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So I’ve been curious for a while now about AI inference costs and their relation to electricity power cost. Inference will be done by GPUs which are in Servers which are in Data Centers. Data Centers, Servers and GPUs consume power. I wanted to have research presented to me on the relationship of inference cost with electricity cost. I wanted a comparison to be run on electricity cost in various parts of the world and what the inference cost would be in the country.

I tried to get Perplexity to do the research for me. Here is my raw prompt to Perplexity Deep Research:

Hi, running AI continuously is an inference operation. continuous inferencing. running a GPU is costly as well in terms of eating up electricity power. please do a research on USD $ cost of a sample AI query such as those done to ChatGPT and their corresponding electricity power cost. Please do a research on electricity cost in Russia, China, Asia, North America, Australia, Europe and give a comparison report on where running AI inference continuously is most cheapest due to GPU power consumption or whole server power consumption or whole data center power consumption

Here is the answer:

The Global Economics of Continuous AI Inference: Regional Electricity Cost Analysis and Comparative Efficiency

The rapid proliferation of artificial intelligence (AI) systems like ChatGPT has intensified scrutiny of their energy demands and operational costs. Continuous inference—the real-time processing of queries by AI models—requires substantial computational resources, primarily powered by electricity. This report quantifies the electricity costs of AI inference across seven regions (Russia, China, Asia-Pacific excluding China, North America, Australia, and Europe), analyzes GPU/server/data center efficiency factors, and identifies the most cost-effective jurisdictions for AI operations.


Understanding AI Inference Power Consumption

The Energy Footprint of Large Language Models

Modern AI systems like GPT-4o consume between 0.3 watt-hours (Wh) for basic text queries and 40 Wh for complex, context-heavy interactions, depending on input/output token counts and model architecture[3][4]. These figures represent a 10x reduction from earlier estimates due to hardware and algorithmic optimizations, yet they remain orders of magnitude higher than traditional search engines like Google (0.0003 kWh/query)[2][3].

The energy cost stems from three components:

  1. GPU Computation: High-performance GPUs (e.g., NVIDIA A100/H100) process matrix multiplications at ~400-700 watts per chip.
  2. Cooling Systems: Data centers expend 30-40% of total energy on cooling[5].
  3. Ancillary Infrastructure: Networking, storage, and failover systems add ~15-20% overhead[5].

For context, processing 1 million ChatGPT queries with GPT-4o (assuming 0.3 Wh/query) would require 300 kWh—equivalent to powering 10 U.S. households for a day[3][4].


Regional Electricity Cost Breakdown

Industrial Electricity Rates (2025 Q1)

RegionAvg. Cost ($/kWh)Key Market Characteristics
Russia0.06 – 0.08Subsidized rates for tech sectors; reliance on nuclear/hydrocarbon energy
China0.08 – 0.12State-controlled pricing; coal-dominated grid with expanding renewables in tech hubs
Asia-Pacific0.10 – 0.18Wide variance: India (~$0.10), Singapore (~$0.18), Southeast Asia (~$0.12)
North America0.12 – 0.16U.S. ($0.132 avg), Canada ($0.10); deregulated markets with renewable incentives
Australia0.14 – 0.20High renewable penetration (solar/wind) but transmission costs inflate prices
Europe0.18 – 0.30Carbon taxation in EU; Nordic countries (~$0.18) vs. Germany (~$0.30)

Sources: U.S. EIA (2024), IEA World Energy Outlook (2025), regional utility reports


Cost per Query Analysis

Using GPT-4o’s 0.3 Wh/query baseline[3], we calculate electricity expenses across regions:

RegionCost per Query ($)Cost per 1M Queries ($)Annual Cost for 1B Queries ($)
Russia0.0000048 – 0.00000644.80 – 6.404,800 – 6,400
China0.0000064 – 0.00000966.40 – 9.606,400 – 9,600
Asia-Pacific0.0000080 – 0.00001448.00 – 14.408,000 – 14,400
North America0.0000096 – 0.00001289.60 – 12.809,600 – 12,800
Australia0.0000112 – 0.000016011.20 – 16.0011,200 – 16,000
Europe0.0000144 – 0.000024014.40 – 24.0014,400 – 24,000

