Large language models (LLMs) have taken over the business world, and now every company is trying to use Generative AI. Although tools like ChatGPT are clearly powerful, it is not clear how businesses can reliably use this technology to drive value.
For most businesses I’ve interacted with, “using AI” means building a chatbot, co-pilot, AI agent, or AI assistant. However, as the initial excitement about these solutions wanes, organizations are realizing the key challenges of building systems around LLMs.
A central challenge is that LLMs are inherently unpredictable (even more so than traditional machine learning systems). Therefore, it is not easy to get them to solve a specific problem predictably.
For instance, one solution to the hallucination problem is to have “judge” LLMs review system responses for accuracy and appropriateness. However, increasing the number of LLMs increases the system’s cost, complexity, and uncertainty.
This is not to say that Generative AI (and friends) are not worth pursuing. AI has made countless companies very rich, and I don’t think that will stop anytime soon.
The key point is that value is generated through solving problems, not using AI (in itself). AI’s promise is realized when businesses identify the right problems to solve, e.g., Netflix’s personalized recommendations, UPS’s delivery route optimization, Walmart’s inventory management, and many others.
While “solving the right problem” is easy to say, it is not easy to do. To help with that, here I share 3 AI use cases for something every business cares about — sales. My hope is to get your imagination going and demonstrate how to implement them with concrete examples.
The three use cases are:
- Feature Engineering — Extracting features from text
- Structuring Unstructured Data — Making text analytics-ready
- Lead Scoring — Identifying your greatest opportunities
Featuring engineering consists of creating variables that can be used to train machine learning models or perform some analysis. For example, given a set of LinkedIn profiles, extracting things like the current job title, years of experience, and industry, and then representing them numerically.
Traditionally, this is done in two ways. 1) you manually create features, or 2) you buy features from a 3rd party (e.g., credit scores from FICO, company revenue from D&B). However, LLMs have created a third way to do this.
Example: Extracting Features from Resumes
Suppose you are qualifying leads for a SaaS offering. The software helps protect mid-market corporations against cybersecurity threats. The target customers are IT leaders who decide which vendors suit their companies.
You have a stack of 100,000 professional profiles and resumes gathered from various sources based on the tags “IT,” “Cybersecurity,” “leader,” “VP,” and several others. The problem, however, is that the leads are low quality, often including non-IT leaders, entry-level IT professionals, and others who don’t fit the customer profile.
To ensure that sales efforts are focused on the right customers, the goal is to filter down the leads only to include IT leaders. Here are a few ways to solve this problem.
- Idea 1: Review all the 100,000 leads manually. Problem: Impractical for a single person or small sales team
- Idea 2: Write rule-based logic to filter resumes. Problem: Resumes come in a wide variety of formats, so logic performs poorly.
- Idea 3: Pay a data vendor for this information. Problem: This significantly increases the cost of customer acquisition (~$0.10 per lead)
Given the issues with the ideas above, let’s consider how we could solve this problem with a large language model. A simple strategy is to craft a prompt that instructs an LLM to extract the desired information from a resume. An example is given below.
Analyze the following text extracted from a resume and determine whether the
person works in the IT industry. Return a `0` if the person does not work in
theIT industry, and a `1` if they do. Then, provide a brief explanation for
your conclusion.Resume Text:
{resume text}
This solution is a perfect blend of the three ideas above. It (1) reviews each lead looking for specific information like a person, (2) is automated by a computer program, and (3) you pay less money (~$0.001 per lead).
**Bonus**: For those interested in implementing something like this, I share an example Python script here that extracts Years of Experience from a LinkedIn Profile using the OpenAI API.
Data from emails, support tickets, customer reviews, social media profiles, and call transcriptions are all examples of unstructured data. This simply means it is not organized in rows and columns like an Excel spreadsheet or .csv file.
The problem with unstructured data is that it is not analytics-ready, making it difficult to gain insights. This contrasts with structured data (i.e., numbers organized in rows and columns). Translating unstructured data into a structured format is another area in which recent advances in natural language processing (NLP) and deep learning can help.
Example: Translating Resumes into (Meaningful) Numbers
Consider the same business case from the previous example. Suppose we successfully picked out 10,000 IT leaders from the 100,000 leads. While your sales guy could start picking up the phone and crafting emails, you first want to see if you can distill the list to prioritize leads similar to past customers.
One way to do this is to define additional features that provide more granularity to the ideal customer profile (e.g., industry, compliance requirements, tech stack, geographical location), which could be extracted similarly to Use Case 1. However, identifying such indicators might be challenging, and developing additional automated processes comes at a cost.
An alternative approach is to use so-called text embeddings. A text embedding is simply a numerical representation of a chunk of text that is semantically meaningful. Think of this like translating a resume into a set of numbers.
The value of text embeddings is that they translate unstructured text into a structured table of numbers, which is much more amenable to traditional analytical and computational approaches. For example, in this context, one can use text embeddings to mathematically evaluate which leads are most similar to past customers and which are most different.
The final use case is lead scoring, which consists of evaluating the quality of a lead based on key predictors (e.g., job title, company revenue, customer behavior, etc.). While this is nothing new, recent advances in AI have enabled a better ability to parse unstructured data that can be fed into lead-scoring models.
Example: Grading Leads Based on Quality
To conclude our ongoing business case, let’s discuss how we can use text embeddings to prioritize potential customers. Suppose we have a list of 1,000 past leads, 500 of whom bought and 500 of whom didn’t. For each lead, we have a profile that includes key information such as job title, work experience, current company, industry, and key skills.
These leads can be used to train a predictive model that estimates the probability that a customer will buy the product based on their profile. While there are many nuances to developing a model like this, the basic idea is that we can use the predictions from this model to define grades for each lead (e.g., A, B, C, D), which can be used to categorize and prioritize the 10,000 new ones.
**Bonus**: For the more technical readers seeking to implement these approaches, I walk through all three use cases applied to real-world sales data from my business in this video. Additionally, the example code is freely available on GitHub.
AI holds tremendous potential for businesses. However, realizing that potential requires identifying the right problems to solve with it.
With the ubiquity of tools like ChatGPT, solution ideas can easily be limited to the AI assistant paradigm. To help expand the space of possibilities, I shared 3 practical AI use cases that use alternative approaches.
More on AI for business 👇
