Latest / Agentic Conversations (formally mlops.community) / The Future of AI Operations: Insights from PwC AI Managed Services
Transcript
- 0:00We have a very special episode. I have the opportunity to hang
- 0:04out here in the PwC offices in San Francisco for my trip, and
- 0:09I'm here with Ronnie. We're going to talk all about
- 0:11what she's been up to and how you're looking at ML OPS, AI
- 0:16OPS, agents, everything of the sort.
- 0:28We should probably start with a little bit of who you are.
- 0:31Sure. Thank you Dimitrios, and excited
- 0:33to be talking to you. I've watched a number of
- 0:36episodes of your podcasts and very excited to be in.
- 0:40By your own will, I imagine you were forced.
- 0:43Absolutely. Not, I decided to torture.
- 0:45You it's 100% of my own free will, but and so lovely to be
- 0:50here talking to you. So a little bit about myself.
- 0:52I have about 3 decades of experience in the consulting
- 0:57industry and over the last 20 years I've been with PwC.
- 1:01Today I'm a partner with PwC and I lead our data analytics and AI
- 1:06managed services space. So with PWCI, spent the majority
- 1:11of my career in healthcare in payers and providers.
- 1:15And then over the past five years, I decided to make a
- 1:18shift, you know, back into technology.
- 1:21And this was a very, it was a very deliberate shift where I
- 1:28wanted to move it to the managed services space.
- 1:30And the way PwC approaches managed services is we want to
- 1:35lead with automation and AI. So that excited me because
- 1:39managed services or keep the lights on is a space that
- 1:42consumes over a large majority of a CIOs time and resources and
- 1:48all of that and having the opportunity to shape that to be
- 1:51more efficient excited me. For the uninitiated, what are
- 1:56managed services? Managed services is the space
- 2:00where we take over support of anything that moves into
- 2:03production. So it's, some people call it
- 2:06keep the lights on. It is as soon as somebody works
- 2:10on a project, it's live with consumers.
- 2:12All of the support related to that software asset, whether
- 2:17that is the hardware, the software, the experience, right,
- 2:21all of that falls into the bannered services space.
- 2:25And the area that my team focuses on is data analytics and
- 2:30AI. And I think AI managed services
- 2:33in itself is one of the coolest things that is happening today.
- 2:37Yeah. So you have your work cut out
- 2:39for you, Yes, You think things in production and making sure
- 2:43that they're going off without a hitch.
- 2:46I imagine there's a lot there. Definitely, definitely it's it's
- 2:50an exciting time to be in the space A because I think AI is an
- 2:55area that has been growing exponentially and at least in my
- 2:59lifetime, it is the area that's I've seen grow the fastest.
- 3:04And so not only our new technologies and tools being
- 3:08introduced, also the pace at which innovation is happening,
- 3:11which is the applicability of AI, that is also something that
- 3:15I've never before seen, right? The, the pace at which things
- 3:18are growing. I would say 12 months ago, I was
- 3:24in conversations with clients where they were talking about
- 3:27investing in AI and experimenting, piloting in AI.
- 3:31Today, Fast forward even in the last six months, I would say I'm
- 3:35seeing clients who have implemented AI and are now
- 3:38looking to thinking about ROI, how to scale it, how to sustain
- 3:43it, which brings brings in right, the managed services
- 3:46component of scaling, sustaining and and so on and so forth.
- 3:50But yeah, it's so funny that you mentioned that because I think
- 3:53we went through the exploration phase.
- 3:56Now it is in the phase of OK, So what can this actually do?
- 4:02And how can this, how can I prove that it is better for my
- 4:09company if I'm using AI? Yeah, I'm sure you've, you've
- 4:12seen the recent paper that came out that was saying people using
- 4:17AI think that they're doing things faster, but in reality
- 4:21they're doing it like 20% slower.
- 4:23But when they're asked, hey, did AI help you?
- 4:27It's like, Oh yeah, it was way better.
- 4:29And we all instinctively are probably a little bit like that
- 4:35where if we're using AI in some way, shape or form, we feel
- 4:39like, oh, yeah, this is better. But then if you were to compare
- 4:45that with us not using it, I often wonder and I ask myself
- 4:48sometimes like, yeah, is it, is it better or am I just fooling
- 4:51myself? And a friend of mine told me,
- 4:53yeah, that dude, look, the experience of chatting back and
- 4:58forth and getting being able to say like, OK, now go off and do
- 5:01that and, you know, write me that thing that we've been
- 5:04talking about is so much nicer than having to really, like,
- 5:08squeeze every one of those words out of your mind and all that.
- 5:12But sorry, I digress. I went on a bit of a tangent.
- 5:14It's all good. Yeah, I think there is a the
- 5:17it's probably a two-part conversation, right?
