The Copilot Illusion – Why AI is not simply Plug & Play

Artificial Intelligence does not work the way we thought it would. What happened? And how can we change that?

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    Artificial Intelligence does not work the way we thought it would. What happened? And how can we change that? 

    Let’s first look at the current situation. Everyone is experimenting with AI, rolling out copilots, connecting documents or automating workflows. In curated demos, this usually looks extremely convincing. Indeed, it appears as if the tools understand context and can provide meaningful support.

    But once the systems are taken out of their demo environment, a different picture is painted. The system doesn’t deliver as expected and becomes less useful once applied in a broader context. In the end, the expected business value fails to materialize.

    To justify this seemingly technological failure, we usually reach for the simplest answer: The models are simply not good enough yet. So, we start looking for a better model, a newer version, or the next technological breakthrough only to end up in the same cycle of unmet expectations and frustration.  

    The Uncomfortable Truth

    The problem is not the technology. Large Language Models (LLM’s), for example, are powerful and do their job remarkably well. Sometimes, they even deliver more than we are entirely comfortable with. The real issue lies in our expectations. We often treat AI as a tool and as something that can easily be integrated into an existing environment and then used immediately. We assume that we can install it, connect it, and start working with it straight away.

    But just like a new employee needs and onboarding to understand their new role and position within the workflows, networks and the organization at large, so does AI. Companies are an interconnected construct with complex workflows, (sometimes unwritten) rules and hierarchies. AI needs to be embedded and carefully structured. And systems only function when their underlying conditions are clearly defined. Yet, again, this presupposes that the underlying environment is already well structured and consistent. In practice, this is rarely the case. While human employees can understand and contextualize unwritten rules and networks simply by intuition and by talking to colleagues and gaining experience within the company, AI needs a rulebook that ideally reflects all that on paper.

    But company knowledge is distributed across many systems (structured data), documents (unstructured data), and people. Terms are used differently depending on context. Critical information often exists only implicitly – hidden in texts or stored in the heads of experienced employees. Processes are seldom fully documented, and decisions within workflows depend heavily on experience and situational context.

    An experienced employee can navigate this complexity intuitively. An AI system cannot. Without an explicit understanding of how things relate to each other, AI systems quickly reach their limits, and the illusion breaks down. Without structure, a system cannot reliably connect information, it cannot understand end‑to‑end processes, and it has no clear boundaries for its actions.

    The consequences are predictable: inconsistent outputs, fragile workflows, and isolated solutions. With every new use case, another standalone solution emerges, but no coherent overall picture is formed. Technical intelligence increases but real business value does not. And there is another problem. 

    The Platform That Does not yet Exist

    Many assume that the right platform to deploy new models already exists. They turn to Microsoft Teams, M365 Copilot, Salesforce Agentforce, or ChatGPT which all provide access to models, offer partial integrations, and come with user‑friendly interfaces. These systems clearly have their value, especially as entry points and interaction layers. But what they don’t provide is a shared environment in which independent capabilities can reliably work together and interact across system boundaries. There is no standardized runtime context, no consistent set of interfaces and no suitable ecosystem that can host cooperating components. 

    This kind of cooperation is becoming increasingly attractive to companies and is often discussed under the label of AI Agents. Yet successfully deploying cooperating and autonomous AI Agents requires an even more robust and standardized foundation, which, as argued above, simply isn’t available in most companies. To understand why Agents require more of precisely what most companies still lack, we first need to understand what Agents are and how they function.

    What is an AI Agent?

    We’ve seen many different attempts at defining AI Agents. In some narratives, an AI Agent is a prompt that defines behaviour, or a workflow that orchestrates steps. Other narratives depict it as a service that executes actions. In reality, an AI Agent is usually a combination of all of these. Our [at]-experts have established a working definition for Agentic AI, which you can learn in this article. Still, having a conceptual definition of an Agent doesn’t answer the question of where in a technical and structural environment such an Agent operates. Some say it is part of the backend, or it constitutes the workflow system. Others say Agents are only partially embedded in the user interface. At present, there is no consistent answer to this question, not even from solution providers. 

    At the same time, [at] is receiving an increasing number of requests from clients looking to integrate agentic systems into their workflows. A common misconception is that adding AI Agents is a straightforward extension of existing systems. As we will show below, this assumption does not hold.


    Can’t we Just Integrate Agents Into Teams?

    The answer to this question always depends on what exactly is to be integrated. A chat interface or a simple frontend can be connected relatively easily. A system that actually intervenes in business processes is a whole different story that shifts the focus from simple integration to the interaction of many components. Now we need structured data, clearly defined processes, and connected tools for both Agents and users. The story changes again when there is not only one but several Agents to be introduced to existing company processes. Our [at]-experts have coined this scenario The Agentic Mesh, which goes way beyond integration and describes a whole new operating system for AI in businesses. What that means and what an Agentic Mesh looks like in practice is demonstrated in our Whitepaper

    Retrieval Augmented Generation

    One essential component is Retrieval Augmented Generation (RAG). RAG systems improve access to company‑internal information. They help identify relevant content and enable more informed answers. But even advanced (vector‑based) RAG systems only solve part of the problem. They do not define how information is structured, how relationships are modelled, or how decisions and actions are operationalized. RAG leads to better answers but not to a functioning knowledge or process system.

    This is why a genuine change in perspective is required.

    The Real Shift in Perspective

    AI cannot simply be placed on top of existing structures. What is needed is a fundamental shift in thinking:

    • Data must be interpretable across contexts
    • Processes must be explicitly described and operationalized
    • Responsibilities and boundaries must be clearly defined

    Only under these conditions can AI go beyond isolated support for individual questions and become an active, reliable part of real work.

    What Does This Mean in Practice?

    If AI currently feels more complex than expected, this is not a failure. It simply means that the real challenges are becoming visible.

    Many organizations find themselves at exactly this point. They recognize the potential of AI but now encounter structural limitations. And if the problem is structural, then the solution must be structural as well.

    This means that AI must be anchored in real processes, its interactions with data and systems must be clearly defined, and firm guardrails must be established for its operation.


    This is precisely the starting point of our new whitepaper on the Agentic Mesh. It explores why enterprise AI needs more than powerful models or individual Agents: it requires a structural foundation that connects knowledge, processes, governance and execution in a scalable and controllable way.

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    Authors

    Dr. Andreas Kyek

    Andreas is a Senior Principal Data Scientist and has been with [at] since April 2022. He brings over 20 years of experience in semiconductor manufacturing and is an expert in anomaly detection and predictive maintenance. Since the emergence of large language models, he has increasingly focused on agents, data processing through agents, and especially the design of multi-agent systems – both using established libraries and building them from scratch in plain Python.

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