The new GLM by Contextual AI is here to outperform GPT-4o in terms of accuracy.
The new GLM by Contextual AI is here to outperform GPT-4o in terms of accuracy.

The new GLM by Contextual AI is here to outperform GPT-4o in terms of accuracy.

Talking of artificial intelligence terrain today, a new player has emerged with a bold claim: to deliver the most accurate and reliable AI model for enterprise applications. Contextual AI, a startup founded by the pioneers of retrieval-augmented generation (RAG) technology, has unveiled its Grounded Language Model (GLM), positioning it as a game-changer for businesses seeking unparalleled precision in their AI-driven operations.

The Rise of Grounded AI Models: A New Era for Enterprise Intelligence

As businesses increasingly rely on AI to drive decision-making, streamline operations, and enhance customer experiences, the demand for accuracy and reliability has never been higher. Traditional language models, while impressive in their general capabilities, often fall short when it comes to handling precision-critical tasks in enterprise environments.

Enter Contextual AI's Grounded Language Model (GLM), a solution tailored specifically for enterprise needs. By focusing on "groundedness" – the ability to generate responses strictly based on provided information – the GLM aims to address the critical challenges that have hindered widespread adoption of AI in high-stakes business scenarios.

Contextual AI: Pioneering a New Approach to Enterprise AI

A Vision Rooted in Expertise

Contextual AI wasn't born in a vacuum. Its founding team brings with them a wealth of experience in the field of AI, particularly in the development of retrieval-augmented generation (RAG) technology. This expertise has been instrumental in shaping the GLM and its underlying architecture.

Douwe Kiela, CEO and co-founder of Contextual AI, explains the company's mission: "We're not trying to build a general-purpose AI that can do everything. Our focus is on creating a model that excels at what businesses need most – accuracy, reliability, and transparency."

Tackling the Hallucination Problem Head-On

One of the most significant challenges in deploying AI for enterprise use has been the issue of "hallucinations" – instances where AI models generate plausible-sounding but factually incorrect information. For businesses operating in regulated industries or dealing with sensitive data, these inaccuracies can have serious consequences.

Contextual AI has made it their mission to address this problem at its root. By developing a model that prioritizes groundedness above all else, they aim to provide a solution that businesses can trust implicitly, even in the most critical applications.

Groundedness: The Core Pillar of GLM's Success

What is Groundedness in AI?

Groundedness refers to the degree to which an AI model's outputs are directly supported by and accurately reflect the information it has been provided. In simpler terms, a grounded model sticks to the facts it's given, rather than drawing on broader knowledge or making assumptions.

For enterprise applications, this characteristic is crucial. Whether it's answering customer queries, analyzing financial data, or assisting with technical troubleshooting, businesses need AI that they can trust to provide accurate, verifiable information.

How GLM Ensures Groundedness

The GLM achieves its high level of groundedness through a combination of innovative techniques:

  1. Strict Adherence to Retrieved Knowledge: Unlike general-purpose models that might blend pre-trained knowledge with provided information, the GLM prioritizes the data it's given for each specific task.
  2. Contextual Understanding: The model is designed to understand the nuances of the information it's working with, including any limitations or caveats.
  3. Explicit Uncertainty Handling: When faced with ambiguous or incomplete information, the GLM is trained to acknowledge its uncertainty rather than making assumptions.

The Groundedness Advantage Over General-Purpose Models

While models like GPT-4o excel at a wide range of tasks, their very versatility can be a drawback in enterprise settings. The GLM's laser focus on groundedness gives it a significant edge in scenarios where accuracy is non-negotiable.

Kiela illustrates this with an example: "If you give a recipe to a standard language model and mention 'this is only true for most cases,' many models will ignore that caveat. Our GLM, on the other hand, will explicitly acknowledge the limitation, ensuring that users have a complete and accurate understanding of the information."

The FACTS Benchmark: Putting Accuracy to the Test


The new GLM by Contextual AI is here to outperform GPT-4o in terms of accuracy.

