Black box AI isn’t enough: Why enterprise consulting is moving to grounded models
Source: VentureBeat
Presented by SAP
In an era where anyone can spin up an LLM, the real differentiator isn’t the AI technology itself, but the institutional knowledge it’s grounded in. Internal and partner consultants leading operational transformation can’t risk hallucinated guidance when their recommendations impact critical business outcomes.
Why “black‑box” AI falls short for enterprises
- Lack of transparency: Enterprises need to understand why an AI model makes a particular recommendation.
- Regulatory pressure: Industries such as finance and healthcare are subject to strict compliance rules that demand explainability.
- Risk management: Unchecked hallucinations can lead to costly missteps, eroding trust in AI‑driven initiatives.
The shift toward “grounded” AI
Grounded AI combines large language models with domain‑specific data, processes, and expertise. This hybrid approach ensures that outputs are:
- Context‑aware – anchored in the organization’s unique operational realities.
- Auditable – traceable back to source data and business rules.
- Actionable – aligned with existing workflows and governance structures.
SAP’s role in the new consulting paradigm
- Embedded knowledge bases: SAP integrates proprietary industry knowledge into AI pipelines, reducing reliance on generic LLM responses.
- Co‑development with partners: By collaborating with consulting firms, SAP tailors AI solutions that respect each client’s data sovereignty and compliance needs.
- Continuous validation: Ongoing monitoring and feedback loops keep AI recommendations accurate and up‑to‑date.
Benefits for enterprises
- Higher confidence in AI‑generated insights.
- Reduced risk of regulatory breaches or operational errors.
- Accelerated adoption of AI across business units, thanks to clearer ROI and measurable outcomes.
Looking ahead
As more organizations recognize the limitations of black‑box AI, the market will increasingly favor solutions that blend large language models with deep, contextual grounding. SAP’s strategy positions it to lead this evolution, helping enterprises unlock AI’s full potential while maintaining control, compliance, and trust.