Technology
Why RAG won’t solve the AI generative hallucination problem
Hallucinations – essentially the lies that generative artificial intelligence models tell – pose an enormous problem for firms seeking to integrate the technology into their operations.
Because models haven’t any real intelligence and easily predict words, images, speech, music, and other data in keeping with a non-public schema, they often get it mistaken. Very bad. In a recent article in The Wall Street Journal, a source cites a case through which Microsoft’s generative AI invented meeting participants and suggested that conference calls covered topics that weren’t actually discussed during the call.
As I wrote a while ago, hallucinations could be an unsolvable problem in modern transformer-based model architectures. However, many generative AI vendors suggest eliminating them roughly through a technical approach called search augmented generation (RAG).
Here’s how one supplier, Squirro, he throws it: :
At the core of the offering is the concept of Recovery Augmented LLM or Recovery Augmented Generation (RAG) built into the solution… (our Generative Artificial Intelligence) is exclusive in its promise of zero hallucinations. Each piece of knowledge it generates is traceable to its source, ensuring credibility.
Here it’s similar tone from SiftHub:
Using RAG technology and fine-tuned large language models and industry knowledge training, SiftHub enables firms to generate personalized responses without hallucinations. This guarantees greater transparency and reduced risk, and instills absolute confidence in using AI for all of your needs.
RAG was pioneered by data scientist Patrick Lewis, a researcher at Meta and University College London and lead writer of the 2020 report paper who coined this term. When applied to a model, RAG finds documents which may be relevant to a given query—for instance, the Wikipedia page for the Super Bowl—using keyword searches, after which asks the model to generate a solution in this extra context.
“When you interact with a generative AI model like ChatGPT or Lama and ask a question, by default the model responds based on its ‘parametric memory’ – i.e. knowledge stored in its parameters as a result of training on massive data from the Internet,” he explained David Wadden, a research scientist at AI2, the artificial intelligence research arm of the nonprofit Allen Institute. “But just as you are likely to give more accurate answers if you have a source of information in front of you (e.g. a book or file), the same is true for some models.”
RAG is undeniably useful – it lets you assign things generated by the model to discovered documents to ascertain their veracity (with the additional advantage of avoiding potentially copyright-infringing regurgitations). RAG also allows firms that don’t need their documents for use for model training – say, firms in highly regulated industries comparable to healthcare and law – to permit their models to make use of these documents in a safer and temporary way.
But RAG actually stops the model from hallucinating. It also has limitations that many providers overlook.
Wadden says RAG is best in “knowledge-intensive” scenarios where the user desires to apply the model to fill an “information need” – for instance, to search out out who won the Super Bowl last 12 months. In such scenarios, the document answering the query will likely contain lots of the same keywords as the query (e.g., “Super Bowl,” “last year”), making it relatively easy to search out via keyword search.
Things get harder for reasoning-intensive tasks like coding and math, where in a keyword-based query it’s harder to find out the concepts needed to reply the query, much less determine which documents is perhaps relevant.
Even for basic questions, models can grow to be “distracted” by irrelevant content in the documents, especially long documents where the answer isn’t obvious. Or, for reasons still unknown, they could simply ignore the contents of recovered documents and rely as a substitute on their parametric memory.
RAG can be expensive when it comes to the equipment needed to deploy it on a big scale.
This is because retrieved documents, whether from the Internet, an internal database, or elsewhere, have to be kept in memory – at the very least temporarily – for the model to confer with them again. Another expense is computing the increased context that the model must process before generating a response. For a technology already famous for the large amounts of computing power and electricity required to even perform basic operations, this can be a serious consideration.
This does not imply RAG cannot be improved. Wadden noted many ongoing efforts to coach models to raised leverage documents recovered using RAG.
Some of those efforts include models that may “decide” when to make use of documents, or models that may opt out of search first in the event that they deem it unnecessary. Others are specializing in ways to index massive document datasets more efficiently and to enhance search through higher representations of documents—representations that transcend keywords.
“We’re pretty good at retrieving documents based on keywords, but we’re not very good at retrieving documents based on more abstract concepts, such as the checking technique needed to solve a math problem,” Wadden said. “Research is required to construct document representations and search techniques that may discover suitable documents for more abstract generation tasks. I feel it’s mostly an open query at this point.”