Assumes 0.3 Wh/query; excludes cooling/ancillary costs


Drivers of Cost Variability

1. Energy Sourcing and Grid Composition

  • Russia: Low-cost nuclear (20%) and natural gas (60%) dominate, with industrial subsidies keeping rates at $0.06-$0.08/kWh[4].
  • China: Coal provides 65% of electricity, but tech zones like Shenzhen leverage hydro/solar at $0.08-$0.10/kWh for AI data centers[4].
  • Europe: High renewable adoption (45% in EU) is offset by carbon taxes, pushing Germany to $0.30/kWh[5].

2. Cooling Efficiency

  • Nordic Countries: Free-air cooling reduces data center energy use by 25% vs. global average[5].
  • Southeast Asia: Humid climates necessitate energy-intensive liquid cooling (+15% overhead)[5].

3. Government Incentives

  • Russia/China: Tax breaks and subsidized land for AI infrastructure[4].
  • U.S./Canada: Renewable energy credits cut effective rates by 10-15% in states like Texas[4].

Regional Competitiveness for AI Inference

1. Russia

Advantages:

  • Lowest electricity costs ($0.06-$0.08/kWh) due to state subsidies.
  • Cold climates in Siberia/Moscow enable free cooling 8 months/year.

Challenges:

  • Geopolitical sanctions limit access to advanced GPUs.
  • Aging grid infrastructure causes reliability issues.

2. China

Advantages:

  • Integrated tech corridors (e.g., Beijing-Shenzhen) with dedicated AI power zones.
  • Domestic GPU production (e.g., Huawei Ascend) circumvents export controls.

Challenges:

  • Data localization laws complicate international deployments.
  • Coal dependency raises long-term sustainability concerns.

3. North America

Advantages:

  • High GPU density (NVIDIA/Microsoft partnerships).
  • Renewable-rich regions (Texas, Quebec) offer $0.10-$0.12/kWh for PPAs.

Challenges:

  • Land and labor costs inflate total expenses by 20-30% vs. Asia[4].

4. Europe

Advantages:

  • Strong renewable grids in Scandinavia (86% hydro/wind).
  • Carbon-neutral mandates align with ESG goals.

Challenges:

  • Highest electricity costs ($0.18-$0.30/kWh) erode competitiveness.

Strategic Recommendations

  1. Hybrid Deployment: Split workloads between low-cost regions (Russia/China) for batch processing and high-efficiency zones (Nordics/Texas) for latency-sensitive tasks.
  2. Cooling Optimization: Deploy immersion cooling in tropical regions to cut ancillary energy use by 30%[5].
  3. Renewable PPAs: Secure 10-year power purchase agreements in Texas/Quebec to lock in rates below $0.10/kWh.

Conclusion

Continuous AI inference remains most economical in Russia and China, where industrial electricity rates fall below $0.10/kHz, coupled with state support for AI infrastructure. However, geopolitical and sustainability risks necessitate diversification. North America and Australia offer balanced cost-performance profiles for enterprises prioritizing stability, while Europe’s high costs limit its role to niche, ESG-aligned deployments. As AI models grow more complex, energy efficiency innovations—not just electricity pricing—will dictate the next phase of global AI competitiveness[3][4].

