How Agentic AI and safety guardrails are redefining the tech landscape

AI

Over the past few years, AI has significantly evolved, largely driven by advancements in large language models (LLMs).

According to Saifr, while these models have brought about remarkable capabilities, they also come with inherent limitations. Trained on vast amounts of existing internet data, LLMs can only mirror past knowledge, often leading to errors known as hallucinations due to their linear nature. They generate text based on the likelihood of word associations, which doesn’t always guarantee accuracy.

LLMs traditionally operate in a linear fashion, lacking the ability to backtrack and correct their outputs. For instance, if an LLM misinterprets ‘cat’ for ‘car’, it has no mechanism to revise this error. This limitation extends to complex problem-solving; without access to external tools like calculators or weather apps, LLMs cannot perform tasks beyond text prediction.

However, the landscape is shifting with the emergence of agentic AI, which enhances LLMs with capabilities like planning, tool usage, and memory. This model allows AI to evaluate and improve its responses actively, leading to more accurate outputs over time. By breaking down tasks into manageable components and utilizing specific tools, agentic AI can address multifaceted problems more effectively.

The innovative ‘chain of thought reasoning’ is a standout feature of this new AI model. It not only enables the AI to learn from its actions but also to remember and adjust its strategies, significantly reducing errors. This approach is particularly beneficial in data management, where traditional LLMs may soon face limitations due to data scarcity. Agentic AI’s ability to operate efficiently with less data promises to enhance model accuracy and reduce operational costs.

Yet, the deployment of AI in sensitive fields like finance or healthcare necessitates a robust framework to help ensure safety and compliance. Most current LLMs do not account for specific regulations, which could lead to legal and ethical issues. The next few years will likely see a rise in RegTech innovations, providing a crucial safety layer to help AI outputs adhere to relevant laws and regulations.

Agentic AI’s potential to streamline complex tasks, such as content creation compliant with stringent regulations, is already being tested. In a notable experiment by Saifr, a series of models successfully generated a detailed comparative analysis in just three minutes, a task that would typically require extensive human effort. Although still experimental, the results are promising and suggest a significant shift in how AI can be utilized across industries.

In conclusion, while agentic AI is poised to transform the AI landscape by enabling more accurate and efficient solutions, its integration into mainstream applications will require careful management of data quality and regulatory compliance. As the technology matures, it could lead to widespread adoption, reshaping how businesses leverage AI to overcome complex challenges.

Copyright © 2024 RegTech Analyst

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