- 5:19There's a personal growth, a personal productivity that which
- 5:23which is what you're talking about.
- 5:24And then there is the enterprise growth.
- 5:26Enterprise productivity, right, on the other hand too.
- 5:29And you've got to like take both of these together.
- 5:33And one of the recent studies that I saw said that, you know,
- 5:37if you're not spending, say 4 to 8 hours a week or like X percent
- 5:42of your time learning and studying and upskilling, then
- 5:46you're not going to be AI enabled, right?
- 5:49And I think that is true for personal growth, but also for
- 5:52organizations who are looking to upskill their employees.
- 5:56There is a huge investment in terms of training and, you know,
- 6:01giving people access to the tools and technology so that
- 6:04they know how to be productive, right, with all of these tools.
- 6:07And I think there is a whole change management piece that
- 6:11goes along with AI enablement, which if you undermine that
- 6:15effort, then it's never going to be successful.
- 6:17Yeah, it's a cultural thing. It's a cultural thing, 100%,
- 6:21yeah. So ground us in the current
- 6:23state of what you've been seeing out there with IT operations,
- 6:27how you see Mlops. Maybe let me start with what is
- 6:31the current state of organizations, right?
- 6:34There's tons of data out there. You know, most organizations I
- 6:38know have alerting systems. So there's lots and lots and
- 6:41lots of alerts that if a human being has to sift through all of
- 6:45it, a lot of it is noise. And I'll give you maybe a couple
- 6:48of examples. And so incident detection today
- 6:53is, you know, it is. So if you get 100 alerts, which
- 6:58one is truly an incident, which one is not, is something that if
- 7:01you have to go through 100, then you're losing time on it.
- 7:05That is if you train a model to look for these, you know, this
- 7:07criteria, it's going to pop up, hey, here are the 10% of alerts
- 7:11which we think you need to look at.
- 7:12And then triaging becomes a lot more easier.
- 7:15You're bringing down the meantime to resolution just by
- 7:19doing that. Another example is, you know,
- 7:22when it comes to infrastructure, right, like the say CPU
- 7:27utilization, resource utilization sometimes tends to
- 7:30be cyclical. And if you are actually
- 7:33monitoring for certain events, you know that the usage is going
- 7:36to spike six hours from now or 20 minutes from now.
- 7:40And if you had a system that was looking for these things, then
- 7:44you would know, hey, I need to add more memory to the server,
- 7:47otherwise you know this is going to crash in like 2 hours.
- 7:50So this is what I would call, you know, proactive monitoring
- 7:54where you're preventing an incident from happening because
- 7:58of how you're effectively using your data.
- 8:01So those are examples of how I think ML OPS and AI OPS can be
- 8:05combined to create a very compelling case for IT
- 8:08operations. Yeah, the predictive monitoring
- 8:12is incredible. I really like that.
- 8:14And then also alert fatigue is real.
- 8:17It is real. What about agents and where are
- 8:20you seeing them? What have you been doing with
- 8:22agents? Because that's like the buzzword
- 8:24of this the last year, year and a half.
- 8:27Yeah, I think the the concept of agents is very real and we are
- 8:32starting to see, I think some organizations adopting agents
- 8:36first and foremost. There's a lot of process
- 8:38standardization work that needs to be done.
- 8:41If everyone is following a different process, then it's
- 8:44very hard to put in an agent to replace or to do a process,
- 8:48right? So this process standardization,
- 8:50the second piece is data quality, right?
- 8:53I do not know of a single organization that says that I
- 8:57have perfect data. The quality is great.
- 8:59So, you know, there's, and, and so for these two things, I, I do
- 9:04see a lot of data modernization, app modernization, type of
- 9:08initiators that organizations are taking on.
- 9:11And so once you have this foundation set, then it becomes
- 9:14a lot easier to go and say, well, these are my standardized
- 9:18processes and these processes get used 75% of the time.
- 9:23So I would get the most bang for my buck if I were to identify
- 9:28these processes, right? And and then and, and I am
- 9:33oversimplifying it as I'm kind of walking through this, right,
- 9:36But the other piece of it is I often get asked, should we start
- 9:41with one agent, one process and then look at how that goes,
- 9:46experiment with it, build a pilot and then scale it or do we
- 9:50do multiple right? And so I've, we've done a lot of
- 9:55reading on this and, and thoughts on this, right?
- 9:57And what we've seen work is I think centralizing the
- 10:01management of agents is important because you do not
- 10:04want different people just using different technology within the
- 10:07same organization to build their own agents.
- 10:09So there's some kind of centralization that's required
- 10:13that also then advocates for responsible AI and all those
- 10:17ethical considerations. But then it is OK to start
- 10:21parallel development of agents if there are there are processes
- 10:26that are being used 75% of the time in four different
- 10:29departments start writing up like 4 agents.