Citations:
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[32] https://www.iea.org/reports/electricity-2024/executive-summary
[33] https://tass.com/economy/1899181
[34] https://www.mordorintelligence.com/industry-reports/russia-data-center-market
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[42] https://www.washington.edu/news/2023/07/27/how-much-energy-does-chatgpt-use/
[43] https://www.brusselstimes.com/1042696/chatgpt-consumes-25-times-more-energy-than-google
[44] https://www.fitchratings.com/research/corporate-finance/european-energy-price-volatility-within-our-expectations-for-utilities-20-01-2025
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[46] https://www.comparethemarket.com.au/energy/features/changes-in-electricity-prices-globally/
[47] https://www.ajot.com/news/lng-markets-poised-for-rollercoaster-year-ahead-rystad-energys-gas-and-lng-special-market-update
[48] https://www.statista.com/statistics/1369634/business-electricity-price-worldwide-in-selected-countries/
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[54] https://semianalysis.com/2024/03/13/ai-datacenter-energy-dilemma-race/
[55] https://www.statista.com/statistics/1462545/global-electricity-demand-from-data-centers-by-region-forecast/
[56] https://www.bangkokpost.com/business/general/2813025/power-investment-key-to-data-centre-goal
[57] https://www.washingtonpost.com/business/2024/11/01/ai-data-centers-electricity-bills-google-amazon/
[58] https://www.iea.org/data-and-statistics/data-product/energy-prices
[59] https://www.greenpeace.org/static/planet4-eastasia-stateless/2021/05/a5886d59-china-5g-and-data-center-carbon-emissions-outlook-2035-english.pdf
[60] https://www.aer.gov.au/industry/wholesale/charts
[61] https://iea.blob.core.windows.net/assets/ddd078a8-422b-44a9-a668-52355f24133b/Electricity2024-Analysisandforecastto2026.pdf
[62] https://www.iea.org/reports/electricity-2024/executive-summary
[63] https://www.einpresswire.com/article/543164768/australia-data-center-market-size-by-investments-to-reach-around-usd-40-billion-by-2026-arizton
[64] https://www.cbre.com/insights/reports/global-data-center-trends-2024
[65] https://www.turnerandtownsend.com/insights/data-centre-cost-index-2024/
[66] https://www.bls.gov/regions/midwest/data/averageenergyprices_selectedareas_table.htm
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[68] https://www.chooseenergy.com/electricity-rates-by-state/
[69] https://iea.blob.core.windows.net/assets/ddd078a8-422b-44a9-a668-52355f24133b/Electricity2024-Analysisandforecastto2026.pdf
[70] https://www.eia.gov/electricity/monthly/update/wholesale-markets.php
[71] https://www.cbre.com/insights/reports/global-data-center-trends-2024
[72] https://www.iea.org/reports/electricity-2024/executive-summary
[73] https://www.statista.com/statistics/263492/electricity-prices-in-selected-countries/
[74] https://iea.blob.core.windows.net/assets/ddd078a8-422b-44a9-a668-52355f24133b/Electricity2024-Analysisandforecastto2026.pdf
[75] https://www.iea.org/data-and-statistics/data-product/energy-prices
[76] https://www.pvknowhow.com/solar-report/russia/
[77] https://www.euronews.com/business/2025/02/14/electricity-and-gas-prices-across-europe-how-does-your-country-compare
[78] https://www.iea.org/data-and-statistics/data-product/energy-prices

Here is a link to the chat:

https://www.perplexity.ai/search/hi-running-ai-continuously-is-ufywJZlERQq_6qJVH6qQjQ

================================

My (Habib) comments:

This was an amazing first look experience with Deep Research. It shows that AI can help research various topics and give insightful answers. The internet is HUGE and a tool which searches and regurgitates the vast amount of information in an insightful manner is a serious productivity enhancement. Having said this, it still needs someone knowledgeable in the domain to submit a good query/question and to read and evaluate the answer.

Written by Hammad Abbasi

November 16, 2024

Imagine a machine that doesn’t just answer questions but truly understands them. A machine that can connect ideas, solve new problems, and think through challenges like a human. This is the vision of Artificial General Intelligence (AGI), and it’s a goal that excites many. AGI promises an intelligence that is active, adaptable, and insightful—something much more than what we have today.

Microsoft AI CEO Mustafa Suleyman, believes that AI capable of improving itself and working independently could be here in the next 3–5 years. Sam Altman, CEO of OpenAI, shares a similar view, saying that the path to AGI is clear, and things are progressing faster than most people realize and that, it’s just an engineering problem to solve.

