Monday, September 29, 2025

Time Revolution


All Book Summaries

TIME REVOLUTION

But at my back I always hear Time's winged chariot hurrying near; And yonder all before us lie Deserts of vast eternity. ANDREW MARVELL Almost everyone, whether ultra-busy or ultra-idle, needs a time revolution. It is not that we are short of time or even that we have too much of it. It is the way we treat time, even the way we think about it, that is the problem—and the opportunity. For those who have not experienced a time revolution, it is the fastest way to make a giant leap in both happiness and effectiveness. THE 80/20 PRINCIPLE AND TIME REVOLUTION The 80/20 Principle, when applied to our use of time, advances the following hypotheses: • Most of any individual's significant achievements—most of the value someone adds in professional, intellectual, artistic, cultural, or athletic terms—is achieved in a minority of their time. There is a profound imbalance between what is created and the time taken to create it, whether the time is measured in days, weeks, months, years, or a lifetime. • Similarly, most of an individual's happiness occurs during quite bounded periods of time. If happiness could be accurately measured, a large majority of it would register in a fairly small proportion of the total time and this would apply during most periods, whether the period measured was a day, a week, a month, a year, or a lifetime. We could rephrase these two ideas with spurious precision, but greater snappiness, using 80/20 shorthand: • 80 percent of achievement is attained in 20 percent of the time taken; conversely, 80 percent of time spent leads to only 20 percent of output value. • 80 percent of happiness is experienced in 20 percent of life; and 80 percent of time contributes only 20 percent of happiness. Remember that these are hypotheses to be tested against your experience, not self-evident truths or the results of exhaustive research. Where the hypotheses are true (as they are in a majority of cases I have tested), they have four rather startling implications: • Most of what we do is of low value. • Some small fragments of our time are much more valuable than all the rest. • If we can do anything about this, we should do something radical: there is no point tinkering around the edges or making out use of time a little more efficient. • If we make good use of only 20 percent of our time, there is no shortage of it! spend a few minutes or hours reflecting on whether the 80/20 principle operates for you in each of these spheres. It doesn’t matter what the exact percentages are and in any case it is almost impossible to measure them precisely. The key question is whether there is a major imbalance between the time spent on the one hand and achievement or happiness on the other. Does the most productive fifth of your time lead to four-fifths of valuable results? Are four-fifths of your happiest times concentrated into one-fifth of your life? These are important questions and should not be answered glibly. It might be an idea to set this book aside and go for a walk. Don’t come back until you have decided whether your use of time is unbalanced. THE POINT IS NOT TO MANAGE YOUR TIME BETTER! If your use of time is unbalanced, a time revolution is required. You don’t need to organize yourself better or alter your time allocation at the margins; you need to transform how you spend your time. You probably also need to change the way you think about time itself. What you need should not, however, be confused with time management. Time management originated in Denmark as a training device to help busy executives organize their time more effectively. It has now become a $1 billion industry operating throughout the world. The key characteristic of the time management industry now is not so much the training, but more the sale of “time managers,” executive personal organizers, both of the traditional paper-based type and now increasingly electronic. Time management also often comes with a strong evangelical pitch: the fastest-growing corporation in the industry, Franklin, has deep Mormon roots. Time management is not a fad, since its users are usually highly appreciative of the systems used, and they generally say that their productivity has risen by 15–25 percent as a result. But time management aims to fit a quart into a pint jar. It is about speeding up. It is specifically aimed at business people pressured by too many demands on their time. The idea is that better planning of each tiny segment of the day will help executives act more efficiently. Time management also advocates the establishment of clear priorities, to escape the tyranny of daily events that although very urgent, may not be all that important. Time management implicitly assumes that we know what is and is not a good use of our time. If the 80/20 Principle holds, this is not a safe assumption. In any case, if we knew what was important, we’d be doing it already. Time management often advises people to categorize their list of “to do” activities into A, B, C, or D priorities. In practice, most people end up classifying 60–70 percent of their activities as A or B priorities. They conclude that what they are really short of is time. This is why they were interested in time management to start with. So they end up with better planning, longer working hours, greater earnestness, and usually greater frustration too. They become addicted to time management, but it doesn’t fundamentally change what they do, or significantly lower their level of guilt that they are not doing enough. The name time management gives the game away. It implies that time can be managed more efficiently, that it is a valuable and scarce resource and that we must dance to its tune. We must be parsimonious with time. Given half a chance, it will escape from us. Time lost, the time management evangelists say, can never be regained. We now live in an age of busyness. The long-predicted age of leisure is taking an age to arrive, except for the unemployed. We now have the absurd situation noted by Charles Handy that working hours for executives are growing—60 hours a week are not unusual—at the same time as there is a worsening shortage of work to go round. Society is divided into those who have money but no time to enjoy it and those who have time but no money. The popularity of time management coexists with unprecedented anxiety about using time properly and having enough time to do one's job satisfactorily. 80/20 TIME HERESY The 80/20 Principle overturns conventional wisdom about time. The implications of 80/20 time analysis are quite different and, to those suffering from the conventional view of time, startlingly liberating. The 80/20 Principle asserts the following: Our current use of time is not rational. There is therefore no point in seeking marginal improvements in how we spend our time. We need to go back to the drawing board and overturn all our assumptions about time. There is no shortage of time. In fact, we are positively awash with it. We only make good use of 20 percent of our time. And for the most talented individuals, it is often tiny amounts of time that make all the difference. The 80/20 Principle says that if we doubled our time on the top 20 percent of activities, we could work a two-day/week and achieve 60 percent more than now. This is light years away from the frenetic world of time management. The 80/20 Principle treats time as a friend, not an enemy. Time gone is not time lost. Time will always come round again. This is why there are seven days in a week, twelve months in a year, why the seasons come round again. Insight and value are likely to come from placing ourselves in a comfortable, relaxed, and collaborative position toward time. It is our use of time, and not time itself, that is the enemy. The 80/20 Principle says that we should act less. Action drives out thought. It is because we have so much time that we squander it. The most productive time on a project is usually the last 20 percent, simply because the work has to be completed before a deadline. Productivity on most projects could be doubled simply by halving the amount of time for their completion. This is not evidence that time is in short supply. TIME IS THE BENIGN LINK BETWEEN THE PAST, PRESENT, AND FUTURE It is not shortage of time that should worry us, but the tendency for the majority of time to be spent in low-quality ways. Speed, ing up or being more "efficient" with our use of time will not help us; indeed, such ways of thinking are more the problem than the solution. 