
'We don't just want to create technology, we want to have a positive impact on the world.' – Stefan Leichenauer, SandboxAQ
Stefan Leichenauer is a man on a mission.
He is driven by the fact that he works for a company that is committed to making the world a better place.
That company is SandboxAQ, a B2B company that delivers AI solutions that addresses some of the world's greatest challenges.
SandboxAQ was born out of Alphabet Inc. as an independent capital-backed company in 2022.
Over the last number of years, it has grown exponentially across multiple global markets, and has a major partnership here in the Middle East region with Aramco.
Leichenauer spoke to CNME, about why the company wants to deliver technologies that have a positive impact on society, and the critical role played by LQMs in enabling the transformation pf industries such as the Oil & Gas sector.
In a recent op-ed, the VP of Engineering at SandboxAQ made the case for enterprises to shift their focus away from LLMs and to look at the LQMs to foster real change across their organisation.
According to Leichenauer, LLMs have limitations, and in order to solve the really complex challenges facing the world then businesses need to start looking at LQMs.
'Firstly, let me say that I think LLMs are fantastic, and we are not working to get rid of them. However, LLMs can't do everything by themselves, and I think that's the point that I am making, and I think more and more people are starting to realise that LLMs have their limitations. If you look at the latest LLMs that have been released over the last 3 years, then it seems like every release has a new set of capabilities that can do so much more, but we have sort of hit a ceiling of late. If you examine the latest releases of Llama 4 and GPT4.5 they are only incrementally better than what has come previously. So, I think there has been a realisation that LLMs as a capability are great, processing text and generating images then it is fantastic, but there is a whole set of capabilities that LLMs are just not going to get to by themselves,' said Leichenauer.
The capabilities that LLMs are not going to be able to get to by themselves is associated with quantitative reasoning, and this is where LQMs come to the fore.
'LQMs is designed to model the physical with chemistry, physics, and medicine, and is essentially focused on doing things that has absolutely nothing to do with language-based content. You need other tools in the tool box, and that's where LQMs come in. LQMs are basically providing those other tools in toolbox and they compliment the capabilities provided by LLMs,' said Leichenauer.
In his op-ed, Leichenauer also claimed that when precision is paramount then LQMs are indispensable, and said momentum was beginning to swing in favour of LQMs.
'We're now seeing more proof points that LQMs. I think in the past people would have deployed LLMs on to any given problem to see what works, and what doesn't, and I think everyone has been doing proof of concept trials with LLMs, but they've fallen short for a couple of reasons. As I stated earlier, in some areas they are fantastic, but in other areas they have fallen short. One of the reasons for this is the fact that LLMs are very non-transparent in terms of their reasoning. LLMs will give you an answer, but why is it true? And the LLM could be hallucinating, and we know that's been a big problem in some areas. Hallucinations are fine when it comes to generating an image, maybe it has the wrong number of fingers, but when it comes to creating a new molecule for Aramco, that is designed to making their processing plants more efficient, then you can't get that wrong because that's going to cost you a billion dollars. You need your answer to be correct, you need it to be grounded in real understanding of the problem, and LQMs can provide that verifiability and transparency,' said Leichenauer.
As aforementioned above, SandboxAQ have enjoyed great success since spinning out of Alphabet Inc. in 2022, and are working with some of the biggest companies in the Middle East, including Aramco, who are the biggest integrated energy and chemicals company in the world.
He spoke about their partnership, and again reiterated their mission which is to build purposeful technology designed to improve society.
'Our goal at Sandbox at the end of the day is not to create technology, of course we love to create technology, but we are doing it for a purpose. Ultimately, our goal is to have a positive impact on the world, and it just so happens that LQM technology is a great way to have a positive impact. The impact areas that we care about the most such as the medicine, pharmaceuticals, medical devices and GPS free navigation is something that we are very passionate about. These are all powered by LQMs. In terms of our collaboration with Aramco, the oil & gas industry is a really important industry in the world. However, we are all acutely aware that as we move forward, we need to be better about being environmentally friendly, and more efficient with our energy and more sustainable. We need to always be looking at better techniques, and Aramco is a real leader and pioneer when it comes to these sort of techniques,' said Leichenauer.