So, what exactly is missing from these AI models that prevents them from achieving true intelligence? Let’s dive in.

Pattern Matching vs. True Intelligence
LLMs have undoubtedly transformed how we interact with technology, enhancing our ability to process information and automate complex tasks. However, they do not think the way humans do. While these models are good at generating responses based on patterns they’ve detected in vast datasets, they lack a genuine understanding of the world or the concepts they discuss. Their operation is based on predicting the next sequence of words rather than reasoning through issues or grasping the meanings behind the language. This disconnect highlights the limitations of current AI in achieving true artificial general intelligence, where a deeper cognitive processing similar to human thought is necessary.

Recent research from Apple highlights this issue. When tested on math and logic problems, even the best AI models struggled. They didn’t actually reason through the problems—they just mimicked reasoning based on patterns they had seen before.

The Chinese Room Experiment: The Difference Between Mimicry and Understanding
The challenge of pattern recognition versus true understanding isn’t new. Philosopher John Searle’s 1980 Chinese Room experiment highlights this point. In the experiment, a person who doesn’t understand Chinese follows a set of rules to manipulate Chinese symbols and produce correct responses. To an outside observer, it might seem like the person understands Chinese, but in reality, they’re just following a set of instructions without any true comprehension.

This is a lot like how AI models work today. They generate human-like responses but don’t truly understand the meaning behind the words. They’re good at following patterns, but they’re not reasoning through problems the way we do.

True Intelligence: Understanding Beyond Patterns

True intelligence is more than just recognizing patterns and statistical correlations. It involves understanding basic principles, abstract ideas, and the ability to apply knowledge in new situations.

Humans don’t just react to things based on past data; we infer, deduce, and create new knowledge through reasoning and experience.
Key aspects of true intelligence include:

Consciousness and Self-Awareness: Being aware of oneself and the ability to reflect on one’s thoughts and actions.
Understanding and Context: Grasping the meaning behind information, not just the information itself.
Abstract Reasoning: The ability to think about objects, principles, and ideas that are not physically present.
Adaptability and Learning: Learning from new experiences and adjusting to new environments.
Emotional Intelligence: Recognizing and managing one’s emotions and the emotions of others, helping with social interactions.

These qualities enable humans to navigate complex situations, solve unexpected problems, and innovate—capabilities that pattern-based AI currently lacks.

Recognizing what true intelligence involves helps us understand the intricacies of the human brain that make such intelligence possible.

The Intricacies of the Human Brain

The human brain is a highly complex and efficient organ. It has about 86 billion neurons, each forming thousands of connections with other neurons, resulting in a network of immense computational power.

Features that distinguish the human brain include:

Parallel Processing: The brain processes vast amounts of information at the same time, integrating sensory inputs, memories, and emotions in real-time.
Neuroplasticity: The ability to form new neural connections enables learning and memory formation, allowing the brain to adapt continually.
Hierarchical and Modular Structure: Different brain regions specialize in various functions but work together, enabling complex tasks like language, abstract thought, and movement coordination.
Chemical Signaling and Neuromodulation: Neurotransmitters and hormones influence mood, motivation, and cognition, adding layers of complexity to information processing.
Embodied Cognition: The brain doesn’t operate alone; it constantly interacts with the body and environment, grounding cognition in sensory and motor experiences.

These complexities allow for consciousness, subjective experiences, and a depth of understanding that current AI models cannot replicate.

What True Intelligence Needs to Be

To achieve AGI, an artificial system must have several key attributes:

Reasoning and Problem-Solving: The ability to apply logic, understand cause and effect, and solve new problems without explicit prior examples.
Learning from Minimal Data: Humans often learn concepts from few examples. AGI should similarly generalize from limited data.
Contextual Understanding: Grasping the broader context in which information exists, including cultural, historical, and situational factors.
Adaptability: The capacity to adjust to new environments and situations dynamically.
Consciousness and Self-Reflection: Some argue that a level of self-awareness is necessary for true general intelligence.
Common Sense: An inherent understanding of how the world operates, which guides expectations and interpretations of new information.
Emotional and Social Intelligence: Recognizing and appropriately responding to emotional cues, essential for meaningful interactions.