So RAG may help reduce models’ hallucinations, however it isn’t the answer to all hallucinatory problems of AI. Beware of any seller who tries to say otherwise.
Technology
Sequoia increases its 2020 fund by 25%
Sequoia says no going out, no problem.
According to data from the Silicon Valley enterprise capital giant, the worth of its Sequoia Capital US Venture XVII fund increased by 24.6% in June at the top of 12 months. Pitchbookwho analyzed data from the University of California Regents Fund.
Sequoia’s margin is notable since the fund hasn’t had any exits yet. This can be a positive development for the 2020 fund vintage, on condition that after the uncertain valuations of 2020 and 2021, this yr’s funds usually are not expected to perform well for any VC. The mismatch is probably going resulting from high AI valuations giving risks a way of an economic recovery that has yet to bear fruit in other sectors. Sequoia is an investor in high-growth artificial intelligence corporations including OpenAI, Glean and Harvey, amongst others.
Sequoia has raised over $800 million for Fund XVII, which closed in 2022.
Technology
Revolut will introduce mortgage loans, smart ATMs and business lending products
Revolutthe London-based fintech unicorn shared several elements of the corporate’s 2025 roadmap at a company event in London on Friday. One of the corporate’s important goals for next yr will be to introduce an AI-enabled assistant that will help its 50 million customers navigate financial apps, manage money and customize software.
Considering that artificial intelligence is at the middle of everyone’s attention, this move shouldn’t be surprising. But an AI assistant could actually help differentiate Revolut from traditional banking services, which have been slower to adapt to latest technologies.
When Revolut launched its app almost 10 years ago, many individuals discovered the concept of debit cards with real-time payment notifications. Users may lock the cardboard from the app.
Many banks now can help you control your card using your phone. However, they’re unlikely to supply AI features that might be useful yet.
In addition to the AI assistant, Revolut announced that it will introduce branded ATMs to the market. These will end in money being spent (obviously), but in addition cards – which could encourage latest sign-ups.
Revolut said it plans so as to add facial recognition features to its ATMs in the longer term, which could help with authentication without using the same old card and PIN protocol. It will be interesting to see the way it implements this technology in a way that complies with European Union data protection regulations, which require explicit consent to make use of biometric data for identification purposes.
According to the corporate, Revolut ATMs will start appearing in Spain in early 2025.
Revolut has had a banking license in Europe for a while, which implies it may offer lending products to its retail customers. It already offers bank cards and personal loans in some countries.
Now the corporate plans to expand into mortgage loans – some of the popular lending products in Europe – with an emphasis on speed. If it’s an easy request, customers should generally expect immediate approval and a final offer inside one business day. However, mortgages are rarely easy, so it will be interesting to see if Revolut overpromises.
It appears that the mortgage market rollout will be slow. Revolut said it was starting in Lithuania, with Ireland and France expected to follow suit. Although all these premieres are scheduled for 2025.
Finally, Revolut intends to expand its business offering in Europe with its first loan products and savings accounts. In the payments space, it will enable business customers to supply “buy now, pay later” payment options.
Revolut will introduce Revolut kiosks with biometric payments especially for restaurants and stores.
If all these features seem overwhelming, it’s because Revolut is consistently committed to product development, rolling out latest features quickly. And 2025 looks no different.
Technology
Flipkart co-founder Binny Bansal is leaving PhonePe’s board
Flipkart co-founder Binny Bansal has stepped down three-quarters from PhonePe’s board after making an identical move on the e-commerce giant.
Bengaluru-based PhonePe said it has appointed Manish Sabharwal, executive director at recruitment and human resources firm Teamlease, as an independent director and chairman of the audit committee.
Bansal played a key role in Flipkart’s acquisition of PhonePe in 2016 and has since served on the fintech’s board. The Walmart-backed startup, which operates India’s hottest mobile payment app, spun off from Flipkart in 2022 and was valued at $12 billion in funding rounds that raised about $850 million last 12 months.
Bansal still holds about 1% of PhonePe. Neither party explained why they were leaving the board.
“I would like to express my heartfelt gratitude to Binny Bansal for being one of the first and staunchest supporters of PhonePe,” Sameer Nigam, co-founder and CEO of PhonePe, said in a press release. His lively involvement, strategic advice and private mentoring have profoundly enriched our discussions. We will miss Binny!”
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