80/20 Thinking directs us to a more "eastern" view of time. Time should not be seen as a sequence, running from left to right as in nearly all graphical representations that the culture of business has, imposed on us. It is better to view time as a synchronizing and cyclical device, just as the inventors of the clock intended. Time keeps coming round, bringing with it the opportunity to learn, to deepen a few valued relationships, to produce a better product or outcome, and to add more value to life. We do not exist just in the present; we spring from the past and have a treasure trove of past associations; and our future, like our past, is already immanent in the present. A far better graphical representation of time in our lives than the left-to-right graph is a series of interlocked and ever larger and higher triangles, as shown in Figure 35. The effect of thinking about time in this way is that it highlights the need to carry with us, through our lives, the most precious and valued 20 percent of what we have—our personality, abilities, friendships, and even our physical assets—and ensure that they are nurtured, developed, extended, and deepened, to increase our effectiveness, value, and happiness. This can only be done by having consistent and continuous relationships, founded on optimism that the future will be better than the present, because we can take and extend the best 20 percent from the past and the present to create that better future. Viewed in this way, the future is not a random movie that we are halfway through, aware of (and terrified by) time whizzing past. Rather, the future is a dimension of the present and the past, giving us the opportunity to create something better. 80/20 Thinking insists that this is always possible. All we have to do is to give freertein and better direction to our most positive 20 percent.
Figure 35 The time triad A PRIMER FOR TIME REVOLUTIONARIES Here are seven steps to detonating a time revolution. Make the difficult mental leap of dissociating effort and reward The Protestant work ethic is so deeply ingrained in everyone, of all religions and none, that we need to make a conscious effort to extirpate it. The trouble is that we do enjoy hard work, or at least the feeling of virtue that comes from having done it. What we must do is to plant firmly in our minds that hard work, especially for somebody else, is not an efficient way to achieve what we want. Hard work leads to low returns. Insight and doing what we ourselves want lead to high returns. Decide on your own patron saints of productive laziness. Mine are Ronald Reagan and Warren Buffett. Reagan made an effortless progression from B-film actor to darling of the Republican Right governor of California, and extremely successful president. What did Reagan have going for him? Good looks, a wonderfully mellifluous voice which he deployed instinctively on all the right occasions (the high point of which undoubtedly consisted in his words to Nancy when shot, “Honey, I forgot to duck”), some very astute campaign managers, old-fashioned grace, and a Disneyesque view of America and the world. Reagan’s ability to apply himself was limited at best, his grasp of conventional reality ever more tenuous, his ability to inspire the United States and destroy communism ever more awesome. To many Churchill’s dictum, never was so much achieved by so few with so little effort. Warren Buffett became (for a time) the richest man in the United States, not by working but by investing. Starting with very little capital, he has compounded it over many years at rates far above stock market average appreciation. He has done this with a limited degree of analysis (he started before slide rules were invented) but basically with a few insights which he has applied consistently. Buffett started his riches rollercoaster with one Big Idea: that U.S. local newspapers had a local monopoly that constituted the most perfect business franchise. This simple idea made him his first fortune, and much of his subsequent money has been made in shares in the media: an industry he understands. If not lazy, Buffett is very economical with his energy. Whereas most fund managers buy lots of stocks and churn them frequently, Buffett buys few and holds them for ages. This means that there is very little work to do. He pours scorn on the conventional view of investment portfolio diversification, which he has dubbed the Noah’s Ark method: “one buys two of everything and ends up with a zoo.” His own investment philosophy “borders on lethargy.” Whenever I am tempted to do too much, I remember Ronald Reagan and Warren Buffett. You should think of your own examples, of people you know personally or those in the public eye, who exemplify productive inertia. Think about them often. Give up guilt Giving up guilt is clearly related to the dangers of excessively hard work. But it is also related to doing the things you enjoy. There is nothing wrong with that. There is no value in doing things you don’t enjoy. Do the things that you like doing. Make them your job. Make your job them. Nearly everyone who has become rich has had the added bonus of becoming rich doing things they enjoy. This might be taken as yet another example of the universe’s 80/20 perversity. Twenty percent of people not only enjoy 80 percent of wealth but also monopolize 80 percent of the enjoyment to be had from work: and they are the same 20 percent! That curmudgeonly old Puritan John Kenneth Galbraith has drawn attention to a fundamental unfairness in the world of work. The middle classes not only get paid more for their work, but they have more interesting work and enjoy it more. They have secretaries, assistants, first-class travel, luxurious hotels, and more interesting working lives too. In fact, you would need to have a large private fortune to afford all the perquisites that senior industrialists now routinely award themselves. Galbraith has advanced the revolutionary view that those who have less interesting jobs should be paid more than those with jobs that are more fun. What a spoilsport! Such views are thought provoking, but no good will come of them. As with so many 80/20 phenomena, if you look beneath the surface you can detect a deeper logic behind the apparent inequity. In this case the logic is very simple. Those who achieve the most have to enjoy what they do. It is only by fulfilling oneself that anything of extraordinary value can be created. Think, for example, of any great artist in any sphere. The quality and quantity of the output are stunning. Van Gogh never stopped. Picasso ran an art factory long before Andy Warhol, because he loved what he did. Revel in Michelangelo’s prodigious, sexually driven, sublime output. Even the fragments that I can remember—his David, The Dying Slave, the Laurentian Library, the New Sacristy, the Sistine chapel ceiling, the Pietà in Saint Peter’s—are miraculous laws for one individual. Michelangelo did it all, not because it was his job, or because he feared the irascible Pope Julius II or even to make money, but because he loved his creations and young men. You may not have quite the same drives, but you will not create anything of enduring value unless you love creating it. This applies as much to purely personal as to business matters. I am not advocating perpetual laziness. Work is a natural activity that satisfies an intrinsic need, as the unemployed, retired, and those who make overnight fortunes rapidly discover. Everyone has their own natural balance, rhythm, and optimal work/play mix and most people can sense innately when they are being too lazy or industrious. 