Understanding the FACTS Benchmark

The Faithfulness and Consistency Test Set (FACTS) has emerged as a critical metric for evaluating the factual accuracy of AI models. It assesses a model's ability to generate responses that are both faithful to provided information and consistent across different phrasings of the same query.

GLM's Impressive Performance

In a head-to-head comparison on the FACTS benchmark, Contextual AI's GLM achieved a factuality score of 88%, outperforming some of the most advanced models in the industry:

  • GLM: 88%
  • Google's Gemini 2.0 Flash: 84.6%
  • Anthropic's Claude 3.5 Sonnet: 79.4%
  • OpenAI's GPT-4o: 78.8%

These results represent a significant leap forward in AI accuracy, particularly for enterprise applications where even small improvements in factuality can have outsized impacts.

The Importance of Benchmark Performance for Enterprise Adoption

For businesses considering AI adoption, benchmark performance isn't just about bragging rights – it's a critical factor in assessing potential ROI and risk. The GLM's superior performance on FACTS signals to enterprises that they can deploy this model with greater confidence, potentially accelerating AI adoption in sectors that have been hesitant due to accuracy concerns.

Breaking the Cycle of Hallucination in AI

The Hallucination Problem Defined

AI hallucinations occur when a model generates information that seems plausible but is not actually supported by the data it has been given. This can happen for various reasons, including:

  • Over-reliance on pre-trained knowledge
  • Misinterpretation of context
  • Attempts to "fill in the gaps" when information is incomplete

For enterprises, these hallucinations can lead to misinformed decisions, incorrect customer communications, or even compliance violations.

Why General-Purpose Models Struggle with Hallucinations

General-purpose AI models are trained on vast amounts of data to handle a wide variety of tasks. While this broad knowledge base is impressive, it can actually be a liability in situations that require strict adherence to specific, provided information.

These models often prioritize generating a coherent and seemingly knowledgeable response over strictly adhering to the information they've been given for a particular task. This can lead to the model "confidently" stating incorrect information based on its pre-trained knowledge rather than the actual data at hand.

GLM's Approach to Minimizing Hallucinations

Contextual AI has designed the GLM with a fundamentally different approach:

  1. Information Prioritization: The GLM is trained to always prioritize the specific information it's given for a task over any pre-existing knowledge.
  2. Explicit Source Attribution: The model is designed to clearly indicate the sources of its information, making it easier to verify and trace its outputs.
  3. Uncertainty Signaling: When the GLM encounters a query it can't confidently answer based on the provided information, it's trained to explicitly state its uncertainty rather than making a guess.
  4. Contextual Awareness: The model is designed to understand and respect the limitations and nuances of the information it's working with.

By implementing these strategies, the GLM significantly reduces the risk of hallucinations, making it a more reliable choice for enterprise applications where accuracy is paramount.

Inline Attributions: Building Trust Through Transparency

The Power of Visible Sources

One of the GLM's most innovative features is its ability to provide inline attributions – citing sources directly within its generated responses. This level of transparency is a game-changer for enterprises that need to trace and verify every piece of information their AI systems produce.

How Inline Attributions Work

As the GLM generates a response, it doesn't just pull information from its training data or the provided context. Instead, it actively links each piece of information to its source, embedding these citations seamlessly into the text.

For example, when answering a query about a company's refund policy, the GLM might respond:

"According to the company's Terms of Service [Source: TOS_2023.pdf], refunds are available within 30 days of purchase for unused services. However, the Holiday Promotion Guidelines [Source: Holiday_Promo_2023.docx] specify an extended 60-day refund period for purchases made between November 15 and December 31."

The Trust Factor in Regulated Industries

For industries like finance, healthcare, and legal services, where every piece of information can have significant consequences, this level of attribution is invaluable. It allows for:

  • Rapid fact-checking and verification
  • Clear audit trails for compliance purposes
  • Increased confidence in AI-generated outputs

By providing this level of transparency, the GLM helps bridge the gap between the efficiency of AI and the stringent requirements of highly regulated industries.

