4 ms·

As you have seen it in action: how much more additional profit is in being able to do those task now? How much RoE increase is there? (For the megacorps).

fnordpiglet 3y ago
In some cases as much as hundreds of millions of profit, in some cases its existential- one situation they needed to spin up a complex business process that would have required an entire organization of likely thousands of humans to comply with a regulatory requirement they were found in violation of and the only way to comply was to have humans review millions of documents and web sites manually to classify them. With a fair amount of fine tuning they were able to build an LLM infrastructure that did this role with the backing of a 20 person review and escalation team. They couldn’t have spun up the equivalent traditional org on time and would have had to had a potentially ruinous public regulatory issue. The cost savings on one hand is hard to gauge, particularly because it would have greatly impacted their culture and organization to add so many humans so quickly. Anyway it’s amazing how many ways these things can be used.
- RandomLensman 3y ago
  Thank you! So it is rather an incremental change in profit, not transformational (when it isn't life or death of the corporation/a business model requirement)?
  - fnordpiglet 3y ago
    I think I would say this. It’s a technology that’s on radars for about 12 months, is immature in all aspects, and has already transformed large swaths of the business operations to be much cheaper, scalable, and precise. I’ve never seen that in 30+ years. In some cases it actually is transformational as in the case I mentioned that it talked directly to a core business problem that would have killed the org. In others it’s incremental, but at the scale of megacorp there everything is incremental and something that moves margins by 5% or something is earth shattering for them. It unlocks businesses they would have been too hard to comply with requirements, it stream lines operations, etc, which for many businesses are monumental changes. What happens in 5 years when models are much more powerful, interfaces more clear, and ability to customize easier?
    - RandomLensman 3y ago
      Thanks. I think the big unlock is corporate structure and setup - some classic reasons for having one firm might very well disappear.

fnordpiglet 3y ago

In some cases as much as hundreds of millions of profit, in some cases its existential- one situation they needed to spin up a complex business process that would have required an entire organization of likely thousands of humans to comply with a regulatory requirement they were found in violation of and the only way to comply was to have humans review millions of documents and web sites manually to classify them. With a fair amount of fine tuning they were able to build an LLM infrastructure that did this role with the backing of a 20 person review and escalation team. They couldn’t have spun up the equivalent traditional org on time and would have had to had a potentially ruinous public regulatory issue. The cost savings on one hand is hard to gauge, particularly because it would have greatly impacted their culture and organization to add so many humans so quickly. Anyway it’s amazing how many ways these things can be used.

RandomLensman 3y ago
Thank you! So it is rather an incremental change in profit, not transformational (when it isn't life or death of the corporation/a business model requirement)?
- fnordpiglet 3y ago
  I think I would say this. It’s a technology that’s on radars for about 12 months, is immature in all aspects, and has already transformed large swaths of the business operations to be much cheaper, scalable, and precise. I’ve never seen that in 30+ years. In some cases it actually is transformational as in the case I mentioned that it talked directly to a core business problem that would have killed the org. In others it’s incremental, but at the scale of megacorp there everything is incremental and something that moves margins by 5% or something is earth shattering for them. It unlocks businesses they would have been too hard to comply with requirements, it stream lines operations, etc, which for many businesses are monumental changes. What happens in 5 years when models are much more powerful, interfaces more clear, and ability to customize easier?
  - RandomLensman 3y ago
    Thanks. I think the big unlock is corporate structure and setup - some classic reasons for having one firm might very well disappear.