80/20 Thinking is most valuable in encouraging people to pursue high-value/satisfaction activities in both work and play periods, rather than in stimulating an exchange of work for play. But I suspect that most people try too hard at the wrong things. The modern world would greatly benefit if a lower quantity of work led to a greater profusion of creativity and intelligence. If much greater work would benefit the most idle 20 percent of our people, much less work would benefit the hardest-working 20 percent; and such arbitrage would benefit society both ways. The quantity of work is much less important than its quality, and its quality depends on self-direction. Free yourself from obligations imposed by others It is a fair bet that when 80 percent of time yields 20 percent of results, that 80 percent is undertaken at the behest of others. It is increasingly apparent that the whole idea of working directly for someone else, of having a job with security but limited discretion, has just been a transient phase (albeit one lasting two centuries) in the history of work. Even if you work for a large corporation, you should think of yourself as an independent business, working for yourself, despite being on Monolith Inc.’s payroll. The 80/20 Principle shows time and time again that the 20 per-cent who achieve the most either work for themselves or behave as if they do. The same idea applies outside work. It is very difficult to make good use of your time if you don’t control it. (It is actually quite difficult even if you do, since your mind is prisoner to guilt, convention, and other externally imposed views of what you should do—but at least you stand a chance of cutting these down to size.) It is impossible, and even undesirable, to take my advice too far. You will always have some obligations to others and these can be extremely useful from your perspective. Even the entrepreneur is not really a lone wolf, answerable to no one. He or she has partners, employees, alliances, and a network of contacts, from whom nothing can be expected if nothing is given. The point is to choose your partners and obligations extremely selectively and with great care. Be unconventional and eccentric in your use of time You are unlikely to spend the most valuable 20 percent of your time in being a good soldier, in doing what is expected of you, in attending the meetings that everyone assumes you will, in doing what most of your peers do, or in otherwise observing the social conventions of your role. In fact, you should question whether any of these things is necessary. You will not escape from the tyranny of 80/20—the likelihood that 80 percent of your time is spent on low-priority activities—by adopting conventional behavior or solutions. A good exercise is to work out the most unconventional or eccentric ways in which you could spend your time: how far you could deviate from the norm without being thrown out of your world. Not all eccentric ways of spending time will multiply your effectiveness, but some or at least one of them could. Draw up several scenarios and adopt the one that allows you the most time on high-value activities that you enjoy. Who among your acquaintances is both effective and eccentric? Find out how they spend their time and how it deviates from the norm. You may want to copy some of the things they do and don’t do. Identify the 20 percent that gives you 80 percent About a fifth of your time is likely to give you four-fifths of your achievement or results and four-fifths of your happiness. Since this may not be the same fifth (although there is usually considerable overlap), the first thing to do is to be clear about whether your objective, for the purposes of each run through, is achieving them or happiness. I recommend that you look at them both separately. For happiness, identify your happiness islands: the amounts of time, or the few years, that have contributed a disproportionate amount of your happiness. Take a clean sheet of paper, write “Happiness Islands” at the top and list as many of them as you can remember. Then try to deduce what is common between all or some of the happiness islands. Repeat the procedures for your unhappiness islands. These will not generally comprise the other 80 percent of your time, since (for most people) there is a large no-man’s-land of moderate happiness between the happiness and unhappiness islands. Yet it is important to identify the most significant causes of unhappiness and any common denominators between them. Repeat this whole procedure for achievement. Identify your achievement islands: the short periods when you have achieved a much higher ratio of value to time than during the rest of your week, month, year, or life. Head a clean sheet of paper with “Achievement Islands” and list as many as you can, if possible taken over the whole of your life. Try to identify the achievement islands’ common characteristics. Before leaving your analysis, you might want to glance at the list of the Top 10 highest-value uses of time on page 164. This is a general list compiled from many people’s experience and may nudge your memory. List separately your achievement desert islands. These are the periods of greatest sterility and lowest productivity. The list of the Top 10 low-value uses of time on page 163 may help you. Again, what do they tend to have in common? Now act accordingly. Multiply the 20 percent of your time that gives you 80 percent When you have identified your happiness and achievement islands, you are likely to want to spend more time on these and similar activities. When I explain this idea some people say there is a flaw in my logic, because spending more time on the top 20 percent may lead to diminishing returns setting in. Twice as much time on the top 20 percent may not lead to another 80 percent of output, perhaps only to another 40, 50, 60, or 70 percent. I have two replies to this point. First, since it is impossible (at the moment) to measure happiness or effectiveness with anything approaching precision, the critics may well be right in some cases. But who cares? There will still be a marked increase in the supply of what is best. But my second answer is that I don't think the critics are generally right. My recommendation is not that you duplicate exactly what it is that you are doing today that is in the 20 percent yielding 80 percent. The point of examining the common characteristics of your happiness and achievement islands is to isolate something far more basic than what has happened: to isolate what you are uniquely programmed to do best. It may well be that there are things you should be doing (to realize your full potential achievement or happiness) that you have only started doing imperfectly, to some degree, or even that you have not started to do at all. For example, Dick Francis was a superb National Hunt jockey, but did not publish his first racing mystery until he was nearly 40. Now his success, money earned, and possibly personal satisfaction from the latter activity far exceed those from the former. Richard Adams was an unfulfilled, middle-aged, middle-level civil servant before he wrote the best-seller Watership Down. It is not at all uncommon for analysis of happiness or achievement islands to yield insight into what individuals are best at, and what is best for them, which then enables them to spend time on totally new activities that have a higher ratio of reward to time than anything they were doing before. There can, therefore, be increasing returns as well as the possibility of diminishing returns. In fact, one thing you should specifically consider is a change of career and/or lifestyle. Your basic objective, when you have identified both the type, differentities and the general type of activity that take 20 percent of your time but yield 80 percent of happiness or achievement, should be to increase the 20 percent of time spent on those and similar activities by as much as possible. A short-term objective, usually feasible, is to decide to take the 20 percent of time spent on the high-value activities up to 40 percent within a year. This one act will tend to raise your "productivity" by between 60 and 80 percent. (You will now have two lots of 80 percent of output, from two lots of 20 percent of time, so your total output would go from 100 to 160 even if you forfeited all the previous 20 from low-value activities in reallocating some of the time to the high-value activities!) The ideal position is to move the time spent on high-value activities up from 20 to 100 percent. This may only be possible by changing career and lifestyle. If so, make a plan, with deadlines for how you are going to make these changes. Eliminate or reduce the low-value activities For the 80 percent of activities that give you only 20 percent of results, the ideal is to eliminate them. You may need to do this before allocating more time to the high-value activities (although people often find that firing themselves up to spend more time on the high-value activities is a more efficient way of forcing them to set aside the low-value time sinks). First reactions are often that there is little scope for escaping from low-value activities. They are said to be inevitable parts of family, social, or work obligations. If you find yourself thinking this, think again. There is normally great scope to do things differently within your existing circumstances. Remember the advice above: be unconventional