Are model improvements or product optimization more important?

Nathan probes model vs product gains; Fergal explains most resolution gains came from RAG-layer work and custom components, not base models.

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Today Eoghan McCabe and Fergal Reid of Intercom join The Cognitive Revolution to discuss building their AI customer service agent Fin, exploring how they achieved a 65% resolution rate through rigorous optimization and custom model training rather than relying on base model improvements, while pioneering outcome-based pricing at $0.99 per resolution.

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Sponsors:

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CHAPTERS:

(00:00) About the Episode

(03:43) Keeping Up With AI

(09:56) Evaluating Models and Evals

(13:04) Incumbents vs. Startups

(18:54) Product Risk and Judgment (Part 1)

(19:00) Sponsors: Linear | AGNTCY

(21:34) Product Risk and Judgment (Part 2)

(23:42) The Klarna Layoff Story (Part 1)

(32:11) Sponsors: Claude | Shopify