Yourstory iconYourstoryAug 24, 2026 ~5 min source read

Context, not models, will decide agentic AI’s value — lessons from DevSparks Hyderabad 2026

UBS CTO Elango Somasundaram argues enterprise advantage shifts from access to models toward embedding rich, governed context across architecture so agentic systems can reason, coordinate and deliver correct outcomes.

Context is the new intelligence in agentic AI

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Context—proprietary processes, product rules, security and workflows—is the differentiator because foundation models and skills are widely available.

Agentic systems need guardrails and reasoning across every architectural layer: identity, connectivity, SDLC controls, compliance and security.

The developer role changes: engineers will encode business context, validate outcomes and design guardrails instead of only writing tickets and code.

# Hyderabad 2026

# Agentic AI vs earlier waves

Past waves included robotic process automation, cloud, copilots that predict code, and vibe coding that lets developers author via natural language. Agents executed narrowly defined tasks. Agentic AI adds an orchestration layer: it reasons about objectives, creates task graphs, assigns subtasks to specialized agents and follows through to completion.

# Why context matters

Access to powerful foundation models and prebuilt skills is becoming commodity. What differentiates outcomes is context: the enterprise-specific data, workflows, policies and constraints that tell an agent what counts as correct or safe in a given situation.

For regulated industries like banking, context includes approval processes, product rules, security policies and customer expectations. Generic models can generate code, but they do not know whether a bank's transaction approval flow, a healthcare compliance step, or an automotive design constraint applies unless that context is encoded and connected to the agent.

# Every architectural layer matters

Somasundaram emphasized that agentic capabilities cannot be confined to the application layer. Enterprise architecture is an interdependent stack: infrastructure, networking, identity and access, development practices, governance and security. Agents need to reason across that stack rather than only generating functional code.

Identity and access management are especially important. When agents exchange data, a hallucinated or incorrect assertion can propagate across agents and amplify into a faulty workflow. To prevent that, guardrails must exist at multiple layers: connectivity rules, authentication, SDLC controls, regulatory checks and security policies should be integrated into agentic workflows rather than applied as after-the-fact controls.

# How the developer role evolves

As agents take on more execution, human roles shift toward defining objectives, supplying business context, and validating outputs. Developers will increasingly act as context engineers: curating domain knowledge, encoding organizational constraints, and building the governance that prevents unsafe or incorrect agent behavior.

Somasundaram framed this as a change in the nature of engineering rather than a replacement of engineers.

# The operational challenge: testing and complexity

He referenced a looming concern labeled "Mythos" tied to the added complexity of agentic workflows and the need for enterprises to slow down and design for safe, verifiable outcomes.

# Practical implications

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