IBM's New 'Lightweight Engine' Could Be a Game-Changer for Fintech
Date: 2024-08-12 Author: Oliver Abernathy Categories: BUSINESS
IBM recently announced the launch of a new version of its WatsonX.ai service called the "Lightweight Engine." While the solution is primarily aimed at large enterprises, it could also be an important tool for small and medium-sized businesses, especially in fast-growing industries like fintech.
The generative AI market has become the main driver of revenue growth in the tech sector in the first half of 2024. Just a decade ago, it was difficult to predict how much the sector would grow, thanks to the huge popularity of large language models such as OpenAI's ChatGPT and Anthropic's Claude.
The Role of Generative AI in Financial Services
Before ChatGPT, many AI and finance experts doubted that large language models like GPT-3 could be robust enough for use in finance, where accuracy and precision are paramount.
Despite significant advances in AI since ChatGPT’s release in 2023, this concern remains: models trained on publicly available data can be as unpredictable as the information they are based on. In order for AI to perform complex tasks, rather than simply act as a chatbot, models require specialized tuning.
An example of this is JPMorgan Chase’s purchase of enterprise access to OpenAI’s ChatGPT for all of its 60,000 employees. This decision involves fine-tuning on internal data and setting specific constraints, which underscores the financial sector’s commitment to generative AI.
Moving beyond chatbots
Many popular public AI services, like ChatGPT, offer enterprise versions that run exclusively in the cloud. However, in industries like fintech and financial services that require a high degree of data security, cloud solutions may not meet the necessary security standards.
IBM's WatsonX.ai offers both cloud and on-premises solutions, and with the introduction of the "Lightweight Engine," it is now possible to deploy and operate models on-premises with minimal overhead.
In an interview with Cointelegraph, Savio Rodriguez, vice president of ecosystem engineering and developer support at IBM, said:
"Companies adding on-premises solutions want the lightest possible platform to deploy and operate their generative AI use cases, so as not to waste CPU or GPU resources. This is where the "Lightweight Engine" comes in, allowing ISVs and developers to scale enterprise GenAI solutions while optimizing costs."
In industries like fintech, mining, blockchain, and crypto lending, where cloud-based AI solutions may not meet all security requirements, the flexibility offered by the Light Engine may be the deciding factor between developing models in-house or subscribing to third-party services.
However, there are many competing solutions on the market, from giants like Microsoft, Google, and Amazon, as well as specialized startups. While a direct comparison is beyond the scope of this article, IBM's Light Engine appears to live up to its name, offering a smaller footprint but with some limitations compared to the full-blown version.
