based on a track record of past actions. Reliability comes from promising what you do, and doing what you promised. 2. Technical competence ⚡ Perceived intelligence, sophistication and capability of the product. It's user's belief that the product can successfully perform what they are being trusted to do. It's about trusting product's capability. 3. Understandability 🧠 The extent to which users feel they can understand how the system works or why it made a certain decision. The product must be able to articulate how a decision came along, with references to fragments that underpin a decision. 4. Faith and Care 🌱 Emotional, almost "blind trust" in the product, especially when users don't understand the underlying logic. It's a belief that the trusted party actually cares about the positive outcome for you, and intends to do good. 5. Personal attachment 🌳 A sense of rapport, connection or emotional engagement with the product. Typically it emerges when a user feels that they get meaningful value from the product, and from interactions with people supporting it. Personally, I would also add the value of repeated positive experiences that build confidence in the quality of the product, and hence its reliability. --- With AI products, hitting all these psychological foundations is extremely hard. Surely some people trust AI almost instinctively, others are more critical. But people's attitude often changes dramatically once they realized that they've made severe mistakes because of AI. Recovering from it is very hard. We can help with some design patterns: 1. Avoid "Ask me anything" → push for scoping and constraints 2. Slow down users in prompting → request specific details 3. Present multiple viewpoints, explain that experts disagree 4. Allow users to manage “memory”, profiles personalization 5. Highlight what is AI-generated and what isn't (AI disclosure) 6. Allow users to override AI-generated suggestions manually 7. Allow users to tweak AI output and refine it for their needs 8. Adapt AI's tone depending on the severity of user's task Trust is why people stay or leave. It builds long-term loyalty and helps users overcome hesitation. But it must be designed and retained — across all psychological foundations and with thoughtful UX work. I think designers will be quite busy for years to come. #ux #design

The Hoysaleswara Temple in Halebidu, Karnataka, stands as a testament to India's rich architectural and engineering heritage. Among its many intricate carvings is a depiction of Masana Bhairava, a fierce form of Lord Shiva, holding what appears to be an advanced mechanical device. This sculpture has sparked discussions about the technological prowess of ancient Indian artisans. The device in question resembles a planetary gear system, characterized by an outer gear with 32 teeth and an inner gear with 16 teeth—a precise 2:1 ratio. Such mechanisms are fundamental in modern engineering, used in applications ranging from automobile transmissions to sophisticated machinery. The presence of this depiction in a centuries-old temple raises intriguing questions about the depth of mechanical knowledge possessed by our ancestors. Key Insights: 1. Advanced Understanding of Mechanics: The accurate representation of a planetary gear system suggests that ancient Indian craftsmen had a sophisticated grasp of mechanical principles. This challenges the conventional narrative that such knowledge was absent in ancient times. 2. Integration of Art and Science: The fusion of intricate artistry with precise mechanical representation indicates a holistic approach to knowledge, where art and science were not seen as separate domains but as interconnected disciplines. 3. Preservation of Knowledge: The detailed carvings serve as a medium to transmit complex ideas, ensuring that such knowledge was preserved and communicated across generations. This discovery not only highlights the ingenuity of ancient Indian artisans but also underscores the importance of re-examining historical artifacts with a fresh perspective. It prompts us to appreciate the advanced understanding embedded in our cultural heritage and encourages further exploration into the technological achievements of ancient civilizations. As we marvel at the Hoysaleswara Temple's architectural splendor, let us also acknowledge and celebrate the profound scientific insights it encapsulates. This serves as a powerful reminder of the rich legacy of innovation and knowledge that forms the foundation of our present and future advancements. #AncientIndia #EngineeringMarvels #CulturalHeritage #PlanetaryGears #HoysaleswaraTemple #Innovation

At PwC, we've learned that the biggest barrier to scaling enterprise AI isn't model capability: it's trust. Here's how we think about that problem. Every new technology faces the same deadlock: you don't use it because you don't trust it, and you don't trust it because you don't use it. The way out is usually a trust proxy, a visible marker that tells people it's safe to change their behavior. The SSL padlock is the classic example. Ecommerce was technically possible in the 1990s, but adoption stalled because typing a credit card into a browser felt reckless. The padlock didn't create security, the encryption was already there. It made security visible. Enterprise AI faces the same issue. The models work. Real solutions exist. But capability is compounding faster than confidence. You see it in cautious adoption: professionals double-checking outputs the system got right. Not because the models aren't good enough, but because there's no structured way to show they've been rigorously evaluated by people who know what good looks like. These aren't capability problems. They're trust infrastructure problems. That's what we built Evaluation Navigator and the Human Alignment Center to address. 📊 Evaluation Navigator gives AI teams a consistent, repeatable way to evaluate solutions across the development lifecycle, with shared guidance and standardized reporting. By embedding evaluation directly into developer workflows through an SDK, trust markers are built into the solution as it's constructed, not stapled on before deployment. 🧐 The Human Alignment Center adds structured expert review at scale. Automated metrics can assess technical correctness, but in professional services the real question is whether the output reflects experienced professional judgment. The Human Alignment Center translates that judgment into dashboards and audit trails that governance leaders can actually act on. The padlock made invisible security visible. Evaluation infrastructure does the same for AI. Adoption is a trailing indicator of trust, so as evaluation becomes visible and accessible, adoption follows.

