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How to build LLM based Products
Founder of Parlance Labs (Ex Github, Airbnb): Hamel Husain
Credit and Thanks:
Based on insights from The TWIML AI Podcast with
Sam Charrington.
Today’s Podcast Host: Sam Charrington
Title
Building Real-World LLM Products with Fine-Tuning and More
Guest
Hamel Husain
Guest Credentials
Hamel Husain is the founder of Parlance Labs, a research lab and consultancy focused on large language models. He has over 25 years of experience in machine learning, having worked at prominent tech companies such as GitHub, Airbnb, and DataRobot, where he contributed to early LLM research and led various ML initiatives. Husain has also been involved with fast.ai as an Entrepreneur in Residence and core contributor, maintaining open-source projects like nbdev.
Podcast Duration
1:19:35
This Newsletter Read Time
Approx. 5 mins
Brief Summary
In this TWIML AI Podcast, Sam Charrington engages with Hamel Husain, founder of Parlance Labs, to discuss the critical role of evaluations in AI development, particularly in the context of large language models (LLMs). They explore the importance of systematic testing to enhance AI efficacy, the nuances of fine-tuning models, and the significance of thoughtful user interface design in AI applications. The conversation emphasizes the need for a structured approach to both evaluation and fine-tuning to ensure successful AI product deployment.
Deep Dive
Hamel Husain emphasizes that while many use cases for LLMs have emerged, the most effective implementations often involve thoughtful user interfaces that integrate human input. For instance, he highlighted his work with ReChat, a real estate CRM company that utilizes a chat interface to dynamically pull up relevant widgets based on user queries. This approach not only enhances user experience but also exemplifies how LLMs can be employed in ways that go beyond traditional chatbot functionalities.
When it comes to fine-tuning LLMs, Husain noted that the process is often misunderstood as being overly complex. He argued that fine-tuning can be straightforward, especially with the right tools (like Axolotl) and frameworks. For example, he mentioned the use of LoRa (Low-Rank Adaptation), which allows for efficient fine-tuning by adjusting only a small number of parameters rather than the entire model. This method reduces the computational burden and makes it feasible to fine-tune models even on consumer-grade hardware.
However, Husain cautioned that fine-tuning should not be undertaken lightly. It is most beneficial when applied to narrow use cases where the model needs to perform specific tasks, such as translating natural language into domain-specific queries. He provided the example of Honeycomb, a company that has developed a query language for observability, where fine-tuning their LLM to understand this specific language yielded significant performance improvements. In contrast, he warned against fine-tuning for general-purpose applications, as this can lead to over-specialization and diminished performance in broader contexts.
The discussion also touched on the trade-offs between fine-tuning and continued pre-training. While fine-tuning focuses on adapting a model to a specific task, continued pre-training involves further training on a mix of domain-specific and general data. This approach helps maintain the model's general capabilities while enhancing its performance in targeted areas. Husain suggested that organizations should carefully consider their objectives and the nature of their data before deciding which approach to pursue.
Repositories like Hugging Face have become invaluable resources for practitioners looking to fine-tune LLMs. These platforms offer pre-trained models and configurations that can serve as starting points, allowing developers to build upon existing work rather than starting from scratch. Husain emphasized the importance of leveraging these resources to streamline the fine-tuning process.
As for the actual mechanics of fine-tuning, Husain outlined a systematic approach that includes defining a clear prompt template and ensuring that the training data closely mirrors the expected input during inference. He stressed that the quality of the data is paramount; poorly curated data can lead to ineffective fine-tuning and unexpected results. This is where evaluation and measurement come into play. Husain argued that systematic evaluations are essential for understanding a model's performance and identifying areas for improvement. He likened this process to software engineering, where unit tests are critical for maintaining code quality.
In terms of evaluation frameworks versus tools, Husain advised that organizations should first utilize their existing systems for testing and measurement before jumping into specialized tools. This foundational understanding allows teams to better appreciate the capabilities and limitations of the tools they eventually adopt. He noted that while many tools exist, the focus should be on developing a robust evaluation process tailored to the specific needs of the organization.
The conversation also highlighted the distinction between domain-specific and general use cases. Husain pointed out that evaluations must be tailored to the specific context in which the LLM will be deployed. For example, in the case of ReChat, the evaluation metrics would differ significantly from those used in a general-purpose chatbot application. This specificity is crucial for accurately assessing the model's performance and ensuring it meets user expectations.
Looking ahead, Husain expressed optimism about the future of LLMs and their applications. He believes that as the technology matures, the barriers to entry for fine-tuning and deploying LLMs will continue to decrease, making it accessible for a wider range of organizations. This democratization of AI tools will likely lead to an explosion of innovative applications across various industries, driven by the ability to fine-tune models for specific tasks and integrate them seamlessly into existing workflows.
Key Takeaways
Systematic evaluations are essential for transitioning AI prototypes to production-ready systems.
Fine-tuning LLMs is most effective for narrow use cases, such as domain-specific tasks, rather than general applications.
User interfaces that thoughtfully integrate human input with AI capabilities enhance overall user experience.
