Two years ago, many application layer companies were derided as “just a wrapper on top of GPT-3.” Today, those wrappers turn out to be one of the only sound methods to build enduring value. What began as “wrappers” have evolved into “cognitive architectures.” - Excellent insights from Sequoia Capital's analysis on "Generative AI's Act o1". Three key takeaways:
1️⃣ We're entering the "Agentic Reasoning Era": AI is evolving from rapid pattern matching to deliberate, inference-time reasoning. This unlocks a new wave of agentic applications across industries, as I had referenced earlier this year: https://lnkd.in/ePrfMVTs
2️⃣ A new scaling law emerges: More inference-time compute = better reasoning. This shift could lead to breakthrough capabilities as we scale up "thinking time" for AI systems.
"The data center is the new compute unit" as NVIDIA chief Jensen Huang has noted, as we scale, we need:
Data: High-quality data remains crucial for effective reasoning. Many organizations still struggle with data silos and integration issues.
Energy: Increased inference-time compute translates to higher energy demands. We need breakthrough innovations in energy-efficient AI hardware and algorithms to make this sustainable at scale.
AND, its not just about scaling AI models, we also MUST:
-> Upskill at scale: We need to rapidly upskill millions of workers to effectively collaborate with these AI systems. This goes beyond basic "AI literacy" to deep understanding of how to leverage AI reasoning in specific domains.
3️⃣ The next frontier isn't just about models, but custom "cognitive architectures" i.e., how AI systems are designed to think through specific real-world tasks and workflows.
BUT, this requires:
Change Leadership: Organizations will need to completely rethink their processes and organizational structures to fully leverage these agentic AI capabilities. This is as much a cultural transformation as it is a technological one.
I believe we're on the cusp of an era of unprecedented innovation and productivity gains. The businesses and individuals who can effectively harness these agentic AI capabilities will have an enormous competitive advantage.
The future is being shaped right now. Are you ready to harness these transformative opportunities?
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A Message From Ram:
My mission is to illuminate the path toward humanity's exponential future. If you're a leader, innovator, or changemaker passionate about leveraging breakthrough technologies to create unprecedented positive impact, you're in the right place. If you know others who share this vision, please share these insights. Together, we can accelerate the trajectory of human progress.
Disclaimer:
Ram Srinivasan currently serves as an Innovation Strategist and Transformation Leader, authoring groundbreaking works including "The Conscious Machine" and the upcoming "The Exponential Human."
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