CHAPTER 1: Generative AI Basics
Generative AI is an abbreviation of Generative Artificial Intelligence and is also referred to as GenAI.
Artificial intelligence refers to any technology that enables machines (and more specifically, computers) to do things on their own – e.g., recognize faces, analyze data, and understand text.
Generative AI is a specific type of artificial intelligence that enables machines to create original content. That content can be:
Generative AI was popularized by Open AI’s introduction of ChatGPT in November, 2022. Read a full history and description of generative AI here.
To be concrete, we’ll focus on generative AI in text, and then generalize to all generative AI.
Generative AI requires:
The result of all this work is an LLM that can respond to any text-based prompt or question and seemingly converse with a human.
Voice-based generative AI uses a voice-to-text and text-to-voice technology, in addition to an LLM. The voice-to-text converts a voice prompt to text and sends the prompt to the LLM. The LLM then generates a response in text. The text-to-voice converts the text response back into a voice.
Image and video generative AI models are similar to LLMs. They train on a massive amount of image and video data; they depend on an LLM to comprehend a text prompt; and the model creates an original image or video based on the prompt.
“Conversational AI” is AI technology that existed before 2022, prior to the popularization of generative AI.
Conversational AI maps the user's input to a specific intent or topic. It does this through either:
The real challenge with conversational AI is, you need to create and maintain (1) an inventory of every intent your customers might have and (2) a pre-created canned response for every intent.
Relative to generative AI, there are 3 significant drawbacks to conversational AI:
(1) It may or may not determine the right intent (and what if a question has multiple intents?) Generative AI uses LLMs to determine the intent(s) of the customer's question/statement, and LLMs are by far and away the most advanced and best technology to truly understand what any customer is saying (and in 100+ languages).
(2) The canned response will look and feel like a canned response. Generative AI uses the LLM to compose a highly customized response to the customer's question. Just like ChatGPT, a customer service AI agent that uses generative AI will interact with a customer just like a human agent will.
And most importantly,
(3) Generative AI requires much less time for implementation and maintenance. There's no list of intents you need to manage. There's no list of canned responses you need to manage. You simply need to point the generative AI to your knowledge (i.e., support KB, FAQ, resolved tickets, etc.)
Read this article for more information on generative AI versus conversational AI.
ChatGPT uses generative AI and is the most popular generative AI application. However, there are many other generative AI applications beyond ChatGPT.
No, ChatGPT is not an LLM. ChatGPT is a chatbot that interfaces with Open AI’s LLMs (GPT-3.5, GPT-4, GPT-4o).
The free version of ChatGPT interacts with GPT-3.5.
ChatGPT Plus interacts with GPT-4 and GPT-4o, which are more advanced and have more human-like responses.
The basic functions of a chatbot in Generative AI are to:
Hallucinations are a built-in feature of generative AI, not a bug.
LLMs (in text, or their equivalent in images and video) are mathematical models that simply predict the next most probable word in a conversation.
Note, however, that the next most probable word doesn’t guarantee that the full sentence or paragraph generated by the LLM is factually correct. The same is true for images and videos created by generative AI as well.
For some industries or applications, like fiction writing, hallucination is a good thing. Hallucination allows a generative AI to be creative.
For applications like pre-sales shopping assistance and post-sales customer service, hallucination is a critical issue. You don’t want your Sales Assistant AI to invent products, features, or prices, and you don’t want your customer service AI to provide incorrect (and outright misleading) information to paying customers.
Read more about AI hallucinations in this article, or watch this brief video:
No and Yes.
Hallucination is a built-in LLM feature. So there’s no way to prevent an LLM from hallucinating.
However, good chatbots/generative AI solutions that interface with LLMs can minimize or even eliminate hallucination by:
The process above is called Retrieval-Based Augmentation (or “RAG” for short). Read this article to learn more about RAG, or watch this brief video:
No, your contact center agents shouldn’t just use ChatGPT.
ChatGPT can in theory be useful as:
However, ChatGPT has the following serious limitations:
Open AI offers ChatGPT Enterprise, which is a “private” version of ChatGPT.
It depends. Not all software solutions are created equal.
If you use any third party generative AI solution, you should make sure that all aspects of the solution are SOC 2 Type II compliant.
SOC 2 Type II compliance is a third party audit that ensures your vendor follows SaaS industry best practices to ensure the privacy, security, confidentiality of your data, as well as the availability and processing integrity of its operations.
It depends.
OpenAI owns all information entered into ChatGPT, and OpenAI can train on that information. This can result in proprietary information “leaking” to the public via ChatGPT.
Any proprietary information entered into ChatGPT Enterprise and directly OpenAI’s APIs (GPT-3.5, GPT-4, GPT-4o, etc.) will remain proprietary, and OpenAI will not use the information for training purposes.
Generative AI can do much more than just answer questions.
Generative AI can write code, create images and videos, analyze data, and reformat existing content.
In addition, generative AI applications can also interface with existing APIs and enable customers or employee self-service. Users can interface with those APIs in a conversational manner, both to read from existing databases (like products, prices, and inventory) and to write to databases (create, edit, or cancel an order).
Many enterprises have already invested in a help desk solution (like Zendesk, Freshdesk, or Salesforce Service Cloud), a contact center as a service (CCaaS) solution like NICE, Five9, Genesys, or Sprinklr, or unified communications as a service (UCaaS) solution like Nextiva, RingCentral, or Vonage.
These enterprises might naturally assume that they need to use a generative AI solution from an existing contact center vendor.
A generative AI solution should be an independent decision from your contact center solution. You should treat a generative AI solution like you might treat a new contact center agent. You need to train and supervise that agent, and you need to give that agent a “seat” in your existing contact center solution.
A good generative AI solution should work seamlessly with your current contact center solutions, just like a new contact center agent would. It should complement, not replace, your current solutions—allowing your team to leverage its existing systems while maximizing efficiency with AI-driven automation.
Not all generative AI applications are created equal.
Your agents should not be entering sensitive customer information into ChatGPT.
Your third party generative AI solutions (and any vendors they use as subprocessors, like an LLM) should, at minimum, be SOC 2 Type II compliant. SOC 2 Type II compliance doesn’t automatically prevent all data breaches/data leaks, but it is a minimum level of protection you should expect in a generative AI SaaS solution.
If you or your customers are based in Europe, you should ensure that your generative AI solutions are GDPR compliant, and if your generative AI solution is storing data in the US, that they are participating in the Data Privacy Framework, which is enforced by the Federal Trade Commission.
For an additional layer of privacy/security, you can potentially ask your generative AI solution provider to (1) be on the same public cloud that your infrastructure is hosted on and (2) have a virtual private connection between your infrastructure and their infrastructure.
For even greater privacy, you could host and fine-tune an open source LLM and eliminate the need to send sensitive customer data out to a third party. This will require significant machine learning expertise and IT operations expertise.
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