Tools like LoRa simplify the fine-tuning process, making it accessible even for those with limited resources.
Continuous evaluation and data analysis are critical for improving AI performance and addressing failure modes.
Actionable Insights
Implement a structured evaluation framework to systematically test and improve AI systems.
Start with off-the-shelf models and utilize prompt engineering before considering fine-tuning.
Use existing repositories like Hugging Face to find pre-trained models that align with your specific domain needs.
Regularly analyze user interaction data to identify common failure patterns and refine your AI's performance.
Leverage tools like Axolotl for fine-tuning to streamline the process and reduce complexity.
Why it’s Important
The insights shared in this podcast are crucial for organizations looking to leverage AI effectively. As AI technologies become increasingly integrated into various sectors, understanding the importance of evaluations and thoughtful design can significantly impact the success of AI initiatives. By adopting structured evaluation processes and focusing on user-centric design, organizations can enhance the reliability and usability of their AI products, ultimately leading to better outcomes and user satisfaction.
What it Means for Thought Leaders
For thought leaders in the AI space, the conversation highlights the necessity of advocating for systematic evaluation and user-centric design in AI development. As the field matures, leaders must emphasize the importance of these principles to foster innovation and ensure that AI technologies are both effective and beneficial to users. This approach will not only enhance the credibility of AI solutions but also drive broader acceptance and integration of AI across industries.
Mind Map

Key Quote
Evaluations are the most important thing… you need some kind of tests, and it's really the only way you can build AI.”
Future Trends & Predictions
Organizations may increasingly adopt hybrid models that combine fine-tuning with continuous evaluation to adapt to changing user needs and data landscapes. Furthermore, as concerns around data privacy and model transparency grow, the demand for robust evaluation frameworks that ensure ethical AI deployment will likely rise, shaping the future of AI development and application.
Check out the podcast here:
Latest in AI
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2. Alphabet's Cloud division has launched Agentspace, a new platform that enables businesses to create custom AI agents tailored to their specific needs. This tool integrates Google's Gemini AI capabilities with enterprise data, allowing for seamless access to information and enhanced productivity through a company-branded multimodal search agent. Agentspace supports various functions, such as automating research and content generation, while also providing features like audio summaries and document synthesis through its integration with NotebookLM. An early access program is now available, allowing organizations to leverage this innovative technology to streamline workflows and improve decision-making processes.
3. Anthropic has introduced a new tool that allows the company to monitor how users interact with its AI model, Claude, while ensuring user identities remain private. This tool, named Clio, analyzes a vast number of conversations and clusters them by themes without exposing personal information, enabling Anthropic to gain insights into real-world usage patterns. By employing privacy-preserving techniques, Clio helps identify both beneficial and potentially harmful uses of Claude, contributing to safer AI deployment.
Useful AI Tools
1. Constella: An infinite graph for your notes, images, and files with a revolutionary AI search.
2. Accio: Tap into deep industry insights to find top suppliers with the world’s first AI-powered sourcing engine.
3. SmythOS: Describe your needs, and use AI to create an agent automatically, using the best AI models and APIs.
Startup World
1. Sakana AI has developed the Neural Attention Memory Model (NAMM), a groundbreaking technique that can reduce cache memory usage in large language models by up to 75% without compromising performance. The innovative approach uses a simple neural network classifier that decides whether to "remember" or "forget" each token in a model's memory, effectively filtering out redundant information during inference. Tested on the Llama 3 8B model, NAMM demonstrated remarkable efficiency across various tasks, including text and multimodal applications, by dynamically adapting token removal strategies based on the specific task requirements.
2. AI startup Higgsfield has launched ReelMagic, a pioneering multi-agent platform that transforms story concepts into complete 10-minute videos. This innovative tool utilizes specialized AI agents for each production step, including screenwriting, character acting, and cinematography, streamlining the video creation process. By allowing creators to visualize their ideas without the complexities of traditional workflows, ReelMagic aims to democratize video production and enhance creative storytelling.
3. During a press conference at Mar-a-Lago, SoftBank CEO Masayoshi Son announced a massive $100 billion investment in the United States, focusing on artificial intelligence infrastructure and technology over the next four years. Son directly attributed his commitment to Trump's election victory, stating that his "confidence level in the economy of the United States has tremendously increased" with Trump's win. The investment aims to generate 100,000 jobs and follows a similar pattern from 2016, when Son previously pledged $50 billion in U.S. investments during Trump's first presidential term.
Analogy
Fine-tuning LLMs is like customizing a suit. While the fabric (the pre-trained model) is versatile, the key to a perfect fit lies in the tailoring. By making small adjustments, such as the Low-Rank Adaptation (LoRa), you ensure the suit matches the specific needs of the wearer, like a real estate CRM or a specialized query language. However, just as overdoing alterations can spoil the overall design, excessive fine-tuning for broad applications can hinder performance. The trick is in knowing when to tailor and when to embrace the original design, ensuring it serves its purpose without losing flexibility.
Thanks for reading, have a lovely day!
Jiten-One Cerebral
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