and eccentric in how you use your time. Do not follow the herd. Try your new policy and see what happens. Since there is little value in the activities you want to displace, people may not actually notice if you stop doing them. Even if they do notice, they may not care enough to force you to do them if they can see that this would take major effort on their part. But even if dropping the low-value activities does require a radical change in circumstances—a new job, a new career, new friends, even a new lifestyle or partner—form a plan to make the desired changes. The alternative is that your potential for achievement and happiness will never be attained. FOUR ILLUSTRATIONS OF ECCENTRIC AND EFFECTIVE TIME USE My first illustration is William Ewart Gladstone, the dominant liberal statesman of Victorian England who was elected prime minister four times. Gladstone was eccentric in many ways, not least his spectacularly unsuccessful attempts to rescue “fallen women” from prostitution and his not totally unrelated bouts of self-flagellation; but his use of time is the eccentricity on which we shall focus here. Gladstone was not constrained by his political duties, or, rather, was effective at them because he spent his time pretty much as he pleased in an amazing variety of ways. He was an inveterate tourist, both in the British Isles and overseas, often slipping over to France, Italy, or Germany on private business while prime minister. He loved the theater, pursued several (almost certainly non-physical) affairs with women, read avidly (20,000 books in his lifetime), made incredibly long speeches in the House of Commons (which despite their length were apparently compulsive listening), and virtually invented the sport of modern election-eeting, which he pursued with enormous gusto and enjoyment. Whenever he felt even slightly ill, he would go to bed for at least a whole day, where he would read and think. His enormous political energy and effectiveness derived from his eccentric use of time. Of subsequent British prime ministers, only Lloyd George, Churchill, and Thatcher came anywhere near to rivaling Gladstone's eccentric use of time; and all three were unusually effective. Three highly eccentric management consultants The other examples of unconventional time management come from the staid world of management consulting. Consultants are notorious for long hours and frenetic activity. My three characters, all of whom I knew quite well, broke all the conventions. They were also all spectacularly successful. The first, whom I will call Fred, made tens of millions of dollars from being a consultant. He never bothered to go to business school, but managed to set up a very large and successful firm of consultants where almost everyone else worked 70 or more hours a week. Fred visited the office occasionally and chaired partners' meetings once a month, which partners from all over the globe were compelled to attend, but preferred to spend his time playing tennis and thinking. He ruled the firm with an iron fist but never raised his voice. Fred controlled everything through an alliance with his five main subordinates. The second, alias Randy, was one of these lieutenants. Apart from its founder, he was virtually the only exception to the work-aholic culture of the firm. He had himself posted to a far-distant country, where he ran a thriving and rapidly growing office, also staffed by people working unbelievably hard, largely from his home. Nobody knew how Randy spent his time or how few hours he worked, but he was incredibly laid back. Randy would only attend the most important client meetings, delegating everything else to junior partners and if necessary inventing the most bizarre reasons why he could not be there. Although head of the office, Randy paid zero attention to any administrative matters. His whole energy was spent working out how to increase revenues with the most important clients and then putting mechanisms in place to do this with the least personal effort. Randy never had more than three priorities and often only everything else went by the board. Randy was impossibly everything to work for, but wonderfully effective. My third and final eccentric time user was a friend and part-call him Jim. My abiding memory of Jim is of when we affice, together with a handful of other colleagues. cramped and full of wild activity: people talking on the rushing round to get presentations done, shouting from office to the other. But there was Jim, an oasis of calm inactivity, staring thought-calendar, working out what to do. Occasionally, he takes aside to the one quiet room and explain he wanted everyone to do: not once, not twice, but life-threateningly tedious detail. Jim would then repeat back to him what they were going to do. was slow, languid, and half-deaf. But he was a terrific leader. He spent all his time working out which tasks were high value should do them and then ensuring that they got done. THE TOP 10 LOW-VALUE USES OF TIME You can only spend time on high-value activities (whether for achievement or enjoyment) if you have abandoned low-value actvities. I invited you above to identify your low-value time sinks. that you have not missed some, a list below gives the 10 are most common. But these activities. Under no circumstances give everyone a fair share of your time. Above all, don't just because people ask, or because you receive a call or a fax. Follow Nancy Reagan's advice (in another context) Just Say No!—or treat the matter with what Lord called "a complete ignored." The Top 10 low-value uses of time 1 Things other people want you to do 2 Things that have been always done this way 3 Things you're not unusually good at doing 4 Things you don't enjoy doing 5 Things that are always interrupted in 6 Things few other people are interested in 7 Things that have already taken twice as long as you originally expected 8 Things where your collaborators are unreliable or low quality 9 Things that have a predictable cycle 10 Answering the telephone THE TOP 10 HIGHEST-VALUE USES OF TIME A second list gives the other side of the coin. The Top 10 highest-value uses of time 1 Things that advance your overall purpose in life 2 Things you have always wanted to do 3 Things already in the 20/80 relationship of time to results 4 Innovative ways of doing things that promise to slash the time required and/or multiply the quality of results 5 Things other people tell you can't be done 6 Things other people have done successfully in a different arena 7 Things that use your own creativity 8 Things that you can get other people to do for you with relatively little effort on your part 9 Anything with high-quality collaborators who have already transcended the 80/20 rule of time, who use time eccentrically and effectively 10 Things for which it is now or never When thinking about any potential use of time, ask two questions: • Is it unconventional? • Does it promise to multiply effectiveness? It is unlikely to be a good use of time unless the answer to both questions is yes. IS A TIME REVOLUTION FEASIBLE? Many of you may feel that much of my advice is rather revolutionary and pie in the sky for your circumstances. Comments and criticisms that have been made to me include the following: I can’t choose how to spend my time. My bosses won’t allow it. I would need to change jobs to follow your advice and I can’t afford the risk. This advice is all very well for the rich, but I just don’t have that degree of freedom. I’d have to divorce my spouse! My ambition is to improve my effectiveness 25 percent, not 250 percent. I just don’t believe the latter can be done. If it were as easy as you say, everyone would do it. If you find yourself saying any of these things, time revolution may not be for you. Don’t start a time revolution unless you are willing to be a revolutionary I could encapsulate (or at least caricature) these responses as follows: “I’m not a radical, let alone a revolutionary, so leave me alone. I’m basically happy with my existing horizons.” Fair enough. Revolution is revolution. It is uncomfortable, wrenching, and dangerous. Before you start a revolution, realize that it will involve major risks and will lead you into uncharted territory. Those who want a time revolution need to link together their past, present, and future, as suggested above by Figure 35. Behind the issue of how we allocate time lurks the even more fundamental issue of what we want to get out of our lives.
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Sunday, September 28, 2025

