13 September 2026

🖍️Nick Bostrom - Collected Quotes

"A genie is a command-executing system: it receives a high-level command, carries it out, then pauses to await the next command. A sovereign is a system that has an open-ended mandate to operate in the world in pursuit of broad and possibly very long-range objectives. Although these might seem like radically different templates for what a superintelligence should be and do, the difference is not as deep as it might at first glance appear." (Nick Bostrom, "Superintelligence", 2014)

"A question distinct from, but related to, the question of kinetics is whether there will be one superintelligent power or many? Might an intelligence explosion propel one project so far ahead of all others as to make it able to dictate the future? Or will progress be more uniform, unfurling across a wide front, with many projects participating but none securing an overwhelming and permanent lead?" (Nick Bostrom, "Superintelligence", 2014)

"A system that has the intelligence amplification superpower could use it to bootstrap itself to higher levels of intelligence and to acquire any of the other intellectual superpowers that it does not possess at the outset. But using an intelligence amplification superpower is not the only way for a system to become a full-fledged superintelligence. A system that has the strategizing superpower, for instance, might use it to devise a plan that will eventually bring an increase in intelligence (e.g. by positioning the system so as to become the focus for intelligence amplification work performed by human programmers and computer science researchers)." (Nick Bostrom, "Superintelligence", 2014)

"A system might thus greatly boost its effective intellectual capability by absorbing pre-produced content accumulated through centuries of human science and civilization: for instance, by reading through the internet. If an AI reaches human level without previously having had access to this material or without having been able to digest it, then the AI’s overall recalcitrance will be low even if it is hard to improve its algorithmic architecture." (Nick Bostrom, "Superintelligence", 2014)

"An agent’s ability to shape humanity’s future depends not only on the absolute magnitude of the agent’s own faculties and resources - how smart and energetic it is, how much capital it has, and so forth - but also on the relative magnitude of its capabilities compared with those of other agents with conflicting goals." (Nick Bostrom, "Superintelligence", 2014) 

"If some day we build machine brains that surpass human brains in general intelligence, then this new superintelligence could become very powerful. And, as the fate of the gorillas now depends more on us humans than on the gorillas themselves, so the fate of our species would depend on the actions of the machine superintelligence." (Nick Bostrom, "Superintelligence: Paths, Dangers, Strategies", 2014)

"Improvements in rationality and intelligence will tend to improve an agent’s decision-making, rendering the agent more likely to achieve its final goals. One would therefore expect cognitive enhancement to emerge as an instrumental goal for a wide variety of intelligent agents. For similar reasons, agents will tend to instrumentally value many kinds of information." (Nick Bostrom, "Superintelligence: Paths, Dangers, Strategies", 2014) 

"Once machines attain some form of human-equivalence in general reasoning ability, how long will it then be before they attain radical superintelligence? Will this be a slow, gradual, protracted transition? Or will it be sudden, explosive?" (Nick Bostrom, "Superintelligence: Paths, Dangers, Strategies", 2014)

"Some paths to superintelligence require great resources and are therefore likely to be the preserve of large well-funded projects. Whole brain emulation, for instance, requires many different kinds of expertise and lots of equipment. Biological intelligence enhancements and brain–computer interfaces would also have a large scale factor: while a small biotech firm might invent one or two drugs, achieving superintelligence along one of these paths (if doable at all) would likely require many inventions and many tests, and therefore the backing of an industrial sector or a well-funded national program. Achieving collective superintelligence by making organizations and networks more efficient requires even more extensive input, involving much of the world economy." (Nick Bostrom, "Superintelligence: Paths, Dangers, Strategies", 2014)

"Suppose that a digital superintelligent agent came into being, and that for some reason it wanted to take control of the world: would it be able to do so?" (Nick Bostrom, "Superintelligence: Paths, Dangers, Strategies", 2014) 

"The fact that there are many paths that lead to superintelligence should increase our confidence that we will eventually get there. If one path turns out to be blocked, we can still progress." (Nick Bostrom, "Superintelligence: Paths, Dangers, Strategies", 2014)

"Various considerations thus point to an increased likelihood that a future power with superintelligence that obtained a sufficiently large strategic advantage would actually use it to form a singleton. The desirability of such an outcome depends, of course, on the nature of the singleton that would be created and also on what the future of intelligent life would look like in alternative multipolar scenarios." (Nick Bostrom, "Superintelligence: Paths, Dangers, Strategies", 2014)

"We can tentatively define a superintelligence as any intellect that greatly exceeds the cog‐ nitive performance of humans in virtually all domains of interest." (Nick Bostrom, "Superintelligence: Paths, Dangers, Strategies", 2014)

"We have seen that a superintelligence could have a great ability to shape the future according to its goals. But what will its goals be? What is the relation between intelligence and motivation in an artificial agent?" (Nick Bostrom, "Superintelligence: Paths, Dangers, Strategies", 2014)

"[...] we use the term 'superintelligence' to refer to intellects that greatly outperform the best current human minds across many very general cognitive domains. This is still quite vague. Different kinds of system with rather disparate performance attributes could qualify as superintelligences under this definition. To advance the analysis, it is helpful to disaggregate this simple notion of superintelligence by distinguishing different bundles of intellectual super-capabilities. There are many ways in which such decomposition could be done. Here we will differentiate between three forms: speed superintelligence, collective superintelligence, and quality superintelligence." (Nick Bostrom, "Superintelligence: Paths, Dangers, Strategies", 2014)

🖍️Yves Hilpisch - Collected Quotes

"Algorithms without data are often worthless. Similarly, algorithms with 'standard' data from typical data sources, such as exchanges or data service providers like Refi‐ nitiv or Bloomberg, might only be of limited value. This is due to the fact that such data is intensively analyzed by many, if not all, relevant players in the market, making it hard or even impossible to identify alpha-generating opportunities or similar competitive advantage." (Yves Hilpisch, "Artificial Intelligence in Finance A Python-Based Guide", 2021)

"All in all, it seems questionable whether a superintelligence can be properly and systematically controlled when it has reached that level. After all, its superpowers can at least in principle be used to overcome any human-designed control mechanism." (Yves Hilpisch, "Artificial Intelligence in Finance A Python-Based Guide", 2021)

"Although the normality assumption is a good approximation for many real-world phenomena, such as in physics, it is not appropri‐ ate and can even be dangerous when it comes to financial returns." (Yves Hilpisch, "Artificial Intelligence in Finance A Python-Based Guide", 2021)

"Almost no financial return sample data set passes statistical normality tests. Beyond the fact that it has proven useful in other domains, a major reason why this assumption is found in so many financial models is that it leads to elegant and relatively simple mathematical models, calculations, and proofs." (Yves Hilpisch, "Artificial Intelligence in Finance A Python-Based Guide", 2021)

"Even if markets are weakly efficient on an end-of-day basis, they can nevertheless be weakly inefficient intraday. Such statistical ineffi‐ ciencies might result from temporary imbalances, buy or sell pres‐ sures, market overreactions, technically driven buy or sell orders, and so on. The central question is whether such statistical ineffi‐ ciencies, once discovered, can be exploited profitably via specific trading strategies." (Yves Hilpisch, "Artificial Intelligence in Finance A Python-Based Guide", 2021)

"Even strong proponents of a utopian future based on advance‐ments in AI must agree that a dystopian future after a technological singularity cannot be fully excluded. Since the consequences might be catastrophic, dystopian outcomes must play a role in broader discussions about AI and superintelligence." (Yves Hilpisch, "Artificial Intelligence in Finance A Python-Based Guide", 2021)

"In the definition of learning through an algorithm or computer program, it is important to note the difference between the task of learning and the tasks to be learned. Learning means to learn how to (best) execute a certain task, such as estimation or classification." (Yves Hilpisch, "Artificial Intelligence in Finance A Python-Based Guide", 2021)

"It is to be assumed that any form of superintelligence will have instrumental goals that are independent of its main goal. This might lead to a number of unintended consequences, such as the insatiable quest to acquire ever more resources with any means that seem promising." (Yves Hilpisch, "Artificial Intelligence in Finance A Python-Based Guide", 2021)

"Of all the possible paths to superintelligence, AI seems to be the most promising one. Recent successes in the field based on reinforcement learning and neural networks have led to another AI spring, after a number of AI winters. Many even now believe that a superintelligence might not be as far away as we thought even a few years ago. The field currently is characterized by much faster advancements than originally predicted by experts only a short while ago." (Yves Hilpisch, "Artificial Intelligence in Finance A Python-Based Guide", 2021)