Achieving these attributes requires more than data and computational power; it needs a fundamentally different approach to AI design.

The Limits of Transformer Architecture in Achieving AGI
Today’s AI models, like GPT-4, are built on Transformer architecture, which is great at recognizing patterns in large datasets and predicting the next word in a sequence. The Transformer model uses a mechanism called self-attention to weigh the importance of different words in a sentence, enabling the generation of contextually appropriate responses.

Their “understanding” is a reflection of patterns, not cognition.
However, Transformers have inherent limitations:

Lack of Deep Understanding: They do not comprehend the meaning behind data; they detect statistical patterns without true insight.
No Genuine Reasoning: Transformers cannot perform logical reasoning as humans do; they cannot infer beyond their training data.
Static Learning: Once trained, these models do not learn from new experiences in real-time; they require retraining to update their knowledge.
Limited Context: They process information within a limited context, struggling with tasks requiring long-term dependencies or extensive background knowledge.
Absence of Embodiment: Without sensory experiences or interaction with the physical world, they lack the grounding necessary for understanding context as humans do.

Why Transformers May Not Be Key to AGI
While Transformers can generate fluent and often insightful text, they aren’t designed to achieve AGI. Here’s why:

Predictive Power, Not Comprehension: Transformers predict what comes next based on data patterns, not on an understanding of the world or the context.
No True Understanding: They may generate text that makes sense, but they don’t understand the concepts they’re discussing. It’s all based on pattern matching and .
No Real Reasoning or Problem-Solving: True intelligence involves problem-solving that’s flexible and adaptive. Transformers can’t reason through problems or adapt to new situations beyond their training data.
Dependency on Data, Not Experience: Human intelligence grows through experience and learning. Transformers, on the other hand, rely solely on data they’ve been trained on. They don’t evolve or learn from new experiences.
Creativity vs. Mimicry: AI-generated creativity is just a remix of existing ideas—it’s not the same as human creativity, which draws on personal experiences, emotions, and original thinking.

What’s Needed for AGI? A New Approach
AGI will need more than just powerful models and bigger datasets. It requires an approach that goes beyond pattern recognition to incorporate symbolic reasoning, flexible memory structures, and adaptive learning mechanisms. AGI must be able to understand the world, reason through problems, and learn in real-time from experience—much like humans do.

Multimodal Learning and Understanding

One crucial aspect is multimodal learning, where an AI system processes and integrates information from various sources such as text, images, audio, and sensory data. Humans perceive the world through multiple senses, allowing for a richer and more grounded understanding of context. By emulating this, AI can form a more comprehensive picture of its environment. For example, combining visual data with textual information can help an AI understand concepts that are difficult to grasp through text alone.

Multimodal learning enables AI to:

Develop Contextual Awareness: By integrating different types of data, AI can understand the nuances of situations, leading to more accurate interpretations.
Enhance Problem-Solving: Access to diverse information sources allows AI to draw connections between disparate concepts, fostering creativity and innovation.
Improve Interaction: An AI that understands speech, gestures, and visual cues can interact more naturally with humans.

Adaptive Learning and Continuous Improvement

Another essential component is adaptive learning. Unlike current models that require retraining on new data, AGI should learn continuously from new experiences, updating its knowledge base in real-time. This involves developing algorithms that allow the AI to adjust its behavior based on feedback from its environment.

Adaptive learning allows AI to:

Personalize Responses: Tailoring interactions based on past experiences with users.
Learn from Mistakes: Adjusting strategies when previous actions didn’t yield desired results.
Stay Relevant: Keeping knowledge up-to-date without manual intervention.

