According to S&P Global, 2024 will be the year of AI 'app-makers.' Foundation models like large language models (LLMs) have dominated recent discussions. But, now investors are increasingly focused on companies developing AI applications that deliver tangible benefits for specific use cases. In fact, according to data from S&P Global Market Intelligence and 451 Research, AI companies without their own foundation models attracted more than twice as much investment in the first quarter of 2024, compared to the same period last year.
One of the most exciting promises of AI is it’s ability to save workers time. But, for AI to make a meaningful impact, businesses need AI tools that are tailored to specific industries or job roles. At the same time, these tools must be trustworthy and reliable. Yet, while AI chatbots built on LLMs can communicate well and offer general advice, they often lack the specialized knowledge or tools required. This makes them susceptible to inaccuracies or hallucinations due to their broad range of training data. This is where more targeted tools, fine-tuned for their specific use cases, are more likely to provide reliable and accurate outputs.
