Technical Guide

AI Systems & Agentic Architecture

A comprehensive guide to building enterprise AI systems with full ownership and control. Learn about agentic architecture, RAG systems, model selection, and how to avoid vendor lock-in while leveraging cutting-edge AI capabilities.

June 10, 202510 min readOronts Engineering Team

Our Philosophy on AI

Let me be direct with you: most AI implementations fail. Not because the technology doesn't work, but because companies rush into AI without understanding what they're building or why.

We've seen it repeatedly. A company wants "AI" because competitors have it. They sign up for some SaaS platform, plug in an API, and call it done. Six months later, they're locked into a vendor, paying escalating fees, and their "AI solution" is just a glorified chatbot that frustrates customers.

That's not how we work.

Our philosophy is simple: you own your AI. Not in some abstract sense, but literally. The models, the data, the infrastructure, the code. When we build AI systems, you can take everything and run it yourself tomorrow if you want.

AI should be a capability you own, not a subscription you rent.

This matters more than most people realize. AI is becoming core infrastructure. Handing that to a vendor is like outsourcing your entire engineering team. Fine for experiments, dangerous for production.

What We Mean by AI Systems

When we talk about AI systems, we're not talking about chatbots. We're talking about intelligent software that actually does work.

AI TypeWhat It DoesExample
Conversational AIHandles natural language interactionsCustomer support, internal assistants
Agentic SystemsPerforms multi-step tasks autonomouslyResearch, document processing, workflow automation
RAG SystemsRetrieves and reasons over your dataKnowledge bases, document Q&A, compliance checking
ClassificationCategorizes and routes informationTicket routing, content moderation, lead scoring
ExtractionPulls structured data from unstructured sourcesInvoice processing, contract analysis, data entry
GenerationCreates content following your guidelinesReports, summaries, drafts, translations

Most projects combine several of these. A customer support system might use conversational AI for the interface, RAG for accessing product knowledge, classification for routing, and generation for drafting responses.

The Architecture We Build

Let me walk you through our typical AI architecture. This isn't theoretical—it's what runs in production for our clients.

Layer 1: Model Orchestration

At the top sits the orchestration layer. This is the brain that decides which models to use, when to use them, and how to combine their outputs.

interface ModelOrchestrator {
  // Route requests to appropriate models
  route(request: AIRequest): ModelSelection;

  // Execute with fallback chain
  execute(request: AIRequest): Promise<AIResponse>;

  // Aggregate multi-model responses
  aggregate(responses: AIResponse[]): AIResponse;
}

// Example: Route based on task complexity
const router = {
  route(request) {
    if (request.requiresReasoning) {
      return { primary: 'claude-opus', fallback: 'gpt-4o' };
    }
    if (request.isSimpleQuery) {
      return { primary: 'claude-haiku', fallback: 'gpt-4o-mini' };
    }
    return { primary: 'claude-sonnet', fallback: 'gpt-4o' };
  }
};

Why orchestration matters: you're not locked to one model. When a better model comes out, you switch. When prices change, you optimize. When one provider has an outage, you failover.

Layer 2: Context Management

AI is only as good as the context you give it. This layer handles everything related to building that context.

Short-term Context: The current conversation, recent actions, immediate task state.

Long-term Memory: What the system has learned over time. User preferences, past interactions, accumulated knowledge.

Retrieved Context: Information pulled from your knowledge bases, databases, and documents via RAG.

async function buildContext(request: AIRequest): Promise<Context> {
  const [shortTerm, longTerm, retrieved] = await Promise.all([
    getConversationHistory(request.sessionId),
    getUserMemory(request.userId),
    retrieveRelevantDocs(request.query)
  ]);

  return {
    systemPrompt: buildSystemPrompt(request.task),
    conversation: shortTerm,
    memory: longTerm,
    documents: retrieved,
    metadata: {
      timestamp: Date.now(),
      user: request.userId,
      session: request.sessionId
    }
  };
}

Layer 3: Tool Integration

AI systems need to do things, not just talk. This layer connects AI to your actual business systems.

