Two Rules of AI Business and Startups That Ignore Them

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2024-08-31 14:30:04

These rules are not new, and they are not mine; I stole them from Andrew Ng and Benedict Evans, two men with a huge following. Still, a large majority of AI entrepreneurs and engineers don’t pay attention to them, maybe because these rules show why their AI project will fail.

This is not very intuitive. If an AI system passes 90% of test cases and errors on 10%, then you are 90% done, right? Fix the remaining 10% of errors, and you will have 100% accuracy? Absolutely not. If it took you six months to halve the error rate from 20% to 10%, it will take you approximately another six months to halve 10% to 5%. And another six months to halve 5% to 2.5%. Ad infinitum. You will never achieve a 0% error rate on a real-world AI system. For an illustrative example, see this typical chart of error rate vs the number of training samples:

Notice that later in the training process, training set size increases exponentially with each error rate halving, and the error rate never reaches zero. Sure, you will get more efficient with acquiring training data (e.g., by using low-quality sources or synthetic data). Still, it is hard to believe that acquiring 10X more data is going to be much easier than acquiring the initial set. 

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