In a striking juxtaposition of skepticism and innovation, OutSystems CEO Paulo Rosado has declared the artificial intelligence revolution “oversold,” even as his company unveils a new platform aimed at harnessing AI’s potential for enterprise applications. Speaking at the recent OutSystems ONE conference in Lisbon, Rosado argued that much of the hype surrounding AI fails to deliver tangible business value, often leaving organizations with fragmented tools rather than cohesive solutions. This perspective comes amid a flurry of AI announcements, where companies are racing to integrate generative technologies, yet Rosado insists that true progress lies in practical, scalable implementations rather than grandiose promises.

The timing of Rosado’s comments is particularly noteworthy, coinciding with the launch of OutSystems’ Agentic AI platform, which includes features like an agent marketplace and the Model Context Protocol. These tools are designed to enable seamless integrations across various AI models, allowing businesses to build and deploy intelligent agents that automate complex workflows. According to reports from TechRadar, Rosado emphasized that while AI can transform software development, the industry must move beyond buzzwords to focus on governance, scalability, and real-world efficiency.

Navigating Hype Versus Reality in Enterprise AI Adoption

OutSystems, a leader in low-code development platforms, positions its new offering as a bridge between ambitious AI visions and operational practicality. The Agent Workbench, now generally available, empowers enterprises to create custom AI agents with built-in controls for data privacy and compliance—critical concerns in regulated sectors like finance and healthcare. Early adopters such as Axos Bank and Thermo Fisher Scientific have reported significant gains in efficiency, with agents streamlining cross-functional tasks that previously required manual intervention. This aligns with broader industry trends, where agentic AI—systems that act autonomously on behalf of users—is gaining traction, but Rosado warns that without proper orchestration, these agents could exacerbate silos rather than resolve them.

Rosado’s critique extends to the broader AI ecosystem, where he points out that many solutions promise revolutionary changes but deliver incremental improvements at best. He draws parallels to past tech bubbles, suggesting that the current fervor around large language models (LLMs) overlooks the need for context-aware integrations. The Model Context Protocol introduced by OutSystems addresses this by standardizing how AI models interact with enterprise data, potentially reducing integration headaches that plague many deployments.

Strategic Shifts and Market Implications for Low-Code Pioneers

This launch marks a pivotal evolution for OutSystems, which has long championed low-code approaches to accelerate app development. By embedding agentic AI, the company aims to democratize advanced capabilities, making them accessible to non-technical users while maintaining enterprise-grade security. Insights from Diginomica highlight how new CEO Woodson Martin is steering the firm toward AI-driven growth, betting on agentic systems to differentiate in a crowded market. Martin’s strategy involves pivoting from pure development tools to comprehensive platforms that incorporate AI agents for tasks like predictive analytics and automated decision-making.

Critics, however, question whether OutSystems can avoid the very overhype Rosado decries. With 93% of software executives planning to introduce custom AI agents, as per an OutSystems study reported in their own publication, the demand is evident. Yet, Rosado stresses the importance of measured adoption, advocating for hybrid models that combine human oversight with AI autonomy to mitigate risks like bias or errors.

Future Prospects: Balancing Innovation with Pragmatism

Looking ahead, OutSystems’ approach could influence how enterprises evaluate AI investments. By launching tools that prioritize interoperability and governance, the company challenges competitors to elevate their offerings beyond superficial integrations. Rosado’s “oversold” narrative serves as a cautionary tale, reminding industry leaders that sustainable AI adoption requires aligning technology with business outcomes, not just chasing trends.

As agentic AI matures, platforms like OutSystems’ may set the standard for responsible innovation, fostering environments where AI enhances rather than disrupts core operations. This balanced perspective, blending critique with capability, underscores a maturing phase in AI’s enterprise journey, where hype gives way to substantive progress.