Tool CategoryExamplesWhy It Matters
Data AccessDatabase queries, API calls, file readsAI can answer questions about real data
ActionsSend emails, create tickets, update recordsAI can actually complete tasks
ComputationRun calculations, execute code, generate reportsAI can handle complex analysis
External ServicesSearch, payments, shipping, calendarsAI can interact with the outside world

The key is sandboxing. Every tool has explicit permissions. The AI can only do what you've authorized, nothing more.

const toolPermissions = {
  customerSupport: {
    canRead: ['orders', 'products', 'tickets'],
    canWrite: ['tickets', 'notes'],
    cannotAccess: ['payments', 'internal_docs']
  },
  salesAgent: {
    canRead: ['products', 'pricing', 'leads'],
    canWrite: ['leads', 'quotes'],
    cannotAccess: ['customer_data', 'financials']
  }
};

Layer 4: Evaluation & Monitoring

You can't improve what you can't measure. This layer tracks everything.

  • Quality Metrics: Are responses accurate? Helpful? On-brand?
  • Performance Metrics: Latency, throughput, cost per request
  • Safety Metrics: Are guardrails working? Any policy violations?
  • Business Metrics: Resolution rate, customer satisfaction, time saved
interface AIMetrics {
  // Quality
  accuracy: number;        // Via human evaluation or automated checks
  relevance: number;       // Did we answer the actual question?
  coherence: number;       // Does the response make sense?

  // Performance
  latencyP50: number;
  latencyP99: number;
  tokensUsed: number;
  costUSD: number;

  // Safety
  guardrailTriggered: boolean;
  policyViolation: boolean;
  escalatedToHuman: boolean;
}

RAG: Making AI Know Your Business

Retrieval-Augmented Generation is how we make AI actually useful for your specific business. Instead of relying on general knowledge, the AI retrieves information from your documents, databases, and knowledge bases before responding.

How RAG Works

1. User asks: "What's our return policy for enterprise customers?"

2. System searches your knowledge base for relevant documents

3. Retrieves: Enterprise Agreement v2.3, Returns Policy, Support SLA

4. AI reads these documents and generates an accurate answer

5. Response includes citations so users can verify

Building Effective RAG

The difference between good RAG and bad RAG is massive. Here's what we've learned:

Chunking Strategy Matters

Don't just split documents at arbitrary character limits. Split semantically—by section, paragraph, or logical unit.

// Bad: Fixed-size chunks break context
const badChunks = splitByCharacters(document, 1000);

// Good: Semantic chunking preserves meaning
const goodChunks = splitBySections(document, {
  respectHeadings: true,
  keepParagraphsIntact: true,
  maxTokens: 512,
  overlapTokens: 50
});

Hybrid Search Wins

Pure vector search misses exact matches. Pure keyword search misses semantic similarity. Use both.

Search TypeGood ForBad For
Vector/SemanticConceptual questions, paraphrasingExact names, numbers, codes
Keyword/BM25Specific terms, product names, IDsConceptual queries, synonyms
HybridEverythingSlightly more complex to implement

Reranking Improves Quality

First-pass retrieval gets candidates. Reranking sorts them by actual relevance to the query.

async function retrieveWithRerank(query: string): Promise<Document[]> {
  // Get more candidates than needed
  const candidates = await hybridSearch(query, { limit: 20 });

  // Rerank to find the best
  const reranked = await reranker.rank(query, candidates);

  // Return top results
  return reranked.slice(0, 5);
}

Model Selection: No Single Answer

There's no "best" AI model. There's the best model for your specific task, budget, and requirements.

