1. The Three-Layer AI Stack
A compelling framework for understanding AI development:
- Commodity Models: Language, image, and audio models trained on public data
- Commodity + Complexity Models: Domain-specific models requiring expert knowledge (e.g., protein folding)
- Proprietary Data Models: Models trained on private business data to generate unique insights
This taxonomy helps executives understand where sustainable competitive advantages might actually exist in AI.
2. The LLM Reality Check
Language models will likely be commoditized, similar to how browsers became utilities.
Current LLM capabilities are “tapping out” due to limited novel training data:
- The real value comes from combining LLMs with domain-specific models
- Pure LLM advice tends to be generic and unactionable
3. Economic Foundation Models as Competitive Advantage
The real game-changer lies in economic foundation models that track and analyze real-time business transactions.
Raize Digital is pioneering this space, creating an AI that “observes” global commerce and generates actionable business insights. This includes:
- Time-series awareness enables understanding of macro event impacts
- Cross-company learning while maintaining privacy
- Ability to make predictive decisions about inventory and routing
- Integration with autonomous agents for real-time optimization
If you are looking for a Custom AI Application or AI Application Developer in Vancouver, contact us today for a complimentary consultation and quote for your project!