RAG 2.0: A Revolution in Information Retrieval

The Evolution of Retrieval-Augmented Generation

Retrieval-Augmented Generation (RAG) has been a significant advancement in AI, allowing models to supplement their training data with external information sources. However, traditional RAG systems often suffer from a lack of integration between their components.

Contextual AI's RAG 2.0 Approach

Contextual AI has developed what they call "RAG 2.0," a more holistic and integrated approach to information retrieval and generation. This system includes:

  1. Intelligent Retrieval: Instead of using a one-size-fits-all approach to retrieving information, the system analyzes the query and context to determine the best retrieval strategy.
  2. Advanced Re-ranking: Once information is retrieved, a sophisticated re-ranking system prioritizes the most relevant and reliable sources.
  3. Integrated Generation: The GLM doesn't just receive a dump of retrieved information. Instead, it's deeply integrated with the retrieval process, allowing for more nuanced use of the retrieved data.
  4. Joint Optimization: Perhaps most importantly, all of these components are optimized together, creating a more cohesive and effective system.

The Benefits of an Integrated Approach

By taking this integrated approach, Contextual AI's RAG 2.0 system offers several advantages:

  • Improved Relevance: The system is better able to identify and prioritize the most pertinent information for each query.
  • Enhanced Accuracy: With tighter integration between retrieval and generation, the chances of misinterpretation or hallucination are reduced.
  • Greater Efficiency: The optimized system can often provide accurate responses with less computational overhead.

This advancement in RAG technology is a key factor in the GLM's superior performance, particularly in enterprise settings where the ability to quickly and accurately retrieve and synthesize information from vast databases is crucial.

GLM's Multimodal Capabilities: Beyond Plain Text

Expanding the Definition of "Information"

While many AI models focus primarily on text, the reality of enterprise data is far more complex. Recognizing this, Contextual AI has expanded the GLM's capabilities to handle a variety of data types:

  • Charts and Graphs: The GLM can interpret and explain visual data representations.
  • Tables: Structured data in tabular format can be analyzed and summarized.
  • Structured Databases: Direct integration with popular database systems allows for real-time data access and analysis.

Platform Compatibility

The GLM's multimodal capabilities extend to integration with widely-used enterprise data platforms:

  • Snowflake
  • BigQuery
  • Postgres
  • Redshift

This compatibility ensures that enterprises can leverage the GLM's capabilities without significant changes to their existing data infrastructure.

The Power of Multimodal Understanding

By combining these diverse data types, the GLM can provide more comprehensive and nuanced insights. For instance, it might analyze a sales report by:

  1. Reading the textual executive summary
  2. Interpreting trend graphs
  3. Analyzing detailed sales figures from a database

This holistic approach allows for more accurate and insightful responses, particularly in complex business scenarios where decisions often rely on multiple data sources.

Enterprise Applications of the GLM

Finance: Precision in a High-Stakes Environment

In the financial sector, where a single misinterpreted number can lead to significant losses, the GLM's accuracy and groundedness are particularly valuable. Potential applications include:

  • Regulatory Compliance: Analyzing complex financial regulations and ensuring adherence in operations.
  • Risk Assessment: Evaluating potential investments or loans by synthesizing various data sources.
  • Fraud Detection: Identifying unusual patterns in transaction data that may indicate fraudulent activity.

Healthcare: Ensuring Patient Safety and Regulatory Compliance

The healthcare industry's stringent requirements for accuracy and data privacy make it an ideal fit for the GLM:

  • Clinical Decision Support: Providing doctors with relevant patient information and treatment guidelines.
  • Drug Interaction Checks: Analyzing medication lists to identify potential conflicts.
  • Research Synthesis: Compiling and summarizing findings from multiple medical studies.

