Behind the Scenes

What you need to know about AI use in

your company

Exclusive E-Book
Contents

Foreword 3

The 5 Myths about Artifical Intelligence 4

Checklist: Criteria for Selecting AI Providers 9

Resource Recommendations 10

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Foreword

The official launch of ChatGPT in 2022 marks a turning point in the use of
artificial intelligence by individuals and companies. The transformative
power of generative artificial intelligence is now well on its way to
establishing itself in new applications and ways of working. However,
alongside the positive excitement about what is possible, uncertainties
dominate the evaluation and implementation phase: how, with which
provider, and in what sequence can communication automation work
securely and sustainably?

We are convinced that artificial intelligence will become a commodity in

the medium term. Companies that do not keep up with the pace of AI
development will initially lag slowly and then fall significantly behind. On
the other hand, companies that now embrace the existing possibilities
can gain a significant competitive advantage in the next two to five years.
The faster companies learn to realign their communication processes, the
faster the value creation potentials will change, expanding the creative
space for new business models.

This e-book describes the current status quo of possible application

scenarios for generative AI. The accompanying checklist for successful
provider selection can simplify and accelerate cross-departmental
collaboration during the rollout of artificial intelligence in your company.

The Kauz.ai team is here to support you on your personal AI journey with
the aiStudio as a reliable implementation partner.

Dr. Thomas Rüdel l CEO Kauz.ai

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The 5 Myths about Artifical Intelligence
The AI boom currently leads to content confusion, contradictions, and sometimes
extreme expectations. We have summarized our market assessment in five action
areas with concrete solutions.

Myth 1: ChatGPT is ready for "all" business purposes

ChatGPT alone is unfortunately not ready for internal or external, goal-oriented

business and customer communication. Providers that advertise otherwise do not
disclose how they integrate the large language model with your company's
resources to ensure the AI's response behavior is adequate, controlled, and
manageable. Most AI providers work with additional methods like RAG (Retrieval
Augmented Generation) to complement the general knowledge of artificial
intelligence with specific information as needed. This set of methods will expand
and change over the coming months and years; the progress is already immense.
The same applies to the large language models themselves. ChatGPT is currently
leading in terms of data volume and performance, but numerous other models like
Mistral, Llama, or Claude, some of which are also available as open source, are not
far behind. Additionally, there is an increasing differentiation of large language
models, which should be optimally utilized for the effective implementation of AI
use cases. The individual use of large language models is still very cost-intensive,
and it can make a big difference which model is used for the implementation of
business solutions. A simple example: GPT-4 has an estimated 1 trillion parameters,
the predecessor model GPT-3 175 billion. For many initial AI use cases, the use of the
original GPT-3.5 is still sufficient and significantly cheaper. We expect that in the
future, the flexible use of various large language models and individually
composed sub-models will help companies progress more quickly in their
communication automation.

Practical Tip: Rely on an LLM-agnostic platform

Your AI platform should allow you to use various LLMs, including open-source
models. Avoid "vendor lock-in" and ensure you can respond quickly to new
developments.

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The 5 Myths about Artifical Intelligence

Myth 2: Generative artificial intelligence is too complex for our company

In addition to the general perception that the use of generative AI is simple and
potentially applicable for "everything," there is often still a hurdle when it comes to
concrete implementation. Many companies do not know where to start their AI
transformation and which technology providers to rely on. Besides the
organizational support for all employees to work with AI office tools, the quickest
and most effective impact of generative AI is undoubtedly in customer service and
internal knowledge management. Especially in customer service, which is
communication- and cost-intensive, there is often long-standing experience in
process automation that can be well connected with generative AI. The applied AI
methods can also be transferred to internal helpdesks, significantly increasing
business agility. Significant improvements in SharePoint and other document
management systems have long been considered a major productivity lever for
any company. However, internal search engine improvements have not yet met
expectations satisfactorily in terms of effort. With generative AI, it is now possible to
work very agilely with existing company knowledge. The introduction of artificial
intelligence is feasible for companies of all sizes, both in terms of content and
finances.

Practical Tip: Start with simple AI use cases

Your website or internal knowledge database is an ideal starting point to begin with
generative AI in customer service and knowledge organization. With a defined
catalog of frequently asked questions and a platform that makes generative AI
usable with your individual content, you can reliably automate the first customer
contact points and increase value creation through better knowledge transfer
between employees.

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The 5 Myths about Artifical Intelligence

Myth 3: Generative AI should not yet be used for customer communication

The size of the company influences considerations regarding AI use. Large

companies currently tend to use generative AI first in the area of internal
knowledge management, as the risk of AI hallucinations is better manageable
internally. However, smaller companies are already demonstrating excellently that
customer communication can be reliably automated with generative AI if the
topics are initially narrowed down and gradually expanded.