Future-Proof Your Career: 5 Lessons from Accenture's AI Layoffs

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5 Key Takeaways

  • Adaptability is essential for white-collar professionals in a rapidly changing job market.
  • Specialization in emerging skills, especially AI and agentic AI, is crucial for career sustainability.
  • Proactive career management and independent continuous learning are necessary, as corporate reskilling may be insufficient.
  • Financial awareness, including understanding restructuring and severance, is vital for navigating career transitions.
  • Resilience and strategic foresight are critical for sustaining a long-term career, as job security is not guaranteed even in high-performing firms.

Accenture's Big Layoffs: 5 Crucial Career Lessons for the AI Era

Heard about the recent layoffs at global consulting giant Accenture? Over 11,000 employees have been let go in the past few months. While this is tough news for those affected, it's also a huge wake-up call for all white-collar professionals about the rapidly changing job market.

Accenture's CEO, Julie Sweet, was very clear about the reasons: slowing client demand and the incredibly fast adoption of Artificial Intelligence (AI). She explained that the company is "exiting people... where reskilling is not a viable path for the skills we need." In simpler terms, some roles are becoming obsolete, and people can't learn new, AI-driven skills fast enough to keep up.

Accenture isn't just cutting jobs; they're also investing heavily in training their remaining staff in "agentic AI." Think of agentic AI as super-smart tools that can make complex decisions and automate tasks that used to require human judgment. This shift is reshaping how businesses operate and, consequently, the skills they demand from their workforce.

Even though Accenture itself is still growing (they reported a 7% revenue increase!), these layoffs show that no job is truly safe from the forces of technological change. So, what can you learn from this?

Here are 5 crucial lessons for your career in the age of AI:

  1. Be a Quick Learner (Adaptability is Key): The world is changing at lightning speed. Your ability to pivot, learn new technologies, and adapt your role quickly is no longer a bonus – it's essential. Don't get stuck doing things the old way.
  2. Become an AI Expert (or at least AI-Savvy): Understanding AI, especially advanced tools like agentic AI, is becoming a strategic asset. Whether you're a marketer, a project manager, or a financial analyst, figure out how AI impacts your field and start building those skills.
  3. Own Your Career Path (Proactive Management): Don't wait for your company to offer a reskilling program. Anticipate future trends and invest in your own continuous learning. Online courses, certifications, and personal projects can make a huge difference.
  4. Understand the Business Side (Financial Awareness): It's not just about your job; it's about the company's health. Understand why companies make tough decisions like restructuring, what severance packages mean, and the economic drivers behind workforce changes. This knowledge helps you navigate transitions more strategically.
  5. Build Your Resilience (Mental Toughness): Job security isn't guaranteed, even at successful companies. Develop emotional resilience and a long-term view of your career. Be prepared for uncertainty and focus on building a diverse skill set that makes you valuable across different roles and industries.

The Accenture story isn't just about one company; it's a wake-up call for all white-collar professionals. The future of work isn't waiting – are you preparing for it?


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Accenture's AI Paradox: 11,000 Jobs Cut, Revenue Soars

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5 Key Takeaways

  • Accenture laid off over 11,000 employees globally.
  • The layoffs are primarily attributed to rapid AI adoption and slowing corporate demand.
  • These job cuts are part of an $865 million restructuring program, with more exits expected.
  • Accenture is investing in agentic AI training for employees, but will exit those for whom reskilling is not viable.
  • Despite the significant layoffs, Accenture reported a 7% year-on-year revenue increase.

Accenture's Big Shift: Why 11,000+ Employees Are Out (and What AI Has to Do With It)

Big news from the corporate world: Accenture, a massive global consulting company, has recently made headlines for a significant workforce change. Over the past three months, more than 11,000 employees worldwide have been let go. This isn't just a random cut; it's a calculated move driven by two powerful forces reshaping the business landscape.

The primary culprits? The lightning-fast adoption of Artificial Intelligence (AI) and a noticeable slowdown in what companies are spending on consulting services. Simply put, businesses are embracing AI solutions at an unprecedented pace, and at the same time, many are tightening their belts, leading to less demand for traditional human-led projects.

Accenture's CEO, Julie Sweet, didn't mince words. She explained that the company is "exiting people on a compressed timeline where reskilling is not a viable path for the skills we need." This means if an employee's current skills don't align with the new, AI-driven demands of clients, and they can't quickly adapt, they might be asked to leave. It's a tough reality: adapt or potentially face the exit door, as the company aims to quickly align its workforce with what clients are now asking for. More exits are expected as this shift continues through November 2025.

These layoffs are part of a larger $865 million restructuring plan, which includes severance costs and is expected to save Accenture over $1 billion in the long run. The company's global headcount dropped from 791,000 to 779,000 in just three months, showing the scale of this transformation.

Here's where it gets interesting: despite these significant job cuts, Accenture actually reported a healthy 7% increase in revenue, hitting $17.6 billion in its latest quarter – beating expectations! This suggests that while some roles are disappearing, the company is successfully pivoting towards new, profitable areas, largely thanks to AI. In fact, Accenture isn't just cutting; they're also investing heavily in "upskilling" their remaining employees in "agentic AI" – advanced AI tools designed to automate complex tasks. This is all about staying ahead and meeting client needs in an AI-first world.

Accenture's situation is a stark reminder of the ongoing transformation in the tech and consulting industries. It highlights the dual nature of AI: a powerful tool for efficiency and growth, but also a disruptor of traditional job roles. For professionals everywhere, the message is clear: continuous learning and adaptability are no longer optional, but essential for navigating the future of work.

What do you think? Is AI a job destroyer or a job transformer?


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Nikhil Kamath: Call Centre Nights to Billionaire Heights

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5 Key Takeaways

  • Zerodha co-founder Nikhil Kamath began his career with a modest job at a Bengaluru call centre.
  • He worked night shifts in the early 2000s, earning only $1,000 annually (approximately Rs 88,000 today).
  • Kamath described this initial experience as "modest but formative," emphasizing the discipline it taught him.
  • His humble beginnings contrast sharply with investor Ruchir Sharma's high-paying corporate entry into finance.
  • Despite his modest start, Kamath co-founded Zerodha, which became a major success and made him a billionaire.

From Call Centre Nights to Billionaire Heights: Nikhil Kamath's Inspiring First Job Story

Ever wonder where today's business titans got their start? Sometimes, it's not in fancy boardrooms or elite universities. Take Nikhil Kamath, co-founder of India's hugely successful brokerage firm, Zerodha. He's now a billionaire, but his first job was far from glamorous – and his salary was incredibly modest.

Recently, on the WTF podcast, Nikhil shared his surprising journey. Back in the early 2000s, he was working night shifts at a call centre in Bengaluru. Imagine that – the man who helped revolutionize stock trading in India was once answering calls in the wee hours! His annual salary? A mere $1,000, which is roughly Rs 88,000 in today's money. He called it a "modest but formative" experience, emphasizing how it taught him crucial discipline.

This humble beginning stands in stark contrast to his podcast co-guest, investor-author Ruchir Sharma. Sharma, fresh out of college in 1996, landed a job at Morgan Stanley in Mumbai with a whopping $100,000 annual package – that's about Rs 88 lakh today! While Sharma was on a fast track in global finance, Kamath was building his foundation from the ground up.

But Nikhil's story is a testament to perseverance. Alongside his brother Nithin, he painstakingly built Zerodha, transforming India's brokerage landscape and making him one of the country's youngest billionaires.

His journey proves that your starting point doesn't define your destination. Whether you begin with a modest paycheck or a high-flying corporate offer, dedication and a strong work ethic can lead to extraordinary success. It's a powerful reminder that every experience, no matter how small, can contribute to building a remarkable future.

The podcast conversation also briefly touched on global markets, with Sharma noting that beyond AI, the US market looks overpriced. But the real takeaway from this discussion is Nikhil Kamath's incredible personal story. It isn't just about money; it's about the grit and determination that can turn a call centre job into a billion-dollar empire. Truly inspiring!