- 10:33And today with all the IDs and the low code no code solutions,
- 10:37it is so easy to spin up an agent.
- 10:39So I think the most the majority of the time needs to be spent
- 10:43designing the agent, then a little bit of time writing the
- 10:48agent and then the rest of the time and evaluating.
- 10:51So the evals and the, you know, and, and measuring the impact of
- 10:56the agent, looking for hallucination, looking for
- 10:58biases. That's where then the rest of
- 11:00the time gets spent, right? So this is how like we see a lot
- 11:04of clients like embracing Asian take close.
- 11:07And I think this is still pretty nascent, right?
- 11:10There's not a lot of, I think organizations who have agents,
- 11:14too many agents in production, right?
- 11:17I think we are still in that, like I'm building an agent, I'm
- 11:21evaluating it. Yeah, Yeah.
- 11:23It reminds me a little bit of the MLM stays early MLM stays
- 11:29when I started the community in 2020 where a lot of folks were
- 11:33trying to get the models into production still.
- 11:36And it's just really hard to make something a that you can
- 11:42clearly attribute ROI to and then B, something that actually
- 11:48like works. That's.
- 11:49Right. Yeah.
- 11:50And my buddy Zach was just telling me this morning, one
- 11:54thing they see is if folks can get an agent on these
- 11:58standardized processes into production quickly, then they
- 12:02start to see where the long tail of their data or their knowledge
- 12:09base is missing. And so because you run into
- 12:13problems constantly and then you have to amplify or you have to
- 12:18really enrich your data. And it's almost like a a way for
- 12:24you to recognize where you're faulty.
- 12:28Yeah, I think it is interesting how we build upon these things
- 12:33and you know, yes, you get your agent into production and that's
- 12:37where I think you know, so that's what that's what makes
- 12:39managed services so exciting for me because these things are now
- 12:43in production and then we are tuning, optimizing, training it.
- 12:48So managed services for AI takes on a different meaning than your
- 12:53traditional managed services, right.
- 12:55Traditional managed services is all about break, fix, incident
- 12:58management, make sure the system is up and running.
- 13:01Here we are not only doing that, but we're also making sure that
- 13:06we are delivering on the right outcomes.
- 13:08Yeah, that that it was intended to deliver to begin with.
- 13:13And that means that we are, you know, constantly measuring.
- 13:17And so even the skill set of the people that we have in AI
- 13:21managed services is very different from your traditional
- 13:24managed services folks. We are hiring ML OPS engineers,
- 13:27we are hiring data scientists, we are hiring, you know, more
- 13:31advanced analytic folks and who can tune and optimize the models
- 13:36to kind of reduce the bias, reduce the hallucinations and so
- 13:40on and so forth. And so on that note, right, We
- 13:43also have a framework called Agent OS that PwC has developed
- 13:48for our clients. So we can go and it's all based
- 13:52on, you know, Python based frameworks and things like that.
- 13:55So it's very interoperable, works with all the hyperscalers,
- 13:58has APIs to connect into any ecosystem.
- 14:02And it is an agent framework. So you can build 1, you can.
- 14:06It's got an agent orchestration layer inside it.
- 14:09And I know there's a lot of them in the market.
- 14:11But when we go to clients, we do go with the framework.
- 14:13And you know, I think that's one of the things we tell the
- 14:16clients that you don't have to build from scratch.
- 14:19There's so much that's already out there you should leverage
- 14:23and then build on top of it. So then the focus becomes the
- 14:27client specific business outcomes versus trying to figure
- 14:30out the technology that you need to make this happen.
- 14:34Yeah, that makes sense because as you know from last night,
- 14:38there's a new startup that comes every day.
- 14:41Every minute, I think. In this space, it's it's a hot
- 14:44space and again, there's a lot of unsolved problems.
- 14:48So that makes it ripe for these startups to come up and try and
- 14:53find the best way in the most optimal solutions.
- 14:56And you said something interesting there where it's
- 15:00different from the traditional managed services because there's
- 15:03not that break fix and it's, it feels like it is very like
- 15:11random, but not random in a way. I guess that's not the right
- 15:14word I'm looking for. I don't know if if that makes
- 15:16sense. Like it's you have to kind of
- 15:19just let it let it do its thing or break fix is very clear
- 15:24because it's doing this thing and it's not working.
- 15:27There's so many other things that could be going wrong with
- 15:29an agent that it could be working in that it actually
- 15:34executes, but it's not working because there's all this other
- 15:38stuff that it's doing wrong. Yeah, You need a human in the
- 15:41loop until it is proven that this model can work without a
- 15:45human in the loop. And there are probably very few
- 15:48use cases today where someone would be comfortable making
- 15:52that, you know that judgement, judgement right then.
