[HN Gopher] Goldman on Generative AI: doesn't justify costs or s...
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       Goldman on Generative AI: doesn't justify costs or solve complex
       problems [pdf]
        
       Author : edzitron
       Score  : 75 points
       Date   : 2024-07-05 20:17 UTC (2 hours ago)
        
 (HTM) web link (web.archive.org)
 (TXT) w3m dump (web.archive.org)
        
       | nabla9 wrote:
       | Great report.
        
       | great_psy wrote:
       | Is there more than the cover to this ? On mobile I only see one
       | page of the PDF.
        
         | dekhn wrote:
         | Yes, here's the original URL which should download a full
         | multi-page PDF:
         | https://www.goldmansachs.com/intelligence/pages/gs-research/...
         | 
         | It's mostly speculative narrative with a fair number of data-
         | driven charts. I wouldn't spend much time on it unless you like
         | financial analysis with hand-waving.
        
         | geor9e wrote:
         | The PDF has 31 pages.
        
       | dekhn wrote:
       | Except for a short window around the release of GPT-4 (especially
       | the inflated claims around beating expert trained humans at legal
       | and math tests, as well as "replacing google"), I think people
       | have more or less right-sized their expectations for large
       | language models and generative AI. Clearly it can do interesting
       | and impressive things but it's not superintelligence, and the
       | folks predicting we're just around the corner have been
       | recognized once again as shysters, hucksters, and charlatans. It
       | doesn't help that state of the art ML researches have gotten so
       | good at over-hyping the actual abilities of their technology.
       | 
       | However, I do think we'll continue to see impressive advances in
       | the areas of media consumption and production, with complex
       | reasoning on hard problems being a likely area of improvement in
       | the near (1 decade) future. While I once never expected to see
       | something like HAL in my lifetime, I feel that many aspects of
       | HAL (voice recognition, ship automation, and chess-playing) have
       | been achieved, if not fully integrated into a single agent. We
       | can expect most applications to be banal- the giants who have the
       | largest data piles will train models that continue to optimize
       | the addictivity of social media, and click-thru rates of ads.
       | 
       | I am also quite impressed at the recall of information by
       | language models for highly factual and well-supported things
       | (computer reviews in particular).
        
         | karaterobot wrote:
         | I agree with what you say above, but my perception is that most
         | people still view the current crop of models as a step or two
         | away from superintelligence. That superintelligence, or AGI, is
         | a matter of continued improvement along the current lines,
         | rather than along entirely different lines.
        
           | torginus wrote:
           | I like to think of the 'car factory' analogy - it's populated
           | by robots that are in some respects far superior to humans,
           | and are doing 90% of the labor. Some ancient futurist, not
           | having seen one before, could correctly predict that 9 out of
           | 10 jobs will be done by robots, and arrive at the incorrect
           | conclusion that robots have rendered humans obsolete.
           | 
           | In actuality, humans are still needed for the 10% the robots
           | can't do well, or serve to enhance the productivity of
           | humans.
           | 
           | I predict AI is like this and going to be for a while - it
           | can clearly do some stuff well and sometimes better than
           | humans, but humans will have their niches for a while.
        
             | dekhn wrote:
             | I call this the "filter changing problem". No matter how
             | complex you make the technology, somebody still has to
             | change the oil filter (or do whatever other maintainence is
             | required to keep the system running). Sort of like ML-SRE,
             | for those who are familiar with the concept.
        
           | dekhn wrote:
           | I don't think we can really say what path would lead to
           | superintelligence (for whichever definition you desire) in
           | the near future. Perhaps it is technically possible to
           | achieve merely by making an embodied agent with enough
           | different tricks in a single model (which I see as a matter
           | of continued improvement along current lines), or maybe it
           | requires several new things we haven't conceived yet.
           | 
           | Personally, my area of interest is scientific discovery.
           | Could a model not dissimilar from what we have today, if
           | asked a cogent question, not answer it with an experiment
           | that could be carried out? For example, one of the most
           | important experiments, Avery-MacCleod, which proved (to the
           | extent that you can prove anything in biology) that DNA, not
           | protein, was the primary element of heredity, is not all that
           | complicated, and the mechanical details seem nearly in reach
           | of modern ML techniques. Similarly, could the ML model
           | provide a significant advance in the area of understanding
           | the molecular function in intimate detail of proteins as
           | determined by their structure (which AlphaFold does not do,
           | yet), complete with experimental instructions on how to
           | verify these hypotheses? As of this time, my review of modern
           | ML methods for science suggest we have made some advances,
           | but still have not passed the "phase transition"
           | demonstrating superscientist-level understanding of any
           | field. But perhaps it will just fall out naturally from
           | improved methods for media generation/parsing and ad
           | targeting.
           | 
           | I continue to remain hopeful that within my remaining 20-40
           | or so years (I'm a typical american male, age 51, with a
           | genome that contains no known risk factors) I will see
           | something like what Vinge describes in
           | https://edoras.sdsu.edu/~vinge/misc/singularity.html in a way
           | that is demonstrable _and_ safe, but honestly, I think it
           | could go in any number of directions from  "grim meat-hook
           | future" to "unexpected asteroid takes out human life on the
           | planet, leaving tardigrades to inherit the earth" to
           | "kardyshev-scale civilization".
        