"The first and second moment of a probability distribution only describe a normal distribution completely. There are infinitely many other distributions that might share the first two moments with a normal distribution while being completely different." (Yves Hilpisch, "Artificial Intelligence in Finance A Python-Based Guide", 2021)

"The randomized population of training, validation, and test data sets is a common and useful technique for data sets that are neither sequence-like nor temporal in nature. However, when one is dealing, say, with a financial time series, shuffling the data is generally to be avoided because it breaks up temporal structures and sneaks foresight bias into the process by using, for example, later samples for training and implementing the testing on earlier samples." (Yves Hilpisch, "Artificial Intelligence in Finance A Python-Based Guide", 2021)

"Whereas in supervised learning the training, validation, and test data sets are assumed to exist before the training begins, in RL the agent generates its data itself by interacting with the environment. In many contexts, such as in games, this is a huge simplification. Consider the game of chess: instead of loading thousands of histor‐ical human-played chess games into a computer, an RL agent can generate thousands or millions of games itself by playing against another chess engine or another version of itself, for instance." (Yves Hilpisch, "Artificial Intelligence in Finance A Python-Based Guide", 2021)

 


🔭Data Science: Hallucinations (Just the Quotes)

"There is no theory we may hold and no observation we can make that will retain so much as its old defective reference to the facts if the net be altered. Tinitus, paraestheaias, hallucinations, delusions, confusions and disorientations intervene. Thus empiry confirms that if our nets are undefined, our facts are undefined, and to the 'real' we can attribute not so much as one quality or 'form'. With determi-nation of the net, the unknowable object of knowledge, the 'thing in itself', ceases to be unknowable." (Norbert Wiener, "Cybernetics: Or Control and Communication in the Animal and the Machine", 1948)

"Cyberspace. A consensual hallucination experienced daily by billions of legitimate operators, in every nation, by children being taught mathematical concepts. [...] A graphic representation of data abstracted from banks of every computer in the human system. Unthinkable complexity. Lines of light ranged in the nonspace of the mind, clusters and constellations of data." (William Gibson, "Neuromancer", 1984)

"Despite their impressive capabilities, LLMs are not without limitations. One of the most significant challenges is the problem of hallucination, where an LLM generates factually incorrect or misleading information that appears plausible. This is particularly problematic in domains requiring high factual accuracy, such as healthcare, finance, and legal applications. To mitigate hallucinations and enhance the reliability of LLM outputs,  Retrieval-Augmented Generation (RAG) has emerged as a powerful technique. RAG works by dynamically retrieving relevant information from an external knowledge source (such as a knowledge graph) at inference time, rather than just relying on pre-trained knowledge. This approach ensures that the model has access to up-to-date and accurate data, grounding answers in verified information rather than generating content purely from its internal representations." (Aldo Marzullo et al, "Graph Machine Learning" 2nd Ed., 2025)

"Generative AI tools for coding are sometimes inaccurate. They can produce results that look good but are wrong. This is common with LLMs. They can write code or chat like a person. And sometimes, they share information that’s just plain wrong. Not just a bit off, but totally backwards or nonsense. And they say it so confidently! We call this 'hallucinating', which is a funny term, but it makes sense." (Jeremy C Morgan, "Coding with AI: Examples in Python", 2025)

"LLMs are trained on large volumes of data, which inherently provides them with an immense knowledge base and understanding of different languages. Yet, LLMs at their core are complex text completion engines. Since this knowledge and understanding of language is compressed in a very high-dimensional latent space. LLMs end up using these in a very fluid and intelligible way (which often leads to hallucinations). In order to guide LLMs to focus on specific topics or pieces of information to solve certain tasks, (for instance, question-answering from a given piece of text), it is important to provide contextual information explicitly. While most current generations of LLMs have extremely wide context windows, it is recommended to preprocess context into overlapping smaller chunks for better results, reduced latency, and so on. For similar reasons, it is also recommended to preprocess contextual information in clear and task-specific formats. This aspect of context preprocessing is extremely useful in Retrieval-Gugmented Generation (RAG) scenarios." (Joseph Babcock & Raghav Bali, "Generative AI with Python and PyTorch" 2nd. Ed., 2025)

"Beyond intentionally misleading content, GenAI systems can produce inaccurate information unintentionally. LLMs are prone to hallucination, generating plausible but false statements with the same confidence as accurate ones. In enterprise contexts, this poses particular risks: an AI assistant might report incorrect financial figures, fabricate customer details, or misrepresent historical trends. Organizations deploying GenAI must implement validation mechanisms, human oversight, and retrieval-augmented approaches that ground model outputs in verified data sources." (Bennie Haelen, "ML and Generative AI in the Data Lakehouse Building and Deploying AI Applications at Scale", 2026)

"Ensuring that a language model reliably retrieves and presents correct information, often referred to as factual recall, is critical for any production-grade application. Whether you’re building an internal helpdesk assistant, a medical Q&A system, or an automated compliance auditor, users expect concise, accurate answers that align with up-to-date source material. Unfortunately, without explicit context, even the most powerful LLM can hallucinate or omit key facts." (Bennie Haelen, "ML and Generative AI in the Data Lakehouse Building and Deploying AI Applications at Scale", 2026)

"GenAI models are remarkably powerful, but they carry an inherent limitation rooted in how they are built. Every foundation model has a training cutoff, a point in time beyond which it has no awareness of world events, product changes, regulatory updates, or organizational developments. This knowledge gap is not a flaw that can be patched with better prompting. It’s a structural consequence of how models are trained, and it grows wider every day the model remains in production without retraining. Combined with the tendency to hallucinate when asked about topics outside their training distribution, models operating on stale knowledge can confidently deliver responses that are factually incorrect, dangerously outdated, or simply no longer relevant to the user’s context." (Bennie Haelen, "ML and Generative AI in the Data Lakehouse Building and Deploying AI Applications at Scale", 2026)

"[...] LLMs raise serious concerns about ethics, bias and fairness, errors in reasoning, hallucinations, and misuse (e.g., misinformation and disinformation). These concerns are exacerbated by modern LLMs being both literal and figurative 'black boxes': Literal black boxes because many advanced AI systems are proprietary and the weights (trained parameters of the models) are not released to the public; and figurative black boxes because even the open-source AI models are so complicated that understanding them and developing safety guardrails has thus far proven extremely difficult." (Mike X Cohen,"50 ML Projects To Understand LLMs", 2026)

"RAG applications must be built with semantics, metadata, and governance in mind. The retrieved information must be high-quality, secure, and appropriate for the user’s role. Equally important is monitoring and management: checking whether source data has changed, ensuring vector stores remain accurate, and watching for hallucinations or data leakage. Organizations are definitely starting to experiment with RAG models today; some are putting them into production applications. Some believe that using RAG helps mitigate hallucinations because it is grounded in trusted organizational data." (Fern Halper, "Data Makes the World Go 'Round", 2026)


12 September 2026

🤖〽️Prompt Engineering: Copilot Unabridged (Part 216: How Long Can Microsoft and Other Vendors Sustain Massive AI Investments Before It Becomes an Economic Bubble?)

Prompt Engineering Series
Prompt Engineering Series


Prompt: "write a post of 600 words on the impact of consistent and high‑quality training data on AI"

Introduction

Over the past several years, Microsoft, Google, Amazon, Meta, and other technology giants have invested unprecedented sums into Artificial Intelligence (AI). They are building GPU superclusters, expanding datacenter capacity, training frontier‑scale models, and subsidizing AI usage across consumer and enterprise products. These investments are justified by the belief that AI will become the next foundational computing platform - driving productivity, reshaping cloud economics, and unlocking new trillion‑dollar markets.

But massive investment comes with massive risk. If AI adoption, monetization, and real‑world impact fail to keep pace with spending, the industry could find itself in a classic economic bubble: inflated expectations, unsustainable burn rates, and a painful correction. The key question is how long vendors can sustain this trajectory before the imbalance becomes too large to ignore.

1. Financial Strength Buys Time - But Not Unlimited Time

Microsoft, Google, and Amazon have enormous financial buffers. Microsoft alone generates more than $80 billion in annual operating income, giving it the ability to absorb AI losses for several years. This financial resilience allows vendors to continue investing even when short‑term returns are modest.

However, financial strength is not infinite. If AI revenue fails to scale, vendors will eventually face pressure to reduce capital expenditure. The sustainability window is long - 3 to 7 years - but not indefinite. This is the core of financial runway.

2. Investor Expectations Are the Real Timer

Investors currently tolerate massive AI losses because they believe in long‑term returns. As long as vendors show:

  • rapid adoption
  • credible monetization pathways
  • strong ecosystem growth
  • increasing enterprise integration
  • the market remains patient. 