- 15:56And it's interesting, I think we've when you talk about humans
- 16:00and agents, there are so many, there's jargons that have come
- 16:06out, for lack of a better word, like there's human in the loop,
- 16:09that's human on the loop, and there's human out of the loop.
- 16:13Oh yeah. It is, you know, how many more
- 16:16ways can we use those words together, right?
- 16:18The, the human in the loop is where you have to approve a
- 16:22workflow, right? Approve the outputs that the
- 16:24agents are coming up with. Human on the loop is where
- 16:27you're approving only the exceptions.
- 16:29So you're comfortable that the regular workflow is something
- 16:33that the agent is able to take care of.
- 16:34And outside the loop is outside the loop, right?
- 16:36So and I find that very interesting because in highly
- 16:39regulated industries, I think they kind of move or lean
- 16:43towards the human in the loop model where they are approving
- 16:46everything, not just the exceptions and the norms.
- 16:50Yeah, I find that fascinating that especially because the like
- 16:57going back to the idea of we create these systems so that
- 17:02they can hopefully give us incredible lift, right.
- 17:07But at the end of the day, if we're still in the loop, are is
- 17:10it? Is it giving you the lift?
- 17:12Is it giving you the lift? And that's probably the, the big
- 17:14question that I imagine a lot of these folks are grappling with
- 17:17like how much better are we because we're using this, you
- 17:22know, it's there like, and, and so you can't say I don't want to
- 17:26do it because, you know, there are companies that are finding
- 17:29success with it. And and I draw this parallel
- 17:32back to like the traditional predictive ML and how you have
- 17:38gigantic companies that are optimizing their fraud detection
- 17:44by point O 1% and saving millions of dollars.
- 17:51And so other companies see that and they think, well, yeah, we
- 17:55have to do machine learning because look at that.
- 17:59But then there's all these nuances of like, yeah, are you
- 18:02at that scale though? Are you?
- 18:04Is that the right use case for you?
- 18:06And these questions come into play and maybe you can start
- 18:11with something a little bit more simple just to see and like, put
- 18:16your foot in the water, test it out, see if it works and and
- 18:20actually see, start having the conversations of what we need to
- 18:23do to get that into production. Yeah.
- 18:25Yeah. And yeah, 100%.
- 18:27And, and you, I, I also think that most organizations have
- 18:32started in their back office, you know, playing around with
- 18:35agents and AI and all of that. And that has given them a lot of
- 18:39comfort because it's a more forgiving place to really start,
- 18:43right? And then we are now starting to
- 18:45see them get into their own core products and services.
- 18:50And I think that's the next wave.
- 18:51And this is, this is going to get very interesting because now
- 18:55you have to deliver on business outcomes.
- 18:57And that means there's going to be business people who are
- 19:01actually going to take advantage of that natural language
- 19:03processing. And I think This is why vibe
- 19:06coding is like picking up so much, right?
- 19:08Yeah. And that's now the latest that
- 19:11we hear about every, everywhere because they've made it.
- 19:14They, as in the technology companies have made it so easy
- 19:18for just about anyone to write a piece of code because you can
- 19:21say it in English and then you can get code out of it, right?
- 19:24That's that's really the whole concept behind it.
- 19:27And have you seen good ways or ways that you can get alignment
- 19:35from the two sides of the houses?
- 19:38Like, and I know it's normally not so black and white where
- 19:42it's like the tech side and the business side, but maybe where
- 19:46folks are like you're saying, business folks are coming into
- 19:48this and they're starting to have their say.
- 19:51And they also have needs on how it's being built.
- 19:55And they, they play with ChatGPT.
- 19:57So they think like, hey, AI should do this or it should be
- 20:00like that. Yeah, I, I think it's a, it's,
- 20:04it's a really good question and I have seen pockets of this,
- 20:08right. So as I, I think mentioned, my
- 20:11background is in healthcare and I'll take a healthcare a couple
- 20:14of healthcare examples, right. So 1 is a function, you know,
- 20:20when you go to a doctor you get approved for the insurance.
- 20:23And so there is something called a pre authorization that's done
- 20:26for services. The pre auth process, right, is
- 20:29pretty manually intensive, like it involves calling the
- 20:33insurance company to make sure you're covered and so on and so
- 20:36forth. That is a process that I think
- 20:38has been identified or AI enabled and it you know, and and
- 20:44so that works, but they still need to make sure that if
- 20:49something gets denied, you know, by AI, they have a human in the
- 20:53loop to make sure that you know, this denial that's appropriate
- 20:57and and so on and so forth. So that is an area where you
- 21:00know, this cannot be done by an engineer alone.
- 21:03This has to you know, you have to bring in people from and I
- 21:07will call this the business right to come in and say, yes,
- 21:10you know, these are the right policies.
- 21:12This is the right reason for a denial and so on and so forth.
