Unlocking Generative AI's Full Potential: The Power of Compound Systems

Chat is just the tip of the collaborative intelligence iceberg

I began writing what I thought would be a post on this topic. The more I wrote, the more I realized how much I needed to say. It turned into a flipbook, which can be accessed by clicking this link.

I hope you will read it and find it worthwhile. Here’s an executive summary...

Executive Summary

It’s understandable that business leaders are fascinated by generative AI technologies like ChatGPT, but they must understand the technology’s capabilities and limitations. Although standalone large language models (LLMs) are great for many tasks, they cannot fulfill most business needs.

Compound Systems allow organizations to address more complex and dynamic business challenges. Their development and use improve financial and operating performance and create advantages that are much more sustainable than those created by standalone LLMs.

Compound Systems complement LLMs by combining them with other collaborative technologies, more traditional technologies, and enterprise software. These systems are designed to perform tasks that require data processing, real-time interaction, and integration with various business processes. By leveraging the strengths of multiple technologies, Compound Systems provide more comprehensive and effective solutions than those provided by LLMs alone.

To capitalize on the benefits of Compound Systems, organizations must be aware of these emerging technologies, identify promising applications through a structured analytical framework, and address any skill gaps that may hinder implementation. The successful adoption of these systems involves iterative project development, parallel infrastructure enhancements, and a strategic focus on applications that promise substantial economic and strategic value.