People are hesitant to use AI in businesses

Cognizant Bets on Multi-Agent AI Systems, Cautions on Enterprise AI Spending

Investments are increasing rapidly in building large language models (LLMs) and data centres to support them. However, companies are still careful when it comes to using applied artificial intelligence (AI) inside businesses, said Babak Hodjat, Chief AI Officer of Cognizant.

Hodjat said there is too much investment in big AI foundation models, while enterprises are focusing more on AI projects that clearly show return on investment (RoI). According to him, AI is not something that can be easily plugged into systems—it needs proper engineering.

Cognizant, a US-based IT services company, is focusing its AI strategy on multi-agent systems, where several AI agents work together. Hodjat believes this approach is more reliable and could lead to future breakthroughs in artificial general intelligence.

He compared the current AI trend to earlier technology waves like SaaS, which initially saw a lot of hype before becoming practical and useful for businesses.

Cognizant recently opened a new AI Lab in India, which works closely with its San Francisco lab. Both are part of the company’s $1 billion investment in generative AI announced in 2023. These labs help clients turn unclear ideas into structured AI solutions.

The company’s multi-agent platform, called Neuro SAN, is built using open-source models. It allows different AI agents to collaborate and customize solutions for businesses. This system has helped reduce the time taken to onboard clients by 30%.

Hodjat said India has strong potential to lead in AI because of its large number of Global Capability Centres (GCCs) and established IT services sector. If AI is built into these centres from the beginning, India can avoid outdated systems that other countries still struggle with.

He added that while companies are still adjusting their approach to risk in AI, India has all the necessary ingredients to succeed. Cognizant is also open to acquiring AI startups to strengthen its capabilities.