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Joerg Storm’s newsletter “AI’s Next Frontier: From Foundation Robots to Sovereign Clouds, ROI Thresholds, and the Paradox of Humans Still Winning” (#130b, Oct 2, 2025) highlights the rapid evolution of artificial intelligence across industries. McKinsey points to a pivotal shift in robotics, with general-purpose robots powered by foundation models that can learn patterns, respond to both visual and spoken inputs, and perform multiple tasks with human-like dexterity—marking a leap beyond traditional task-specific systems. In Germany, the public sector is preparing for a major AI transformation through SAP’s Delos Cloud, a sovereign, fully compliant infrastructure equipped with 4,000 GPUs to support government workloads. This initiative, beginning in 2026 with SAP and OpenAI, will embed AI agents into workflows such as file handling, analytics, and citizen services, enhancing efficiency while ensuring strict data control. At the same time, businesses face the challenge of unlocking profitability in generative AI, which often remains elusive until organizations scale effectively and cross critical ROI thresholds. Despite these advances, the newsletter underscores a paradox: while AI is becoming more capable, humans remain indispensable, particularly in areas demanding creativity, judgment, and nuanced decision-making. Together, these developments suggest that the next frontier of AI will be defined not just by technology, but by how humans and machines complement one another.
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