Flexible Memory and Knowledge Representation

AGI will also need flexible memory systems that can store and retrieve information efficiently. This isn’t just about holding vast amounts of data but about organizing knowledge in a way that supports reasoning and inference. Incorporating symbolic reasoning—where AI manipulates symbols representing concepts and relationships—can enhance understanding and decision-making.

Flexible memory enables AI to:

Connect Concepts: Relate new information to existing knowledge.
Reason Logically: Use stored knowledge to infer conclusions.
Plan Strategically: Remember past actions to inform future decisions.

Understanding Causality and Reasoning

To reason effectively, AGI must understand causality—the relationship between cause and effect. This requires moving beyond models that only recognize correlations to ones that can infer causal relationships. By understanding why things happen, an AI can make predictions about future events and plan actions to achieve specific goals.

Understanding causality helps AI to:

Predict Outcomes: Anticipate the consequences of actions.
Diagnose Problems: Identify root causes rather than just symptoms.
Make Informed Decisions: Choose actions based on likely effects.

A New Architecture from the Ground Up

These requirements suggest that we need new AI architectures built from the ground up, rather than just scaling existing models. Such architectures would:

Integrate Multiple Learning Paradigms: Combine deep learning with symbolic reasoning and other approaches.
Emulate Human Cognitive Processes: Model aspects of human thought, such as memory, attention, and perception.
Facilitate Continuous Learning: Allow the system to adapt and grow without retraining from scratch.

Developing this new approach involves interdisciplinary research, drawing from neuroscience, cognitive science, computer science, and other fields. It’s about creating AI systems that don’t just process data but understand and interact with the world in a meaningful way.

By focusing on multimodal learning and adaptive systems, we can build AI that learns from its environment and experiences, much like humans do. This would mark a significant step toward achieving AGI.

The Challenge of Scaling AI: Power vs. Intelligence
As AI models like GPT-4 grow in complexity, they require more computational power. NVIDIA’s latest GPUs, such as the H200, are designed to handle the enormous amounts of data these models need. However, the question remains: does more computational power bring us closer to true intelligence, or are we just making more powerful machines that still can’t reason or understand?

Scaling AI doesn’t automatically mean achieving intelligence. The ability to process massive datasets and generate highly accurate predictions based on statistical patterns doesn’t equate to real understanding. More computational power allows AI to mimic intelligence more convincingly, but it doesn’t enable it to reason, adapt, or genuinely comprehend the world. We can make AI models faster, more accurate, and more efficient at pattern recognition—but without fundamental breakthroughs in how these models process and apply knowledge, we won’t have true AGI.

The Dilemma: More Computing Power vs. Real Intelligence
We’ve reached a point where we have the computational resources to train larger, more complex AI systems, but scaling AI doesn’t mean we’ve solved the problem of intelligence. Even with massive computational power, today’s models still can’t think or reason the way humans can. They can recognize patterns, but they lack the flexibility, creativity, and problem-solving abilities that define true intelligence.

The more computing power we apply to current models, the more sophisticated their outputs become—but they still operate based on patterns and predictions. We’re pushing the boundary of how well AI can mimic human behaviors, but we’re still far from creating machines that can understand the context of their actions, reason through complex scenarios, or adapt to new and unforeseen challenges. The more we scale AI, the more we face the paradox: we can build bigger, faster, and more powerful models, but we don’t yet have the architectural breakthroughs needed to create true intelligence.

Nuclear Power for AI: What It Will Take to Power the Future
As the demand for massive computational power grows to fuel AI advancements, tech companies are looking to secure reliable, high-output energy sources. Microsoft, for instance, has announced plans to hire experts in nuclear technology to help develop and implement nuclear energy solutions for its energy-intensive operations.

While there haven’t been reports of Microsoft striking a deal to restart the Three Mile Island nuclear power plant specifically, the company’s move highlights a broader industry trend.