But if expectations diverge too far from reality, investor sentiment can shift quickly.

A bubble forms when expectations grow faster than fundamentals. If AI revenue plateaus while spending accelerates, investors will demand:

  • reduced spending
  • clearer profitability timelines
  • more conservative guidance

This is the dynamic of expectation inflation.

3. Infrastructure Expansion Has Natural Limits

Even if vendors wanted to sustain massive spending indefinitely, physical constraints prevent it. Datacenters require land, power, cooling, and specialized hardware. Supply chains for GPUs and networking fabric are already strained.

These constraints slow the pace of expansion and act as a natural brake on bubble formation. Vendors cannot overspend infinitely because the infrastructure simply cannot scale infinitely. This is the logic behind infrastructure bottlenecks.

4. The Bubble Threshold: When Costs Outrun Value

An economic bubble emerges when the perceived future value of AI becomes disconnected from its actual economic output. Warning signs include:

  • AI revenue growing slower than AI costs
  • enterprises reducing or delaying adoption
  • vendors subsidizing usage at unsustainable levels
  • datacenter expansion outpacing utilization
  • investors questioning long‑term profitability

If these trends intensify, the bubble becomes visible. Most analysts believe the industry has 3–5 years before this risk becomes acute.

5. What Happens If the Bubble Pops?

If AI fails to meet expectations, vendors would be forced to:

  • cut capital expenditure
  • slow frontier‑model training
  • consolidate datacenter expansion
  • shift focus to smaller, more efficient models
  • prioritize profitable cloud workloads

The industry would not collapse - but it would undergo a painful correction.

Conclusion

Microsoft and other vendors can sustain massive AI investments for several years thanks to strong balance sheets, strategic necessity, and investor patience. But if AI fails to deliver the expected economic transformation, the industry risks drifting into an economic bubble where spending outpaces value creation.

The sustainability window is long - but not limitless. Without measurable returns, vendors will eventually face pressure to reduce spending, recalibrate expectations, and shift toward more efficient AI strategies. The next few years will determine whether AI becomes the next great computing platform - or the next great over‑investment cycle.

Disclaimer: The whole text was generated by Copilot (under Windows 11) at the first attempt. This is just an experiment to evaluate feature's ability to answer standard general questions, independently on whether they are correctly or incorrectly posed. Moreover, the answers may reflect hallucinations and other types of inconsistent or incorrect reasoning.

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🕸Systems Engineering: Explainability (Just the Quotes)

"[System dynamics] is an approach that should help in important top-management problems [...] The solutions to small problems yield small rewards. Very often the most important problems are but little more difficult to handle than the unimportant. Many [people] predetermine mediocre results by setting initial goals too low. The attitude must be one of enterprise design. The expectation should be for major improvement [...] The attitude that the goal is to explain behavior; which is fairly common in academic circles, is not sufficient. The goal should be to find management policies and organizational structures that lead to greater success." (Jay W Forrester, "Industrial Dynamics", 1961)

"Theories are usually introduced when previous study of a class of phenomena has revealed a system of uniformities. […] Theories then seek to explain those regularities and, generally, to afford a deeper and more accurate understanding of the phenomena in question. To this end, a theory construes those phenomena as manifestations of entities and processes that lie behind or beneath them, as it were." (Carl G Hempel, "Philosophy of Natural Science", 1966)

"The dynamics of any system can be explained by showing the relations between its parts and the regularities of their interactions so as to reveal its organization. For us to fully understand it, however, we need not only to see it as a unity operating in its internal dynamics, but also to see it in its circumstances, i.e., in the context to which its operation connects it. This understanding requires that we adopt a certain distance for observation, a perspective that in the case of historical systems implies a reference to their origin. This can be easy, for instance, in the case of man-made machines, for we have access to every detail of their manufacture. The situation is not that easy, however, as regards living beings: their genesis and their history are never directly visible and can be reconstructed only by fragments. " (Humberto Maturana, "The Tree of Knowledge", 1987)

"Cybernetics is a science of purposeful behavior. It helps us explain behavior as the continuous action of someone" (or thing) in the process, as we see it, of maintaining certain conditions near a goal state, or purpose." (Jeff Dooley, "Thoughts on the Question: What is Cybernetics", 1995)

"Analysis of a system reveals its structure and how it works. It provides the knowledge required to make it work efficiently and to repair it when it stops working. Its product is know-how, knowledge, not understanding. To enable a system to perform effectively we must understand it - we must be able to explain its behavior—and this requires being aware of its functions in the larger systems of which it is a part." (Russell L Ackoff, "Re-Creating the Corporation", 1999)

"Emergent self-organization in multi-agent systems appears to contradict the second law of thermodynamics. This paradox has been explained in terms of a coupling between the macro level that hosts self-organization" (and an apparent reduction in entropy), and the micro level" (where random processes greatly increase entropy). Metaphorically, the micro level serves as an entropy 'sink', permitting overall system entropy to increase while sequestering this increase from the interactions where self-organization is desired." (H Van Dyke Parunak & Sven Brueckner, "Entropy and Self-Organization in Multi-Agent Systems", Proceedings of the International Conference on Autonomous Agents, 2001)

"System Thinking is a common concept for understanding how causal relationships and feedbacks work in an everyday problem. Understanding a cause and an effect enables us to analyse, sort out and explain how changes come about both temporarily and spatially in common problems. This is referred to as mental modelling, i.e. to explicitly map the understanding of the problem and making it transparent and visible for others through Causal Loop Diagrams" (CLD)." (Hördur V. Haraldsson, "Introduction to System Thinking and Causal Loop Diagrams", 2004)

"The word 'coherence' literally means holding or sticking together, but it is usually used to refer to a system, an idea, or a worldview whose parts fit together in a consistent and efficient way. Coherent things work well: A coherent worldview can explain almost anything, while an incoherent worldview is hobbled by internal contradictions. [...] Whenever a system can be analyzed at multiple levels, a special kind of coherence occurs when the levels mesh and mutually interlock." (Jonathan Haidt,"The Happiness Hypothesis: Finding Modern Truth in Ancient Wisdom", 2006)

"A worldview must be coherent, logical and adequate. Coherence means that the fundamental ideas constituting the worldview must be seen as proceeding from a single, unifying, overarching concept. A logical worldview means simply that the various ideas constituting it should not be contradictory. Adequate means that it is capable of explaining, logically and coherently, every element of contemporary experience." (M G Jackson, "Transformative Learning for a New Worldview: Learning to Think Differently", 2008)

"For me, as I later came to say, cybernetics is the art of creating equilibrium in a world of possibilities and constraints. This is not just a romantic description, it portrays the new way of thinking quite accurately. Cybernetics differs from the traditional scientific procedure, because it does not try to explain phenomena by searching for their causes, but rather by specifying the constraints that determine the direction of their development." (Ernst von Glasersfeld, "The Cybernetics of Snow Drifts 1948", 2009)

"Cybernetics is the art of creating equilibrium in a world of possibilities and constraints. This is not just a romantic description, it portrays the new way of thinking quite accurately. Cybernetics differs from the traditional scientific procedure, because it does not try to explain phenomena by searching for their causes, but rather by specifying the constraints that determine the direction of their development." (Ernst von Glasersfeld, "Partial Memories: Sketches from an Improbable Life", 2010)

"The notion of emergence is used in a variety of disciplines such as evolutionary biology, the philosophy of mind and sociology, as well as in computational and complexity theory. It is associated with non-reductive naturalism, which claims that a hierarchy of levels of reality exist. While the emergent level is constituted by the underlying level, it is nevertheless autonomous from the constituting level. As a naturalistic theory, it excludes non-natural explanations such as vitalistic forces or entelechy. As non-reductive naturalism, emergence theory claims that higher-level entities cannot be explained by lower-level entities." (Martin Neumann, "An Epistemological Gap in Simulation Technologies and the Science of Society", 2011)

"Models are formal structures represented in mathematics and diagrams that help us to understand the world. Mastery of models improves your ability to reason, explain, design, communicate, act, predict, and explore.”" (Scott E Page, “The Model Thinker”, 2018)


📉Graphical Representation: Explainability (Just the Quotes)

"Wherever unusual peaks or valleys occur on a curve it is a good plan to mark these points with a small figure inside a circle. This figure should refer to a note on the back of the chart explaining the reason for the unusual condition. It is not always sufficient to show that a certain item is unusually high or low; the executive will want to know why it is that way." (Allan C Haskell, "How to Make and Use Graphic Charts", 1919)