Telecommunications: Managing Complex Networks and Customer Support

Telecom companies deal with vast amounts of technical and customer data, areas where the GLM can provide significant value:

  • Network Troubleshooting: Analyzing network logs and performance data to identify and resolve issues.
  • Customer Support: Providing accurate, up-to-date information to support representatives or directly to customers through chatbots.
  • Service Optimization: Analyzing usage patterns and network data to suggest improvements or new service offerings.

Adapting to Enterprise Complexity

What sets the GLM apart in these enterprise applications is its ability to handle the complexity and "noise" often present in real-world business data. Unlike controlled research environments, enterprise data is often:

  • Incomplete
  • Inconsistent
  • Spread across multiple systems
  • Subject to rapid change

The GLM's design allows it to navigate these challenges, providing reliable insights even in less-than-ideal data environments.

Avoiding Commentary: Precision Over Conversation

The avoid_commentary Flag: A Tool for Control

One of the GLM's unique features is the avoid_commentary flag, which allows users to control the level of additional information or context provided in responses.

Balancing Precision and Context

While commentary can sometimes provide helpful context, in many enterprise scenarios, strict adherence to provided facts is crucial. The avoid_commentary flag gives users the flexibility to choose between:

  1. Strict Factual Responses: When enabled, the GLM provides only information directly supported by the given sources.
  2. Contextual Responses: When disabled, the model may provide additional context or explanations to enhance understanding.

Use Cases for Avoiding Commentary

Several scenarios benefit from the ability to suppress additional commentary:

  • Legal Document Analysis: When reviewing contracts or legal filings, extraneous commentary could lead to misinterpretation.
  • Financial Reporting: In preparing financial statements, adhering strictly to the numbers and official guidance is often necessary.
  • Technical Documentation: When creating or referencing technical specifications, additional commentary might introduce ambiguity.

By providing this level of control, the GLM allows enterprises to fine-tune its outputs for their specific needs and use cases.

The GLM's Accessibility and Scalability

Getting Started with GLM

Contextual AI has designed the GLM to be accessible to a wide range of users, from individual developers to large enterprises:

  1. Free Tier for Exploration: New users can access 1 million input and output tokens for free, allowing for thorough testing and experimentation.
  2. Simple API Integration: The /generate standalone API provides a straightforward way to incorporate the GLM into existing workflows.
  3. Comprehensive Documentation: Detailed guides and code examples are available for various integration methods, including SDKs and LangChain packages.

Scaling to Enterprise Needs

As organizations grow their use of the GLM, Contextual AI offers flexible options to scale:

  • Custom Rate Limits: Enterprises can request increased throughput to handle high-volume applications.
  • Tailored Pricing Models: As usage grows beyond the free tier, custom pricing plans are available to suit different business needs.
  • Enterprise Support: Larger deployments can benefit from dedicated support and optimization services.

Integration Options

The GLM can be integrated into existing systems through multiple methods:

  • RESTful API: For straightforward, language-agnostic integration.
  • Python SDK: Offering deeper integration for Python-based applications.
  • LangChain Package: Allowing for easy incorporation into LangChain-based AI workflows.

This flexibility ensures that organizations can adopt the GLM in a way that best fits their existing technology stack and development practices.

Redefining RAG and Agentic Workflows

Transforming Existing RAG Systems

For organizations already using RAG systems, the GLM offers significant improvements:

  • Enhanced Precision: By prioritizing groundedness, the GLM reduces the risk of hallucinations common in traditional RAG setups.
  • Improved Efficiency: The integrated RAG 2.0 approach often requires less computational resources for similar or better results.
  • Greater Transparency: Inline attributions provide clear traceability, a feature often lacking in conventional RAG implementations.

The Contextual AI Platform Advantage

While the GLM itself offers substantial benefits, Contextual AI's full platform provides even greater capabilities:

  • End-to-End Optimization: By controlling the entire pipeline from document understanding to generation, the platform can achieve levels of performance not possible with piecemeal solutions.
  • Customization Options: The platform allows for fine-tuning of various components to suit specific enterprise needs.
  • Unified Analytics: Comprehensive logging and analysis tools provide insights across the entire RAG process.