He went into more detail in relation to how LQM technology is enabling Aramco to transform, and how the technology is helping the global energy incumbent to be more sustainable and efficient.
'Aramco is not an AI company, they are an oil & gas company, so we are here to help our partners like Aramco to advance their operations to be able to do things in a much better way. SandboxAQ provides software tools, AI models and the LQMs that really help them to transform the way they operate their business. What we're doing with Aramco specifically is partnering with them to look closer at the oil & gas processing facilities. Ultimately, a lot of what is happening there is you've essentially got liquids and gases flowing through pipes and going through various kinds of processes, refineries and machines. However, in order to make those processes more efficient, one way to make them more efficient is to model them computationally better,' said Leichenauer.
Leichenauer conceded that these processes are complex, but insisted that in order to make them more efficient and sustainable then companies like Aramco had to implement LQM technologies.
'It's a complex physical process, and if you want to make your plants more efficient, and reduce emissions and waste then modelling that process computationally allows you to make tweaks and changes virtually to enable you to implement them in real-life. Modelling all of those processes computationally is something that our software is helping Aramco with,' said Leichenauer.
Leichenauer is delighted at the progress SandboxAQ has made with Aramco since their collaboration started, and believes that by 2030, it will fundamentally be a completely different business.
'The part that Sandbox has control over, and the computational modelling that enables these kinds of changes, the good news is, well from our perspective anyway is relatively simply compared to actually implementing these things physically. We have been working with Aramco for several months now, and we've already achieved significant milestones with our modelling. The LQMs that can do that sort of modelling and give you the answers and the playbook that what you need to do to make the changes those exist, and in a matter of months we have made huge progress on that. If I had to speculate a little bit then I'd guess that in the next 5 years we'll see a lot more changes coming through and being implemented. It may take longer to become 100% sustainable and 100% green, but in the oil and gas industry and other industries we can affect real changes and see real progress in a sort of 5-year timeline. By 2030 or so, a lot of the work we are doing today will have real tangible impact by then,' said Leichenauer.
Another industry that SandboxAQ is looking to transform in order to ensure they are having a meaningful impact on society is the healthcare industry.
'The healthcare sector is a major industry for us. It is a major source of grand challenges for the world, but we have seen a lot of progress in the last years in terms of how technology is being used to transform healthcare. When we are talking about real positive impact on the world then there's almost no better place to have that impact than in healthcare. Within healthcare, there is obviously the pharmaceutical industry, and there's always a lot to do in that space, and in terms of medical diagnostics that is a space that also can be transformed. The MRI machine is an amazing machine, it transformed medicine when it was invented several decades ago, but it is big, it is expensive, and it's clunky, and it takes a lot of expertise to use it. The next-generation of medical diagnostic devices can bring the kind of transformative impact of the MRI machine, but in a form factor that is more like an ultrasound machine, where it can something that can be much smaller and can be in every hospital emergency room. That kind of technology is coming, and some of that is what we are working on and using LQMs to enable,' said Leichenauer.
Leichenauer outlined that SandboxAQ is working on a diagnostic designed to tackle the issue of heart disease.
'We're working on a device right now using LQMs that is specifically for diagnosing heart disease, and various kinds of heart disease in an emergency room setting in a way that you could actually apply it to every patient that walks in complaining of heart problems, or persistent heart pain. One of the first things that you do is take five minutes to give them a scan using the machine, and that really improves the care of the patient, and heart disease is one of the biggest killers in the world, so this is a truly transformative device. At the minute, we have a prototype device being tested in hospitals right now, and within a couple of years I'd expect this device to be used on a everyday basis in hospitals. Early indications of the prototype is that we are on the right track, and appear to be doing a good job. However, you have to prove you're doing a good job and pass regulations and so on before you can actually go to market with such a device, but the technology is there and we are actively working on it,' said Leichenauer.
