Hey there, Tech Trailblazers and AI Aficionados!

Welcome to this week's episode of our newsletter. Through my personal conversations with clients, I've often noticed that the foundational understanding of how LLMs work is not quite 'mature' yet. That's why I've decided to tackle this topic and dive deeper into it. Grab your virtual hard hats, folks, because we're about to bulldoze through the walls of AI and peek into the engine room of Large Language Models (LLMs). Our special guest star? The one, the only, ChatGPT!

The Illusion of Intelligence: Not Your Grandma's Chatbot

Let's kick things off with a bang. When you first chat with ChatGPT, it feels like you're talking to a digital Einstein, right? It's dropping knowledge bombs left and right, cracking jokes, and even writing poetry. But hold onto your neurons, because here's the kicker - it's not actually "intelligent" in the way we humans are. Nope, it's more like the world's most sophisticated parrot on steroids. Let me explain...

Peeling Back the Curtain: How the AI Sausage Gets Made

So, how does this digital wonder actually work? Its magic? Let's break it down:

1. Training: The All-You-Can-Eat Data Buffet Before ChatGPT becomes the smooth talker we know and love, it goes through a data feast of epic proportions. We're talking billions of web pages, books, articles, and probably a few million memes for good measure.

1. Pattern Recognition: The Ultimate "Spot the Difference" Game Instead of memorizing facts like "water is wet," ChatGPT learns patterns. It's like it's playing an endless game of "which of these things go together?"

1. Probability: Vegas Has Nothing on This When you ask ChatGPT a question, it's not searching a giant digital library. Oh no, it's much cooler than that. It's playing a high-stakes probability game, predicting the most likely next word, over and over again.

The Magic of Tokens: It's All Greek to AI!

Now, here's where things get really wild. ChatGPT doesn't think in words like we do. It thinks in 'tokens.' These are like the atoms of language in AI-land. Let's dive deeper into this token business, shall we?

What the Heck is a Token?

A token can be a whole word, part of a word, or even a single character. It's how the AI breaks down and processes language. Here are some examples to blow your mind:

1. Simple words: "cat" is usually one token.

1. Longer words: "hippopotamus" might be broken into "hippo" and "potamus".

1. Compound words: "moonlight" could be "moon" and "light".

1. Common phrases: "New York" might be a single token.

1. Punctuation: "!" is often its own token.

1. Numbers: "42" could be one token, but "3.14159" might be several.

Token Economy: How ChatGPT Builds Sentences

When ChatGPT is cooking up a response, it's playing a rapid-fire game of "What comes next?" Here's a simplified play-by-play:

1. You ask: "What is the capital of Germany?"

1. ChatGPT thinks: "After 'What is the capital of', the token 'Germany' is likely. After 'Germany', a good bet is 'is'. After 'is', 'Paris' has a high probability."

1. It strings these high-probability tokens together and voila! You get "The capital of Germany is Berlin."

But here's the kicker - it's doing this thousands of times per second, considering context, grammar, and style all at once. It's like if you played chess, Scrabble, and Jenga simultaneously, while also juggling. Impressed yet?

Token Limits: Even AI Has Its Boundaries

Remember how I mentioned a 'context window'? That's directly related to tokens. Most AI models have a limit on how many tokens they can process at once. For ChatGPT, it's about 4,000 tokens, or roughly 3,000 words. That's why in long conversations, it might start "forgetting" what you said earlier. It's not being rude, it's just run out of token-space!

Hallucinations: When AI Gets a Bit Too Creative

Now, let's talk about those times when ChatGPT confidently states something that's just... wrong. We call these "hallucinations," and they happen because ChatGPT is always playing the probability game. Essentially, ChatGPT predicts the next word based on patterns it has seen during training, but it doesn't actually understand the information the way humans do. Unlike humans, it lacks a true comprehension of facts or concepts, meaning it cannot discern between correct and incorrect information. Because of this, it can sometimes produce responses that are plausible in tone and structure but completely inaccurate. This is due to its reliance on statistical relationships rather than factual verification. Imagine it like a sophisticated guessing machine, where each word is just the most probable guess based on what came before it.

