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Embedded AI: The Questions Every CEO is Asking

Embedded AI: The Questions Every CEO is Asking

32 segments available

As AI continues to revolutionize industries, CEOs are discussing how to integrate this new superpower. On the a16z Podcast, we talk with Hex, Sourcegraph, and Cresta - three companies at the forefront of integrating AI into their existing products. From navigating data privacy concerns to optimizing accuracy and managing costs, these companies are navigating the complexities of this new superpower. Topics Covered: 00:00 - Introduction 01:29 - How AI can enhance customer service 07:50 - Using AI to shape data and analytics 08:56 - Solving the challenges on contextual understanding 11:27 - Giving AI the right information and context 13:31 - Tools that help build language Models (LLMs) 16:25 - Constructing prompts 19:08 - How do you differentiate? 21:09 - The value of proprietary datasets 22:22 - Customization as a moat 23:44 - Increasing compilation rates 26:49 - Where is the moat? 29:49 - Privacy challenges 34:01- Cost and pricing of models 39:35 - What does the contact center look like in 2028? Resources: * Find Zayd Enam on Twitter: https://twitter.com/zaydenam * Find Barry McCardel on Twitter https://twitter.com/barrald * Find Beyang Liu on Twitter: https://twitter.com/beyang * Learn more about Cresta: https://cresta.com * Learn more about Hex: https://hex.tech * Learn more about Sourcegraph: https://sourcegraph.com/ Stay Updated: Find a16z on Twitter: https://twitter.com/a16z Find a16z on LinkedIn: https://www.linkedin.com/company/a16z Subscribe on your favorite podcast app: https://a16z.simplecast.com/ Follow our host: https://twitter.com/stephsmithio Please note that the content here is for informational purposes only; should NOT be taken as legal, business, tax, or investment advice or be used to evaluate any investment or security; and is not directed at any investors or potential investors in any a16z fund. For more details please see a16z.com/disclosures.

Segments Timeline

1
0:00 - 1:06
1:06 duration169 words

AI's Breakout Year

2022 marked a significant turning point for AI, with ChatGPT emerging as the fastest-growing app ever. CEOs are now grappling with how to integrate AI into their businesses while addressing critical concerns such as data privacy, competition, and cost. This segment sets the stage for the discussion on the transformative potential of AI in various industries.

"2022 was a breakout year for AI in fact many have even claimed that Chachi BT is the fastest growing app of all time so with so much opportunity on the table AI is the topic of conversation in every b..."

2
1:06 - 2:19
1:12 duration237 words

Transforming Contact Centers with AI

Zed Enam, CEO of Cresta, discusses the high attrition rates in contact centers and how AI can enhance the customer service experience. Instead of replacing agents, Cresta aims to elevate the role of customer service into one of mastery and creativity, leveraging AI to transform traditionally low NPS jobs into fulfilling careers.

"thank you now before we get into the weeds of how each company is implementing AI we wanted to start our conversation with zed inam co-founder and CEO of Cresta Cresta is bringing real-time intelligen..."

3
2:19 - 3:36
1:17 duration297 words

Lazy vs. Creative AI

Zed Enam contrasts two approaches to AI: 'lazy' AI, which automates existing processes, and 'creative' AI, which reimagines business operations. He emphasizes the importance of using AI as a building block to enhance customer experiences and drive innovation, rather than merely automating tasks.

"absolutely I feel like most people don't need a reminder of how brutal that job can get because they've been on the other side now many people jump to thinking that AI should replace the contact cente..."

4
3:36 - 5:07
1:30 duration337 words

Unlocking Insights from Customer Interactions

In this segment, Zed explains how AI can analyze vast amounts of customer interaction data to extract valuable insights. By understanding customer feedback and market dynamics, businesses can make informed decisions about product development and marketing strategies, ultimately enhancing customer satisfaction.

"my conversations with my customers is one like just really great ways to build strong relationships with my customers but two is just like a gold mine of data information about my product my market my..."

5
5:07 - 6:12
1:05 duration247 words

The Bi-Directional Benefits of AI

Zed discusses the dual benefits of AI in customer service: serving customers while simultaneously providing businesses with critical insights. He shares an inspiring example from Intel's history, illustrating how understanding customer feedback can lead to significant strategic pivots and business success.