         | aurareturn wrote:
         | I don't think anyone thought it was super intelligence.
         | 
         | I think it's impressive that we went from LLMs not being useful
         | at all to GPT3.5 shocking the world to GPT4 becoming super
         | useful for many things in around 7 months time.
         | 
         | LLM progress have slowed down a bit. But I think we're just
         | getting started. It's still really early. It's only been 1 year
         | since GPT4 came out. Even at the level of GPT4, scaling it
         | would have immense benefits. But my sense is that we'll have a
         | few more levels of great leaps in LLM capabilities that will
         | shock people in the next 3-4 years.
        
           | dekhn wrote:
           | My text written above makes it quite clear that I don't think
           | most people were saying GPT-4 was superintelligence, but the
           | implication, especially from the charlatans, was there.
           | 
           | I'm referring to the OpenAI white paper on GPT4 that shows
           | exam results. https://cdn.openai.com/papers/gpt-4.pdf figure
           | 4, and surrounding text.
           | 
           | Clearly not superintelligence, as I would define it (see my
           | other comment about scientific discovery, which I consider
           | the best test), but these are tests actual humans take, and
           | we know how most humans would score on these tests (thru some
           | amount of memorization, along with parsing word problems and
           | doing some amount of calculation). But many people who looked
           | at the testing results concluded that GPT-4 was actually a
           | reasoning agent, or that reasoning agents were just around
           | the corner.
           | 
           | The press picked up on that, and my LinkedIn stream was
           | absolutely filled with second-class influencers who thought
           | that superhuman capabilities were not far away. For a while
           | there, looking at some of the test results specifically on
           | moderately challenging math problems, I suspected that LLMs
           | had some sort of reasoning ability.
        
             | aurareturn wrote:
             | No one said it was super intelligence. I've never seen
             | anyone say that about GPT4 in the media or on Hacker
             | News/Reddit/X.
             | 
             | Yes, I'm sure if you google "GPT4 super intelligence",
             | you'll find a stupid source that says it is. But I've never
             | seen anyone reputable say it is.
        
         | Voloskaya wrote:
         | > and the folks predicting we're just around the corner have
         | been recognized once again as shysters, hucksters, and
         | charlatans
         | 
         | Why? Can you see the future? No one (serious) was claiming that
         | GPT-4 is superintelligence, it's about the rate of improvement.
         | 
         | There has only been 6 years between GPT-1 and GPT-4, and each
         | iteration brought more and more crazy emergent behaviour. We
         | still don't see any sign of the scaling laws slowing down.
         | 
         | I work in ML research, and personally don't believe ASI is just
         | around, but I talk everyday to researcher that believe so, they
         | don't say that to swindle anyone's money (they have extremely
         | well paid 9 to 5 jobs at Goog/MS/OAI, they aren't trying to
         | raise money from VCs), they only believe so due to the rate of
         | improvement.
         | 
         | Claiming, barely 18 months after GPT-4, when we haven't yet
         | seen any result from the next jump in scale, that it's all
         | baloney is a bit premature.
         | 
         | Btw in research time, 10 years from now is << around the corner
         | >>.
         | 
         | Now for the VC-chasing folks, their motivation is an entirely
         | different story.
        
           | dekhn wrote:
           | I'm pretty good at estimating the future; I started working
           | in ML around 1993 and my last work in ML was on TPU hardware
           | at Google (helping researchers solve deep problems when
           | hardware goes wonky), and a number of my ideas (like
           | AlphaFold's capabilities) were predicted by me at CASP in
           | ~2003.
           | 
           | I just continue to think that Vinge was a bit optimistic both
           | on the timeline and acceleration rate. Everybody who cares
           | about this should read
           | https://edoras.sdsu.edu/~vinge/misc/singularity.html and
           | consider whether we will reach the point where ML is actively
           | improving its own hardware (after all, we do use ML to design
           | next gen ML hardware, but with humans in the loop).
        