Practical Tip: Check control features for artificial intelligence

The successful use of AI depends, among other things, on functions for transparent
tracking of questions and answers, as well as simple options for correcting,
restricting, or even predefining entire dialogue paths. Specialized users should be
able to do this independently internally with a suitable platform.

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The 5 Myths about Artifical Intelligence

Myth 4: The use of AI is very risky in terms of data protection

The use of AI brings new challenges in terms of data protection and product
liability. For many companies, implementing the General Data Protection
Regulation (GDPR) was already a resource-intensive task. The many unresolved
questions regarding the use of AI make the complexity for companies appear even
greater. Data protection officers will have to deal with the topic with or without
internal AI use, as many customers, partners, and suppliers will not want to do
without AI systems. Data protection is an action area that must be legally
compliant without slowing down technological progress in times of digitalization.

Practical Tip: Evaluate user, AI, and data management

Ensure that data protection aspects are fully covered by your AI platform. So far, the
European AI Act provides few legally binding guidelines apart from transparency
requirements. However, this will change quickly and dynamically in the next two
years. Invest only in platforms that are already designed for strict data protection.
Comprehensive user, AI, and data management indicate flexible options for
meeting high data protection requirements. Already today, the AI used in your
company should be transparently traceable. A state-of-the-art solution indicates
sources and documents the human-machine interaction comprehensibly to
identify and correct AI misbehavior.

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The 5 Myths about Artifical Intelligence

Myth 5: With generative AI, the maximum performance of chatbots has been
reached

There is often a significant gap between the operational status and the target
image of conversational automation in the corporate context for users and
decision-makers. Ideas and visions rarely go beyond efficient search and
information dissemination across various media formats. However, we are only at
the beginning of the great AI revolution. As the next evolutionary step, we see the
transformation of chatbots into powerful AI agents. Artificial intelligence will not
only explain how something should be done but also be able to independently
execute a specific sequence of work steps in the medium to long term.

Practical Tip: Anticipate the future of AI agents

The innovative power of software manufacturers is needed more than ever before.
If you want to benefit sustainably from rapid technological progress, you need an AI
provider that excels in technological excellence and strong future visions. Possible
concrete evaluation criteria include the design of the tech stack and already
existing and functional integration options.

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Checklist: Criteria for Selecting AI Providers

The dynamic nature of technological development is changing the software market. For
companies, it can be challenging to identify which solutions can support them promptly,
stably, and sustainably in implementing AI-supported customer and knowledge
management processes. The following checklist will help you identify a suitable provider
for chatbots and AI assistants.

Selection Criteria Yes No

Experience with Language Technologies

Generative AI may seem to have arrived suddenly for many, but it is based on decades of research and
application in conversational AI. Work with an experienced chatbot provider who can fully exploit the new
technology potentials.

LLM-Agnostic Platform
ChatGPT has demonstrated what is possible with generative AI. However, the next energy-efficient, cost-
effective, and more flexible large-language models are already on the rise. In the medium term, the use of
private large-language models will also become prevalent. Work with an AI platform that enables the
potential of different models and optimization methods specific to the application case.

Dialog and Process Templates

To ensure rapid automation progress in service communication and your internal knowledge management,
the AI platform should include a template library or make it easy to create one. Check if your process
automations are covered out-of-the-box by the platform.

Control & Management

AI must be manageable: Simple intervention options in the AI’s response behavior, the use of different AI
algorithms, and the choice of hosting method should be included in the criteria catalog.

Testing & Development

Your deployed AI should continually evolve. Check the test environment of the AI solution to ensure quick
roll-outs of content improvements and AI extensions.

User Autonomy
You will only feel secure with an AI solution if your employees of various qualifications can independently
intervene in the AI's response behavior. Implement a platform that includes an easy-to-use interface for
business users.

Innovation Leadership
What everyone does today does not determine tomorrow's success. Evaluate your future platform provider
for their adaptability to new trends and their own solutions to open challenges.

Support & Service

For starting your AI journey, a solution that can be self-managed is ideal. After the start, the learning curve
with increasing requirements follows. Secure a technology partner who can cover different levels of
complexity in AI implementation both product- and service-wise.

Information Transparency
Choose a platform that transparently handles the technological implementation of the AI application
and simultaneously offers you simple intervention options in the machine's response behavior.

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Resource Recommendation

Want to learn more about the potential use of AI assistants and chatbots? With this
AI webinar, deepen your practical knowledge of the necessary and ideal
functionalities of an AI platform.

Watch the Webinar now

Follow us on our news and social media channels for ongoing updates on AI
technologies and implementation examples.

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