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Perseverance and Determination


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Taken from the book: 21 Leadership Lessons of Narendra Damodardas Modi

"Our greatest glory isn't never falling, but rising every time we fall." ~ Oliver Goldsmith

Challenges, setbacks, hurdles: almost everyone faces them, especially those in a position of power and responsibility. What differentiates good leaders from exceptional ones is not their intelligence or affinity for good strategies, but their self-determination. In times of challenging circumstances, brilliant ideas are necessary, but the leader's perseverance and will to get through the problem is something far more fundamental and important. Imagine what would happen if the leader of a group turns around and vanishes, abandoning his team! That certainly won't be a pretty picture.

Effective leaders have the resolve to look at problems with a brave face. Thinking calmly and staying in control leads them to manage and look for possible alternative solutions. A perseverant leader, driven by a constant vision, is able to make his team anchor on his beliefs, thoughts, values and principles. It helps one to stay motivated.

Narendra Modi's journey from a bal sevak in RSS to the Prime Minister of India is a story of deep-rooted determination. Set with a vision in mind, he has been looking into solutions and working on them persistently. His zest for work was quite visible and in a lot many instances, appreciated. In the early 1990s, Modi was handed the responsibility of L K Advani's Rath Yatra (1990) and Dr Murli Manohar Joshi's Ekta Yatra (1991–92) despite being in a junior role in the state unit in BJP. The RSS leaders had quickly provided their assent taking into consideration Modi's initial years of success and hard work.

Given the fact that the Indian political system is characterised by issues of groups and favouritism where the emerging and struggling political aspirants will spend more time in pleasing their seniors than working at grassroots levels, Narendra Damodardas Modi chose the path of hard work to make his mark, despite being aware that achieving success and admiration through work and results is a long path vis-à-vis any short cut.

His desire to achieve the unachievable, pushing him to extreme and social awareness played an important part in overall rise of Narendra Modi. People who know Modi from earlier days recount him as a self-motivated and socially conscious individual who followed high morality in his personal disposition. Indeed many of his old associates find that Modi has displayed a unique trait of incrementing his perseverance and determination as he kept moving upwards in power hierarchy. He is known as one who never basks on his past or present glories, but has his sights set on the next milestone even before achieving the previous one.

As a youngster, Modi seemed to be interested in disassociating himself from his small life in Vadnagar. As a means of escape from his family life, he 'disappeared' for stretches of time to spend time completely by himself in a secluded place. Really wanting to do something that would give him a distinct identity, Modi never gave up. Perseverance became the prerequisite to living the life he wanted to live.

Starting small and performing jobs lower in class is usually something that is not preferred, unless the individual harbours a broader perspective and like Modi, knows that those are just stepping stones for future success. People tend to give up, feeling dejected at the quality of work required of them, sometimes giving up because of jealousy. Successful people who go on to become leaders sometimes start no different, but they are quite willing to overcome challenges and have the strength and determination to see their goals churning into fruition. Modi's jobs and responsibilities during his initial years in RSS can be described as menial and routine. However, Modi's idea of carrying out all tasks effectively prepared him for the various roles he was later asked to play. Certainly, no job is useless!

This also helped him later in his career as it provided people the confidence in his abilities and his determined will to passionately work for the cause he believed in. The reason the RSS was handing out bigger responsibilities to him was because they were pleased with his efficiency and the fact that he performed whatever he undertook with utmost enthusiasm. When such individuals go on to become leaders, and are responsible for a lot many people, it is this determination settled in them that allows them to keep on pursuing their goals and in the process, leverage things to their advantage. In the midst of any crisis, they must have the capacity to continue.

As Modi rose up the ranks, he found that his Dharmic rooted perspective needed a modern reinvention. In order to keep himself up with the times, he understood and valued the importance of having a broader perspective. Although there would be evidence and opinions for the otherwise, one can't deny the fact that he did try learning from whatever he could and inculcating modern management principles that are so necessary to lead India in the contemporary scene.

It's not that Modi didn't face failures or challenges; in fact, leading Gujarat during the Gujarat Riots and Godhara issues became a hounding issue for him. Surely, no leader would want to be held responsible for such an issue, especially when he took command of a state only months back. Anyone who is even remotely aware of the Indian governance system would appreciate that the system is rather complex and not as simple as it appears. The strong hold of regional political satraps, bureaucracy and the established power centres with the Indian political framework provides little leverage for even the established Chief Minister of any state to operate, more so when one is new and just acclimatising himself with the complexities of governance. However, despite all the negativities that surrounded him, Narendra Modi chose to concentrate and shift the discourse to the economic agenda and growth which doesn't suffer from the normal discrepancies of secular v/s non secular, regionalism, etc. He's remained perseverant that the only model that Gujarat and he would propagate is purely economic, which in the end would benefit all. Though his critics kept hitting him with the phrase, 'single agenda', he chose to respond to them with a vibrant economic model. He provided a never-thought-of model of investment inflow, with senior IAS officers being assigned to and accountable for every investment flowing within the state. His detractors and critics not just challenged him in India but ensured that even his international reputation remains challenged; however, with a single minded focus on his state, he carved a path of economic diplomacy where the international investors themselves pushed their respective governments to remain engaged with him. Probably this is one of the few instances where international diplomatic efforts were targeted towards a particular state of India and not just at national level.

Another example that displayed his determination and perseverance was the handling of the devastations that occurred in the Gujarat earthquake in 2001, which killed more than 20,000 people, destroyed 4,00,000 houses and accounted for a loss of billions in economic damages. The incident occurred around nine months before Narendra Modi took the reins of the state. Modi could have chosen to just maintain the continuity of efforts, but after becoming the Chief Minister, he galvanised investment and rehabilitation efforts to such an extent that today, Kutch boasts of one of the finest models of rehabilitation across the world and the area is economically better than what it was before the tragedy.

It is said that Alexander the Great, unlike other kings of past, never remained hidden by his cavalry or artillery, rather he would stand with his front-line soldiers and lead the attack from the front. Similarly, Narendra Modi is not known to remain contended by just delegation of duties to either his colleagues or officers but prefers a more hands-on approach of remaining at the forefront in testing times.

The heights great men reached and kept were not attained by sudden flight, but they, while their companions slept, were toiling upward in the night. ~ Henry Wadsworth Longfellow

In the most recent scenario, Modi's win as Prime Minister of the country in May 2014 is in itself a valid example of the results of being consistently persistent. Emerging as a symbol of hope for the youth of this country, Modi shoulders the expectations of the people and reflects their unwavering confidence in his leadership abilities. Continuously stating the government's goals and plans, not just to his team but to the media and the public, he has generated that sense of confidence that things can turn out to be good. His apparent determination to make it happen also helps motivating the team, which further works with a positive attitude.