"make it super simple to understand and get to Insight and get to understanding really quickly in ways that the conversations were unstructured not possible like they were sort of on Legacy on premise ..."

6
6:12 - 7:49
1:36 duration371 words

The Future of Customer Service

As the conversation shifts, Zed highlights how AI can serve as an 'ear to the ground' for businesses, providing real-time feedback from customers. This segment emphasizes the importance of leveraging AI to enhance customer service and adapt to changing market conditions.

"basically what you're saying yeah yeah and that's like the missing piece of all this is that it's a bi-directional thing right it's like you're serving the customer but you're also serving the busines..."

7
7:49 - 8:54
1:05 duration239 words

Hex: AI Tools for Data Insights

Barry McArdle, CEO of Hex, introduces their AI tools designed to enhance data analytics and collaborative data science. He shares how Hex Magic simplifies complex queries and automates coding tasks, making data insights more accessible and actionable for users.

"co-founder and CEO of hex hex is like a sculptor's tool for data molding shaping refining data into valuable insights and visualizations in various formats or in Barry's words this is a platform for c..."

8
8:54 - 10:01
1:07 duration209 words

Challenges in AI Implementation

Barry discusses the challenges companies face when implementing AI, particularly in achieving contextual understanding. He highlights common frustrations with virtual agents and the importance of ensuring AI systems can effectively address customer queries without causing confusion.

"issue we've probably all experienced at some point is when technology just does not have the right contextual understanding like being caught in a customer chatbot Loop that just is not addressing you..."

9
10:01 - 11:06
1:04 duration229 words

Building Trust with AI Transparency

Zed and Barry explore the importance of transparency in AI interactions. As AI approaches human-level communication, they discuss whether companies should disclose the use of bots to maintain trust with customers, emphasizing the long-term value of honesty in brand relationships.

"could really impact your brand what are you seeing in terms of in the field how different companies are gut checking what's coming out of these llms and interfacing with their customers and I'll also ..."

10
11:06 - 11:48
0:41 duration156 words

Data Quality and AI Performance

The segment focuses on the critical role of data quality in AI performance. Ed explains that without access to the right data, AI models can produce inaccurate outputs, emphasizing the principle of 'garbage in, garbage out' in AI development.

"topic as well on the topic of accent masking right because like that's uh that's another use case of the technology that sort of coming to Market where folks can like use this technology to sort of ma..."

11
11:48 - 12:55
1:07 duration236 words

Introducing Cody: The AI Code Assistant

Beyond Liu introduces Cody, an AI-powered code search and navigation tool designed for developers. He explains how Cody enhances the coding experience by providing contextual information and addressing common challenges faced by developers when using large language models.

"is beyond Liu co-founder and CTO Source graph a code search and navigation tool for Dev teams this is kind of like general purpose source code understanding engine our first kind of major push I would..."

12
12:55 - 14:02
1:06 duration216 words

Context is King in AI Outputs

Beyond emphasizes the importance of context in determining the quality of AI outputs. He discusses how providing relevant context to language models can significantly improve their performance, especially for tasks outside their training data.

"exist we are kind of like the perfect fact Checker if you will for the language model and perfect like relevant context provider to the language model and so we're really focusing on this kind of like..."

13
14:02 - 15:09
1:07 duration259 words

Differentiating with Contextual AI

The discussion highlights how Sourcegraph differentiates itself by focusing on context in AI interactions. Beyond explains how their approach to integrating code search capabilities into AI tools can lead to more accurate and relevant responses for developers.

"we've started saying this phrase essentially like context is king So the context that you provide to a language model really dictates the quality of the output of the model especially if you're asking..."

14
15:09 - 16:01
0:52 duration194 words

The Evolution of AI Coding Tools

Beyond compares Cody with other AI coding tools like GitHub Copilot, explaining how Cody's ability to fetch broader context sets it apart. He discusses the importance of providing developers with relevant information to enhance their coding experience.

"like everyone who's tried to actually play around with these models in the in their day-to-day workflow has hit this issue that's a place where sourcecraft can come in and essentially provide like the..."

