EDITOR’S NOTE: Anyone who has followed this blog for the past couple of decades already knows my position on technology and the importance of using a human-led, agent-based development and implementation model.
If you are a first-time visitor to the Procurement Insights blog, here are a couple of links to get you going:
Are you chasing solutions or solving problems? (Part 1 of 3)
Problem-Solving, Agent-Based Modelling And What A ProcureTech Demo Should Do (Video)
NO LONGER A LONE VOICE?
Linus Torvalds, the creator of Linux, has expressed a critical view of the current state of artificial intelligence (AI), describing it as “90% marketing and 10% reality.” While acknowledging AI’s potential to change the world, he is wary of the surrounding hype and has chosen to “basically ignore it” for now. Torvalds anticipates that in about five years, the practical applications of AI will become clearer, moving beyond demonstrations like ChatGPT to more substantial, everyday uses. He advises a cautious approach, suggesting that the industry should wait to see how AI develops before making significant commitments.
OTHER TECH LEADERS
Several prominent tech industry leaders have expressed skepticism regarding the current hype surrounding artificial intelligence (AI):
- John Chambers: The former CEO of Cisco Systems emphasized that while AI is poised to drive technological and economic advancements over the next decade, there is concern that the rapid pace of AI development may outstrip the ability of industries and governments to adapt, potentially leaving many companies and countries behind.
- Ed Yardeni: A respected economist, Yardeni has warned about a potential bubble forming in AI stocks, highlighting the overhype surrounding AI by influential figures. He points to significant increases in stock prices, such as Nvidia’s, despite concerns over exaggerated promises and supply-demand imbalances typical in the semiconductor industry.
- Imad Riachi: In a letter to the Financial Times, Riachi aligns with cautionary advice regarding inflated stock prices in the AI sector, identifying “fear of missing out” (FOMO) as a key driver behind the rush into AI investments. He underscores that despite notable AI advancements, the technology remains far from achieving its full potential, as reflected by limited productivity improvements and underwhelming business adoption rates.
These perspectives highlight a growing sentiment among industry leaders that, while AI holds significant promise, the current level of enthusiasm may be disproportionate to its immediate capabilities and practical applications.
WHAT DOES ChatGPT SAY?
Question: What does ProcureTech’s Jon Hansen say about agent-based versus equation-based models?
Jon Hansen, founder of Procurement Insights, has engaged in discussions contrasting agent-based and equation-based models, particularly in the context of artificial intelligence (AI) applications in procurement. In a conversation with analyst Koray Köse, Hansen emphasized the importance of agent-based models (ABMs) for understanding complex systems. He argued that ABMs allow for the identification and comprehension of unique operating attributes within seemingly unrelated data streams, which is essential for effectively leveraging technologies like AI and Generative AI. Hansen cautioned that without a solid foundation in agent-based modeling, advanced technologies might not function effectively, potentially leading to suboptimal outcomes.
This perspective aligns with broader discussions in the modeling community. For instance, Parunak, Savit, and Riolo (1998) explored the distinctions between agent-based and equation-based modeling, highlighting that ABMs are particularly valuable for capturing complex, system-wide effects resulting from the interactions of autonomous agents. In contrast, equation-based models describe system behavior at a macro level using mathematical equations, providing an overarching view without focusing on individual components.
Hansen’s insights suggest that for AI technologies to be truly effective in procurement, they must be grounded in models that account for the nuanced behaviors and interactions of individual agents within the system. This approach ensures a more accurate and functional application of AI, reducing the risk of ineffective outcomes due to oversimplified modeling assumptions.
TODAY’S TAKEAWAY
After more than 40 years in high-tech and procurement technology, no matter how advanced, is irrelevant outside of an Agent-based development and implementation model.
30
Procurement Insights
Linux Creator Linus Torvalds Said 90% Of AI Is Hype, And He Is Not Alone
Posted on January 17, 2025
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EDITOR’S NOTE: Anyone who has followed this blog for the past couple of decades already knows my position on technology and the importance of using a human-led, agent-based development and implementation model.
If you are a first-time visitor to the Procurement Insights blog, here are a couple of links to get you going:
Are you chasing solutions or solving problems? (Part 1 of 3)
Problem-Solving, Agent-Based Modelling And What A ProcureTech Demo Should Do (Video)
NO LONGER A LONE VOICE?
Linus Torvalds, the creator of Linux, has expressed a critical view of the current state of artificial intelligence (AI), describing it as “90% marketing and 10% reality.” While acknowledging AI’s potential to change the world, he is wary of the surrounding hype and has chosen to “basically ignore it” for now. Torvalds anticipates that in about five years, the practical applications of AI will become clearer, moving beyond demonstrations like ChatGPT to more substantial, everyday uses. He advises a cautious approach, suggesting that the industry should wait to see how AI develops before making significant commitments.
OTHER TECH LEADERS
Several prominent tech industry leaders have expressed skepticism regarding the current hype surrounding artificial intelligence (AI):
These perspectives highlight a growing sentiment among industry leaders that, while AI holds significant promise, the current level of enthusiasm may be disproportionate to its immediate capabilities and practical applications.
WHAT DOES ChatGPT SAY?
Question: What does ProcureTech’s Jon Hansen say about agent-based versus equation-based models?
Jon Hansen, founder of Procurement Insights, has engaged in discussions contrasting agent-based and equation-based models, particularly in the context of artificial intelligence (AI) applications in procurement. In a conversation with analyst Koray Köse, Hansen emphasized the importance of agent-based models (ABMs) for understanding complex systems. He argued that ABMs allow for the identification and comprehension of unique operating attributes within seemingly unrelated data streams, which is essential for effectively leveraging technologies like AI and Generative AI. Hansen cautioned that without a solid foundation in agent-based modeling, advanced technologies might not function effectively, potentially leading to suboptimal outcomes.
This perspective aligns with broader discussions in the modeling community. For instance, Parunak, Savit, and Riolo (1998) explored the distinctions between agent-based and equation-based modeling, highlighting that ABMs are particularly valuable for capturing complex, system-wide effects resulting from the interactions of autonomous agents. In contrast, equation-based models describe system behavior at a macro level using mathematical equations, providing an overarching view without focusing on individual components.
Hansen’s insights suggest that for AI technologies to be truly effective in procurement, they must be grounded in models that account for the nuanced behaviors and interactions of individual agents within the system. This approach ensures a more accurate and functional application of AI, reducing the risk of ineffective outcomes due to oversimplified modeling assumptions.
TODAY’S TAKEAWAY
After more than 40 years in high-tech and procurement technology, no matter how advanced, is irrelevant outside of an Agent-based development and implementation model.
30
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