GenAI's Act II and Vector Databases (Vol. 9)
GenAI's Act II

GenAI's Act II and Vector Databases (Vol. 9)

Sequoia’s “Generative AI’s Act II ” is like a State of the Union address for GenAI. The esteemed investor revisits past prognostications and refreshes their view of how the market will unfold.

Three ideas leap out that point to the evolution of vector databases.

Next up for GenAI: help solve human problems from end-to-end

Sequoia describes “Act I” as the technology-out wave of novelty apps—lightweight demonstrations of cool new technology.?Act II, says Sequoia, is where “GenAI will shift towards solving genuine human problems with enhanced editing interfaces, superior outputs, and more diverse needs.”

What are these genuine human problems? Their “Generative AI Market Map V3” contains 31 categories and companies:

  1. Entertainment
  2. Social
  3. Avatar Generation
  4. Education
  5. Music
  6. Medical Advice
  7. Relationships
  8. Personal Assistants
  9. Gaming
  10. Search
  11. RPA
  12. Marketing
  13. Sales
  14. Design
  15. Software Engineering
  16. Customer Support
  17. Productivity (e.g., Notion)
  18. Data Science
  19. Healthcare
  20. Legal
  21. Bio
  22. Financial Services
  23. Translation
  24. Voice
  25. General Knowledge
  26. Virtual Avatars
  27. Autonomous Agents
  28. Video Creation and Editing
  29. Browser Copilots
  30. Image Creation
  31. 3D

Explore their market map here or in the original article .

Sequoia:

Act II’s applications will spark changes in systems architecture

These applications, says Sequoia, will spark the rise of a new GenAI systems architecture, which includes the vector database and the specialization of task or domain-specific foundation models and apps.

  1. LLM Ops
  2. Observability, Monitoring, Alerting
  3. User Analytics
  4. Firewall
  5. Workflow
  6. Application Frameworks
  7. Data Management
  8. Vector Databases
  9. Model Training & Fine Tuning
  10. Data Labeling
  11. Synthetic Data
  12. GPU Supply
  13. PaaS
  14. Foundation Models: Text
  15. Foundation Models: Image
  16. Foundation Models: Video
  17. Foundation Models: Audio
  18. Foundation Models: 3D
  19. Foundation Models: Code
  20. Foundation Models: Open Source

Another Silicon Valley visionary firm, Andreessen Horowitz, pronounced vector databases “the most important piece of a generative AI architecture” (a claim that should come with the disclosure that Andreessen Horowitz has invested over $100 million in a vector database company).

Sequoia makes no such proclamation of the primacy of vector databases, but Sequoia and Andreessen Horowitz agree that vector databases play a prominent role in the Generative AI Infrastructure stack.

Sequoia and Andreessen Horowitz

Why Act II GenAI apps need a vector database

A challenge with LLMs, Andreessen Horowitz says , is that they hallucinate answers that seem confident and factually correct. For example, “Asking an LLM for the gross margin of Apple last quarter can result in a confident answer of $63 billion, which models can back up by explaining that they subtracted $25 billion in cost of goods from $95 billion in revenue. But that’s wrong in three ways,”

  • The revenue number is wrong because the LLM doesn’t have real-time data. Usually, training data is months or years old.
  • Left alone, an LLM will “guess” at data like revenue or cost of goods numbers. In this case, it took that data from another company’s financial statements.
  • Its calculation is not mathematically correct. Even a relatively simple calculation like gross margin requires carefully vetted calculations and data.

This is where vector databases come in. They help developers store relevant contextual data for LLM apps. Instead of sending unstructured documents with every API call, developers store data in a vector database and pick the most relevant and highest-quality data sources for any given query — an approach called in-context learning.

Vector databases store data in semantically meaningful embeddings, which pre-process and offload operations such as calculating gross margins to the database, which can be recombined with LLM output for confident-sounding and accurate responses.

Vector Embeddings, 101.

Vector databases also help applications access up-to-date data, potentially in real time. We’ve written about how real-time vector databases do this for “Act II” applications like:

  1. Quant Trading Strategy Ideation
  2. Clinical Trial Selection in Healthcare at Syneos
  3. GenAI and Farming
  4. Whoop AI Coach
  5. Call Center Conversational Intelligence

Vector databases complement LLMs with up-to-date, accurate, contextual insight that, combined with prompt interfaces and natural language, promise to help usher in the next act for GenAI —solving end-to-end human problems.

Read More About GenAI, Act II

Read Generative AI’s Act Two from Sequoia.

Read Emerging Architectures for LLM Applications from Andreessen Horowitz

For a detailed case study on time series vector databases in clinical trials, read Time Series Vector Databases in Healthcare case study by Syneos .

Read about vector databases and prompting in {The, Weekly, Vector} newsletter #7: The Implications of Prompt Interfaces (Vol. 7) .

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