While we're fascinated by the applications of Generative AI, we're overlooking the groundbreaking advancement that makes it possible - understanding. Generative AI, particularly large GPT models, possess the ability to apply knowledge in new situations and contexts, which can be considered as true understanding. As a result, AI is set to replace our legacy software by operating at a different layer of the stack, dealing with understanding and outcomes rather than information and action.
- Generative AI goes beyond just generating things; it needs to understand before it can create.
- Large GPT models possess the ability to apply knowledge in new situations and contexts, showcasing understanding.
- AI's understanding enables it to learn and comprehend non-trivial subjects, making it more powerful and versatile.
- Legacy software focuses on interfaces to information and action, while AI deals with understanding and outcomes.
- The Understanding axis moves from data to understanding, while the Outcomes axis moves from task to outcome.
- Generative AI is set to replace legacy software as it surpasses human capabilities in both understanding and outcomes.
The future of software lies in State, Policy, Action (SPA) architecture, which leverages AI-based models like GPT-N to revolutionize the way we interact with and use software. SPA architecture is poised to outperform traditional software in understanding and outcomes, providing unlimited I/O flexibility and a natural language interface that adapts to different industries and use cases.
- SPA architecture consists of three main pillars:
- STATE (current state of the universe)
- POLICY (desired state and outcomes)
- ACTION (recommendations or actions to align STATE with POLICY).
- Large models like GPT-N form the foundation of this architecture, providing vast understanding and insight into various domains.
- High-quality telemetry is essential to accurately represent the current state of the subject matter, be it a business, person's health, or a city's functioning.
- The combination of STATE, POLICY, and underlying GPT-N models results in recommended and soon-to-be automated actions.
- AI software using SPA architecture overcomes the limitations of traditional software, offering infinite inputs and outputs through a natural language interface.
- The future of software involves asking smart questions to APIs running layered models within an SPA architecture, transforming the way businesses and individuals interact with software.
The rapid development of GPT-based AI is set to revolutionize and replace our existing software. This transition demands a reevaluation of businesses, focusing on their first principles, moats, and the questions that define their purpose. Companies need to prepare for a future where they operate through clusters of interoperable, AI-backed APIs and adapt to the AI-driven STATE, POLICY, ACTION structure.
- GPT-based AI is poised to replace current software due to its ability to understand subject matter.
- The future of software lies in the AI-based STATE, POLICY, ACTION structure.
- Businesses will transform into clusters of interoperable, AI-backed APIs.
- To prepare for this transition, businesses should focus on their first principles, moats, and the questions that define their purpose.
- Companies must consider the impact of the Innovator's Dilemma and make strategic decisions regarding their transition to AI-driven software.
- In the age of powerful AI, the ability to ask the right questions becomes crucial for business success.
- Generative AI is revolutionizing the way we approach understanding and outcomes, making it a game changer that threatens to replace our existing software systems.
- The SPA architecture represents a paradigm shift in software development, enabling AI-powered systems to provide limitless understanding, flexibility, and adaptability to various industries and use cases.
- As GPT-based AI is set to revolutionize the software landscape, businesses need to adapt and strategize to ensure their survival and success in this rapidly changing environment.