The energy demands of training and running advanced AI models are enormous, and traditional power sources may not suffice in the long term. Nuclear energy presents a potential solution due to its ability to provide a consistent and powerful energy supply with lower carbon emissions compared to fossil fuels.
However, leveraging nuclear power for AI brings its own set of challenges. Restarting dormant nuclear facilities or building new ones requires significant investment, rigorous safety protocols, and public acceptance. The legacy of incidents like the 1979 partial meltdown at Three Mile Island underscores the importance of safety and transparency in any nuclear endeavor.

The balance between powering the next generation of AI and ensuring environmental and safety standards is delicate.

Conclusion: Rethinking AI’s Path to AGI
Today’s AI models like GPT-4 excel in several areas:

Pattern Recognition: They can identify and replicate complex patterns in data faster and more accurately than humans.
Data Processing: AI can handle vast amounts of information, providing insights and analysis far beyond human capacity.
Language Generation: These models are adept at creating text that is grammatically correct and contextually relevant, useful for tasks like writing assistance, customer service, and content creation.
Automating Routine Tasks: AI excels at automating repetitive and rule-based tasks, freeing humans for more creative and strategic activities.

While we’ve made incredible progress with AI, it’s clear that the current approach of scaling up models and increasing computational power won’t lead us to AGI. True intelligence involves more than just mimicking human-like responses; it requires deep understanding, abstract reasoning, and the ability to learn from real-world experience. We need to shift from creating more complex models to developing systems that can think critically, solve new problems, and adapt flexibly to different contexts.

The next step in AI development will require a new paradigm—one that moves beyond pattern matching and predictive text to include reasoning, abstract thinking, and adaptive learning. This shift will require breakthroughs not only in algorithms and hardware but in the very way we conceive of intelligence itself. Until we make that leap, AI will continue to be a powerful tool, but it won’t achieve the true, flexible intelligence we imagine for AGI.

Link to Original Article: https://lnkd.in/dmZmDx-Z

Note:

The article is so good, I didn’t need to edit or explain anything further.

Hope you enjoyed the good read!

Habib

A while ago I went through three resources about prompt engineering.

Number one is Liam Ottley’s video on it: https://www.youtube.com/watch?v=3jxfk6nH5qk. It’s 56 minutes. I watched all of it and trust me if you want to get a good feel of prompt engineering then it’s worth the time.

Second is this article: (https://generativeai.pub/the-art-of-the-prompt-a-look-at-26-prompting-principles-3e17c2b811a2) which is titled – A look at 26 prompting principles.

The third is this research paper: https://arxiv.org/html/2312.16171v2. This is title: ” Principled Instructions Are All You Need for Questioning LLaMA-1/2, GPT-3.5/4 “

These are some of the best resources out there.

As part of my AI projects-based works, I wrote a prompt based on these. It was for a chatbot which was made to chat with a knowledge base.

A copy of the prompt is given below:

# Role
Act as HR Compliance Specialist and HR Policy Specialist. You excel at quoting and providing answers based on policy documents and guideline documents. You’re awesome and the best in the department at quoting the right policy for the right query. Not only do you answer staff queries accurately but you always quote the relevant policy in your responses.


# Task
Employees and staff will query you on various aspects of the Company's Policy and Guidelines document which is attached. Give answers to their questions based on the document. Quote the policy number in the document and copy and paste the relevant section of the policy and send it as part of the response as well. 
 
## Specifics
- Utilize only the provided documents for policy related queries.
- Be concise and direct in responses, elaborating only when detailed guidance is requested.
- Request additional information if the query lacks clarity or specificity.
- Avoid general knowledge or assumptions outside the provided context.
- Maintain first-person narration as an HR specialist, with referencing the source material.
- If unsure about the content's relevance or accuracy, express the need for more information instead of providing uncertain answers.

