Alphawatch.AI

?? WEEKEND READ?? The Great Acceleration CIO Perspectives on Generative AI: From MIT & Databricks. “I can’t think of anything that’s been more powerful since the desktop computer.” MIT's lead quote from one of its professors is likely not an exaggeration. While GenAI has certainly been overhyped, the reality is that it is coming for every company. Saying no to GenAI isn't an option. That's why, once again, GenAI makes the weekend reading list. The report is a compilation of seven CIO perspectives exploring GenAI, and the articles have something for everyone. The chapters are short and 100% practical. ?? Chapters that I enjoyed:? My comments beneath the quotes from CIOs. 3: Building for AI. "We have aggregated data across a lot of different technologies over time, and I think what we’re finding now is that the lakehouse has the best cost performance straight off.” -The irony is I pushed data lakes to banks when at IBM with little success. Most banks didn't want to bother or couldn't reconcile their data silos! Most still haven't! AI is all about the data, and if your company scrimped on data modernization in the past, it will cost you double now! 4: Buy, build? Open, closed? "If you care deeply about a particular problem or you’re going to build a system that is very core for your business, it’s a question of who owns your IP.” -Yes but big tech has already decided this for you. Only the JP Morgans of the world can build their own. Partnering is the only option for mid-tier companies. This is a real problem, and IP and private data leakage are huge issues. 5: Workforce Worries: "In the next five to ten years we will see how quickly we can adapt, and companies that fail to adapt, no matter how big, are going to disappear" -True, but employees will get hit, win or lose! If the company fails, employees will be hammered. If the company succeeds with AI, increased efficiency should result in fewer employees! Thoughts? ??Friends, if you enjoy my writing, please say thanks by leaving a comment. I reply to everyone, and they are all appreciated! ??Reposters you are the best! Thanks so much for sharing! ---------------------- ?? My name is Rich, it is?record-breaking hot in Shanghai, and I can't wait for autumn.? ?? #Fintech, #AI and #Tech at the speed of hashtag#Asia and hashtag#China. ??Onalytica No.4 Global Fintech Influencer with two best-sellers. Like this post? Want to see more?? ?? Follow me. ?? Click on “view my blog” ?? for more!

The 5 Levels of Artificial Intelligence Did you know that OpenAI has introduced a categorization system for AI that mirrors the levels used for self-driving cars? The five levels are as follows: 1. Chatbots: Robots that can chat with you. 2. Reasoners: Robots that use logic to solve problems. 3. Agents: Robots that act independently of humans. 4. Innovators: Robots that create new ideas independently. 5. Organizations: Robots that replicate the work of organizations. There is no consensus yet on how to mark progress towards AGI (artificial general intelligence), and OpenAI is not the only organization looking to set the progress meter. Last year, Google researchers at Google DeepMind published a framework that defines AI performance and generality across different levels, distinguishing between narrow AI that performs clearly scoped tasks and general AI that handles a wide range of non-physical tasks, including metacognitive tasks like learning new skills. Their levels range from: Level 1: Emerging AI (equal to or somewhat better than an unskilled human) Level 2: Competent AI (at least 50th percentile of skilled adults) Level 3: Expert AI (at least 90th percentile of skilled adults) Level 4: Virtuoso AI (at least 99th percentile of skilled adults) Level 5: Superhuman AI (outperforms 100% of humans) Currently, OpenAI states that they are at Level 1 and are progressing rapidly towards Level 2. In general, the AI world isn't quite at agents yet, no matter what some companies claim. Which is why in most robots, including the ones we build at AlphaWatch, our clients still often choose to have some human intervention for the best result (so-called "human-in-the-loop"). At Alphawatch.AI, we are excited about the potential to create fully autonomous agents in the future and look forward to the greatly improved reasoning abilities OpenAI and other foundational models are working on. We firmly believe better technology is on the horizon and can't wait to apply it to enterprise use cases! What do you think? Which organization has the better levels of AI—Google or OpenAI?