15
16:01 - 17:09
1:07 duration237 words

Cody's Unique Contextual Approach

Beyond elaborates on how Cody fetches context from various sources to answer developers' questions effectively. He contrasts this with other tools that rely on limited local context, emphasizing Cody's capability to provide comprehensive and relevant information.

"um almost all the quality issues come down to oh we didn't fetch the right context into the context window interesting and I mean let's let's double click on that because there are other tools that he..."

16
17:09 - 18:01
0:52 duration221 words

Open Source as a Differentiator

The segment discusses Sourcegraph's commitment to open source as a key differentiator in the AI space. Beyond explains how being open source fosters a more collaborative ecosystem for developers and enhances the tool's adaptability.

"and that's in contrast to the way that copilot works today where most of the contacts that they're looking at number one they don't do a q a yet I think that's on the way with copilot X but currently ..."

17
18:01 - 20:07
2:06 duration463 words

Building a Pluggable Ecosystem

Beyond concludes by discussing the potential of creating a pluggable ecosystem for AI tools. He highlights the importance of integrating various developer resources and tools to enhance the overall coding experience, making it more efficient and user-friendly.

"particular API that just I just imported and that's sourcegrass bread and butter right like that's the code graph that we spent the past 10 years building and we can do that essentially in any languag..."

18
20:09 - 21:05
0:56 duration181 words

Relevance in AI Outputs

This segment discusses the significance of the information fed into AI models, stressing that the quality and relevance of input data directly impact the output. The speakers explore how customization and user behavior can enhance prompt construction, leading to better AI responses tailored to specific tasks.

"we we make it a much better and friendly kind of ecosystem into which we can plug in like other developer tools and other pieces of context that aren't necessarily tied to a proprietary compute platfo..."

19
21:05 - 22:19
1:13 duration307 words

Harnessing Proprietary Datasets

Ed elaborates on the competitive edge gained from creating proprietary datasets. He explains how unique data can enhance AI models, particularly in contexts like customer interactions, where traditional web data may not suffice. This segment emphasizes the value of collecting and utilizing specialized data for training AI.

"that's going to help the model give you the best answer all right so we learn from Beyond that what you feed models really matters and that may be an opening for differentiation relative to competitor..."

20
22:19 - 23:23
1:03 duration224 words

Customization as a Differentiator

Barry discusses the role of customization in AI tools, focusing on how past user behavior can inform better prompt construction. By leveraging existing workflows and user data, companies can create more relevant and effective AI interactions, enhancing user experience and productivity.

"of do things that aren't possible just with web pages another wedge may be customization how can you actually use the information from past user Behavior to support the user in creating better prompts..."

21
23:23 - 24:08
0:45 duration169 words

User Experience in AI Integration

The segment emphasizes the importance of user experience in AI tools, highlighting the need for thoughtful UI design that guides users effectively. The speakers discuss how feedback mechanisms and user interface innovations can improve interaction with AI, ensuring that it enhances rather than hinders workflows.

"create the right prompt to pass to the model and I think with all of this right now our again our Focus really is on augmenting the data professionals like we're not this is not like you know trying t..."

22
24:08 - 25:40
1:31 duration367 words

Building Effective Prompts

This discussion focuses on the intricacies of constructing effective prompts for AI models. The speakers share insights on balancing context and clarity to avoid overwhelming the model, emphasizing the iterative process of refining prompts to achieve optimal AI performance.

"because there is the flip side where as you said if it's hallucinating or if it's not helping them or in some cases it may even be hindering their workflow they're not going to return to it so how are..."

23
25:40 - 29:02
3:21 duration724 words

Identifying Competitive Advantages

The conversation tackles the challenge of establishing a competitive moat in the AI landscape. The speakers explore various factors contributing to differentiation, including data advantages, user experience, and the ability to adapt to evolving AI capabilities, highlighting the importance of innovation in maintaining a market edge.

"model and I think that is really actually the hard work in many ways of incorporating AI into your product right like it feels really simple like you can go get maybe anyone listening to this today co..."