- 21:16And when you build it keeping the business person's
- 21:21requirements in mind and in the forefront, I think you get it
- 21:24right. But if an, if you try to do it
- 21:27from the back end with an engineer trying to come up with
- 21:29a solution based on because you see, as an engineer, you see the
- 21:33data flows, you see there is a call from this system, there's A
- 21:38to this system. And this comes back with, you
- 21:40know, this sort of an answer. This is the data flow diagram.
- 21:43That's how I think an engineer's mind works.
- 21:45Whereas a business person looks at it saying, well, a person
- 21:49comes in with a fever and you're making, you know, asking them if
- 21:52you can get surgery for it. Like you're going to deny this
- 21:55is exaggerating? Again, this goes back to like
- 21:57the latent failures or the silent failures where it's it's
- 22:00failing but in ways that the engineer isn't going to see.
- 22:03It exactly so I think that is where you know you've got to
- 22:06take the business input to create these agents and that's
- 22:09where it becomes more successful.
- 22:11And so the the the extension to that is, you know, Epic Systems
- 22:15is one of the biggest like electronic medical record
- 22:18systems, right That's used by a lot of with the big healthcare
- 22:23providers. They have recently, the past
- 22:25couple of months, they've introduced AI capabilities into
- 22:28their software and I think organizations are still adopting
- 22:32and they're check, you know, they're still in that
- 22:34experimenting piloting mode where they are trying to figure
- 22:38out if this is something that they want to introduce.
- 22:40But an example is drafting mails to patients, right?
- 22:44That is a functionality that they have introduced in it.
- 22:47And today people do spend a lot of time drafting those emails.
- 22:53And what the system is doing is giving them a draft.
- 22:56And then yes, I think you have to change most of them for tone
- 23:04for things like that. But it's a start that, you know,
- 23:08actually saves a lot of time. I, I think honestly, that's a
- 23:11really good example of, you know, usage of AI.
- 23:15Yeah. And well, especially if you're
- 23:18typing in, and this goes to a little bit of like a data
- 23:21engineering type of thing because it, I imagine the
- 23:24drafting of the e-mail isn't high.
- 23:26Your appointment is this day. That's right.
- 23:28Yeah, it's a lot of random variables that need to be piped
- 23:32in. And so it's not as simple as
- 23:35just having a template. That's right.
- 23:37Yeah. Yeah.
- 23:38And there's contextualization. Yeah, right.
- 23:40There's tonality. There's so many things that have
- 23:43to be looked into. Yeah, yeah, totally.
- 23:45So when you're working with companies and and you get
- 23:48alignment and then something's actually in production, one
- 23:51thing that is always fun and as a friend of mine would always
- 23:57joke like you can never go wrong If at the end of any talk that
- 24:02you see, like at a meet up, you ask the question and say, yeah,
- 24:05but how does it scale? And so whenever I think about
- 24:09scale, I think about that exact phrase.
- 24:12And so I'm going to ask you now, like, how do you scale?
- 24:15Yeah, you know, I'm going to use that for your next meet ups,
- 24:18but. I'm sure the presenter is going
- 24:20to be happy because she was telling me and like, oh, there's
- 24:24always one person that asked that.
- 24:26How does it scale? And technically it's a good
- 24:30question because yeah, you want to know, but also.
- 24:34Yeah, right. See, I, I think of scaling in
- 24:38two different ways. So one is, you know, today's in,
- 24:43in today's world, the way you go through SDLC, for lack of a
- 24:48better word, right? It's not waterfall, it's not
- 24:51agile. But the way agents are being
- 24:53developed is you spend some time thinking about what is the use
- 24:57case or what is the process you want to identify and then or you
- 25:02know, you want to AI enable, right?
- 25:04And then you think about, you spend a lot of time in design
- 25:07and then once you have the design ready, the coding really
- 25:10takes very little time. It's the least amount of time.
- 25:13And then the evals and the measurement piece, right?
- 25:15That takes like the next big chunk of time.
- 25:18But once you move something into production, right, scaling is
- 25:22not a problem. If process A is what was
- 25:26automated or you know was, was changed, then at the same
- 25:31process being used in multiple places in the same company,
- 25:34that's an easy way to do it. So coding right, when you think
- 25:38about scaling the coding piece is not a challenge because of
- 25:42all the tools that is there. But the second piece is how do
- 25:45you scale? If you got one process right,
- 25:48how do you get the next 10 processes right?
- 25:51That is what I think takes more time.
- 25:53So this is where it goes back to having a good handle on your on
- 25:57the processes within your company and standardizing a lot
- 26:00of the processes. If the sorry, if the processes
- 26:04are standardized, then I think scaling becomes a lot more
- 26:07easier, right? And going back to like my
- 26:11example of pre auth, a pre auth in a, in the case of a cold or a
- 26:18cold or a fever, it's probably going to look very different
- 26:21from a pre auth from an oncology department, right?
