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Large Language Models and their benefits

Andrés Meza Escallón Head of AI at Grydd, Inc.

Systems Engineer/CS and Master in Communication
with 30 years of experience leading web software development and applying machine learning/AI
to drive innovation, leveraging diverse technologies
and clear communication across technical
and non-technical audiences.
At this point, you are most likely familiar with tools such as Google’s Gemini or OpenAI’s ChatGPT, the most visible examples of Generative Artificial Intelligence (GenAI). What is less likely is that you know how GenAI tools can help your supply chain, but do not worry, we’ve got your back.

What are LLMs and how do they work?

Behind Generative AI such as Gemini, ChatGPT, or Microsoft’s Copilot, there is a machine categorized as a Large Language Model (LLM). This means that the machine has built a model pre-trained using datasets containing billions of words based on a wide range of texts such as documents, books, articles, or websites. This vast wealth of information allows the LLM to determine how statistically likely it is that two words are used together in the same context and in a particular order. This is similar to how the autocomplete feature on your phone predicts the next word when you are typing a message, except that these LLMs take that capability to the next level due to their advanced design and sheer amount of data behind their training.

Despite this is a technology that is still in its early steps, the performance and capabilities of the most powerful LLMs have the potential to improve with each new version. OpenAI’s GPT 4o will make room to GPT 5 and even Meta’s powerful open-source model Llama 3.1, trained with 405 billions of parameters, eventually will be replaced by a more advanced version.

These models can benefit the users directly through user friendly interfaces such as ChatGPT, but the biggest potential is on integrating them into AI solutions where, for a specific use case, a software can take advantage of the natural language capabilities of these models under the hood.

For a real-world case, let’s look at Amazon. When their customers write a complaint about product defects or delivery delays, a system based on a LLM analyzes hundreds of those complaints to identify patterns. If the model identifies an unusual spike of complaints related to a particular fulfillment center or a supplier, the system alerts Amazon’s procurement team, which can investigate the cause and take action with the supplier.

Benefits of LLMs

  • Enhanced Efficiency: LLMs can quickly process and understand vast amounts of text data, helping to automate repetitive tasks and freeing up humans to focus on more complex tasks.

  • Contextual Understanding: They grasp the context, syntax, and semantics of language, enabling them to generate coherent and relevant responses.

  • Cost-Effective Solutions: By leveraging pre-trained models, businesses can implement advanced AI solutions without the need for extensive custom training, reducing costs and time to deployment.

  • Despite all these benefits, the LLMs behind Generative AI have limitations to make informed decisions beyond the data with which they have been trained. However, these limitations can be addressed with techniques such as Retrieval Augmented Generation or Fine-Tuning, which we discuss in future posts.

    Conclusion

    LLMs represent a significant advancement in the field of artificial intelligence. Their ability to understand and generate human-like text opens up numerous possibilities for businesses, particularly in the supply chain sector. By integrating LLMs into your operations, you can achieve greater efficiency, enhanced customer service, and cost savings. Here at Grydd, we recognize the potential of these technologies and are committed to helping you harness their power to benefit your supply chain operations.