Rethinking Agentic AI for Enterprise

The GLM's focus on groundedness also has implications for agentic AI systems – AI that can take actions or make decisions:

  • Reliable Decision-Making: By basing decisions strictly on provided information, agentic systems using the GLM can operate with greater confidence and accountability.
  • Explainable Actions: The inline attribution feature allows for clear tracing of why an AI agent took a particular action.
  • Reduced Risk: The GLM's ability to express uncertainty and stick to given facts reduces the risk of AI agents making unfounded or harmful decisions.

Pioneering a New Standard in AI Accuracy

Setting the Bar for Enterprise AI

With its impressive performance on the FACTS benchmark and its focus on groundedness, the GLM is setting a new standard for what enterprises should expect from their AI systems:

  • Verifiable Accuracy: Results that can be traced back to specific sources.
  • Contextual Understanding: The ability to grasp nuances and limitations in provided information.
  • Transparent Uncertainty: Clear indications when information is incomplete or ambiguous.

Implications for the Broader AI Landscape

The GLM's success could have far-reaching effects on the AI industry:

  • Increased Focus on Specialization: We may see more AI models designed for specific use cases rather than general-purpose applications.
  • Emphasis on Benchmarking: The importance of standardized tests like FACTS may grow, driving competition in accuracy and reliability.
  • New Development Paradigms: The RAG 2.0 approach could influence how future AI systems are designed and optimized.

The Future of Enterprise AI Adoption

As models like the GLM demonstrate the possibility of highly accurate, reliable AI, we may see accelerated adoption in industries that have been hesitant due to concerns about AI reliability:

  • Regulated Industries: Financial services, healthcare, and legal sectors may become more open to AI-driven solutions.
  • High-Stakes Decision Making: Areas like strategic planning and risk assessment could see increased AI integration.
  • Public Sector Applications: Government agencies might become more willing to adopt AI for sensitive tasks.

How to Get Started with GLM

Free Access for Developers

Contextual AI is offering an accessible entry point for developers interested in exploring the GLM's capabilities:

  1. Free Token Allowance: The first 1 million input and output tokens are provided at no cost, allowing for substantial experimentation and testing.
  2. Generate Standalone API: This straightforward API provides an easy way to start integrating GLM into your projects.
  3. Comprehensive Documentation: Detailed guides and code examples are available to help you get up and running quickly.

Enterprise-Grade Solutions

For organizations looking to deploy GLM at scale:

  1. Custom Pricing and Rate Limits: Tailored solutions are available to meet the needs of larger-scale applications.
  2. Integration Support: Contextual AI offers assistance in integrating GLM into existing enterprise workflows.
  3. Full Platform Access: For those looking to optimize their entire RAG pipeline, the complete Contextual AI platform offers additional benefits and customization options.

Conclusion: The Future of Enterprise AI

As we look to the future of AI in business, the introduction of models like Contextual AI's GLM marks a significant milestone. By prioritizing accuracy, transparency, and reliability, the GLM addresses many of the key concerns that have held back AI adoption in critical enterprise applications.

The GLM's strengths – its unparalleled groundedness, innovative inline attributions, and flexibility across various data types – position it as a powerful tool for businesses seeking to leverage AI without compromising on precision or accountability.

As AI continues to evolve, the standards set by models like the GLM will likely shape the expectations and requirements for enterprise AI systems. We may be entering an era where AI's role in business is not just about automation and efficiency, but about providing a level of accuracy and insight that was previously unattainable.

For businesses looking to stay at the forefront of this AI revolution, exploring and adopting technologies like the GLM could be a crucial step. The potential for improved decision-making, enhanced compliance, and innovative new applications is immense.

To experience the power of grounded AI for yourself and see how it can transform your enterprise operations, visit Contextual AI's website to get started with the GLM today. The future of precise, reliable, and transparent AI is here – it's time to embrace it.

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