"The preliminary examination of most data is facilitated by the use of diagrams. Diagrams prove nothing, but bring outstanding features readily to the eye; they are therefore no substitutes for such critical tests as may be applied to the data, but are valuable in suggesting such tests, and in explaining the conclusions founded upon them." (Sir Ronald A Fisher, "Statistical Methods for Research Workers", 1925)

"Try telling the story in words different from those on the charts. […] If the chart shows a picture, describe the picture. Tell what it shows and why it is shown. If it is a diagram, explain it. Don't leave the audience to figure it out. No matter how simple the story shown, tell it in your own words: but remember that explaining a chart doesn't mean reading it out loud." (Edward J Hegarty, "How to Use a Set of Display Charts", The American Statistician Vol. 2" (5), 1948)

"Charts and graphs represent an extremely useful and flexible medium for explaining, interpreting, and analyzing numerical facts largely by means of points, lines, areas, and other geometric forms and symbols. They make possible the presentation of quantitative data in a simple, clear, and effective manner and facilitate comparison of values, trends, and relationships. Moreover, charts and graphs possess certain qualities and values lacking in textual and tabular forms of presentation." (Calvin F Schmid, "Handbook of Graphic Presentation", 1954)

"It is almost impossible to define 'time-sequence chart' in a clear and unambiguous manner because of the many forms and adaptations open to this type of chart. However. it might be said that, in essence, time-sequence chart portrays a chain of activities through time, indicates the type of activity in each link of the chain, shows clearly the position of the link in the total sequence chain, and indicates the duration of each activity. The time sequence chart may also contain verbal elements explaining when to begin an activity, how long to continue the activity, and a description of the activity. The chart may also indicate when to blend a given activity with another and the point at which a given activity is completed. The basic time-sequence chart may also be accompanied by verbal explanations and by secondary or contributory charts." (Cecil H Meyers, "Handbook of Basic Graphs: A modern approach", 1970)

"Maps used as charts do not need fine cartographic detail. Their purpose is to express ideas, explain relationships, or store data for consultation. Keep your maps simple. Edit out irrelevant detail. Without distortion, try to present the facts as the main feature of your map, which should serve only as a springboard for the idea you're trying to put across." (Bruce Robertson, "How to Draw Charts & Diagrams", 1988)

"Always remember that the model is not the diagram. The diagram’s purpose is to help communicate and explain the model. The code can serve as a repository of the details of the design." (Eric Evans, "Domain-Driven Design: Tackling complexity in the heart of software", 2003)

"Diagrams are a means of communication and explanation, and they facilitate brainstorming. They serve these ends best if they are minimal. Comprehensive diagrams of the entire object model fail to communicate or explain; they overwhelm the reader with detail and they lack meaning." (Eric Evans, "Domain-Driven Design: Tackling complexity in the heart of software", 2003)

"Statistics can certainly pronounce a fact, but they cannot explain it without an underlying context, or theory. Numbers have an unfortunate tendency to supersede other types of knowing. […] Numbers give the illusion of presenting more truth and precision than they are capable of providing." (Ronald J Baker, "Measure what Matters to Customers: Using Key Predictive Indicators", 2006)

"Need to consider outliers as they can affect statistics such as means, standard deviations, and correlations. They can either be explained, deleted, or accommodated" (using either robust statistics or obtaining additional data to fill-in). Can be detected by methods such as box plots, scatterplots, histograms or frequency distributions." (Randall E Schumacker & Richard G Lomax, "A Beginner’s Guide to Structural Equation Modeling" 3rd Ed., 2010)

"Bear in mind is that the use of color doesn’t always help. Use it sparingly and with a specific purpose in mind. Remember that the reader’s brain is looking for patterns, and will expect both recurrence itself and the absence of expected recurrence to carry meaning. If you’re using color to differentiate categorical data, then you need to let the reader know what the categories are. If the dimension of data you’re encoding isn’t significant enough to your message to be labeled or explained in some way - or if there is no dimension to the data underlying your use of difference colors - then you should limit your use so as not to confuse the reader." (Noah Iliinsky & Julie Steel, "Designing Data Visualizations", 2011)

"Communication is the primary goal of data visualization. Any element that hinders - rather than helps - the reader, then, needs to be changed or removed: labels and tags that are in the way, colors that confuse or simply add no value, uncomfortable scales or angles. Each element needs to serve a particular purpose toward the goal of communicating and explaining information. Efficiency matters, because if you’re wasting a viewer’s time or energy, they’re going to move on without receiving your message." (Noah Iliinsky & Julie Steel, "Designing Data Visualizations", 2011)

"Done well, annotation can help explain and facilitate the viewing and interpretive experience. It is the challenge of creating a layer of user assistance and user insight: how can you maximize the clarity and value of engaging with this visualization design?" (Andy Kirk, "Data Visualization: A successful design process", 2012)

"Readability in visualization helps people interpret data and make conclusions about what the data has to say. Embed charts in reports or surround them with text, and you can explain results in detail. However, take a visualization out of a report or disconnect it from text that provides context" (as is common when people share graphics online), and the data might lose its meaning; or worse, others might misinterpret what you tried to show." (Nathan Yau, "Data Points: Visualization That Means Something", 2013)

"A map by itself requires little explanation, but once data are superimposed, readers will probably need labels on the maps, and legends explaining encodings like the color of markers." (Robert Grant, "Data Visualization: Charts, Maps and Interactive Graphics", 2019)

"Analysis is a two-step process that has an exploratory and an explanatory phase. In order to create a powerful data story, you must effectively transition from data discovery" (when you’re finding insights) to data communication (when you’re explaining them to an audience). If you don’t properly traverse these two phases, you may end up with something that resembles a data story but doesn’t have the same effect. Yes, it may have numbers, charts, and annotations, but because it’s poorly formed, it won’t achieve the same results." (Brent Dykes, "Effective Data Storytelling: How to Drive Change with Data, Narrative and Visuals", 2019)

"When narrative is coupled with data, it helps to explain to your audience what’s happening in the data and why a particular insight is important. Ample context and commentary are often needed to fully appreciate an analysis finding. The narrative element adds structure to the data and helps to guide the audience through the meaning of what’s being shared." (Brent Dykes, "Effective Data Storytelling: How to Drive Change with Data, Narrative and Visuals", 2019))

"When the colors are dull and neutral, they can communicate a sense of uniformity and an aura of calmness. Grays do a great job of mapping out the context of your story so that the more sharp colors highlight what you’re trying to explain. The power of gray comes in handy for all of our supporting details such as the axis, gridlines, and nonessential data that is included for comparative purposes. By using gray as the primary color in a visualization, we automatically draw our viewers’ eyes to whatever isn’t gray. That way, if we are interested in telling a story about one data point, we can do so quite easily. " (Kate Strachnyi, "ColorWise: A Data Storyteller’s Guide to the Intentional Use of Color", 2023)


🔭Data Science: Explainability (Just the Quotes)

"We consider it a good principle to explain the phenomena by the simplest hypothesis possible." (Ptolemy, "Almagest", cca. 150)

"Science is reduction. Mathematics is its ideal, its form par excellence, for it is in mathematics that assimilation, identification, is most perfectly realized. The universe, scientifically explained, would be a certain formula, one and eternal, regarded as the equivalent of the entire diversity and movement of things." (Émile Boutroux, "Natural law in Science and Philosophy", 1914)

"The preliminary examination of most data is facilitated by the use of diagrams. Diagrams prove nothing, but bring outstanding features readily to the eye; they are therefore no substitutes for such critical tests as may be applied to the data, but are valuable in suggesting such tests, and in explaining the conclusions founded upon them." (Sir Ronald A Fisher, "Statistical Methods for Research Workers", 1925)

"To say that observations of the past are certain, whereas predictions are merely probable, is not the ultimate answer to the question of induction; it is only a sort of intermediate answer, which is incomplete unless a theory of probability is developed that explains what we should mean by ‘probable’ and on what ground we can assert probabilities." (Hans Reichenbach, "The Rise of Scientific Philosophy", 1951

"The sciences do not try to explain, they hardly even try to interpret, they mainly make models. By a model is meant a mathematical construct which, with the addition of certain verbal interpretations, describes observed phenomena. The justification of such a mathematical construct is solely and precisely that it is expected to work" (John Von Neumann, "Method in the Physical Sciences", 1955)

"Theories are usually introduced when previous study of a class of phenomena has revealed a system of uniformities. […] Theories then seek to explain those regularities and, generally, to afford a deeper and more accurate understanding of the phenomena in question. To this end, a theory construes those phenomena as manifestations of entities and processes that lie behind or beneath them, as it were." (Carl G Hempel, "Philosophy of Natural Science", 1966)

