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Experimenting with AI - The Arato Way

How to structure AI development using experimentation.

Updated over 4 months ago

GenAI requires a unique approach to development—one that balances business goals with continuous learning. Here's how to structure your GenAI initiatives for success:

The Business-Driven Experimentation Process

  • Define Success: Start with clear business objectives—whether that's reducing customer service response time by 40%, improving accuracy of bot responses, or increasing sales conversion rates. Document both your quantitative targets and qualitative success criteria.

  • Hypothesize: Form specific predictions about improving your GenAI solution. Examples: 'Switching to a more advanced model will reduce hallucinations by 40%', 'Using RAG will improve accuracy from 70% to 95%', 'Implementing chain-of-thought prompting will boost reasoning accuracy by 30%'.

  • Experiment: Run controlled tests across different models:

    • Test the effectiveness of changes to your prompts

    • Compare various AI models and vendors to find the best fit

    • Experiment with different types of input data and formats

    • Use evaluation frameworks (Evals) to systematically assess performance

    • Document all variations and their outcomes systematically

  • Analyze: Evaluate results against your business metrics. Look at both the numbers (like accuracy rates or time saved) and qualitative feedback from users or stakeholders.

  • Iterate: Use your findings to refine the approach. This might mean adjusting prompts, changing model parameters, or even revising your initial assumptions.

  • Validate: Before full deployment, test your improved solution with a small user group. Monitor real-world impact and gather feedback before scaling up.

This systematic approach ensures that your GenAI initiatives remain grounded in business objectives while providing a clear framework for improvement and scaling. Each cycle of experimentation brings you closer to optimal business results.

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