AI Spending on the Rise: A Deep Dive into Q2 SaaS Trends The Q2/24 Practical Venture Capital SaaS Index? (compiled by Aman Verjee, CFA) trades at 6.3X EV/LTM revenue, significantly below the 5-year average of 11X and the 10-year average of 9X. Historical valuation trends show that the multiple of 6.3X in Q2/24 mirrors the median SaaS multiple in late 2016. The top quartile of SaaS companies now have multiples around 10X, slightly higher than the 9X during that period. However, these multiples have dropped about 65% from the peak during Q4/20 to Q2/21. While mid-cap SaaS companies faced challenges in Q1 with weak earnings, hyperscalers like Azure reported stellar results. The median revenue growth rate for SaaS companies in Q1/24 was +18% YoY, down from over 30% in 2020-22. Over half of these companies have guided Q2 revenue below consensus, marking the worst performance since Q2/20. A major highlight is the bifurcation in enterprise tech budgets. AI spending is surging, while other tech areas are seeing reductions. This shift underscores the growing importance of AI in driving business value and innovation. The Q1/24 earnings season for cloud businesses revealed that mid-cap SaaS companies had results almost as weak as during the pandemic quarter of Q2/20. This could be due to broader macroeconomic slowdowns, with US real GDP growth at just 1.3% annualized in Q1/24, down from over 3% in 2023. Several major markets, including Germany, the UK, and Japan, experienced recessions recently. CFOs are rethinking budgets, focusing on tech/IT spend that furthers their AI roadmaps while pulling back on other areas like cybersecurity. This focus on AI is clearly impacting the growth rates of many SaaS companies. As an AI company, we're excited about the increase in AI spending. This trend confirms the transformative power of our technology and opens up new opportunities for innovation and growth. With enterprise tech budgets shifting towards AI, we're proud to be leading this wave of advancement. Stay tuned for more insights as we track these important industry trends. Full link to PVC report in comments. Note: The PVC SaaS Index? is a proprietary index featuring 98 publicly traded US-listed SaaS companies on NASDAQ and NYSE. These companies primarily derive revenue from long-term contractual commitments (12 months or greater). cc Dave McClure, Stephanie M. Shorter, PhD #AI #SaaS #EnterpriseTech #PVCIndex

The Rise of Chief AI Officers: A New Era in Private Equity AI is shaking up workplaces, driving efficiency, and streamlining decision-making. President Biden’s new policy, appointing chief AI officers (CAIOs) in government agencies, underscores AI's growing importance. These CAIOs will steer AI initiatives, select strategic use cases, and manage their rollout. “Leaders who fail to grasp AI’s impact risk falling behind,” says Cody Crook, managing director at Hunt Scanlon Ventures. The CAIO role, now an essential part of the C-suite, joins titles like chief digital officer and chief innovation officer. The integration of AI in private equity-backed firms is also accelerating, as they seek to stay competitive. “The CAIO’s ability to integrate AI seamlessly into operations leads to significant cross-functional improvements,” explains Natalie Ryan of SPMB Executive Search. Private equity firms are embedding AI into their strategies, not just for tech efficiency but to drive broad business innovation. Ryan notes, “CAIOs are driving innovation across diverse fields, from marketing to human resources, making AI a core business driver.” This proactive approach is essential for maintaining a competitive edge. Hoyoung Pak of AlixPartners underscores the imperative for PE firms to leverage AI effectively. “The winning companies are those applying AI thoughtfully to boost sales, cut costs, and enhance customer satisfaction,” he says. This focus on AI is transforming business operations and shaping future strategies. The rise of the CAIO marks a pivotal shift in how businesses approach AI, with private equity firms leading the charge. As AI becomes indispensable, these visionary leaders are steering companies toward a future where AI and business strategy are tightly interwoven. Here at AlphaWatch, we also see increased interest from PE-backed companies in implementing AI. Are you seeing this trend too? Share your thoughts and experiences!