"There are different levels of organization in the occurrence of events. You cannot explain the events of one level in terms of the events of another. For example, you cannot explain life in terms of mechanical concepts, nor society in terms of individual psychology. Analysis can only take you down the scale of organization. It cannot reveal the workings of things on a higher level. To some extent the holistic philosophers are right." (Anatol Rapoport, "General Systems" Vol. 14, 1969)

"Facts and theories are different things, not rungs in a hierarchy of increasing certainty. Facts are the world's data. Theories are structures of ideas that explain and interpret facts. Facts do not go away while scientists debate rival theories for explaining them." (Stephen J Gould "Evolution as Fact and Theory", 1981)

"In all scientific fields, theory is frequently more important than experimental data. Scientists are generally reluctant to accept the existence of a phenomenon when they do not know how to explain it. On the other hand, they will often accept a theory that is especially plausible before there exists any data to support it." (Richard Morris, 1983)

"There is a universality about mathematics; what was created to explain one phenomenon is very often later found to be useful in explaining other, apparently unrelated, phenomena. Theories that were developed to explain some poorly measured effects are often found to fit later, much more accurate measurements. Furthermore, from measurements over a limited range the theory is often found to fit a far wider range. Finally, and perhaps most unreasonably, quite regularly from the mathematics alone new phenomena, previously unknown and unsuspected, are successfully predicted. This universality of mathematics could, of course, be a reflection of the way the human mind works and not of the external world, but most people believe it reflects reality." (Richard W Hamming, "Methods of Mathematics Applied to Calculus, Probability, and Statistics", 1985)

"The dynamics of any system can be explained by showing the relations between its parts and the regularities of their interactions so as to reveal its organization. For us to fully understand it, however, we need not only to see it as a unity operating in its internal dynamics, but also to see it in its circumstances, i.e., in the context to which its operation connects it. This understanding requires that we adopt a certain distance for observation, a perspective that in the case of historical systems implies a reference to their origin. This can be easy, for instance, in the case of man-made machines, for we have access to every detail of their manufacture. The situation is not that easy, however, as regards living beings: their genesis and their history are never directly visible and can be reconstructed only by fragments."  (Humberto Maturana, "The Tree of Knowledge", 1987)

"A model is generally more believable if it can predict what will happen, rather than 'explain' something that has already occurred." (James R Thompson, "Empirical Model Building", 1989)

"It is in the nature of theoretical science that there can be no such thing as certainty. A theory is only ‘true’ for as long as the majority of the scientific community maintain the view that the theory is the one best able to explain the observations." (Jim Baggott, "The Meaning of Quantum Theory", 1992)

"The word theory, as used in the natural sciences, doesn’t mean an idea tentatively held for purposes of argument - that we call a hypothesis. Rather, a theory is a set of logically consistent abstract principles that explain a body of concrete facts. It is the logical connections among the principles and the facts that characterize a theory as truth. No one element of a theory [...] can be changed without creating a logical contradiction that invalidates the entire system. Thus, although it may not be possible to substantiate directly a particular principle in the theory, the principle is validated by the consistency of the entire logical structure." (Alan Cromer, "Uncommon Sense: The Heretical Nature of Science", 1993)

"Jargon and complex methodology have their place. But true professional jargon is merely a shorthand way of speaking. Distrust any jargon that cannot be translated into plain English. Sophisticated methods can bring unique insights, but they can also be used to cover inadequate data and thinking. Good analysts can explain their methods in simple, direct terms. Distrust anyone who can't make clear how they have treated the data." (Herbert F Spirer et al, "Misused Statistics" 2nd Ed, 1998)

"Models can be viewed and used at three levels. The first is a model that fits the data. A test of goodness-of-fit operates at this level. This level is the least useful but is frequently the one at which statisticians and researchers stop. For example, a test of a linear model is judged good when a quadratic term is not significant. A second level of usefulness is that the model predicts future observations. Such a model has been called a forecast model. This level is often required in screening studies or studies predicting outcomes such as growth rate. A third level is that a model reveals unexpected features of the situation being described, a structural model, [...] However, it does not explain the data." (Gerald van Belle, "Statistical Rules of Thumb", 2002)

"A scientific theory is a concise and coherent set of concepts, claims, and laws (frequently expressed mathematically) that can be used to precisely and accurately explain and predict natural phenomena." (Mordechai Ben-Ari, "Just a Theory: Exploring the Nature of Science", 2005)

"The difference between human dynamics and data mining boils down to this: Data mining predicts our behaviors based on records of our patterns of activity; we don't even have to understand the origins of the patterns exploited by the algorithm. Students of human dynamics, on the other hand, seek to develop models and theories to explain why, when, and where we do the things we do with some regularity." (Albert-László Barabási, "Bursts: The Hidden Pattern Behind Everything We Do", 2010)

"What is so unconventional about the statistical way of thinking? First, statisticians do not care much for the popular concept of the statistical average; instead, they fixate on any deviation from the average. They worry about how large these variations are, how frequently they occur, and why they exist. [...] Second, variability does not need to be explained by reasonable causes, despite our natural desire for a rational explanation of everything; statisticians are frequently just as happy to pore over patterns of correlation. [...] Third, statisticians are constantly looking out for missed nuances: a statistical average for all groups may well hide vital differences that exist between these groups. Ignoring group differences when they are present frequently portends inequitable treatment. [...] Fourth, decisions based on statistics can be calibrated to strike a balance between two types of errors. Predictably, decision makers have an incentive to focus exclusively on minimizing any mistake that could bring about public humiliation, but statisticians point out that because of this bias, their decisions will aggravate other errors, which are unnoticed but serious. [...] Finally, statisticians follow a specific protocol known as statistical testing when deciding whether the evidence fits the crime, so to speak. Unlike some of us, they don’t believe in miracles. In other words, if the most unusual coincidence must be contrived to explain the inexplicable, they prefer leaving the crime unsolved." (Kaiser Fung, "Numbers Rule the World", 2010)

"Black Swans (capitalized) are large-scale unpredictable and irregular events of massive consequence - unpredicted by a certain observer, and such un - predictor is generally called the 'turkey' when he is both surprised and harmed by these events. [...] Black Swans hijack our brains, making us feel we 'sort of' or 'almost' predicted them, because they are retrospectively explainable. We don’t realize the role of these Swans in life because of this illusion of predictability. […] An annoying aspect of the Black Swan problem - in fact the central, and largely missed, point - is that the odds of rare events are simply not computable." (Nassim N Taleb, "Antifragile: Things that gain from disorder", 2012)

"Statistical models in the social sciences rely on correlations, generally not causes, of our behavior. It is inevitable that such models of reality do not capture reality well. This explains the excess of false positives and false negatives." (Kaiser Fung, "Numbersense: How To Use Big Data To Your Advantage", 2013

"We are hardwired to make sense of the world around us - to notice patterns and invent theories to explain these patterns. We underestimate how easily patterns can be created by inexplicable random events - by good luck and bad luck." (Gary Smith, "Standard Deviations", 2014)

"When data is not normal, the reason the formulas are working is usually the central limit theorem. For large sample sizes, the formulas are producing parameter estimates that are approximately normal even when the data is not itself normal. The central limit theorem does make some assumptions and one is that the mean and variance of the population exist. Outliers in the data are evidence that these assumptions may not be true. Persistent outliers in the data, ones that are not errors and cannot be otherwise explained, suggest that the usual procedures based on the central limit theorem are not applicable." (DeWayne R Derryberry, "Basic data analysis for time series with R", 2014)

"System dynamics [...] uses models and computer simulations to understand behavior of an entire system, and has been applied to the behavior of large and complex national issues. It portrays the relationships in systems as feedback loops, lags, and other descriptors to explain dynamics, that is, how a system behaves over time. Its quantitative methodology relies on what are called 'stock-and-flow diagrams' that reflect how levels of specific elements accumulate over time and the rate at which they change. Qualitative systems thinking constructs evolved from this quantitative discipline." (Karen L Higgins, "Economic Growth and Sustainability: Systems Thinking for a Complex World", 2015)

"Traditionally, the only way to get a computer to do something - from adding two numbers to flying an airplane - was to write down an algorithm explaining how, in painstaking detail. But machine-learning algorithms, also known as learners, are different: they figure it out on their own, by making inferences from data. And the more data they have, the better they get. Now we don’t have to program computers; they program themselves." (Pedro Domingos, "The Master Algorithm", 2015)