- 26:24So the process is the same, but the business context is really
- 26:28important. So I think those are
- 26:30considerations right to bake in. But I think if you have a good
- 26:34foundation of processes and if you have business weighing in,
- 26:38the coding is not the challenge, it is the adoption.
- 26:41And we've been back to culture, right?
- 26:43The change management piece of it, I think that is where the
- 26:46focus needs to be to scale it. And then the third piece I would
- 26:50add is the measurement piece, right?
- 26:53The evals are so important when it comes to scaling because you
- 26:56don't want to scale something. That is, they're giving you
- 26:59different outputs than what you want.
- 27:02So as long as you're able to measure and correct and measure
- 27:05and correct, and you have a fairly good, you know, model in
- 27:09place, then it becomes a lot easier to replicate.
- 27:13I look at evals and I had a friend say, man, we tried a lot
- 27:19of different tools, but we realized that the tooling isn't
- 27:23the bottleneck or the, the, what the tools do isn't where the
- 27:28bottleneck is. What the bottleneck is is a lot
- 27:31of this data labeling on, as you were saying earlier, when the
- 27:35business comes and they look at the interactions and they say,
- 27:40wait a minute, why are you giving them a hamburger when
- 27:42they ask for pizza? That's not what they're asking
- 27:44for. And so you have those data
- 27:48labeling issues that take a lot of time because if you're
- 27:52labeling it with humans and you're labeling it with humans
- 27:55at the company and you have a lot of data, that can just be a
- 27:59lot of work. And at the end of the day,
- 28:03that's going to give you the best lift.
- 28:05So he, he told me, you know, you can do these evals and you can
- 28:09get this LLM as a judge or an LLM as a jury, all this fancy
- 28:13stuff. But what we found works the best
- 28:16is just getting people into an office, having a pizza party and
- 28:22labeling data together. Well, that and also having a
- 28:25good baseline to start with, right?
- 28:27And that's was the standardization piece I was
- 28:30talking about, right? If you know what this yielded
- 28:33before it was identified, then you know what the increase in
- 28:39productivity is, if it's working, all that good stuff,
- 28:41right? Yes, that is.
- 28:43And this is also where we talked a little bit about measuring the
- 28:47ROI, right? And to me, measuring the ROI is
- 28:51not just a straight, hey, I replaced 4 humans with four
- 28:55agents. So now I'm going to take out the
- 28:57cost of the humans. It's not that, right?
- 29:00Because there is a cost to putting these agents in.
- 29:02There is a human in the loop who is reviewing it for evals or
- 29:06whatever, right? And so there's a cost associated
- 29:09with that. There is a cost of retrieval,
- 29:12storage and all of that in the back end, right, which you're
- 29:14not accounting for, which was not there when it was just a
- 29:17human doing the work. And you've got to like compute
- 29:20all of this together to get the true ROI.
- 29:22Yeah. Yeah, it reminds me of the build
- 29:25versus buy question, what everybody thinks.
- 29:27Yeah, I'm not going to buy it because.
- 29:29It's too expensive and then. They're like, I'm just going to
- 29:32go hire 4 engineers, yeah, to help us maintain it.
- 29:35And you're like. Yeah, exactly.
- 29:37I hope those engineers aren't based in San Francisco.
- 29:41Let's talk for a minute about some of the sustainability
- 29:45considerations that you've thought about.
- 29:47Yeah. So I, I would bucket
- 29:49sustainability into three different buckets and I think
- 29:51some of it we already talked about a little bit.
- 29:54The first one is environmental, right?
- 29:56So that is the energy used, the carbon emissions, water
- 30:01consumption, right. Are you picking the right sites
- 30:04where recycled water is being used, you know that sort of
- 30:08thing, hardware materials like e-waste, all that stuff, right.
- 30:12So that's kind of the first chunk of environmental.
- 30:15Then there is the economic cost that we talked about a little,
- 30:18right? So that is the cost of building
- 30:21the agent, cost of the human reviewing the agent, cost of the
- 30:25storage, the retrieval. And when you don't need a large
- 30:31model, are you running a smaller model, right?
- 30:34Are you making those selections very deliberately, right.
- 30:36And that's what I would put into the economic bucket.
- 30:40And then there is a social bucket, right, which is hugely
- 30:44important. And we talk about responsible AI
- 30:47quite a bit. We talk about the ethics
- 30:48associated with it. So that's good.
- 30:50But there's also accessibility, localization, transparency,
- 30:56explain ability of the models, right?
- 30:58There's all those kind of things that I would add into the social
- 31:01bucket. So to make something
- 31:03sustainable. And I think this is what I was
- 31:06saying at the beginning, I think we are just getting into that
- 31:09phase where we are starting to think about what is
- 31:12sustainability? How do you measure the ROI?