ModelBest ForTrade-offs
Claude OpusComplex reasoning, nuanced tasksHigher cost, slower
Claude SonnetGeneral-purpose, good balanceMiddle ground on everything
Claude HaikuHigh-volume, simple tasksLess capable on complex work
GPT-4oStrong alternative, good ecosystemDifferent strengths/weaknesses
GPT-4o-miniCost-sensitive applicationsLess capable than full models
Open Source (Llama, Mistral)Privacy, cost control, customizationMore operational overhead

Our approach: design for model flexibility. Today's best model won't be tomorrow's. Your architecture should make switching easy.

Ownership & No Lock-in

Let me explain what we mean by ownership in concrete terms.

You Own the Code

Everything we build for you is yours. Not licensed to you, not accessible through our platform—actually yours. Git repository, full history, all documentation.

You Own the Data

Your training data, your embeddings, your vector databases, your conversation logs. All of it stays in your infrastructure or gets handed over at project end.

You Own the Models

When we fine-tune models for you, those fine-tuned weights are yours. You can run them on your own infrastructure.

No Proprietary Dependencies

We don't build systems that require our proprietary tools to run. Everything uses open standards, open-source tools, and documented APIs.

What you get at project end:
├── Source Code (full repository)
├── Documentation
│   ├── Architecture docs
│   ├── API documentation
│   ├── Operational runbooks
│   └── Training materials
├── Data
│   ├── Training datasets
│   ├── Vector embeddings
│   └── Evaluation sets
├── Infrastructure
│   ├── Terraform/Pulumi configs
│   ├── Kubernetes manifests
│   └── CI/CD pipelines
└── Models
    ├── Fine-tuned weights
    ├── Prompt libraries
    └── Evaluation benchmarks

Where AI Actually Works Today

Let's be honest about what AI can and can't do reliably in production.

High Confidence Applications

Use CaseWhy It WorksExample Impact
Customer Support Tier-1Well-defined scope, easy to verify40-60% automation rate
Document Q&ARAG makes it accurate, citations verifyHours→minutes for research
Content DraftingHuman reviews before publish3x faster content production
Code AssistanceDeveloper validates output20-30% productivity gain
Data ExtractionStructured output, easy to check90% reduction in manual entry

Proceed with Caution

Use CaseChallengeMitigation
Medical/Legal AdviceLiability, accuracy criticalAlways human review
Financial DecisionsHallucination risk, high stakesGuardrails + human approval
Autonomous ActionsHard to undo mistakesStart with suggestions only
Creative with Brand RiskOff-brand outputsStyle guides + review workflow

Not Ready Yet

  • Fully autonomous customer-facing agents without fallbacks
  • High-stakes decisions without human oversight
  • Anything requiring perfect accuracy 100% of the time

Getting Started with Us

Here's how we typically engage on AI projects:

Phase 1: Discovery (1-2 weeks) We understand your business, your data, your existing systems. We identify where AI can actually help versus where it's just hype.

Phase 2: Proof of Concept (4-6 weeks) We build a working prototype on real data. You see actual results, not slide decks. We measure performance and validate the approach.

Phase 3: Production Build (8-16 weeks) Full implementation with all the layers described above. Proper monitoring, security, and operational tooling.

Phase 4: Handoff & Support You own everything. We train your team. We provide support as needed, but you're never dependent on us.

Conclusion

AI is transformative technology, but only if you do it right. That means:

  • Building for ownership, not dependency
  • Starting with clear use cases, not vague "AI strategy"
  • Measuring everything and iterating based on data
  • Keeping humans in the loop for high-stakes decisions
  • Designing for model flexibility from day one

The companies that will win with AI aren't those who adopt it first. They're those who adopt it correctly—with systems they own, understand, and can evolve.

We've helped organizations across industries build AI systems that actually work. Not demos that impress in meetings, but production systems that deliver measurable business value.

If you're thinking about AI for your organization, we'd be happy to share what we've learned.

Topics covered

AI systemsagentic architectureenterprise AIRAGLLMAI ownershipno vendor lock-inAI infrastructuremodel orchestration

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