"We are superb causal-hypothesis generators. Given an effect, we are rarely at a loss for an explanation. Seeing a difference in observations over time, we readily come up with a causal interpretation. Much of the time, no causality at all is going on - just random variation. The compulsion to explain is particularly strong when we habitually see that one event typically occurs in conjunction with another event. Seeing such a correlation almost automatically provokes a causal explanation. It’s tremendously useful to be on our toes looking for causal relationships that explain our world. But there are two problems: (1) The explanations come too easily. If we recognized how facile our causal hypotheses were, we’d place less confidence in them. (2) Much of the time, no causal interpretation at all is appropriate and wouldn’t even be made if we had a better understanding of randomness." (Richard E Nisbett, "Mindware: Tools for Smart Thinking", 2015)

"The problem-solving view of intelligence helps explain the production of invariably narrow applications of AI throughout its history. Game playing, for instance, has been a source of constant inspiration for the development of advanced AI techniques, but games are simplifications of life that reward simplified views of intelligence. […] Treating intelligence as problem-solving thus gives us narrow applications." (Erik J Larson, "The Myth of Artificial Intelligence: Why Computers Can’t Think the Way We Do", 2021)

"Kernelized support vector machines are powerful models and perform well on a variety of datasets. SVMs allow for complex decision boundaries, even if the data has only a few features. They work well on low-dimensional and high-dimensional data (i.e., few and many features), but don’t scale very well with the number of samples. Running an SVM on data with up to 10,000 samples might work well, but working with datasets of size 100,000 or more can become challenging in terms of runtime and memory usage. Another downside of SVMs is that they require careful preprocessing of the data and tuning of the parameters. This is why, these days, most people instead use tree-based models such as random forests or gradient boosting (which require little or no pre‐ processing) in many applications. Furthermore, SVM models are hard to inspect; it can be difficult to understand why a particular prediction was made, and it might be tricky to explain the model to a nonexpert." (Andreas C Müller & Sarah Guido, "Introduction to Machine Learning with Python: A Guide for Data Scientists", 2017)

"A recurring theme in machine learning is combining predictions across multiple models. There are techniques called bagging and boosting which seek to tweak the data and fit many estimates to it. Averaging across these can give a better prediction than any one model on its own. But here a serious problem arises: it is then very hard to explain what the model is (often referred to as a 'black box'). It is now a mixture of many, perhaps a thousand or more, models." (Robert Grant, "Data Visualization: Charts, Maps and Interactive Graphics", 2019)

"I believe that the backlash against statistics is due to four primary reasons. The first, and easiest for most people to relate to, is that even the most basic concepts of descriptive and inferential statistics can be difficult to grasp and even harder to explain. […] The second cause for vitriol is that even well-intentioned experts misapply the tools and techniques of statistics far too often, myself included. Statistical pitfalls are numerous and tough to avoid. When we can't trust the experts to get it right, there's a temptation to throw the baby out with the bathwater. The third reason behind all the hate is that those with an agenda can easily craft statistics to lie when they communicate with us  […] And finally, the fourth cause is that often statistics can be perceived as cold and detached, and they can fail to communicate the human element of an issue." (Ben Jones, "Avoiding Data Pitfalls: How to Steer Clear of Common Blunders When Working with Data and Presenting Analysis and Visualizations", 2020)

"A data scientist should be able to wrangle, mung, manipulate, and consolidate datasets before performing calculations on that data that help us to understand it. Analysis is a broad term, but it's clear that the end result is knowledge of your dataset that you didn't have before you started, no matter how basic or complex. [...] A data scientist usually has to be able to apply statistical, mathematical, and machine learning models to data in order to explain it or perform some sort of prediction." (Andrew P McMahon, "Machine Learning Engineering with Python", 2021) 

"In an era of machine learning, where data is likely to be used to train AI, getting quality and governance under control is a business imperative. Failing to govern data surfaces problems late, often at the point closest to users (for example, by giving harmful guidance), and hinders explainability (garbage data in, machine-learned garbage out)." (Jesús Barrasa et al, "Knowledge Graphs: Data in Context for Responsive Businesses", 2021)

"Exploiting semantic knowledge graphs can support interpretability and explainability of nearly all AI model types (including DL models) by discovering and depicting semantic and non-obvious relationships or depicting an ML model in a simplified and more readable, explainable way." (Eberhard Hechler et al, "Data Fabric and Data Mesh Approaches with AI", 2023)

"In Exploiting semantic knowledge graphs can support interpretability and explainability of nearly all AI model types (including DL models) by discovering and depicting semantic and non-obvious relationships or depicting an ML model in a simplified and more readable, explainable way., a Data Mesh solution organizes data around business domain owners and transforms relevant data assets (data sources) to data products that can be consumed by distributed business users from various business domains or functions. These data products are created, governed, and used in an autonomous, decentralized, and self-service manner. Self-service capabilities, which we have already referenced as a Data Fabric capability, enable business organizations to entertain a data marketplace with shopping-for-data characteristics." (Eberhard Hechler et al, "Data Fabric and Data Mesh Approaches with AI", 2023)

"Explainability refers to the ability to understand and articulate how AI models make decisions or generate outputs. Many AI models, particularly deep learning models, operate mysteriously, making it difficult to interpret their inner workings. This lack of clarity can raise ethical concerns, especially when AI decisions impact critical areas such as healthcare, finance, or law enforcement. It is essential to develop models that can be explained in understandable terms, ensuring that users and stakeholders can trust that the AI is making decisions based on clear, logical processes. Explainability is key to ensuring fairness, safety, and ethical use of AI." (Bennie Haelen, "ML and Generative AI in the Data Lakehouse Building and Deploying AI Applications at Scale", 2026)


11 September 2026

🤖Prompt Engineering: Transformers (Just the Quotes)

"Self-attention, sometimes called intra-attention is an attention mechanism relating different positions of a single sequence in order to compute a representation of the sequence. Self-attention has been used successfully in a variety of tasks including reading comprehension, abstractive summarization, textual entailment and learning task-independent sentence representations.  End-to-end memory networks are based on a recurrent attention mechanism instead of sequence-aligned recurrence and have been shown to perform well on simple-language question answering and language modeling tasks. To the best of our knowledge, however, the Transformer is the first transduction model relying entirely on self-attention to compute representations of its input and output without using sequence-aligned RNNs or convolution." (Ashish Vaswani et al, "Attention Is All You Need", 2017) [source

"Attention is a mechanism used in deep learning models (not just Transformers) that assigns different weights to different parts of the input, allowing the model to prioritize and emphasize the most important information while performing tasks like translation or summarization. Essentially, attention allows a model to 'focus' on different parts of the input dynamically, leading to improved performance and more accurate results. Before the popularization of attention, most neural networks processed all inputs equally and the models relied on a fixed representation of the input to make predictions. Modern LLMs that rely on attention can dynamically focus on different parts of input sequences, allowing them to weigh the importance of each part in making predictions." (Sinan Ozdemir, "Quick Start Guide to Large Language Models: Strategies and Best Practices for Using ChatGPT and Other LLMs", 2024)

"Large language models (LLMs) are AI models that are usually (but not necessarily) derived from the Transformer architecture and are designed to understand and generate human language, code, and much more. These models are trained on vast amounts of text data, allowing them to capture the complexities and nuances of human language. LLMs can perform a wide range of language-related tasks, from simple text classification to text generation, with high accuracy, fluency, and style." (Sinan Ozdemir, "Quick Start Guide to Large Language Models: Strategies and Best Practices for Using ChatGPT and Other LLMs", 2024) 

"[...] LLMs are pre-trained on large corpora and sometimes fine-tuned on smaller datasets for specific tasks. Recall that one of the factors behind the Transformer’s effectiveness as a language model is that it is highly parallelizable, allowing for faster training and efficient processing of text. What really sets the Transformer apart from other deep learning architectures is its ability to capture long-range dependencies and relationships between tokens using attention. In other words, attention is a crucial component of Transformer-based LLMs, and it enables them to effectively retain information between training loops and tasks (i.e., transfer learning), while being able to process lengthy swatches of text with ease." (Sinan Ozdemir, "Quick Start Guide to Large Language Models: Strategies and Best Practices for Using ChatGPT and Other LLMs", 2024)

"This ability to zero in on important code is why modern AI coding assistants can offer meaningful suggestions for your specific needs. It’s similar to how skilled developers know which code sections affect a new implementation the most. Each transformer layer learns about various code patterns, ranging from syntax validation to understanding the relationships among functions, classes, and modules." (Jeremy C Morgan, "Coding with AI: Examples in Python", 2025)

