RAG

The AI value gap is widening—and it’s now a strategy problem, not a tooling problem. Fresh research shows a small cohort of “future-built” companies converting AI into material P&L impact while most firms lag despite sizable spend. BCG’s 2025 assessment of 1,250 senior executives finds only 5% of companies have the capabilities to consistently generate outsized AI value, with 35% scaling and beginning to see benefits, and a full 60% reporting little to no financial impact to date.
South Korea is funding a national AI stack to reduce dependence on foreign models, protect data, and tune AI to its language and industries. The government has committed ₩530 billion (about $390 million) to five companies building large-scale foundation models: LG AI Research, SK Telecom, Naver Cloud, NC AI, and Upstage. Progress will be reviewed every six months, with underperformers cut and resources concentrated on the strongest until two leaders remain. The policy goal is clear: build world-class, Korean-first AI capability that supports national security, economic competitiveness, and data sovereignty. For telecoms and enterprise IT, this is a shift from “consume global models” to “operate domestic AI platforms” integrated with local data, compliance, and services.
SK Telecom has been named OpenAI’s exclusive B2C partner among Korean carriers as OpenAI opens its Korea office, signaling an aggressive push to scale consumer AI access and localize go-to-market in a strategically important market. The two companies unveiled a promotion for ChatGPT Plus, giving new or returning subscribers who purchase one month two additional months at no cost. While the immediate focus is consumer-facing, SK Telecom indicates the partnership will extend toward business services and potential collaborations across the broader SK Group.
Microsoft is preparing to license Anthropic’s Claude models for Microsoft 365, signaling a multi-model strategy that reduces exclusive reliance on OpenAI across Word, Excel, Outlook, and PowerPoint. According to multiple reports, Microsoft plans to integrate Anthropic’s Claude Sonnet 4 alongside OpenAI’s models to power Microsoft 365 Copilot features, including content generation and slide design in PowerPoint. This is a notable pivot from a single-model default to a best-of-breed approach that routes tasks to the model that performs best for a given function. For enterprises, especially in regulated and mission-critical domains like telecom, the shift implies more resilience, better accuracy for specialized tasks, and new options to optimize for quality, cost, and latency.
Cisco’s Secure AI Factory with NVIDIA, now integrated with VAST Data’s InsightEngine, targets the core blocker to agentic AI at scale: getting proprietary data to models quickly, securely, and at enterprise breadth. The new joint solution aims to collapse RAG pipeline delays from minutes to seconds, reduce integration risk with validated reference designs, and keep every interaction within security and compliance controls. By aligning Cisco’s AI PODs, NVIDIA’s AI Data Platform and DPUs, and VAST’s data intelligence layer, the offering provides a turnkey workload data fabric for production-grade AI agents. Cisco AI PODs now ship with VAST InsightEngine using NVIDIA’s AI Data Platform reference design, turning raw enterprise data into AI-ready indices and vectors in near real time.
AI agents are transforming industries in 2025, but scaling them efficiently without Large Language Models (LLMs) is impossible. LLMs provide critical capabilities such as reasoning, knowledge retrieval, and contextual understanding that power AI automation. This detailed article explores why LLMs are essential for AI agents, the role of Retrieval-Augmented Generation (RAG), optimization strategies, and the best free resources to master LLMs.

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