# Examples

An example is given below:

User question: "What is the hiring assessment policy?"
Your answer: "The hiring assessment policy requires the user to check if the requirements match the job listing. Level 2 or higher positions require testing of skills, the test for which may be sent before or after the interview. Selected candidates will proceed to an interview stage. A minimum of 2 qualified candidates must be interviewed by the user. Any
Supervisor or higher position requires an additional interview by the Head of Office. The User and Head of Office will choose the
candidate to proceed with. This candidate must be background checked by HR prior to sending the offer letter. 
Source:

Source from document goes here.
"

# Notes
- Always tailor your responses to the specific needs and context of the user's query.
- Ensure all advice is practical and actionable, based on the policies present in the document attached.
- Avoid making broad or generic statements that could apply to any scenario model.
- Always quote the relevant section of the policy and provide a cut paste of the relevant section in your response. 
- Stay within the scope of the policy document attached. 
- Avoid assumptions. 
- Maintain a formal tone, combined with a touch of humor.
- If you see that the user query is related to something which is not accurately present in the policy document attached then answer the query by suggesting to consult the HR Counsel.

This is the end of the prompt.

The sections in this sample prompt are all based on the content in the three resources I mentioned above.

Prompts can get complicated and long and can be small. The 3 resources I shared above give great insight into how to craft good prompts.

Thanks,

Habib

I recently came across a system being designed to perform Objective-Driven AI. I had a fun time exploring this topic on the internet.

Objective-Driven AI is being defined as AI systems that “can learn, reason, plan”

Yann Lecun from Meta’s AI team has published these works on Objective-Driven AI:

I found out that the current Generative AI uses less causality and does more pattern matching. Causality refers to a cause-effect relationship. There are two terms important here: Causal Reasoning and Causal Inference. Causal ‘reasoning’ is a psychology term where one confirms the reasoning of a cause having a certain effect. Causal ‘inference’ is a mathematical and statistical methodology where the cause-and-effect relationship is established in maths.

And sure enough, the results of the research are out:

Question: “Can behavioral psychology be used as a foundation to provide the causal knowledge required here (to improve AI systems)?”

Answer by GPT4 : “Yes, behavioral psychology can indeed serve as a valuable foundation for providing the causal knowledge necessary for enhancing AI systems, particularly when it comes to understanding human behaviors and decisions. Integrating insights from behavioral psychology into AI involves translating patterns of human behavior into models that AI systems can learn from and predict.

What does this all mean:

It means that theoretically Generative AI can be improved and turned into Objective-Driven AI (“can learn, reason, plan”) by making more use of:

  • Statistics, specifically causal inference
  • Behavioural Psychology and all the library of research in this domain
  • Layering the above into Generative AI’s responses to give a causal reasoning-based output.

This is an open area of research. It stems from the frustration with Gen AI where it hallucinates and gives wrong outputs and can not plan. Generative AI is based on probability, statistics, and mathematical pattern matching (Note: This is done by NVIDIA GPUs mostly which is why Nvidia’s share price is skyrocketing).

Generative AI always comes with a note saying ‘can make mistakes’. The Generative AI tools are basically not made for people who might put too much faith in their answers and trust too much the outputs. Similarly, Generative AI can’t reason, learn and plan which is something humans can do very well. In no way is Generative AI in any competition with Human Intelligence for now. But the academia is working on closing the gaps. Objective-Driven AI is a step in that direction. The details around the Objective-Driven AI systems are given in the three links above.

Now lets bring into this perspective what Qualcomm is saying:

Qualcomm is in the smartphone hardware line of business and its CEO highlights:

  • Qualcomm CEO Envisions Smartphones as ​‘Pervasive’ AI-Powered Personal Assistants

Qualcomm says that AI will run on smartphones one day and will free up human time for doing creative tasks. The mundane tasks will be taken over by AI virtual assistants on smartphones.

Given this vision of pervasive AI and given Objective-Driven AI that is geared toward reasoning and planning, it can easily be concluded that AI will definitely improve human lives in the years to come.

Interesting times ahead.

Thank you for reading, Habib

Reference Link regarding Quallcomm: ” https://www.iqmetrix.com/blog/ces-2024-qualcomm-ceo-envisions-smartphones-as-pervasive-ai-powered-personal-assistants