Whenever evaluating a technology, and its suitability for a business, we shall never forget its economic implications. And often, it is down to the very principles of economic theory.
Scalable technologies that will add real economic value and deliver on their ROI promise are here to stay. Artificial Intelligence can surely be one of those if organisations embarking on their data journey choose to pursue a holistic approach to AI adoption. To affirm its status over the next ten years, what would AI need to look like to be considered a successful technology?
Andrew Ng, one of the world’s most prominent figures in the AI landscape, sees Data-Centric AI as the future of Artificial Intelligence. In his recent interview with VentureBeat, he explains his view.
“The data-centric approach advocates that AI has reached a point where data is more important than models. If AI is seen as a system with moving parts, it makes more sense to keep the models relatively fixed, while focusing on quality data to fine-tune the models, rather than continuing to push for marginal improvements in the models.”Andrew Ng
What are the implications of pushing for marginal returns on the models? Remember the basics of economic theory? Whoever studied economics at university will recall the importance of decreasing marginal returns and the fact it’s one of the most significant theories for production economics!
Let us now translate this concept into the AI world: Human capital is scarce and yields diminishing returns. Ask yourself: does it make economic sense to have a Data Science team keep iterating on an AI model? Data, on the contrary, is a special kind of asset, and an increase in its quality can boost returns. However, even if it does not deplete, data has a cost, and sometimes acquiring it can be very expensive!
Data-Centric AI is precisely about making the most out of data, and yielding better returns for companies willing to use AI as a truly transformative technology.
Modulus is embracing the Data-Centric AI revolution, bringing to life the first of its kind data-centric AI platform, which will unleash the full potential of this technology and set its future path as a tool here to stay.