- 31:15So far it's all been about I'm so excited about AI and the
- 31:18possibilities of AI. Where do I start now?
- 31:21People have started, they've deployed a few things and it's
- 31:24like now how do I scale? But hey, wait a second, how do I
- 31:27sustain this? So I think these are all going
- 31:30to come in, you know, in into the picture a lot more, I think
- 31:36over the next three to six months or yeah, I'm saying three
- 31:39to six months. I would have said three to six
- 31:40years if you had talked to me a decade back.
- 31:43Yeah, yeah. Yeah.
- 31:45So who knows? I do like how you are facing
- 31:49this. You're kind of abstracting it
- 31:51away from the weeds of the tech and really trying to think a bit
- 31:57more big picture and say, look, if we want to sustain these
- 32:04efforts, there's certain things that we're going to need to
- 32:08invest in. Right.
- 32:10And none of those things are like this new hot tech that or
- 32:15framework that just came out. That's not the big picture type
- 32:19of thing we need to look at. The big picture here is how are
- 32:24we going to make sure that we can justify this?
- 32:28Yeah, that's that's 100% it because we are going to get
- 32:31there and you know, think about all the waves that we've been
- 32:34through over the past couple of decades, right?
- 32:36Whether it's the Internet, whether it is the cloud, right,
- 32:40moving to the cloud, it all came back to like even you think
- 32:43about the cloud, the CIO's came back to wait, I'm going to spend
- 32:48a lot of money if I just keep storing all my data in the
- 32:52cloud. Is there a more optimized way of
- 32:54storing the data in the cloud, right?
- 32:56It kind of and I think that's the next wave with AI as well.
- 33:00Yeah, I've already heard folks talking about how they're
- 33:05starting to look at the cost and they're starting to think if we
- 33:11do deploy this to production, as soon as you start thinking
- 33:14enterprise scale for that feature, now you're hurting
- 33:20every time the user says please. Yeah, I think efficiency and
- 33:25perfection has a price. And I think everybody or every
- 33:29company has to decide what is that right trade off, right,
- 33:34where you want to spend so much money for just so much
- 33:37perfection. And you know, everything doesn't
- 33:40have to be 100%. I'm sure you're seeing it on the
- 33:42different use cases where there's more appetite for risk
- 33:47or there's less appetite for risk or there's more appetite to
- 33:50get this into Roduction just because we really need something
- 33:56here. Yeah.
- 33:57But on this side, maybe the process is they're not fully
- 34:00dialed in and so we can take a little bit longer.
- 34:03That's right, yeah. And it's, I think the same call
- 34:06or a similar call that a lot of organizations make even in the
- 34:09Dr. space, right. How much do I need and how much
- 34:12is good enough, right? You can keep building on that.
- 34:15And those are massive investments.
- 34:18It's, and I think everywhere it's like the same principles
- 34:21that you've got to apply. I think the skills, skill sets
- 34:25and the skill set, if you need both to build and maintain,
- 34:28right from a, from a software engineering lens, I think that's
- 34:33evolved so much, right? The as you're saying, right, the
- 34:37low code, no code Ides, it almost is like you don't need a
- 34:41full stack developer as much as you needed them.
- 34:44I'm not saying you don't need them at all, but you don't need
- 34:47them as much as you need, Yeah. But you need them for other
- 34:49stuff. If you're looking at the whole
- 34:52product as a circle, you need them for this part of the
- 34:57circle. And then you can try and get the
- 35:00the other stakeholders involved in this part.
- 35:03And this was always kind of the case.
- 35:05I don't know if you remember it with the ML, you needed
- 35:07stakeholders involved, but they couldn't really act.
- 35:11They had to be in the meetings and talk about things and say
- 35:14like, yeah, but we can't do that because of this or that.
- 35:16But you didn't have this idea of.
- 35:19Well, let's just empower you with a no code solution.
- 35:22That's right, yeah. And that's where I think it's
- 35:24becoming very interesting. Right.
- 35:26So the skills that you need on the build side is, is less
- 35:31coding and more designing. And once you design the right
- 35:37solution, it's very little time to to code.
- 35:41And then you spend a lot of time in evals and measurement and all
- 35:45that. So prompt engineering, you know,
- 35:48data scientists who you can measure, compare, run models,
- 35:51simulations, that comes into the picture.
- 35:55And then on the managed services side, it is again data
- 35:58scientists who can tune the models.
- 36:00The skill set is completely shifting, right?
- 36:03It's not about coding anymore, you know, when you're deploying
- 36:08agents, which is very interesting, right?