"Transformers are complex models built like LEGO blocks using multiple smart and specialized components. [...] Briefly, a vanilla transformer model consists of separate stacks of encoders and decoders. Each encoder block includes multi-head self-attention, enabling the model to capture relationships between tokens regardless of their positions. Residual connections help maintain gradient flow, preventing the vanishing gradient problem. Layer normalization ensures training stability, and feed-forward layers introduce non-linearity and learn complex token interactions. Decoder blocks contain the same components but also include an encoder-decoder attention mechanism to incorporate context from the encoder. The model uses embedding layers to convert tokens into a continuous latent space for contextual learning and positional encoding to preserve the order of tokens in the sequence." (Joseph Babcock & Raghav Bali, "Generative AI with Python and PyTorch" 2nd. Ed., 2025)

"GenAI encompasses a variety of model architectures, including diffusion models, normalizing flows, and autoregressive models. However, three types of GenAI have become particularly dominant in practical applications. GANs pit two neural networks against each other to produce realistic data. VAEs encode input data into a latent space and decode it to generate new samples. Transformer-based models, like those in the GPT, Llama, and Gemini families, leverage attention mechanisms to generate coherent and contextually relevant sequences." (Bennie Haelen, "ML and Generative AI in the Data Lakehouse Building and Deploying AI Applications at Scale", 2026)

"Transformers dominate language for several reasons: their autoregressive framework provides a straightforward training objective (predict next token), self-attention captures long-range dependencies across thousands of tokens, parallel training processes entire sequences simultaneously (unlike RNNs’ sequential bottleneck), and scaling behavior produces emergent capabilities at billions of parameters. These properties make transformers uniquely suited for the language understanding and generation tasks central to enterprise AI applications [...]" (Bennie Haelen, "ML and Generative AI in the Data Lakehouse Building and Deploying AI Applications at Scale", 2026)

"Transformer-based models represent the dominant architecture for processing sequential data, particularly text. Unlike GANs and VAEs, which excel at generating visual content, transformers have revolutionized natural language processing (NLP) and are now being applied to code, music, and even protein structures. At their core, transformers use a mechanism called self-attention that allows the model to consider relationships between all elements in a sequence simultaneously. This enables transformers to capture long-range dependencies and contextual nuances that earlier sequential models struggled with." (Bennie Haelen, "ML and Generative AI in the Data Lakehouse Building and Deploying AI Applications at Scale", 2026) 

"Unlike earlier neural network designs that processed text sequentially, transformers use a mechanism called self-attention that allows the model to consider relationships between all words in a passage simultaneously. This parallel processing enables transformers to capture long-range dependencies and contextual nuances that previous architectures struggled with. Positional encoding provides information about word order, while the attention mechanism allows the model to focus on relevant context when processing each word." (Bennie Haelen, "ML and Generative AI in the Data Lakehouse Building and Deploying AI Applications at Scale", 2026)

25 August 2026

🤖〽️Prompt Engineering: Copilot Unabridged (Part 215: What Happens If AI Investments Don’t Meet Expectations?)

Prompt Engineering Series
Prompt Engineering Series

Prompt: "write a post of 600 words and explain what will happen if the AI investments made by Microsoft and other vendors don't meet the expectations"

Introduction

Over the past five years, Microsoft, Google, Amazon, Meta, and other tech giants have poured unprecedented amounts of capital into Artificial Intelligence (AI) . They have built GPU superclusters, expanded datacenter footprints, acquired strategic partners, and trained frontier‑scale models that cost hundreds of millions per run. These investments are justified by the belief that AI will become the next foundational computing platform - bigger than cloud, bigger than mobile, and potentially bigger than the internet itself.

But what if this future doesn’t materialize as expected? What if adoption slows, monetization lags, or the technology fails to deliver the transformative productivity gains vendors promise? The consequences would be profound, reshaping corporate strategy, investor sentiment, and the trajectory of the entire industry.

1. Financial Pressure Would Force a Strategic Reset

If AI revenues fail to scale, the first impact would be financial compression. AI infrastructure is extraordinarily expensive, and vendors currently tolerate losses because they expect future dominance. Without that payoff, companies would be forced to:

  • Reduce capital expenditure on datacenters
  • Slow GPU procurement
  • Consolidate or cancel frontier‑model training cycles
  • Shift investment back toward profitable core businesses

This is the classic pattern of strategic retrenchment - a pivot from aggressive expansion to defensive cost control.

2. Cloud Growth Would Stall

AI is the engine driving the next wave of cloud adoption. If AI underperforms, cloud hyperscalers would lose a major growth vector. Azure, AWS, and Google Cloud rely on AI workloads to justify new datacenter regions and premium compute tiers.

A slowdown would mean:

  • Lower utilization of new datacenters
  • Reduced demand for high‑margin GPU instances
  • Pressure on cloud revenue forecasts

This would be especially painful for Microsoft, whose AI strategy is tightly integrated with Azure’s long‑term growth.

3. Investor Confidence Would Erode

Right now, investors tolerate massive AI losses because they believe in long‑term returns. If expectations are not met, that tolerance evaporates. The market would demand:

  • Clear profitability timelines
  • Reduced spending
  • More conservative guidance
  • A shift toward predictable revenue streams

This is the dynamic of market correction - a recalibration of expectations that forces vendors to justify every dollar spent.

4. Competitive Dynamics Would Shift

If frontier‑scale AI fails to deliver, the competitive landscape changes dramatically. Companies that bet heavily on large models would lose strategic leverage, while those investing in smaller, specialized, or hybrid approaches could gain ground.

Meta’s open‑source strategy, for example, would look far more attractive if massive proprietary models fail to produce returns. Smaller vendors could also rise by focusing on niche, cost‑efficient AI rather than universal intelligence.

This is the logic behind competitive inversion.

5. Enterprise Adoption Would Slow

Enterprises currently experiment with AI because vendors subsidize usage. If investments fail, subsidies shrink, prices rise, and adoption slows. Companies would revert to:

  • Traditional automation
  • Classical machine learning
  • Rule‑based systems
  • Domain‑specific analytics

AI would remain useful - but not transformative.

Conclusion

If AI investments fail to meet expectations, the consequences would be severe but not catastrophic. Vendors would survive, but the industry would undergo a major strategic reset. Spending would decline, cloud growth would slow, investor pressure would intensify, and the competitive landscape would shift toward smaller, more efficient models.

AI would still matter - but it would no longer be the defining platform of the next era. The companies that adapt fastest to this reality would shape the future, whether or not frontier‑scale AI delivers on its promise

Disclaimer: The whole text was generated by Copilot (under Windows 11) at the first attempt. This is just an experiment to evaluate feature's ability to answer standard general questions, independently on whether they are correctly or incorrectly posed. Moreover, the answers may reflect hallucinations and other types of inconsistent or incorrect reasoning.

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21 August 2026

🤖〽️Prompt Engineering: Copilot Unabridged (Part 214: How Long Can Microsoft and Other Vendors Sustain Massive AI Losses?)

 

Prompt Engineering Series
Prompt Engineering Series


Prompt: "write a post of 600 words and explain how long the AI investments can be sustained by Microsoft and other vendors as they generate huge losses"

Introduction

The Artificial Intelligence (AI) boom has triggered one of the largest capital outlays in the history of technology. Microsoft, Google, Amazon, Meta, and others are spending tens of billions of dollars annually on GPUs, data centers, research partnerships, and frontier‑model development. These investments generate enormous short‑term losses, raising a critical question: How long can this level of spending be sustained?

The answer depends on three forces: financial capacity, strategic necessity, and market expectations. Together, they determine how long vendors can tolerate losses before AI must begin paying for itself.

1. Financial Capacity: The Balance Sheet Determines the Burn Rate

Microsoft, Google, and Amazon are not startups - they are trillion‑dollar companies with deep cash reserves, diversified revenue streams, and high creditworthiness. This gives them the ability to sustain losses for years, not months.

Microsoft alone generates more than $80 billion in annual operating income, which acts as a buffer for AI losses. As long as core businesses - cloud, enterprise software, Windows, Office - continue to perform, Microsoft can redirect profits to subsidize AI expansion.

This is why financial resilience is the first determinant of sustainability.

2. Strategic Necessity: AI Is Not Optional

AI is the next computing platform. Vendors know that whoever controls the dominant AI ecosystem will shape:

  • cloud workloads
  • enterprise automation
  • developer tooling
  • search and advertising
  • productivity software

This creates a strategic imperative: spend now or become irrelevant later.

Microsoft’s partnership with OpenAI is not just an investment - it is a defensive moat against Google’s Gemini, Amazon’s Anthropic partnership, and Meta’s open‑source strategy.

This is the logic behind strategic dependency.

3. Market Expectations: Investors Tolerate Losses - For Now

Investors understand that frontier AI is a long‑term play. As long as vendors demonstrate:

  • rapid adoption
  • strong ecosystem growth
  • credible monetization pathways
  • increasing enterprise integration
  • the market will tolerate losses.