             | Voloskaya wrote:
             | Sure, you can think a lot of people are too optimistic (and
             | as stated in my previous post I agree with you), but
             | calling them shysters, hucksters, and charlatans implies a
             | hidden motive to lie for personal gains, which isn't there
             | (again, in the ML research side). No one working on GPT-2
             | thought it would be such a leap on GPT-1, no one working on
             | GPT-3 knew that that was the scale at which 0 shot would
             | start emerging, no one working on GPT-4 thought it was
             | going to be so good, so let's just not pretend we now what
             | GPT-5 or 6 scale model will and won't do. We just don't
             | know, we all have our guesses but that's just what it is, a
             | guess. People making a different guess might be wrong
             | ultimately, that doesn't make them charlatans.
        
         | johnthewise wrote:
         | >and the folks predicting we're just around the corner have
         | been recognized once again as shysters, hucksters, and
         | charlatans.
         | 
         | Do you think Sutskever,Hinton or Sutter are charlatans?
        
           | Bjorkbat wrote:
           | I wouldn't take it that far myself, but I'm kind of perplexed
           | by how the smartest people in the room at any given time have
           | very optimistic timelines regarding when we'll have AGI. This
           | isn't a modern phenomenon either. Both AI winters were
           | preceded by experts more-or-less claiming that AGI was right
           | around the corner.
           | 
           | It's as if the easiest people to fool are the researchers
           | themselves
        
           | dekhn wrote:
           | I think Sutskever is a charlatan outside of his area of
           | expertise, Hinton (with whom I worked loosely at Google) is a
           | bit of a charlatan (again, outside his area of expertise;
           | clearly he and LeCun both did absolutely phenomenal work) and
           | I don't know who Sutter is.
           | 
           | If I wanted to predict the next ten years, I'd bring in Demis
           | Hassabis, Noam Shazeer, and Vincent Vanhoucke, from what I've
           | read of Demis's work, and my interactions with the latter,
           | they seem to have very realistic understanding and are not
           | prone to hype (Demis being the most ambitious of the three,
           | Vincent being the one who actually cracked voice recognition,
           | and Noam because ... his brain is unmatched).
        
             | CamperBob2 wrote:
             | _I think Sutskever is a charlatan outside of his area of
             | expertise, Hinton (with whom I worked loosely at Google) is
             | a bit of a charlatan (again, outside his area of expertise;
             | clearly he and LeCun both did absolutely phenomenal work)
             | and I don 't know who Sutter is._
             | 
             | What do you think of Vizzini?
        
         | exsomet wrote:
         | I've been looking at it in the same sense as something like
         | Docker. When containers first became a big hype, everyone
         | everywhere was using them for everything, including things like
         | trying to containerize full desktop environments, which outside
         | of a couple niche businesses makes almost no sense.
         | 
         | Similar to containers, my feeling is that the truth is LLMs are
         | wildly overkill for almost everything going on today. You don't
         | need an LLM to sort some already structured data when a basic
         | python library or something will work equally fast,
         | predictably, and with less black box magic. There's probably a
         | small number of use cases that it makes sense for but for
         | everyone else it's just silly to try and force the technology.
         | It doesn't help that the people who are selling the shovels in
         | this gold rush are extremely good at extending the hype train
         | every few months, but eventually when these models stop being
         | sold at a loss and businesses have to start facing down with
         | the bill to run them and/or make these API calls, it will
         | correct itself real fast.
        
       | xmichael909 wrote:
       | This interview by Adam Conover, really is a wonderful discussion
       | on the topic https://www.youtube.com/watch?v=T8ByoAt5gCA I was
       | pretty amazed with GPT when it came up, but increasingly find it
       | makes to many mistakes. I full use it as a tool in writing code,
       | but it needs to be treated as Intellisense plus, or something to
       | that affect, not something that will handle complex tasks. GPT
       | and Claude make many mistakes and unless they can solve it from
       | completely making up stuff (which I don't think they can) will
       | not advance much more beyond waht they currently are.
        
