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Understanding SAS’s Stance on Generative AI
At the recent SAS Innovate 2025, held over three enlightening days, a significant undercurrent evolved through keynotes and discussions: the clear repudiation of generative AI hype. SAS, renowned for its data analytics prowess, highlighted the importance of grounding technology usage in sound data fundamentals rather than getting swept away by the allure of generative AI. This skepticism was echoed by several key figures within the company, marking a critical moment for business leaders evaluating their technology strategies.
The Limitations of Generative AI
Generative AI has emerged often in the business narrative, hailed as a transformative force. However, SAS made it clear that this technology is not a panacea for all enterprise challenges. Bryan Harris, SAS’s CTO, humorously pointed out the unrealistic expectation that generative AI could make complex problems "magically disappear." He emphasized the limitations inherent in large language models (LLMs), including instances of inaccuracies or biases, often termed ‘hallucinations’ in the realm of AI.
Domain-Specific AI: A Pragmatic Approach
SAS's strategy revolves around leveraging domain-specific models tailored to industry needs. The ambition is to create effective, easy-to-adopt AI solutions that deliver tangible benefits. The launch of SAS Viya Intelligent Decisioning, which facilitates the creation of custom AI agents, reinforces their commitment to not only developing advanced technologies but also ensuring these innovations are accessible and practical for businesses.
The Cautionary Tale of Generative AI Investments
Jim Goodnight, co-founder and CEO of SAS, articulated a cautionary perspective regarding investments in generative AI. He's noted that there is an alarming trend where companies are funneling excessive resources into generative AI without a clear understanding of its applicability, often resulting in disappointment and wasted funds. Gavin Day, SAS’s newly appointed COO, further labeled this phenomenon as a potential "summer of disappointment" for companies expecting rapid returns on their AI investments.
Harnessing AI Wisely: A Balanced Perspective
While tending to the critique of generative AI hype, SAS acknowledged the value of these technologies in generating code from natural language prompts in SAS programming. The generated code, while akin to that produced by a novice, managed to maintain a commendable accuracy of 80-90%. This realism in expectations represents SAS’s focus on practical usage rather than blind optimism.
The Future of AI in Business
As businesses navigate the murky waters of generative AI and traditional machine learning, SAS emphasizes the need for stringent AI governance. This demand for oversight reflects the growing concern among industry leaders regarding ethical AI usage and the need for accountability in algorithmic decision-making. The call to action is clear: organizations must cultivate a balanced approach that emphasizes strong data foundations while exploring new technologies responsibly.
Conclusion: Moving Forward with Data Fundamentals
For CEOs, marketing managers, and business professionals, the insights from SAS Innovate 2025 underline a pivotal reality: technology must be harnessed with caution. Emphasizing strong data fundamentals should prevail over whims of the latest tech craze. By focusing on effective strategies and trusted governance, organizations can navigate the complex landscape of AI innovation without falling prey to hype.
As you reevaluate your own organization’s approach to technology, consider how you can implement these insights to create a resilient and informed strategy. Invest in understanding the fundamentals of your data and technology to power your business forward responsibly. Join the conversation around responsible AI usage and explore new possibilities grounded in data fundamentals.
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