24
28:58 - 30:01
1:03 duration204 words

Navigating Privacy and Data Security

The conversation shifts to the critical issues of privacy and data security in AI integration. The speaker explains how companies must balance the benefits of data collection with the need for stringent security measures, especially when dealing with proprietary information. They highlight the importance of self-hosting solutions for enterprises concerned about cloud storage.

"and almost like infrastructure we can already stand on in terms of how we start incorporating these things in I do think that long-term generative AI large language models they will change a lot of li..."

25
30:01 - 31:59
1:58 duration379 words

Customizing AI Models for Enterprise Needs

This segment focuses on the flexibility of integrating various AI models into their platform. The speaker outlines how Sourcegraph allows customers to choose from multiple language models, including proprietary options, to meet their specific needs. They discuss the evolving landscape of AI models and the importance of adapting to customer preferences.

"are integrating AI are building off of just a few models right a lot of people are familiar with open ai's API that came out recently but there's also that very interesting Dynamic that a lot of the s..."

26
31:59 - 33:00
1:00 duration234 words

The Cost of AI Integration

Here, the discussion centers on the financial implications of using different AI models. The speaker notes that costs can vary significantly between models and that companies must consider these factors when integrating AI into their operations. They emphasize the need for transparency regarding pricing and the potential impact on customers.

"code graph and and the various other developer tools that we want to integrate in in kind of an open way and so we want to make it possible to kind of like bring your own language model to the table y..."

27
33:00 - 34:54
1:54 duration417 words

Combining AI with Search Engines

The speaker reflects on the relationship between AI language models and traditional search engines. They argue that while AI can enhance search capabilities, the integration of robust search engines remains crucial for effective information retrieval. This segment highlights the necessity of combining AI with existing technologies to maximize value.

"or are you still building off of one model like when someone uses Kodi is that integrated with one or are you basically saying again you're going to give them the option to select how they want to int..."

28
34:54 - 38:47
3:52 duration818 words

The Value of Data Retention

In this final segment, the conversation addresses the importance of data retention for companies. The speaker discusses the dual challenges of maintaining data security while recognizing the potential value of historical data for training AI models. They highlight the evolving attitudes towards data retention policies and the implications for organizational knowledge.

"happening in that space and and we don't want to be kind of tied to any one provider and and also I think a lot of the value that we can provide in terms of Cody and in terms of like integrating AI de..."

29
39:01 - 40:06
1:05 duration244 words

Empathy in Customer Interactions

The discussion emphasizes the importance of empathy and connection in customer service. As technology takes over repetitive tasks, agents will be free to engage more meaningfully with customers, fostering trust and enhancing the overall customer experience.

"new for us here I think there's all sorts of really exciting opportunities on how you could use data that customers are trusting you with making sure you're continuing to earn that trust with all thes..."

30
40:06 - 41:10
1:03 duration269 words

Transforming Customer Service Roles

The speakers explore how the role of customer service agents will evolve into more strategic positions, focusing on proactive relationship building rather than reactive problem-solving. This shift will allow companies to leverage technology to enhance customer interactions and drive business outcomes.

"center of the future looked like like this is five years ago and when we saw that we're like holy like okay everyone has the same video but it's like we're going to drop out tomorrow and we're going t..."

31
41:10 - 42:02
0:52 duration240 words

Fun and Engaging Customer Experiences

In this segment, the potential for integrating technology into customer service is discussed, envisioning interactions that are not only efficient but also entertaining. The idea of using engaging personas, like cartoon characters, to enhance customer interactions is presented as a way to improve customer satisfaction and loyalty.

"at which is that sort of empathy and connection and sort of relationship building and I think that's what's going to be we'll have a much less regimented contact center like much less sort of structur..."

32
42:02 - 44:28
2:26 duration532 words

Navigating AI's Evolution

The closing remarks reflect on the rapid evolution of AI and its implications for businesses. The speakers thank the companies involved for sharing their insights and highlight the ongoing challenges of personalization, design, cost, and privacy in the implementation of AI technologies.

"they're not measuring their average Channel time and they're not measuring like like I have to get to the next call I have to fill up those notes for this call it's they're able to focus really on the..."

Embedded AI: The Questions Every CEO is Asking — Zayd Enam | Searchlore