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Tahawul Tech
6 hours ago
- Tahawul Tech
'Businesses are guilty of investing in AI for the sake of it, they need to determine clear outcomes.' – Luis Rodrigues, Lab49
CNME Editor Mark Forker secured an exclusive interview with Luis Rodrigues, Chief Product Officer and Regional Head of Lab49, in which he highlighted the issue of biases in LLMs, the need for clear outcomes to be established when adopting AI – and why businesses need to view AI agents as interns. Luis Rodrigues has been spearheading digital transformation programs across the financial services, telecoms and government sectors during his illustrious career to date. In June 2024, he was appointed as the Chief Product Officer and Regional Head of Lab49. Lab49 was established in the United States back in 2002, in an effort to bring Silicon Valley solutions much closer to Wall Street. Lab49 presents itself as a specialist consultancy that designs and develops bespoke and innovative technology solutions in partnership with key players in financial markets across the world. Lab49 outlines in its mission statement that it doesn't sell technology, but instead sells competitive advantage. As aforementioned above, Rodrigues has enjoyed a hugely distinguished career. What makes Rodrigues so unique as a business leader stems from the fact that not only does he have a deep technical understanding of technology, but he also has experience in building companies from scratch. That blend of engineering and entrepreneurship experience and know-how is a potent combination. Rodrigues has been at Lab49 for just over a year, and he's been handed the remit of driving their growth across the Middle East region. However, he was quick to point out that Lab49 has extensive experience in driving digital transformation in the finance space. 'Lab49 was founded in 2002, and the objective of the founders at the time was to bring Silicon Valley thinking and innovation to Wall Street. The company has been at the forefront of digital innovation over the last two decades in the financial services space in the United States. Lab49, part of the ION Group, has played a hands-on role in all stages of digital transformation across the finance space. That has meant different things at different junctures. A few years ago, cloud transformation was the driving force behind the industry; now, everyone is focused on AI. Today, transformation means AI,' said Rodrigues. A prevalent issue that has surfaced across the board when it comes to AI has been determining concrete use-cases that deliver tangible outcomes. Pressure from boardroom level has seen many enterprises invest aggressively into AI, but without a clear and coherent strategy, many businesses have put the cart before the horse when it comes to AI, and have failed as a result. This is a big bugbear for Rodrigues and the lack of knowledge around AI is something that he frequently writes about. 'This is a huge issue, and it is something that I write quite extensively about, and I use my platform on LinkedIn to try and highlight it. Back in the day, everyone was talking about cloud transformation, but many didn't know what it was. A few years ago, everybody was talking about the Metaverse, with people predicting it was the future, but they didn't know what it really was. AI is revolutionary, but many people discussing AI don't understand the technology or its limitations. Many businesses use these buzzwords associated with AI, but they are not able to convert these buzzwords into business value, and that's a big challenge,' said Rodrigues. Rodrigues believes Lab49 can help business leaders bridge the AI knowledge gap. 'I've been working with AI since the early 00s, and I did a Master's in AI back then. We've got the knowledge and expertise at Lab49 to help organizations in understanding AI. We work closely with businesses to build a strategy tailored to their business model. There is naturally an education process involved; in many ways, it is an education on how you deliver business outcomes. Some businesses are guilty of doing AI just for the sake of it, or because they think they should be doing it, because everyone else is. They need to determine a clear business outcome when investing in AI. Take cloud computing, for example. You don't move to the cloud because you have to; you move to the cloud because you want to reduce costs and enhance your operational efficiency. It's the same with AI, you need to invest in AI for very specific use-cases that enable your business to optimise costs, enhance productivity and deliver more value long-term,' said Rodrigues. There has been a lot written about the need for strong regulations when it comes to AI, with some believing it is a pandora's box when it comes to ethics and privacy. The general consensus is that robust frameworks are needed. Rodrigues believes that the UAE is well-positioned to become a global leader in AI, because of the mindset and vision set out by those at the very top of the government pyramid. 