Building With AI

Identifying high-value use cases for AI | Tomasz Tunguz (Founder of Theory Ventures)

Jun 26, 2024

Guest Tomasz Tunguz, a VC with AI expertise, delves into AI's evolution, modern data stacks, human evaluations, and high-value use cases. Topics also cover AI disrupting industries, advice for incumbents and startups, successful distribution strategies like Midjourney's on Discord, and the future of AI in non-determinism and professional relationships.

48:22

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Episode guests

Tomasz Tunguz

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Quick takeaways

Identifying high-value AI use cases is crucial for business success.

Effective evaluation methods are pivotal in AI model development.

Aligning AI with traditional engineering teams is vital for system evolution.

Deep dives

Evolution of AI and Vendor Lock-In

AI innovations provide infinite outcomes for consumers, ensuring zero cost if incorrect. However, the risk lies in potential vendor lock-in within industries. To counter this, highlighting unique intellectual property and competitive advantages is critical in product promotion.

Evaluating System Performance - Search Engine Quality Analogy

01:20

Value of Automation, Accuracy, and Rote-toil in Applications

01:20

Unlocking Value with Modest AI Products

01:26

Controlling Error Rates in Large Language Models

01:38

Intro

2min

Challenges and Opportunities in AI Development

24min

Competitive Advantage in AI Landscape

10min

Analyzing Success in AI Distribution Strategy

2min

AI Evolution and Productivity in Sales Processes

7min

Strategies for Staying Informed on AI Developments and Using Large Language Models

2min

In this episode of Building With AI, host Haroon Choudery sits with Tomasz Tunguz, Founder and General Partner at Theory Ventures. Tomasz brings a valuable 10,000-foot view of the AI space, drawing from his 16 years of experience as a VC and previous work building machine learning systems at Google.

During the episode, Tomasz discusses:

The modern data stack for LLMs,
The significance of human evaluations,
How to Identify high-value use cases for businesses,
Midjourney's successful distribution strategy,
And much more!

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[00:00] Up next:

[00:57] Episode introduction

[01:59] Autoblocks: AI Optimization Platform

[02:24] Tomasz's introduction

[03:47] The two waves of AI

[06:09] The modern data stack for LLMs

[11:27] The golden set of evaluations

[15:39] Why you need human evaluations

[17:27] Don't write off LLMs

[21:04] Identifying high-value AI use cases for your business

[25:30] The top industries LLMs will disrupt

[26:52] Advice for incumbents to win the AI race

[33:05] Advice for AI startups to disrupt industries

[34:31] The innovation equation

[37:16] Midjourney's successful distribution strategy

[39:15] Will AI move beyond non-determinism?

[43:21] The future relationship between AI and professionals

[48:05] How to keep up with AI developments

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Brought to you by Autoblocks (https://www.autoblocks.ai/) — how product teams deliver better AI experiences.

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Building with AI is a weekly podcast featuring conversations with top AI product builders and leaders. Through thoughtful dialogue, host Haroon Choudery (Co-founder of Autoblocks) uncovers tactical insights that help listeners build & scale world-class AI products.

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