Vertical AI can show the return on every token

Transcript

Transcribed by machine (Whisper) from the episode’s audio, so a word may be off here and there.

1. 30:04

   How do you compete with those large models that are offering competitive services? Like what is the thing about Harvey that you cannot copy? Yeah, I mean, the best way I think about this is like there's the product side and then there's the intelligence or model side. And you could say on the product side, it's like the harness side. I think that's like conflating things a little bit too much. on the product side you just go very vertical right so you build solutions that are really good at like diligence in a particular space like all of those things and i think it's gonna be hard for the labs to get to that level of specificity on the product side on the model side you actually do a similar thing which is you basically build a bunch of models that are really good at specific legal tasks and then you optimize them for cost right like there's a world in which gpd 10 is

2. 30:52

   more expensive than a lawyer there's a that's like a very possible world right and so where we have is basically you can think of like the frontier models here commoditized models here I think a lot of the economy is actually in between these things right because the frontier model might be like too expensive to basically put in terms of every single piece of work and so you have this massive space that is like all these vertical companies in terms of other competitors lagora is fast moving behind you how do you think about i mean you are global from the beginning but they are dominating europe so how do you close that gap yeah i mean i would say in europe i think our win rate is like over 70 um so i don't think it's as much dominant there to be honest i think like our main competitor is the labs i mean you saw clock for legal um there's

3. 31:42

   a rumor that like codex for legal right i think that the reality is like the labs have an incredible amount of resources right and so it is a race for how quickly can we build the best product that is verticalized and then how do we build the best vertical models right and I really do think at the end of the day it is a race against the labs and I think Every single company on earth is competing against them.

4. 32:02

   Do you think they're going to start acquiring? Like in legal specifically? I think that they will start acquiring in any space where they see a significant amount of traction. Have they tried to acquire you? One thing that I think is crazy. I'm not going to answer that. One thing that I think is that people forget about is the more success that any of these verticals have they'll just keep entering them again and they'll re-enter them and so i think like people you know clock for legal came out recently and i think a lot of people were like oh okay well it was this release and now that's kind of it or whatever the better we do the better other companies do the more the labs will be like oh okay we're gonna put more resources into that and so it's not like a one and done thing it is like a constant competition what do you think

5. 32:51

   the biggest question right now is that people are not asking by far i think the biggest thing that people are not paying attention to is what i was talking about earlier which is do you need frontier intelligence for every single task i mean this is the best example of this is like what happened with uber recently right and it's like we are going to get to this point this is actually a weird situation where um i'm sure you know what the billable hour is because people like talk about that a lot right yeah weirdly the billable hour problem is the same problem that i think the entire world is about to run into like the billable hour for for those that don't know what it is. It basically is when you get a bill from a law firm, it says in six minute increments what people did and then the hourly rate or the six minute increment for that task,

6. 33:38

   right? Why do they do that? It is because they're trying to show ROI. They're like, hey, your legal bill is a hundred grand. We're going to break it down into six minute increments, right? This is kind of like the main problem that I think the entire world is about to hit, which is I just spent a billion dollars on tokens where's my ROI right and I actually think that like there aren't enough companies that I know of that are starting to think about how do I actually show ROI in every single vertical use of these things and I think that vertical companies are gonna have a huge advantage here where you can start to get to the point where you basically can show every single token and what the ROI was of that token for your particular task in vertical so before we started