Reverse information paradox

Satya Nadella talks about how:

In the AI age, the buyer risks giving away knowledge, just in order to use what they bought.

He then goes on to share suggestions on how to confront the paradox.

In the cloud era, enterprises accumulated data. In the AI era, they accumulate learning. The trust boundary must evolve accordingly, from protecting information to protecting the mechanisms through which organizations learn, adapt, and compound intelligence. There are a few things every enterprise must do to ensure this:

  • Control: Create your private evals, because evals define what “good” looks like inside the organization. Also, retain ownership of your organization’s memory, traces, feedbacks, decisions, and institutional context, and ability to use outputs of models from your own tasks and queries.
  • Capability: Build your own proprietary learning environments within the tenant boundary to train or tune models, where models learn against real workflows without exposing the company’s knowledge.
  • Choice: Ensure the orchestration layer is decoupled from any single model. Ask yourself: If any one model you are using is taken away, do you still have the ability to operate and optimize for your evals using other models? Does your company “veteran” capability remain with you even if a given “generalist” model is taken away?
  • Cost: By decoupling the orchestration layer, you are also able to bring together context, models, and tasks in the most efficient and cost-effective way without sacrificing quality.
  • Compound: Bring these four together and you create your own continuous learning loop (i.e. hill climbing machine) that will allow your AI investments to compound the value of your firm.

In other words, a company should be able to use a model without giving up the knowledge that makes it unique. That is the reverse information paradox we need to confront.



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