- 36:10Because that impacts, I think the skill set of who, who you
- 36:16hire, you know, as, as you're like beginner kind of workers to
- 36:21how they grow, what path do they take to grow right within the
- 36:25organization. And I think the business
- 36:27knowledge is becoming more and more relevant.
- 36:30You know, now you want, you know, yesterday, I think when I
- 36:33was at your event, I heard about how product owners can start
- 36:38coding because you don't right, need to know code.
- 36:41So, you know, the product owners who understand the
- 36:43functionality, who have been designing the product are
- 36:46probably the luckiest right in in this whole mix because now
- 36:50they don't need to rely on an engineer to come out with a
- 36:53code. They can actually code, right?
- 36:56And it's oversimplifying it, obviously, but I think I do see
- 37:00that shift. Exactly.
- 37:02I I've been hearing the term product engineer more and more
- 37:06and then I also saw the trend of the CPOCTO where they're the
- 37:13same person. And so it's like, yeah, this is
- 37:16a it's a product person, but they're technical and that's the
- 37:18new cool thing to do. And but I, I do think that the
- 37:23the hard part, yeah, isn't maybe it's not in the code.
- 37:27The hard part is in the making sure that if you have an agent,
- 37:33it has the right context. And so there's still is a lot of
- 37:36data engineering that's going on in the background because the
- 37:39getting that context that's all moving data around and who's
- 37:44really good at that, the data engineers.
- 37:45That's right. That's right.
- 37:47Yeah. So it's interesting how it's all
- 37:49shifting. And it's also, I think, you
- 37:51know, if you if you raise it up to the C-Suite, right, that is
- 37:55the birth of the chief AI officer, right?
- 37:59We had the CIO, we had the analytics and digital, and then
- 38:03now we have AI. And I think with AI, right, it's
- 38:07shifting more towards the business.
- 38:09It's more of someone who understands the business who can
- 38:14then advise the organization on what are the right AI
- 38:18investments that's going to then impact, you know, the company's
- 38:22productivity and efficiencies and all that good stuff.
- 38:25We'll wrap up here. There's a few really cool ideas
- 38:28that I'm taking away from this conversation.
- 38:30One being the idea of thinking about your system from this
- 38:36sustainability first. I always thought about
- 38:39sustainability in the other bucket that you put it in, which
- 38:42was like, yeah, the hardware try and reduce, reuse, recycle.
- 38:45Sustainability. Yeah, this is like, we want this
- 38:51AI product to have a long shelf life, So how can we design with
- 38:58that goal in mind? Right.
- 39:00And that's probably like the biggest thing that I'm going to
- 39:03be taking away. It's, it is very oversimplified
- 39:06because yeah, of course you would think like that.
- 39:08Why wouldn't you? But I, Yeah.
- 39:12And it's also easier said than done, Right, Right.
- 39:14Right. As anyone knows, you're working
- 39:18it on Rag today and then you're working on Agents tomorrow.
- 39:23And now next time it's prompt engineering or it's context
- 39:27engineering. And so.
- 39:28Yeah. Yeah, Yeah.
- 39:31You know, if I had to talk about future ready IT operations,
- 39:37right, it is really you look at it with a business mindset,
- 39:42right? There's I, I think as we look
- 39:45into the future, like making sure you're stabilizing your
- 39:49current state is so important with data modernization, app
- 39:53modernization, process standardization, all those good
- 39:56things, right. They are all I think very
- 39:57important for a large organization to start with And
- 40:02and I also think that you know if.
- 40:05If a company has never dabbled in AI before, start with your
- 40:09back office. Like I said, it's more forgiving
- 40:11and and then kind of move slowly into your front office as you
- 40:15build that muscle right within the organization.
- 40:19Invest in good training and upskilling right for your people
- 40:23sort of thing. Because it's not, you're not
- 40:27going to replace people like overnight.
- 40:29You're going to upskill them, you're going to elevate them.
- 40:32You're going to still have a human in the loop and educate
- 40:35them so that it doesn't become a culture of fear, but it's a
- 40:38culture of learning. And then, you know, there's, I
- 40:43would say, you know, start pilots and different
- 40:46departments. So everyone starts getting
- 40:48excited, but with that kind of centralized governance, if you
- 40:52will, right? So that there's some guardrails
- 40:55around everything and take advantage of all the cool
- 40:59technologies that everyone's putting out there.
- 41:01Like the number of AI startups that's out there is just mind
- 41:04boggling. And the names, right?
- 41:06So interesting. Also fun, yeah.
- 41:08Also fun and you know like the like Asian toys that PwC has is
- 41:13a lot of frameworks out there. Take advantage of those
- 41:15frameworks because a lot of thought has gone into building
- 41:18those frameworks just to make this journey easy.
- 41:21And then last but not the least, I would say measure, measure,
- 41:24measure, right. That feedback loop is just so
- 41:27important.