GenAI adoption is all about people, not about tools. Pharma giant Novo Nordisk offers a great case study of working out what supports useful uptake of AI across a large organization. A case study in MIT Sloan Management Review uncovers a range of useful lessons. Here are some of the most interesting. 🚀 Recognize a mid-cycle drop as normal. Novo Nordisk grew Copilot use from a few hundred to 20,000 users in just over a year, with 23% becoming frequent users within one month. However, by month three or four, 15% of early adopters dropped off and average time saved per week declined. Recognizing this dip as natural helped avoid panic and kept the focus on re-engagement strategies rather than getting staff to try tools for the first time. 🛠 Deliver function-specific training through champion networks. Generic AI onboarding failed to meet the needs of specialized roles. Novo Nordisk succeeded by creating domain-specific training, leveraging internal champions to contextualize AI use, and allowing teams to shape guidance based on their actual work. This addressed “AI shaming” and bridged confidence gaps across functions. 🤝 Use internal champions to overcome cultural resistance. Skepticism wasn’t solved by policy, it was shifted by influence. Novo Nordisk identified trusted, high-status employees to openly adopt and advocate for AI tools. Their visible endorsement encouraged hesitant peers to try AI without fear of judgment or failure. 📈 Treat adoption as a change process, not a tech rollout. Rather than pushing a one-time launch, Novo Nordisk framed GenAI as a long-term transformation. This meant investing in ongoing communication, support structures, and iterative learning. The approach acknowledged that adoption would ebb and flow, and prepared the organization to adapt accordingly. 🎯 Emphasize strategic value over time saved. Though average users saved about 2 hours per week, the most meaningful wins came from higher-quality work—more strategic thinking, clearer writing, and better planning. By highlighting these human-centric gains, Novo Nordisk built a stronger case for AI’s workplace relevance beyond mere productivity. 📊 Use employee data to shape the deployment strategy. Over 3,000 employee surveys and interviews helped Novo Nordisk spot where and why adoption lagged. This feedback guided real-time adjustments—like where to invest in new use cases, where to scale back, and how to tailor messaging. It also surfaced which functions became tool-reliant versus those needing more support.

Suppose you’re a startup in a competitive market with a large incumbent who owns the system of record - the software that runs the sales team or the support team or the marketing team. How do you win? In the last decade, startups have chosen to identify a feature or workflow to improve & leverage that wedge into an advantage. Many have reached great levels of success, but few have overturned the incumbent. Early AI advantages have reinforced this advantage. How does this change? When AI products are sold as services, they replace in-house labor. This changes internal processes. When the internal processes change, the opportunity to replace the system of record arises because the existing workflows are no longer relevant. If paralegals’ roles and business development reps’ roles & account executives CRM reponsibilities change meaningfully, then the systems that are fully optimized to support these roles don’t match the needs of the role anymore. Systems-of-record are the horse carriages in the age of the automobile - designed for a different job to be done, outmoded, outdated. But the key is changing the internal operations of a customer, evolving the metrics, & understanding those dynamics more quickly than the rest of the market. Selling service-as-a-software enables a startup to change the way a customer works. Behavior change is hard. But successfully executed, it’s a moat.

Last week, a customer said something that stopped me in my tracks: “Our data is what makes us unique. If we share it with an AI model, it may play against us.” This customer recognizes the transformative power of AI. They understand that their data holds the key to unlocking that potential. But they also see risks alongside the opportunities—and those risks can’t be ignored. The truth is, technology is advancing faster than many businesses feel ready to adopt it. Bridging that gap between innovation and trust will be critical for unlocking AI’s full potential. So, how do we do that? It comes down understanding, acknowledging and addressing the barriers to AI adoption facing SMBs today: 1. Inflated expectations Companies are promised that AI will revolutionize their business. But when they adopt new AI tools, the reality falls short. Many use cases feel novel, not necessary. And that leads to low repeat usage and high skepticism. For scaling companies with limited resources and big ambitions, AI needs to deliver real value – not just hype. 2. Complex setups Many AI solutions are too complex, requiring armies of consultants to build and train custom tools. That might be ok if you’re a large enterprise. But for everyone else it’s a barrier to getting started, let alone driving adoption. SMBs need AI that works out of the box and integrates seamlessly into the flow of work – from the start. 3. Data privacy concerns Remember the quote I shared earlier? SMBs worry their proprietary data could be exposed and even used against them by competitors. Sharing data with AI tools feels too risky (especially tools that rely on third-party platforms). And that’s a barrier to usage. AI adoption starts with trust, and SMBs need absolute confidence that their data is secure – no exceptions. If 2024 was the year when SMBs saw AI’s potential from afar, 2025 will be the year when they unlock that potential for themselves. That starts by tackling barriers to AI adoption with products that provide immediate value, not inflated hype. Products that offer simplicity, not complexity (or consultants!). Products with security that’s rigorous, not risky. That’s what we’re building at HubSpot, and I’m excited to see what scaling companies do with the full potential of AI at their fingertips this year!

Tech adoption isn’t just fast, it’s compounding. The telephone took 75 years to reach 50 million users, the internet took four, and a leading generative AI tool got there in only two months. Deloitte's latest Tech Trends 2026 report makes it clear: new innovations are building on each other, speeding things up even more. When better tools and more data combine, progress comes faster and opportunities grow.   What sets this moment apart is how innovation fuels itself. Each breakthrough unlocks new possibilities, generates more valuable data, and lowers costs, pushing progress even further. Organizations that sense and respond to change quickly will be the ones that lead. Read more about the trends we explore in our new report: https://lnkd.in/eyi35T7N