Welcome back to our series exploring how AlphaWatch AI's Knowledge Management and Workflow Automation Platform empowers various industries! This time, we're shining a spotlight on Public Relations (PR) professionals. From crafting impactful narratives to managing media inquiries, AI can revolutionize your PR game. Let's explore how: ??Enhanced Media Tracking?? ??Real-time Brand Insights: Track brand mentions and sentiment across online platforms. ??Streamlined Content & Distribution?? ??AI-powered Content Creation: Generate content ideas, summaries, and drafts based on trends and audience interests. ??Targeted Press Releases: Personalize press releases and outreach based on media preferences. ??Effortless Crisis Communication?? ??Early Warning System: AI identifies potential crises through online conversations and media mentions. ??Data-driven Crisis Response: AI suggests effective communication strategies based on real-time data. ??Building Stronger Relationships?? ??Automated Media Management: Streamline interview scheduling and journalist queries. ??Personalized Stakeholder Engagement: Tailor content and communication for different stakeholder groups. ??Measuring & Optimizing PR?? ??Campaign Performance Tracking: Track key metrics like engagement, traffic, and media coverage. AlphaWatch AI put emphasis in utilizing AI for a more efficient, insightful, and impactful Public Relations experience. Follow us for further updates on how we're shaping the future of PR with cutting-edge AI solutions. #PublicRelations #AI #GenerativeAI #AlphaWatchAI #Innovation #Communication #ReputationManagement

Welcome to the first installment of our series exploring how Alphawatch.AI's Knowledge Management and Workflow Automation Platform empowers various industries. We've received keen interest from Investor Relations (IR) professionals, so let's delve into how our AI solutions can revolutionize your IR game. ??Data Analysis and Insights?? ??Sentiment Analysis: Generative AI models analyze social media and news to gauge real-time investor sentiment, providing actionable insights for IR teams. Automated Reporting and Documentation ??Earnings Reports: AI automates the creation of earnings reports, turning complex financial data into clear narratives, saving time, and ensuring accuracy. ??Regulatory Compliance: AI helps update documentation to ensure regulatory compliance, reducing the burden on IR teams. ??Enhanced Communication?? ??Chatbots and Virtual Assistants: AI-powered chatbots handle routine investor inquiries instantly and accurately, freeing up IR professionals for strategic tasks. ??Personalized Communication: AI creates personalized communication materials based on investor behavior and preferences, enhancing engagement and relationships. ??Market Intelligence and Competitor Analysis?? ??Real-Time Monitoring: AI generates summaries and reports from real-time monitoring of competitor activities and industry trends, keeping investors informed. ??Investor Engagement and Relationship Management?? ??Predictive Engagement: AI identifies and targets investors likely interested in specific updates, improving engagement and relationship-building. ??Crisis Management?? ??Rapid Response: AI quickly analyzes crises and provides data-driven communication strategies, ensuring timely and coherent responses to investor concerns. ??Optimizing IR Strategies?? ??Performance Metrics: AI tracks and analyzes IR activities, offering insights into what works best and where to improve. ??Scenario Analysis: AI simulates scenarios and generates reports, helping IR teams prepare for various outcomes and develop robust strategies. AlphaWatch AI is at the forefront of using generative AI to transform investor relations, making it more efficient, insightful, and responsive. Follow us for updates on how we’re shaping the future of IR with AI. #InvestorRelations #AI #GenerativeAI #AlphaWatchAI #Innovation #Finance #BusinessTransformation

Knowledge management (KM) is undergoing a seismic shift thanks to the integration of Artificial Intelligence (AI). This powerful synergy offers organizations a significant advantage, particularly as we move forward. ??Faster Searches: Find what you need instantly with AI's superpowered search. ??Organized Knowledge: AI automatically sorts information, making it easier to find in databases and online groups. ??Refined Search Options: AI filters your searches better, understanding your questions and giving you what you need. ??Automatic Data Collection: No more manual data entry! AI gathers information for you, keeping your knowledge base up-to-date. ??AI Helps Create Content: Need summaries or reports? AI can help, saving you time. AI's power goes beyond content creation: ??AI Uncovers Hidden Insights: AI analyzes data to find hidden patterns, helping you make better decisions. ??Personalized Learning: AI recommends learning materials based on your interests, keeping you skilled. ??Easier Knowledge Sharing: AI connects you with experts, making collaboration a breeze. ??AI Learns for You: AI discovers valuable information from past data, helping you identify knowledge gaps. ??AI Chatbots Answer Questions: Get quick answers from AI chatbots, saving you time and effort. AI unlocks the true potential of knowledge management, enabling swift information access for informed decisions and rapid action. At Alphawatch, we provide comprehensive services tailored to meet your needs. Contact us to discover how our knowledge management platform can address your challenges.