'I attended an AI summit early this year in Madinat Jumeriah, and one of the UAE leaders made a very interesting observation that struck a chord with me. He said that in the UAE, they always want to build the biggest building, or be the best, but they are acutely aware of the fact that they might not always achieve their goals, but what they do as a result of their ambitions is set a vision. And that's a big advantage this region has compared to where I'm from in Europe. There are more and more companies coming to the UAE to try things, and the investment in the region is increasing all the time, and I think when you talk about putting AI into use-cases, then there is no better place in the world to do it than the UAE,' said Rodrigues. The UAE is not known for its red-tape and bureaucracy, and that fosters an environment that allows innovation and entrepreneurship to flourish. However, some critics believe that when it comes to AI having that lax approach when experimenting with AI can lead to the technology not being used ethically, or responsibly. Rodrigues admitted that in the sphere of financial services regulation is a must, and highlighted the issues pertaining to biases when it comes to AI technology. 'We have to be very careful when using AI in financial services, and regulation is absolutely essential. If you look at all the models we have today, there are biases, because the vast majority of them have been developed in the Western world. There are Chinese models on the marketplace, and we also have a few Arabic models, but it's fair to say that they are probably not at the same level as some of the most well-known models that are readily available in the market. These models have different languages, and with that, they have a different way of seeing the world. Language is culture, and with that comes biases into the way that particular model operates, and this worries me greatly, and is why regulation is non-negotiable. The issue of bias has to be addressed, and we need to be very careful when developing these systems,' said Rodrigues. Rodrigues said that when it comes to AI into financial services, accountability and trust is huge. Are we going to hold an AI Agent responsible if something happens our money? 'If I put money in the bank, I trust that institution to manage my money. They might charge me a fee, but my money won't disappear. However, the question for technologists is, in an agentic world, what happens if these AI agents invest my money into the wrong thing? If I'm dealing with a human, then I can talk to them directly or even speak to them face-to-face. In an agentic world, we don't have that' said Rodrigues. Rodrigues believes financial institutions using AI agents should adopt the same approach as they would with an intern, or a new hire into the organisation. 'We need to be realistic and recognise that agentic AI isn't magic, and that it's not going to work perfectly for everything. It works extremely well in contained aspects of the business. What I always tell my clients is, 'Think of the AI agent as an intern that has just graduated from college. ' Those coming out of university are typically very sharp, but they don't have business knowledge, and don't know the market. What you tend to do is give them an SOP (standard operating procedure) of what to do, and that person will go and execute that task. You wouldn't tell that same intern, 'Here are 10 different tools, now go and perform some tasks for me. ' So, it's important to consider that when you build an agent, they need to be very contained in a very specific use-case that drives value for the business,' said Rodrigues. Rodrigues concluded a brilliant conversation by documenting and highlighting some of the factors that differentiate Lab49 from other players in the financial services space, which we know is an ultra-competitive. Rodrigues started by highlighting his own expertise. 'You'll hear a lot of people at conferences claiming that they are at the forefront of AI; at the end of the day, unless you work at OpenAI or Google, we're all just users of AI. Some of us understand it more than others. I understand it because I have a Master's in it, and have been familiar with the technology for the last 20 years, so I can help more than most. Lab49 is a digitally native financial services company; we specialize in financial services and partner with some of the world's largest financial institutions. We have clients that we have trusted us for the past 10-15 years. We excel at strategy, and because we know the industry so intrinsically, we understand the need, and then we build the solution to address that need. We are also honest with our clients. If it's going to take us six months to build something, then we say it'll take us six months. We don't overpromise and underdeliver. Digital innovation is in the DNA of the company; we assist our clients, and ultimately, we deliver what our clients need to improve their business. At the end of the day, it's a results business, and Lab49's objective is to deliver value for our customers,' said Rodrigues.