Organizing hundreds of rallies all over the country in an unimaginable time period, being at the forefront of all his initiatives, making full use of technology and social media to leverage his party, Modi carried out all possible ideas to win his quest for Prime Minister. Modi has also generated criticism and times of uncertainty in the face of problems. There's enough evidence to see the number of issues he has had to deal with, most of which were a direct attack to his pride, something he keeps safe and sound. Ram Jethmalani, senior politician and eminent lawyer, started his article in the Sunday Guardian with these lines: "No politician in independent India has been demonised in such a relentless, Goebbelsian manner as Narendra Modi, and no politician has withstood it with as much resilience and courage as him, notwithstanding the entire Central government, influential sections of the media machinery and civil society arraigned against him."

It requires tenacity to be able to conserve one's emotions and maintain clarity as to the goals. Narendra Modi is one such person, strong and courageous, with fortitude to carry on in the face of insoluble dilemmas.

Narendra Modi has displayed a high level of personal initiative, perseverance and a will power to counter all odds no matter what they are, and he in many ways epitomises what Gurdev Rabindra Nath Tagore wrote in his famous poem Ekla Chalo Re (Go All Alone)

Jodi tor dak sune keu na ashe, Tobe ekla cholo, ekla chalo, aekla chalo re, Aikla cholo re
(If no one answers your call, then walk alone, be not afraid, walk alone my friend)

Jodi kue kotha na koe, ore o re o obaghaga, keu kotha na koe Jodi sobai thake mulik phirae, sobai kore bhoye, Tobe poran khule, O tui, mukh phute tor moner kotha, Ekla bolo re (If no one talks to you, O my unlucky friend, if no one speaks to you, If everyone looks the other way and everyone is afraid, then bare your soul and let out what is in your mind, be not afraid, speak alone my friend)

Jab kali ghata chaye, Ore o re o andhera sach ko nigal jaye, Jab duniya sari, dar ke age sar apna jinkaye, Tu shola banja, Wo shola banja, Jo khuá jal ke jahan raushan karde, Ekla jalo re. (When dark clouds cover the sky, When darkness engulfs the truth, When the world covers and bows before fear, You be the flame, The flame that burns you and banishes darkness from the world, be not afraid, Burn alone my friend)

~ Gurudev Rabindra Nath Tagore

Footsteps - Mahatma Gandhi

The difference between what we do and what we are capable of doing would suffice to solve most of world's problem ~ Mahatama Gandhi Great leaders have attained success and fulfilled their goals; be those personal or for the welfare of society or the country, primarily because of the inherent abundance of determination. Mahatma Gandhi, the visionary who was an integral figure in India's fight for independence, is also an example of sheer perseverance and will power. Gandhi advocated non-violence, believing in fighting for the truth with ahinsa. The term satyagraha coined by him literally means “persistence of truth” and goes on to show how perseverance was a factor deeply ingrained in him, not just in his actions, but also in his every belief. Before jumping into the independence struggle of India, Gandhi undertook a country-long journey to understand the challenges that lay in front of him. He knew that India is a diverse country and to sew it into a thread of single agenda would require sheer determination and hard work. During the freedom struggle, Gandhi would often travel to remote areas to remain ingrained with the people at large. He was determined that until and unless he covers India in its entirety, he could neither emerge as a national leader nor could push ahead his agenda of its independence. Similarly, much before Narendra Modi set his sights on the national pedestal, he had started travelling to states that were weak points of his party. He knew that while he was successfully leading his home state Gujarat, his larger agenda of national growth could only be achieved if he emerged as a national leader upon whom people during the 2014 general elections, he travelled far and wide across India covering the entire length and breadth of the country to remain in connect with the masses at large. His determination to achieve the goal can be adjudged by the very fact that he would begin his day as early as 4 AM in the morning and after his daily chores would conduct back to back election meetings across India, sometimes on same-day flying from Gujarat to North East and then to South India and parts of North India and returning back to Gandhinagar to grab a sleep of 2-3 hours daily. This perseverance and focus indeed resulted in Narendra Modi becoming a national leader and people across the board connecting with him and propagating his agenda at large. Gandhi knew that the path to India's freedom was long but he was also determined that no matter what he would not shun the path of non-violence, so much so that he suspended the satyagraha movement when a police station was set ablaze in Chauri Chaura, a town near Gorakhpur in present day Uttar Pradesh. He felt that it's important to first spread the real meaning of ahimsa and then move forward in implementing it with the masses. Gandhi's approach thus was oriented towards first spreading the vision and then laying the foundation for its implementation. Similarly, Narendra Modi feels that that true growth of India could only be achieved if it is linked to economic growth of masses. In an articulate manner he has conveyed his vision to the countrymen and now he is working determinedly to untangle the bottlenecks that lie in front of him and his vision. One reason why effective leaders persevere is their conviction in their own beliefs. Gandhi was sure of non-violence as the right means of winning freedom and although he was widely criticized by other leaders, he was quite set in his belief and was determined to make India free by those means. He spread his message far and wide, worked at the forefront, motivated and mobilized the people and despite many setbacks and despicable circumstances, never gave up. Narendra Modi shares this quality with Gandhi, who created his plans and points of action based on the ultimate goal in mind, and carried it out with strong-founded determination. Such leaders place a 'never say die' attitude in the midst of their minds and continue working to achieve their goals with complete focus. Be it his career cycle, or the vision he has now set for India, Modi has provided enough evidence to believe that he would see it through, no matter what. Even as a youngster, Gandhi looked for opportunities to learn from everywhere he went, especially during his stay in England when he was studying law. When he faced roadblocks, he did not simply try to return to India however much he wanted, but decided to stay back and look for alternative solutions to resolve his problems. Just like Gandhi's persona exuded his perseverance, Modi's stance also reveals him to be someone who would not easily give up. His authoritarian nature might even add to this determination, for he would work towards achieving what he promised with utmost diligence so as to maintain his authority and trust in the people. Gandhi's unrelenting pursuit of his goals, self-abnegation, courage, tolerance and perseverance are qualities Narendra Modi seems to have picked up and is now using to become an effective leader.
Tags: Book Summary,Indian Politics,

Thursday, September 25, 2025

RAG and Agents: The Future of AI Systems (Chapter 6)

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Introduction

Large Language Models (LLMs) have transformed the way we interact with machines. Yet, while these models are powerful, they are also limited by two constraints: instructions and context. Instructions tell the model what to do, but context provides the knowledge needed to do it. Without relevant context, models are prone to mistakes and hallucinations. This is where two critical patterns come into play: Retrieval-Augmented Generation (RAG) and Agents.

RAG enhances models by retrieving relevant external knowledge, while Agents empower models to interact with tools and environments to accomplish more complex tasks. Together, these paradigms represent the next frontier of AI applications.

In this blog post, we will take a deep dive into both approaches—how they work, their architectures, the algorithms involved, optimization strategies, and their transformative potential.


Part 1: Retrieval-Augmented Generation (RAG)

What is RAG?

