Howso debuts Hallucination Free AI, an alternative approach to traditional AI, at Ai4 2024.

At Ai4 2024 in Las Vegas, Howso CEO Gaurav Rao delivered a presentation addressing the complexities of AI adoption and how Hallucination Free AI can serve as a solution. He specifically outlined the contrast between the increasing investment in AI paired with the increasing challenges related to trust, regulatory compliance, and return on investment (ROI).

AI: A Technology Moment with Mixed Emotions

There are a diverse range of emotions surrounding AI’s rapid evolution. While some view it as an exciting opportunity, others approach it with apprehension. The root of these mixed feelings is the unprecedented potential for AI paired with abysmal financial returns thus far. According to a report from Deloitte, AI ROI for first-time implementations is just .2%, a number that has spurred intense discussions across business, academia, and government sectors about how to stay innovative while being financially responsible.

Specifically, “hallucinations,” where models generate outputs that are not based on real data, is a major problem for AI adoption. This can manifest as biased or inaccurate outputs, which have been a problem since the early 2010s but are now more pronounced due to the complexity of modern AI systems.

With the advent of transformers and attention mechanisms, these hallucinations can occur on a much larger scale, prompting calls for stricter regulations. Recent legislative efforts, such as the EU AI Act and actions by the Biden administration, serve as evidence of the urgency to address these challenges.

Howso CEO Gaurav Rao provides an overview of hallucinations in AI over the past decade.

The AI Paradox: Growing Investment, Shrinking ROI

Despite widespread concerns over trust and ethical implications, AI investment continues to skyrocket. McKinsey’s research indicates that AI adoption across industries has increased 2.5 times since 2017. However, this increased spending has not translated into proportional ROI. Companies are struggling to operationalize AI effectively, with Gartner reporting that 50% of machine learning models never make it into production.

This paradox is further exacerbated by the complexity and cost of deploying large language models (LLMs) and generative AI. Not every engineer has the deep learning expertise required to fine-tune and implement these technologies at scale. Consequently, companies face rising costs and regulatory pressure, coupled with high expectations for AI performance.

The Path Forward: Hallucination Free AI

To navigate these challenges, Howso is pioneering a data-centric approach where organizations can work directly with live data, rather than relying on abstracted or intermediate data representations. This strategy allows for more accurate and efficient AI development, reducing costs and increasing ROI.

Howso’s methodology is built around three core capabilities: Learn, Generate, and Validate.

1. Learn: capture insights about your data that indicate its utility for your business objectives and identify/implement improvements to maximize your data’s ROI.

2. Generate: make explainable inferences, create auditable synthetic data, and embed robust watermarks, providing transparency into how your data is adapted across all its use cases.

3. Validate: perform privacy and utility audits and debug existing models, enabling understandability for all stakeholders and faster time to resolution for any issues.

Howso CEO Gaurav Rao introduces the Understandable AI® Platform’s three core capabilities – learn, generate, and validate.

Building Trust and Accountability in AI

Solving for AI explainability and AI ROI are the same problem, but the solution – Hallucination Free AI – is here today. By adopting explainability as a core design principle, organizations can enhance transparency and accountability, which are critical for meeting regulatory requirements and achieving ROI.

Howso CEO Gaurav Rao details the benefits that Howso customers are experiencing from a data-centric approach.

You can watch the full talk from CEO Gaurav Rao here.

If you’d like a deeper dive into how data-centric solutions can help bridge the gap between AI innovation and operational excellence, schedule time to chat with a Howso expert here.

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