New Model Release: OpenAI o1-preview – Integral Business Intelligence

Introduction

One way we provide value to our clients is by keeping them informed of developments in artificial intelligence that may impact their business.

As AI continuously develops and evolves, it’s a challenge for firms to stay up-to-date on innovations that can enhance their professional practice.

This week, we’re spotlighting OpenAI’s release of their new model, OpenAI o1-Preview. From the press release:

“We’ve developed a new series of AI models designed to spend more time thinking before they respond. They can reason through complex tasks and solve harder problems than previous models in science, coding, and math.

In our tests, the next model update performs similarly to PhD students on challenging benchmark tasks in physics, chemistry, and biology. We also found that it excels in math and coding. In a qualifying exam for the International Mathematics Olympiad (IMO), GPT-4o correctly solved only 13% of problems, while the reasoning model scored 83%. Their coding abilities were evaluated in contests and reached the 89th percentile in Codeforces competitions…

But for complex reasoning tasks this is a significant advancement and represents a new level of AI capability. Given this, we are resetting the counter back to 1 and naming this series OpenAI o1.”

You can read the full/official release here: https://openai.com/index/introducing-openai-o1-preview

A 24/7 Team of Experts at Your Fingertips

The new OpenAI O1-Preview model offers an impressive combination of skills—all in one place, available 24/7, and at a fraction of the cost it would take to hire a full team of experts. It’s like having a dedicated team of specialists ready to assist at any time, enhancing productivity and decision-making across multiple disciplines.

Risks for Professional Practices and Our Recommendation

Despite the benefits, using cloud-based AI services poses significant risks, particularly for professional practices.

First, data shared with the AI is uploaded to the cloud, where firms lose control over security.

Second, AI companies often use this data to train future models, which can create competitive risks. By sharing proprietary information, you could be allowing AI companies to incorporate your data into models that your competitors might also use. Worse, your sensitive data might be revealed to others interacting with the model down the line.

Third, the major cloud-hosted AI companies like OpenAI are under constant attack by adversarial hackers, some state-sponsored, who seek to exfiltrate their proprietary data, methods, model weights, research directions, etc. It is possible that user inputs can be compromised in the event of a successful breach.

Given these risks, if your firm is concerned with data security and competitive strategy, then we recommend that you implement AI on local hardware that you control. This ensures control over your data and prevents it from being used in ways that could undermine your business.