How Can Businesses Build Reliable Data AI?

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October 8, 2024
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Sequoia Capital
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How Can Businesses Build Reliable Data AI?

TL;DR

Reliable enterprise AI comes from grounding models in trusted business data, restricting the problem domain, and adding software engineering controls around model outputs. Snowflake applies this approach to data transformation, document extraction, chatbots, and natural-language analytics, aiming to make complex AI capabilities accessible through familiar tools such as SQL while preserving interoperability with data stored in the cloud.

Transcript

the the product that makes even the people that go I have gbd4 I have an army of software Engineers um the thing that even they struggle with is things like a reliable talk to your data application because even with gbd4 out of the box you end up getting 45 odd per reliability meaning it gets half the questions wrong when it tries to answer it um w... Read More

Key Insights

  • Reliable enterprise AI is a systems problem as well as a model problem. Snowflake restricts application domains, grounds answers in enterprise information, and adds software engineering controls because an unmodified language model does not reliably distinguish truth, falsehood, or authoritative sources.
  • Natural-language data analysis is valuable because business users want immediate access to company information without waiting for analysts, business intelligence tools, or lengthy change processes. A dependable conversational interface can shorten the path between a business question and an answer grounded in organizational data.
  • Snowflake's talk-to-your-data applications achieve over 90% accuracy, while an out-of-the-box solution using an off-the-shelf language model can deliver around 45% reliability. The company is working toward 99% reliability by combining constrained domains with detailed knowledge of schemas, query history, and semantic context.
  • Cortex AI is integrated into Snowflake so analysts with SQL access can use AI capabilities without adopting a separate service. This design serves as a democratizing mechanism and turns some tasks that previously required custom engineering into commands issued through tools that data teams already understand.
  • Document AI is designed to convert unstructured business material into structured information. Contracts, images, and transcripts can contain useful facts that were previously difficult to analyze, while model-based extraction lets organizations ask questions of those materials and bring the resulting information into data workflows.
  • Grounded chatbots are more suitable for business use because their responses are connected to controlled enterprise data. Snowflake argues that companies should not trust raw language-model output for operational decisions when the model lacks an inherent understanding of truth, authority, and organizational context.
  • Interoperable cloud storage is important because customers often keep much more data in cloud storage than inside a specialized platform. Snowflake supports Iceberg so its platform can read and write shared data while allowing bespoke applications and other systems to access the same information.
  • Current AI models can create substantial business value when companies apply them effectively within focused domains. Snowflake's approach emphasizes practical applications, product integration, reliability safeguards, and simpler workflows instead of requiring ordinary enterprise customers to conduct advanced AI research.

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Questions & Answers

Q: How can businesses make AI answers more reliable?

Businesses can improve reliability by grounding model responses in trusted organizational data, restricting the application to a clearly defined domain, and surrounding the model with software engineering controls. Snowflake also uses information about schemas, previous queries, and semantic context when producing answers. This approach treats the language model as one component of a controlled system rather than accepting its raw output as authoritative.

Q: Why are off-the-shelf language models risky for business use?

Off-the-shelf language models can produce incorrect or ungrounded answers because they do not inherently understand which statements are true, false, or authoritative. The transcript says an out-of-the-box talk-to-your-data application can achieve around 45% reliability. That performance is inadequate for business situations with little tolerance for errors, so organizations need grounding, domain restrictions, and additional validation mechanisms.

Q: What is Snowflake Cortex AI designed to do?

Cortex AI is designed to make AI an integrated accelerator for work performed within Snowflake. It includes a model garden, but Snowflake presents it as more than a separate collection of models. Because it is built into the platform, analysts with SQL access can use AI capabilities, apply them to governed data, and complete tasks that would otherwise require custom software engineering.

Q: How does talk-to-your-data AI help business users?

Talk-to-your-data AI lets business users ask questions directly instead of depending on a lengthy process involving an analyst, a business intelligence tool, and later changes to reports or queries. Snowflake seeks to make these answers dependable by using its knowledge of the data schema, prior queries, and semantic context. The intended result is faster access to grounded business information.

Q: What does Snowflake Document AI do?

Document AI extracts structured information from documents and other unstructured sources. A company can use it to identify useful information contained in contracts, while related model-based workflows can examine images or transcripts by asking questions about their contents. Snowflake's goal is to reduce work that previously required a software engineering project into a simpler process available within the data platform.

Q: Why does Snowflake support the Iceberg format?

Snowflake supports Iceberg because customers want data in cloud storage to remain accessible from multiple systems. The transcript says substantially more customer data may reside in cloud storage than within a specialized platform. With an interoperable format, Snowflake can read and write the data while bespoke applications and other tools can also use it, reducing dependence on a proprietary storage format.

Q: What gives Snowflake an advantage in enterprise AI?

Snowflake's stated advantage comes from combining AI with the enterprise data, schemas, query history, and semantic context already available through its platform. It focuses on reliable, practical applications such as grounded chatbots, document extraction, data transformation, and natural-language analysis. The company aims to make these capabilities simple for customers whose primary goal is completing business work rather than conducting AI research.

Q: How are enterprises applying AI to their data?

Enterprises are applying AI at two broad levels. They use models to transform unstructured sources, including images, transcripts, documents, and contracts, into information that can be analyzed. They also create interactive interfaces that let business users ask questions of company data directly. Snowflake reports that customers are at various stages of implementing these kinds of solutions and moving them into production.

Summary & Key Takeaways

  • Businesses understand AI's potential, but unreliable answers limit the use of general-purpose language models in situations with little tolerance for mistakes. Snowflake addresses this problem by grounding AI in enterprise data, incorporating schema and query context, narrowing application domains, and treating reliability as a systems and software engineering challenge.

  • Snowflake positions Cortex AI as an integrated part of its data platform rather than a separate service. Analysts who already use SQL can access AI capabilities, while products such as Document AI can extract structured information from contracts, images, transcripts, and other unstructured sources without requiring a dedicated software engineering project.

  • Snowflake is expanding beyond data stored in its proprietary format by supporting Iceberg and a cloud catalog. This strategy responds to customers who keep far more information in cloud storage and want multiple applications to access it. The broader goal is reliable AI that works across interoperable enterprise data environments.


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