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FROM CONCEPT TO REALITY: LARGE ACTION MODELS (LAMS) AND THE EVOLUTION OF AI
BANKING FINANCE
|July 2024
Introduction - In the rapidly evolving landscape of artificial intelligence (AI), a transformative paradigm shift is underway with the emergence of Large Action Models (LAMS). These cuttingedge AI systems represent a monumental leap forward from their predecessors, Large Language Models (LLMs), by imbuing AI with the capability not only to understand language but also to execute complex tasks autonomously.

This article explores the evolution of LAMS, delves into their multifaceted capabilities, and envisions their profound impact on individual empowerment and organizational transformation.
Evolution of Al: From LLMs to LAMs
The journey from LLMS to LAMS represents a significant milestone in the evolution of AI. LLMS, such as OpenAl's GPT series, have revolutionized natural language processing by demonstrating remarkable proficiency in generating coherent text based on input prompts. However, LLMS operate primarily in a passive capacity, responding to queries and generating text without the ability to take independent actions.
In contrast, LAMS build upon the foundation of LLMs and extend their capabilities to encompass autonomous task execution. This paradigm shift is fuelled by advancements in AI research, including developments in reinforcement learning, neuro-symbolic programming, and multimodal learning. By integrating these techniques, LAMS transcend the limitations of conventional AI models, enabling them to interact with the world in a dynamic and proactive manner.
The Architecture of LAMs: A Holistic Approach to AI
At the core of LAMS lies a sophisticated architecture that integrates linguistic understanding, task execution, and realtime decision-making. Unlike traditional AI models that operate within predefined parameters, LAMS possess a higher degree of flexibility and adaptability, allowing them to navigate complex environments and respond intelligently to changing circumstances.
Key components of the LAM architecture include:
1. Linguistic Understanding: LAMS leverage advanced natural language processing (NLP) techniques to comprehend complex human goals expressed in natural language. By analyzing input prompts and contextual cues, LAMs extract relevant information and translate user intentions into actionable steps.
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