AI and machine learning — the Kalibrate approach

Artificial intelligence (AI) and machine learning (ML) have taken center stage in business discussions, thanks to the rise of generative AI tools like ChatGPT.

However, these technologies aren’t new.

For over 40 years, Kalibrate has been leveraging machine learning to help businesses make better decisions. Its expertise lies not just in developing cutting-edge tools but in blending them seamlessly with human insight to achieve exceptional outcomes.

AI or machine learning? 

AI and ML are interconnected concepts.  

IBM states that “Artificial intelligence (AI) is technology that enables computers and machines to simulate human learning, comprehension, problem solving, decision making, creativity and autonomy.” And machine learning is a subset of AI “which involves creating models by training an algorithm to make predictions or decisions based on data.”  

While AI is the broader concept, ML is the nuts and bolts — the algorithms and models that drive many AI applications. 

Today, when people mention AI, they often think of generative AI tools and services using large language models (LLMs) like ChatGPT, which mimic human conversation.  

Kalibrate’s approach to AI and ML 

At Kalibrate, we view AI and ML as tools to amplify human expertise, not replace it. Our approach can be visualized through the intersection of three key areas shown in this Drew Conway Venn diagram: 

• Computer science: Enabling automation and scalable technology solutions. 

• Math and statistics: Providing the foundation for data analysis and predictive modeling. 

• Domain expertise: Bringing decades of industry knowledge to ensure contextually accurate and actionable insights. 

This intersection defines data science, the core of Kalibrate’s offerings. Here’s how our methodology integrates key AI and ML components: 

• Data science: Powers our predictive insights. 

• Machine learning: Drives how we model and analyze data. 

• AI: Automates micro-decisions for efficiency. 

• Analytics: Provides actionable insights to inform strategy. 

There is a misconception in the business space that tools like ChatGPT can solve complex business challenges.  

These models are built to give the impression of understanding, and generate plausible-sounding responses, not to make decisions based on nuanced business contexts. They lack the domain expertise and deep understanding required for tasks such as optimizing fuel pricing or identifying the best site for a new retail location. 

As Justin Tischler, Kalibrate’s Chief Operating Officer, noted in August 2023, tools like ChatGPT may accelerate decision-making but require robust human oversight to ensure reliability and accountability.  

“Balancing the value of a digital copilot, which absolutely will accelerate decision-making and efficiency — against the challenges of reliability and accountability, will put to test an organization’s policies and processes.”

 

Kalibrate’s approach recognizes that while AI can augment decision-making, the best results come from combining sophisticated technology with human expertise. This ensures that the insights provided by Kalibrate’s tools are not only accurate but also actionable and explainable. 

Kalibrate’s controlled, transparent approach 

At Kalibrate, machine learning forms the backbone of our solutions, enabling clients to make data-driven decisions that grow their networks and optimize their operations. Unlike the “black box” AI approach that produces results without explanation, Kalibrate’s models are designed with transparency in mind. Here’s how: 

1. Human expertise at the core: Kalibrate’s models are built and fine-tuned by data scientists with decades of experience in their respective industries. These experts understand the nuances of the data and ensure that our tools provide not just the outcomes, but the reasoning behind them. 
2. Guardrails for reliability: Kalibrate’s ML models are governed by clear parameters, ensuring they operate within well-defined boundaries. This minimizes the risk of anomalies and delivers not just predictions, but insights that can be interrogated and trusted. 
3. Insight, not just foresight: Kalibrate emphasizes insight. The tools don’t just tell you what to do—they explain why, empowering decision-makers to act with confidence. 

The future of AI in business 

Generative AI is transforming how businesses interact with technology. Its ability to convert unstructured data into actionable insights will revolutionize workflows, APIs, and decision-making processes. However, its use must evolve responsibly, especially in sensitive business departments like fuel pricing and real estate planning. 

Kalibrate is committed to advancing its AI capabilities while maintaining its core values of transparency, reliability, and human-centered design. By integrating AI and ML with deep domain expertise, Kalibrate helps businesses turn data into a strategic advantage. 

To learn more about Kalibrate’s AI-driven solutions and how we can help your business make better decisions, contact us today.