These hallucinations can be more common in scenarios where the model is asked about niche topics or when it lacks sufficient context, causing it to extrapolate beyond what it 'knows.' Additionally, because ChatGPT does not have access to a real-time database or the ability to perform logical reasoning, it cannot verify facts in the traditional sense. It's like that one friend who always has a "fact" for everything, but you're never quite sure if they're right. The model's confident tone can sometimes mislead users into believing incorrect information, which is why it's crucial to treat its responses as starting points rather than definitive answers.

So while ChatGPT might sound convincing, it’s always a good idea to fact-check when accuracy is critical. This limitation underscores the importance of human oversight and the need for users to be informed about the underlying mechanics of these models. By understanding how ChatGPT generates responses, we can better utilize it as a tool—one that can inspire and assist but not replace critical human judgement.

Addressing AI Hallucinations: The Role of GraphRAG and Knowledge Graphs

To mitigate hallucinations in generative AI, new techniques are emerging, with one of the most promising being GraphRAG. This method combines knowledge graphs with Retrieval-Augmented Generation (RAG), making it a key approach for addressing hallucinations effectively. RAG empowers organizations to retrieve and query data from external knowledge sources, allowing LLMs to access and leverage data in a logical manner. Knowledge graphs anchor data in facts and map both explicit and implicit relationships between data points, guiding the model toward accurate responses. This results in generative AI outputs that are not only accurate and contextually rich but also explainable.

In addition, LLMs can play a critical role in generating knowledge graphs themselves. By processing vast amounts of natural language, an LLM can derive a knowledge graph that brings transparency and explainability to otherwise opaque AI systems. This further solidifies the role of knowledge graphs in enhancing both the accuracy and interpretability of AI-driven insights.

At BIK GmbH , we focus on delivering solutions by crafting tailored Corporate Digital Brains (powered by Knowledge Graphs) for our clients. This enables companies to operate more agilely, quickly, and securely in business by linking information and processes, creating transparency, and reducing complexity.

This leads to informed decisions, increased efficiency, and cost savings through automation and centralized knowledge management. At the same time, you lay the foundation for intelligent applications and trustworthy AI, strengthen your market position, and promote sustainable growth and business development.

What This Means for Us: Riding the AI Wave - #stayAugmented

Understanding this token-based, probability-driven nature of ChatGPT / LLMs isn't just cool party trivia (although, let's be honest, it totally is). It helps us use these tools more effectively and set realistic expectations. We're surfing on the cutting edge of a technological tsunami here, folks!

As a product development junkie, and "Augmented Worker", I can tell you that tools like ChatGPT or other LLMs are not just game-changers, they're game-rewriters. They're turbocharging our ability to prototype, ideate, and problem-solve. It's like strapping a rocket to your creativity! Connect the LLMs with a Graphs (better with a Corporate Digital Brain) you will skyrocket your company.

Looking Ahead: The Future is Tokenized powered by Knowledge Graphs

The potential of AI in our work is mind-boggling. Whether you're crafting the next big app, writing the great American novel, or trying to figure out what to have for dinner, there's an AI use-case for you.

In the coming weeks, we'll dive into how we can practically apply these AI tools in our daily grind. We'll explore everything from rapid prototyping to MVP development, all supercharged by our new AI sidekicks.

Remember, we're not just watching the future unfold - we're coding it, one token at a time. So let's embrace this brave new world, learn to tango with AI, and see just how far we can push the envelope of what's possible.

Until our next digital rendezvous, keep innovating, keep questioning, and for Pete's sake, keep being awesome!

Catch you on the flipside, you beautiful nerds! ❤️

Chris

P.S. If this peek behind the AI curtain has left you thirsting for more, I've got just the thing for you. Check out OpenAI's playground - it's like a jungle gym for your brain where you can see these language models in action. Go ahead, unleash your inner AI tamer!

#AugmentedWorking #AugmentedProductivity #LeanStartup #TrustworthyAI #BusinessInnovation #stayPositive #stayAugmented #CorporateDigitalBrain #ThinkBIK #bik