#WallStreetAI
https://lnkd.in/gNBJH_Xw
#GenAI is a powerful tool - but very expensive. It is estimated OpenAI spent 4B in just Nvidia chips to power the ChatGPT4 model
While enterprises, at least initially, will be leveraging commercially available GPT models to power their AI applications which (I presume) will be priced reasonably in a SaaS model - there are other costs that add up quickly.
Besides license cost, there is tech development cost to build applications on top of models, model training costs, risk/compliance cost, run-maintain cost - and cost of upgrades and enhancement. Standard enterprise IT lifecycle cost - only this time one of talking of talent that is very expensive and very hard to get.
The obvious question is - are there sufficient business cases that will/can justify the cost/investment?
At DTCC, we are exploring this. We have a few promising use cases that could justify the investments we are making this year if the models perform as expected, delivering unprecedented productivity gains and in some use cases delivering what was tried multiple times before but simply cant be done without this new tool.
It has the promise to be truly transformative - but we need to test and prove it out this year.
I did however use ML at my previous firm (BNYM) - not the GenAI, but plain ML - and they delivered on their business cases in spades!
We were trying to read and enrich payment instructions - more than 200K instructions a month with a cumulative value of more than $1T - where these payments instructions literally came in all types. Including - and I kid you not - email with 500+ pages bond indenture attachment saying 'please find payment instructions therein'!
To say the least - there was no obvious logic to program/automate.
We turned to ML. The ML model wrote its own models - more than 600 of them, as it crunched thru thousands of examples, updating its neural net. it picked up slowly, going from 70% STP all to way to 98% thru supervised learning.
We built one of the largest ML powered enterprise payments platform, performing a Critical Business Service!
But did it meet the business case? Handsomely! The Payback period was only 18 months!
#GenAI, #ml #fintech #digital