Our typical customer deals with large volumes of complex, proprietary data that needs to be made more manageable for their internal or external users. This data often requires significant preprocessing to be effectively ingested by AI. Our technology allows clients to have best-in-class copilots and agents that augment their human knowledge workers, reducing operational complexity, enabling new capabilities, and delivering a high return on investment. We are developing a comprehensive knowledge management and workflow automation platform that includes our own ingestion, retrieval, and generative engines. ??INGESTION: We handle extremely complex data, including financial statements, multi-page and nested tables, extensive footnotes, and various diagrams and schemas. We have developed automated tools to ingest this data and have expertise in using complex knowledge graphs to make proprietary business data and logic understandable to AI. ??RETRIEVAL: We use various search methods to retrieve the most relevant results and adjust them based on client needs. Our engine is highly flexible and can adapt to any client requests. We also work in multiple languages and frequently handle numerical data, integrating complex reasoning and arithmetic capabilities. Some of these capabilities are not LLM-based but involve other technologies we have combined to deliver a seamless experience. ??GENERATION: We can generate advanced tables and charts based on client data. Often, we handle exceptionally long tables that are difficult for humans to read, so we excel at generating specific outputs with AI, saving our clients significant time.

What does everyone think of the LLM outperforms Financial Analyst paper draft from University of Chicago by Alex G Kim, Maximilian Muhn, Valeri Nikolaev? It's quite long, so here is the AI summary: The study "Financial Statement Analysis with Large Language Models" investigates the performance of large language models (LLMs) in financial statement analysis compared to professional human analysts. Here are the key findings: 1/ Performance Comparison: LLMs, specifically GPT-4, outperformed human analysts in predicting future earnings changes. Analysts achieved an accuracy of 53% while GPT-4 achieved 60% using chain-of-thought (CoT) prompting. 2/ Research Design: The study used standardized and anonymized financial statements to ensure the LLMs did not rely on prior knowledge or memory. The LLMs analyzed the balance sheet and income statement without narrative context. 3/ Benchmarking:GPT-4’s performance was compared to state-of-the-art machine learning models (ML) such as artificial neural networks (ANN) and logistic regression. GPT-4's accuracy (60.31%) was comparable to ANN (60.45%), indicating that general-purpose LLMs can match specialized models. 4/ Complementarity: The study explored the complementarities between LLMs and human analysts. LLMs provided incremental insights, especially when human forecasts were prone to biases or inefficiencies. 5/ Sources of Predictive Ability:The study ruled out the possibility of LLMs' performance being due to memory by anonymizing data and testing with out-of-sample data from 2023. LLMs generated useful narrative insights based on financial ratios and trends. 6/ Confidence and Magnitude:LLMs performed better when they reported higher confidence in their predictions. Predictions of large changes were more accurate than those of small changes. 7/ Generalizability:The findings were robust across different versions of LLMs, including GPT-4 and Gemini Pro by Google, with GPT-4 showing the best performance. 8/ Economic Usefulness:Trading strategies based on GPT-4’s predictions yielded higher Sharpe ratios and alphas compared to other models, indicating significant economic value. In summary, LLMs like GPT-4 can analyze financial statements and predict future earnings with high accuracy, potentially transforming the role of financial analysts and decision-making processes in financial markets.

At Alphawatch.AI, we're committed to transforming how businesses manage knowledge and automate workflows with our AI-driven solutions. Our platform converts unstructured content into easily accessible information and has been deployed in Global 2000 companies in the financial and industrial sectors. By leveraging advanced AI, we enhance collaboration and data analysis, streamlining document workflows for enterprises ranging from a few hundred to tens of thousands of employees. Our AI products save time by automating tasks such as research and report generation, helping businesses make better decisions and improve operational efficiency. Tailored to meet the unique needs of various sectors, our tools provide real value by helping employees quickly find information and automate routine tasks, significantly boosting productivity. This allows our clients to focus more on strategic initiatives and drive growth. A key feature of our platform is its ability to use generative AI for task automation across multiple applications. This enables the creation of custom workflows and pre-built automation without extensive training, making advanced AI accessible and usable for all team members, regardless of their technical expertise. At Alphawatch.AI, we are dedicated to providing practical, innovative AI technologies that help businesses work smarter and achieve their goals more easily. We believe in the power of AI to revolutionize business processes and are proud to offer solutions that make a tangible difference in our clients' day-to-day operations.