Gulf Business
11-08-2025
- Gulf Business
Why regional CXOs must lead the next wave of GenAI transformation
Image: Supplied Generative AI (GenAI) has rapidly moved from proof-of-concept to boardroom priority across the Middle East. While initial enthusiasm was anchored in the impressive capabilities of large language models (LLMs), enterprises are quickly learning that true competitive advantage demands more than just deploying the latest AI models. The real value emerges when Why Standard LLMs Fall Short in the Enterprise LLMs are trained on vast but static datasets, limiting their knowledge to information available at the time of training. In regulated or fast-moving sectors, these limitations manifest as outdated or incomplete responses, raising both compliance risks and operational frustrations. For Middle Eastern enterprises facing evolving regulations and dynamic market conditions, these gaps are not just technical shortcomings — they can directly impact revenue and reputation. RAG: Transforming LLMs into knowledge powerhouses RAG bridges this critical gap by connecting AI models directly to diverse, real-time enterprise data. This not only keeps outputs current and reliable, but also boosts performance on tasks that require domain-specific knowledge or regional context. Additionally, RAG frameworks eliminate the need for continuous and expensive re-training of core models, streamlining scalability and reducing time-to-value as business use cases and data sources evolve. The market appetite reflects these benefits: global RAG spend is projected to soar from $1.2bn in 2024 to over $67bn in 2034, expanding at a compound annual growth rate of nearly 50 per cent. Agentic RAG: The next evolution — from answers to autonomous action With agentic RAG, enterprises are empowered to move beyond information retrieval to intelligent action. Rather than responding passively to user prompts with static outputs, agentic AI systems can autonomously plan, negotiate, execute, and optimise tasks — all while grounded in the latest organizational knowledge. Imagine AI assistants dynamically managing supply chain schedules, automatically resolving customer queries, or orchestrating employee onboarding — all with minimal human intervention but maximum compliance, consistency, and strategic alignment. For CXOs, this represents not just a step-change in productivity but a true leap in enterprise agility and innovation capacity. Agentic systems also introduce new dimensions of responsibility. Their autonomy and proactivity require strong frameworks for governance, transparency, and trust — especially as Middle Eastern governments advance national AI strategies and data protection laws. A strategic playbook for Middle East CXOs Embracing agentic RAG is as much a leadership mandate as it is a technology upgrade. Consider the following strategic actions: Build a unified data and infrastructure foundation Advance past silos by investing in robust, cloud-native data architectures. Standardised governance and privacy-first practices ensure that GenAI systems remain compliant with local regulations (such as GDPR and PDPLs) and are equipped for regional growth. Prioritise AI governance from day one Autonomous systems raise new questions of accountability. Establish ethical guidelines, audit trails, human oversight, and scenario-testing as non-negotiables. Transparency and responsible AI are essential to align with both stakeholder expectations and regulatory mandates. Develop true workforce-AI synergy The Middle East is witnessing exponential growth in demand for AI and ML skills. To fully harness agentic RAG, invest in upskilling programmes and nurture talent capable of translating business needs into AI outcomes. Encourage a culture of collaboration between human and machine. Start with impactful pilots Adopt a 'test-and-learn' mindset. Initiate agentic RAG pilots in high-value domains — such as automated customer support, dynamic supply chain adjustments, or internal policy management. Use clear KPIs and ROI metrics to guide rapid iteration and scaling. Tie GenAI to tangible business outcomes Anchor every AI initiative in measurable value. Whether it's reducing decision latency, enhancing the customer journey, or driving cost efficiencies, agentic RAG works best when it's solving real business problems for real people. Call to action: Lead the evolution, don't watch from the sidelines For Middle East CXOs, the status quo is no longer enough. Leading organisations are already transitioning from generic LLM deployments to bespoke, agentic RAG-powered ecosystems where intelligence is grounded, decisions are automated, and opportunities scale with data. The challenge is not just to keep pace, but to set the pace. Elevate GenAI discussions from IT operations to foundational business strategy. With agentic RAG, you're not just enabling smarter automation — you're building an enterprise that is resilient, adaptable, and primed for the future of work. Now is the time for Middle East business leaders to champion this evolution: secure your data, empower your teams, govern your AI, and reap the rewards of truly intelligent, action-oriented enterprise systems. The writer is the MD Gulf at