Retrieval-Augmented Generation is a technique that enriches model outputs by retrieving the most relevant information from external data sources—be it a document database, conversation history, or the web. Rather than relying solely on the model’s training data or its limited context window, RAG dynamically builds query-specific context.

For example, if asked “Can Acme’s fancy-printer-A300 print 100 pages per second?”, a generic LLM might hallucinate. But with RAG, the model first retrieves the printer’s specification sheet and then generates an informed answer.

This retrieval-before-generation workflow ensures:

  • Reduced hallucinations

  • More detailed responses

  • Efficient use of context length

RAG Architecture

A RAG system typically consists of two components:

  1. Retriever – Finds relevant information from external memory sources.

  2. Generator – Produces an output using the retrieved information.

In practice:

  • Documents are pre-processed (often split into smaller chunks).

  • A retrieval algorithm finds the most relevant chunks.

  • These chunks are concatenated with the user’s query to form the final prompt.

  • The generator (usually an LLM) produces the answer.

This modularity allows developers to swap retrievers, use different vector databases, or fine-tune embeddings to improve performance.

Retrieval Algorithms

Retrieval is a century-old idea—its roots go back to information retrieval systems in the 1920s. Modern RAG employs two main categories:

1. Term-Based Retrieval (Lexical Retrieval)

  • Uses keywords to match documents with queries.

  • Classic algorithms: TF-IDF, BM25, Elasticsearch.

  • Advantages: fast, cheap, effective out-of-the-box.

  • Limitations: doesn’t capture semantic meaning. For instance, a query for “transformer architecture” might return documents about electrical transformers instead of neural networks.

2. Embedding-Based Retrieval (Semantic Retrieval)

  • Represents documents and queries as dense vectors (embeddings).

  • Relevance is measured by similarity (e.g., cosine similarity).

  • Requires vector databases (e.g., FAISS, Pinecone, Milvus).

  • Advantages: captures meaning, handles natural queries.

  • Limitations: slower, costlier, requires embedding generation.

Hybrid Retrieval

Most production systems combine both approaches. For instance:

  • Step 1: Use BM25 to fetch candidate documents.

  • Step 2: Use embeddings to rerank and refine results.

This ensures both speed and semantic precision.

Vector Search Techniques

Efficient vector search is key for large-scale RAG. Popular algorithms include:

  • HNSW (Hierarchical Navigable Small World Graphs) – graph-based nearest neighbor search.

  • Product Quantization (PQ) – compresses vectors for faster similarity comparisons.

  • IVF (Inverted File Index) – clusters vectors for scalable retrieval.

  • Annoy, FAISS, ScaNN – popular libraries for approximate nearest neighbor (ANN) search.

Evaluating Retrieval Quality

Metrics for evaluating retrievers include:

  • Context Precision: % of retrieved documents that are relevant.

  • Context Recall: % of relevant documents that were retrieved.

  • Ranking Metrics: NDCG, MAP, MRR.

Ultimately, the retriever’s success should be measured by the quality of final generated answers.

Optimizing Retrieval

Several strategies enhance retrieval effectiveness:

  1. Chunking Strategy – Decide how to split documents (by tokens, sentences, paragraphs, or recursively).

  2. Reranking – Reorder retrieved documents based on relevance or freshness.

  3. Query Rewriting – Reformulate user queries for clarity.

  4. Contextual Retrieval – Augment chunks with metadata, titles, or summaries.

Beyond Text: Multimodal and Tabular RAG

  • Multimodal RAG: Retrieves both text and images (using models like CLIP).

  • Tabular RAG: Converts natural queries into SQL (Text-to-SQL) for structured databases.

These extensions broaden RAG’s applicability to enterprise analytics, ecommerce, and multimodal assistants.


Part 2: Agents

What Are Agents?

In AI, an agent is anything that perceives its environment and acts upon it. Unlike RAG, which focuses on constructing better context, agents leverage tools and planning to interact with the world.

Examples of agents include:

  • A coding assistant that navigates a repo, edits files, and runs tests.

  • A customer-support bot that reads emails, queries databases, and sends responses.

  • A travel planner that books flights, reserves hotels, and creates itineraries.

Components of an Agent

An agent consists of:

  1. Environment – The world it operates in (e.g., web, codebase, financial system).

  2. Actions/Tools – Functions it can perform (search, query, write).

  3. Planner – The reasoning engine (LLM) that decides which actions to take.

Tools: Extending Agent Capabilities

Tools are the bridge between AI reasoning and real-world actions. They fall into three categories:

  1. Knowledge Augmentation: e.g., retrievers, SQL executors, web browsers.

  2. Capability Extension: e.g., calculators, code interpreters, translators.

  3. Write Actions: e.g., sending emails, executing transactions, updating databases.

The choice of tools defines what an agent can achieve.

Planning: The Agent’s Brain

Complex tasks require planning—breaking goals into manageable steps. This involves:

  1. Plan Generation – Decomposing tasks into steps.

  2. Plan Validation – Ensuring steps are feasible.

  3. Execution – Performing steps using tools.

  4. Reflection – Evaluating results, correcting errors.

This iterative loop makes agents adaptive and autonomous.

Failures and Risks

With power comes risk. Agents introduce new failure modes:

  • Compound Errors – Mistakes in multi-step reasoning accumulate.

  • Overreach – Misusing tools (e.g., sending wrong emails).

  • Security Risks – Vulnerable to prompt injection or malicious tool manipulation.

Thus, safety mechanisms, human oversight, and constrained tool permissions are critical.

Evaluating Agents

Evaluating agents is complex and multi-layered:

  • Task success rate

  • Efficiency (steps, latency, cost)

  • Robustness against adversarial inputs

  • User trust and satisfaction

Unlike single-shot LLMs, agents need evaluation frameworks that capture their sequential reasoning and tool use.


The Convergence of RAG and Agents

While distinct, RAG and Agents are complementary:

  • RAG provides better knowledge.

  • Agents provide better action.

Together, they enable AI systems that are:

  • Knowledge-rich (RAG reduces hallucinations).

  • Action-oriented (Agents execute tasks).

  • Adaptive (feedback-driven planning).

Future enterprise AI systems will likely embed both patterns: RAG for context construction and Agents for execution.


Conclusion

RAG and Agents represent two of the most promising paradigms in applied AI today. RAG helps models overcome context limitations by dynamically retrieving relevant information. Agents extend models into autonomous actors that can reason, plan, and interact with the world.

As models get stronger and contexts expand, some may argue RAG will become obsolete. Yet, the need for efficient, query-specific retrieval will persist. Similarly, while agents bring new challenges—such as security, compound errors, and evaluation hurdles—their potential to automate real-world workflows is too transformative to ignore.

In short, RAG equips models with knowledge, and Agents empower them with action. Together, they pave the way for the next generation of intelligent systems.


Tags: Artificial Intelligence,Generative AI,Agentic AI,Technology,Book Summary,