         | pixl97 wrote:
         | I take this view, a correct one as "Thank goodness". I don't
         | think humanity is ready for a 'correct intelligence' yet,
         | especially one that if existed at the level of human
         | intelligence would likely rapidly go into the realm of
         | superintelligence. Even if it didn't get out of human control,
         | the humans that controlled said AI would gain an immense amount
         | of power which would present a great destabilization risk.
        
       | zzzbra wrote:
       | Heartbreaking: The Worst People You Know Just Made A Great Point
        
         | echelon wrote:
         | The music, film, and game industries are about to be completely
         | disrupted.
         | 
         | LLMs and AGI might be hogwash, but processing multimedia is
         | where Gen AI and especially diffusion models shine.
         | 
         | Furthermore text-to-{whatever} models might produce slop, but
         | Gen AI "exoskeletons" (spatial domain, temporal domain editors)
         | are Photoshop and Blender from next century. These turbocharge
         | creatives.
         | 
         | Hearing and vision are simple operations relative to reasoning.
         | They're naturally occurring physical signals that the animal
         | kingdom has evolved, on several different occasions, to
         | process. This is likely why they're such a low hanging fruit to
         | replicate with Gen AI.
        
           | beachandbytes wrote:
           | Id agree with you on the creative industry, but disagree that
           | that the generative AI's aren't going to do the same to just
           | about every other industry. We were at a point where we had
           | extremely specialized models that were useful, and now we
           | have general models that are EXTREMELY useful in almost all
           | contexts. Text, Audio, Video, Data Processing, etc. At least
           | in my eyes we are at the same point with LLMs as we were with
           | computing when you had a large part of the population that
           | was just "not into them". As if it was like choosing any
           | other hobby. I'm sure tons of people aren't getting much
           | utility out of the space now, but it's not because the
           | utility isn't there.
        
       | weweweoo wrote:
       | Generative AI appears fantastic aid for many smaller tasks where
       | there's enough training data, and correctness of the answer is
       | subjective (like art), or easily verifiable by a human in the
       | loop (small snippets of code, checking that summary of an article
       | matches the contents of the original). Generally it helps with
       | the tedious parts, but not with the hard parts of my job.
       | 
       | I don't have much belief in fully autonomous generative AI agents
       | performing more complex tasks any time soon. It's a significant
       | productivity boost for some jobs, but not a total replacement for
       | humans who do more than read from a script, or write clickbait
       | articles for media.
        
         | harrisoned wrote:
         | I agree with that. At work, we are about to implement a decent
         | LLM and ditch Dialogflow for our chatbot. But not to talk
         | directly to the client (it's asking for a disaster), just to
         | recognize intentions, pretty much like Dialogflow but better.
         | 
         | Right now there are many small but decent models available for
         | free, and cheap to use. If it wasn't for the hype, it would
         | never have reached that level of optimization. Now we can make
         | decent home assistants, text parsers and a bunch of other stuff
         | you already mentioned.
         | 
         | But someone paid for that. The companies who believed this
         | would be revolutionary will eventually have a really hard
         | reality check. Not that they won't try and use it for critical
         | stuff, but once they do and it fails spectacularly they will
         | realize a lot of money went down the drain.
        
           | elforce002 wrote:
           | And we'll thank them for their service.
        
       | ChrisArchitect wrote:
       | [dupe]
       | 
       | Please don't post wayback links unnecessarily. Content still
       | fresh and available.
       | 
       | Discussion here: https://news.ycombinator.com/item?id=40856329
        
       | anu7df wrote:
       | The only question I have is whether Goldman is shorting NVIDIA..
        
         | random3 wrote:
         | Ha! +1
         | 
         | Although, I'd be shorting 80% of everyone else _spending_ money
         | with NVidia without a clear path to recover. However, given
         | that most are (likely?) not listed, there isn 't that much to
         | short?
        
       | russellbeattie wrote:
       | Pretty sure I read that Goldman itself is currently creating its
       | own internal models using its proprietary data to help its
       | analysts, IT and investors.
        
       | cpursley wrote:
       | Ironically, AI still sucks at accurately parsing PDFs.
        
       | bluelightning2k wrote:
       | There is a paradox. To build the future requires irrational
       | belief. And to sell that vision.
       | 
       | Perhaps the difference between insanity and visionary, "scam" and
       | genius is simply the outcome.
       | 
       | When someone like Sam Altman declares optimistically that we will
       | get AGI and talks about what kind of society we will need to
       | build... It's kind of hard to tell what mix of those 4 is at
       | work. But certainly it will be perceived differently based upon
       | the outcome not the sincerity of the effort.
        
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