Gulf Business
06-08-2025
- Gulf Business
Why SandboxAQ says the Gulf must lead on GPS alternatives
Image: Supplied As GPS disruptions escalate across the Middle East, affecting everything from flights to smartphones, the risks to national security and economic stability are mounting. Gulf Business speaks with Luca Ferrara, GM of AQNav at SandboxAQ, about why GPS has become aviation's single point of failure — and how their new quantum-based navigation system, recently tested with Airbus, could offer the Gulf a strategic edge in aviation resilience. GPS disruptions have made headlines in the Middle East recently, with incidents affecting shipping, aviation, and even personal devices. How serious is this threat, and what risks does it pose to regional economies and safety? It's far more serious and taking place to a far greater degree than many people realise. Many commercial flights lose satellite signals mid-air, and when tensions in the region flared up recently, we even saw people in the UAE complain about their phones' clocks and maps being impacted. What makes this especially urgent for the Gulf is how much of the economy and infrastructure depends on GPS. Every oil shipment, every aircraft, every logistics hub, all of it depends today on the signals from GPS satellites. And when these signals are jammed or spoofed the ripple effects can jeopardise safety, national security, and public trust. Why has GPS become such a critical vulnerability for aviation, and why is it often described as a single point of failure? Don't reliable fallbacks already exist? It's not an exaggeration to say that presently, GPS is the single most important navigation tool globally, especially for aviation. But in case of failure, the fallbacks deployed at present are not built for the scale and complexity of modern air traffic. If a plane loses GPS, pilots have to revert to radar and radio communication with control towers, which are already under strain. They also switch to inertial navigation which drifts over time, like a spinning top wobbling out of balance. Beyond GPS jamming there is also GPS spoofing, where the pilot is not aware that they are navigating with a misdirected fake GPS signal. That's even more dangerous because you don't even know you're off course. SandboxAQ and Airbus recently announced the successful completion of comprehensive real-world trials of AQNav, a GPS-independent alternative. Can you explain how it works and why it offers greater resilience? Absolutely. The system we've pioneered, AQNav, takes a radically different approach to positioning, inspired by nature. Birds and whales have been navigating vast distances for millennia by sensing the Earth's magnetic field. Today we have the technology to achieve biomimicry of this capability. At All this is done without reliance on any external sources such as satellites. It's entirely self-contained, about the size of a toaster, passive (so it can't be jammed or intercepted), and inherently resilient to spoofing. Everything happens inside the device. That's the beauty of it — simple, elegant, and resilient. Your testing shows AQNav met FAA standards across more than 100 flights. What do these results tell us about its commercial viability and reliability? Those results give us enormous confidence in both the technology and its readiness for real-world use. Over more than 100 flights, across diverse geographies and conditions, AQNav consistently showed performance that could satisfy FAA standards known as RNP1 and RNP2. In total, we logged over 44,000 kilometres, which is more than the circumference of the Earth. And we did all this without GPS. That's proof not just of the science, but of the commercial viability. The system is already being tested with the biggest players in the industry — Airbus, Boeing, and the US Air Force. Why are you inviting Middle East airlines and governments to participate in the next phase of testing? How can the region take a leading role in adopting this technology? The Gulf is uniquely positioned to lead here. This region sits at the crossroads of global air travel, is home to some of the fastest growing airlines and logistics hubs in the world. At the same time, given ongoing geopolitical issues, it is also a region that faces some of the highest levels of GPS interference globally. This combination of high stakes and strong growth makes the Gulf the perfect proving ground for resilient navigation. By partnering with