Databricks says its Instructed Retriever offers better AI answers than RAG in the enterprise

Re-engineering retrieval

The re-engineering required to successfully use Instructed Retriever could place additional strain on CIO budgets, said Fersht.

“Adoption could mean continued investment in data foundations and governance before visible AI ROI with strain on talent as these systems would require hybrid skills across data engineering, AI, and domain logic,” he said.

Beyond cost and talent, there’s also the challenge of managing expectations. Tools like Instructed Retriever, Fersht said, risk creating the impression that enterprises can leapfrog directly to agentic AI. “In reality, they tend to expose process, data, and architectural debt very quickly,” he said.

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