But this tolerance is not infinite. If revenue growth stalls or adoption plateaus, investor pressure will force vendors to slow spending.

This is the dynamic of market tolerance.

4. The Real Constraint: Infrastructure Saturation

The biggest limiting factor is not money - it is physical infrastructure.

Datacenters take years to build. Power grids must be upgraded. Supply chains for GPUs and networking fabric are constrained.

Even if vendors wanted to double spending, they often cannot.

This natural bottleneck slows the burn rate and extends sustainability.

This is the core of infrastructure saturation.

5. When Does the Spending Plateau?

Most analysts expect the current hyper‑investment phase to last 3–5 more years, followed by a stabilization period where:

  • model training becomes more efficient
  • inference costs decline
  • monetization improves
  • enterprise AI revenue grows
  • datacenter expansion reaches maturity

At that point, losses shrink and AI becomes a net contributor rather than a drain.

Conclusion

Microsoft and other vendors can sustain massive AI losses for several years because they have the financial strength, strategic motivation, and investor support to do so. But this spending cannot continue indefinitely. Physical infrastructure limits, competitive pressure, and the need for profitability will eventually force a shift from expansion to optimization.

AI is following the same pattern as cloud computing: a decade of heavy losses, followed by decades of dominance. The companies investing today are not trying to win the next quarter - they are trying to win the next era of computing.

Disclaimer: The whole text was generated by Copilot (under Windows 11) at the first attempt. This is just an experiment to evaluate feature's ability to answer standard general questions, independently on whether they are correctly or incorrectly posed. Moreover, the answers may reflect hallucinations and other types of inconsistent or incorrect reasoning.

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20 August 2026

🤖〽️Prompt Engineering: Copilot Unabridged (Part 213: Why Massive AI Investments Generate Massive Losses)

Prompt Engineering Series
Prompt Engineering Series

Prompt: "write a post of 600 words and explain why the AI investments made by Microsoft and other vendors generate huge losses,. "

Introduction

Artificial Intelligence (AI) has become the defining battleground of modern technology. Microsoft, Google, Amazon, Meta, and others are pouring tens of billions into AI infrastructure, model training, and ecosystem development. Yet despite explosive public interest and rapid enterprise adoption, these companies report staggering short‑term losses tied directly to their AI initiatives.

This paradox - sky‑high investment, sky‑high losses-is not a sign of failure. It is a structural feature of frontier‑scale AI. To understand why, we need to examine the economics behind training large models, the infrastructure required to run them, and the strategic pressures that force vendors to spend aggressively even when profitability is years away.

1. Frontier‑Model Training Costs Are Exponential

Training a frontier model is not a linear expense. Each generation requires more parameters, more training tokens, larger datasets, and more compute cycles. A single training run for a cutting‑edge model can cost hundreds of millions of dollars.

This is why frontier‑model training is the first and most visible driver of losses. Vendors must run multiple training cycles, safety evaluations, fine‑tuning passes, and inference optimizations. Microsoft’s partnership with OpenAI means Azure absorbs the bulk of these compute costs, directly impacting earnings.

2. Infrastructure Build‑Out Is Historically Unprecedented

AI does not run on ordinary cloud servers. Vendors must build:

  • GPU superclusters
  • High‑bandwidth networking fabrics
  • Liquid‑cooling systems
  • Specialized datacenters optimized for AI workloads

Each hyperscale datacenter costs $1–$2 billion, and hardware depreciates quickly. Today’s top‑tier GPU becomes mid‑tier in 18–24 months. This creates a cycle of continuous capital expenditure that depresses short‑term profitability.

This is the core of AI infrastructure economics.

3. Inference Costs Scale With Usage

Traditional software has near‑zero marginal cost. AI does not.

Every query to a large model consumes compute, electricity, and cooling. When millions of users interact with Copilot, ChatGPT, Gemini, or Claude, vendors pay for every token generated.

This is why AI inference is a structural loss generator: revenue must grow faster than usage to break even, which rarely happens in early adoption phases.

4. Monetization Is Still Immature

Most users expect AI to be:

  • Free
  • Unlimited
  • Always available

But the cost structure makes that impossible. Vendors experiment with subscriptions, API pricing, enterprise licensing, and usage‑based billing, yet none of these models currently offset the full cost of running frontier AI.

This is the challenge of AI monetization.

5. Competition Forces Overspending

AI is an arms race. No vendor can afford to fall behind. This creates irrational spending patterns:

  • Microsoft invests heavily to stay ahead with OpenAI
  • Google accelerates Gemini development
  • Amazon pours billions into Anthropic
  • Meta open‑sources massive models to shape the ecosystem

In an arms race, losses are tolerated because the alternative is losing strategic control of the next computing platform. This is the logic behind competitive overspending.

Conclusion

AI investments generate huge losses because vendors are not selling a finished product—they are building the foundation of a new computing era. Frontier‑scale AI requires unprecedented capital, massive compute, and continuous reinvestment. The losses are not a sign of weakness; they are the cost of securing future dominance in a market that will reshape productivity, cloud infrastructure, search, advertising, and enterprise automation

Disclaimer: The whole text was generated by Copilot (under Windows 11) at the first attempt. This is just an experiment to evaluate feature's ability to answer standard general questions, independently on whether they are correctly or incorrectly posed. Moreover, the answers may reflect hallucinations and other types of inconsistent or incorrect reasoning.

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17 August 2026

🏭𝐌𝐢𝐜𝐫𝐨𝐬𝐨𝐟𝐭 𝐅𝐚𝐛𝐫𝐢𝐜: 𝐃𝐚𝐭𝐚 𝐖𝐚𝐫𝐞𝐡𝐨𝐮𝐬𝐞 (𝐓𝐞𝐜𝐡𝐧𝐢𝐜𝐚𝐥 𝐎𝐯𝐞𝐫𝐯𝐢𝐞𝐰)

 Introduction (Some Background)

Typically, PowerPoint slides and similar content must be broken in small pieces and structured in such a way that the audience can digest the information presented. Thus, a presentation ends up spreading over multiple slides that must be structured in such a way that it facilitates also digestion, retention, and whatever further aspects are targeted. Conversely, on social networks the average author/publisher has only a small chance of capturing an audience's attention, given that the competition for readers' attention increases exponentially in the long sequence of posts. So, what information would we show for this purpose? 

When I want to learn something, typically I need a few pieces of information/knowledge that would allow me to anchor and integrate the text into existing knowledge. It usually starts with high-level definitions of the main concepts that reflect the various aspects that would help me associate and differentiate the respective concepts from similar concepts or knowledge. The volume of such information depends on many aspects - the complexity of the concepts and the contexts they belong to, how many similar concepts or metaphors are available, the gaps available, analogies and differentiators, etc.

A high-level list of the main capabilities for the respective concept(s) would further allow a (wider) surface to anchor the various information of interest. No matter how much text can be included, we shouldn't forget that a (well-chosen) picture is (often) worth a thousand words. Therefore, a well-chosen image that depicts a high-level representation of the concepts/ideas presented, the architecture or even a metaphor can have a considerable impact on the readers.  

Ideally the image should serve as a sketch or sample of the finished product. Then, even if from the used representation one can guess what are the ingredients used, the difference between a good dish and a fiasco often resides in details. Like in preparing a dish, one needs to know what ingredients are needed and how they must be prepared and used together, for the maximum effect. An experienced cook needs at least the list of ingredients and some general information on how the dish differentiates from other dishes. The more inexperienced the cook, the more information needs to be provided and somewhere a line must be drawn, otherwise a simple recipe becomes the cookbook itself. Therefore, like in any cookbook, I must assume that some basic knowledge is available!

So, as part of the learning/teaching process, I started a series of slides on Microsoft Fabric that should help me narrow down the recipes for delivering great products. The information comes from training material, various presentations delivered by Microsoft or third-parties, the various books and other technical material I read over the years. 

Let's start with the basics - the (data) warehouse!

   📣Technical Overview 

    

Conclusion

The slide barely scratches the surface, especially if we consider it from a broader context - what the average professional must know. Even if the gap between the presented information and a business case, for example, or anything similar capable of convincing the audience is considerable, the slide should serve as a starting point, if not a foundation on which something durable can be built. 

Enjoy the ride and feel free to like it, download it, respectively share it further!

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Koeln, NRW, Germany
IT Professional with more than 25 years experience in IT in the area of full life-cycle of Web/Desktop/Database Applications Development, Software Engineering, Consultancy, Data Management, Data Quality, Data Migrations, Reporting, ERP implementations & support, Team/Project/IT Management, etc.