What are Foundation Models in Generative AI? Foundation models in generative AI are large-scale neural networks trained on massive, diverse datasets, often using unsupervised learning. They excel at generalization and can be fine-tuned to perform a broad range of tasks, including language understanding, image generation, and code synthesis. Demo AI
Things to know about foundation models
What are the characteristics of foundation models? What are examples of foundation models? What are foundation models used for? Why are foundation models important in AI? What are some challenges of foundation models? What industries benefit from foundation models in AI? How do foundation models in generative AI work? What is the future of foundation models? Leveraging ServiceNow for foundation models in generative AI

For as long as technology has been around, development has typically been in the direction of increased specialization. Early general-purpose tools evolved into niche instruments tailored to specific tasks, eventually leading to the rise of specialized machinery in agriculture, war, manufacturing, and more. In recent decades, this specialization has taken the form of computer algorithms designed for narrow, predefined purposes. In software, this approach means building bespoke solutions for each challenge—a sentiment which has been widely adopted in the realm of artificial intelligence (AI).

In traditional AI, models are meticulously crafted to excel at one thing—translating text, recognizing faces, forecasting trends, etc. This is because, until recently, specialization was seen as the only reliable approach to AI complexity.

Unfortunately, as modern organizations face an explosion of diverse data types, unpredictable demands, and the need for adaptability at scale, the limits of AI specialization are becoming clear. To address these concerns, a new approach to AI has emerged: foundation models in generative AI (GenAI).

Expand All Collapse All What are the characteristics of foundation models?

Foundation models in generative AI make it possible for organizations to address a wide array of tasks using a single, adaptable framework. These models are built to generalize across applications, leveraging extremely large datasets and advanced training techniques. Among the key traits that define foundation models and set them apart from traditional AI systems are:

  • Scalable design

    Foundation models leverage hardware advances like high-throughput GPUs, the efficient transformer architecture, and the abundance of unstructured data to support their development and performance.

  • Traditional training methods

    A combination of unsupervised learning, supervised learning, and techniques like reinforcement learning from human feedback (RLHF) helps refine their outputs.

  • Transferable learning capabilities

    Knowledge gained during pretraining on generalized data is fine-tuned for specific tasks, allowing these models to efficiently handle diverse applications.

  • Emergent behavior

    Foundation models demonstrate complex behaviors that arise from their training data rather than being explicitly programmed, enabling surprising and sophisticated outputs.

  • Homogenized application

    A single foundation model can serve as the base for multiple applications, streamlining development with a universal learning approach.

  • Versatile functionality

    Foundation models are structured to handle multiple data types—text, images, and code—within the same framework, significantly broadening their use cases.

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What are examples of foundation models?

Foundation models vary widely in their capabilities, applications, and outputs. Some are designed for tasks like natural language processing, while others focus on generating images or supporting software development. Below are some of the most notable foundation models and platforms, each offering their own features and strengths:

  • GPT

    Developed by OpenAI, the Generative Pre-trained Transformer (GPT) series is among the most well-known foundation models. With iterations like GPT-3 and GPT-4, these models power tools such as ChatGPT, offering advanced capabilities in text generation, summarization, and question answering.

  • Stable Diffusion

    This text-to-image model generates high-quality visuals using noising and denoising techniques. Known for its efficiency, it requires minimal computational resources compared to competitors and can run on devices like smartphones.

  • BERT

    Short for Bidirectional Encoder Representations from Transformers, BERT was an early milestone in foundation models. Released in 2018, it excels at understanding context within text and is used for tasks like answering questions and text classification.

  • Claude

    Anthropic’s Claude models (including Claude 3.5 Sonnet, Opus, and Haiku) offer comprehensive natural language capabilities. They are designed for tasks such as automating workflows, moderating content, and accelerating research, with a focus on user-friendly and fast responses.

  • AI21 Jurassic series

    AI21 Labs’ Jurassic-1 and Jurassic-2 specialize in generating human-like text and solving complex language tasks. The Jurassic series is comparable in functionality to GPT and is known for its advanced instruction-following abilities.

  • Amazon Titan

    Amazon’s Titan models support a range of tasks, from text generation and summarization to semantic search through embeddings. These models can be fine-tuned for specific use cases, offering increased flexibility.

  • Cohere

    Cohere offers both generation and representation models. While smaller in size than some competitors, it excels at language understanding and semantic analysis.

  • BLOOM

    A multilingual model developed collaboratively by researchers, BLOOM can generate text in 46 languages and code in 13 programming languages. Its efficiency and open-access design make it a standout in collaborative AI development.

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What are foundation models used for?

The primary value of foundation models in GenAI lies in their versatility. These models are capable of addressing a wide array of tasks across a range of industries. This includes (but is not limited to):

Language processing

Foundation models excel in natural language processing (NLP), making possible such capabilities as language translation, sentiment analysis, and automated content creation. They can generate coherent text, summarize documents, and respond to complex questions, making them invaluable for tasks like customer communication and knowledge management.

Visual comprehension

Foundation models can analyze and generate visual data (key elements in computer vision). They can identify objects, detect patterns, and create images from text prompts—capabilities that can be applied to autonomous vehicles, medical imaging, content moderation, and more.

Code generation

Taking the concept of no-code and low-code development to its logical conclusion, these models can translate natural language prompts into functional programming languages, reducing the time and effort required to build software applications. Beyond code creation, they can debug and optimize existing programs, providing developers with powerful tools for automation and innovation.

Human-centered engagement

Foundation models are highly effective in enhancing human decision-making and interaction in everything from clinical diagnostics to AI chatbots for customer service and support. By learning from human inputs, these models can continuously refine their predictions and responses.

Speech to text

With their advanced language understanding capabilities, foundation models can transcribe audio into text in applications involving video captioning, dialog transcription, and real-time language interpretation.

Why are foundation models important in AI?

Simply put, foundation models are changing the way organizations leverage artificial intelligence. By serving as powerful pre-trained models, they eliminate the need to build specialized AI systems. At the same time, their versatility empowers businesses to apply AI across a wider range of tasks and industries. This allows for some significant advantages, such as:

Increased efficiency and productivity

Foundation models optimize operations by automating repetitive and time-intensive tasks. For instance, they can classify data, route customer queries, and generate reports with minimal human intervention. These capabilities allow organizations to scale their operations while reducing manual effort. Developers can write and debug code faster using generative tools, and executives benefit from AI-generated summaries of lengthy documents, speeding up decision-making processes.

Accelerated content creation

Marketing and content teams benefit greatly from the rapid content generation capabilities of foundation models. They can produce high-quality text on a variety of topics, translate materials into multiple languages, and even create images or videos to support campaigns. This acceleration means a faster response to the demands of changing markets.

Cost-effective innovation

By using pre-trained foundation models, businesses save significant costs associated with training AI systems from scratch. These models provide a strong starting point, requiring only minimal fine-tuning to align with specific tasks or industries. This approach makes AI more widely accessible, reducing the computational resources and expertise needed for development.

Enhanced data analysis and decision-making

Foundation models excel at processing and analyzing large datasets, including unstructured information. Business leaders can use these capabilities for tasks like market analysis, sentiment tracking, and feedback interpretation. By providing actionable insights more quickly and accurately than traditional methods, these models enhance the strategic decision-making process.

Improved customer engagement

GenAI tools powered by foundation models enhance customer communication by delivering interactions that are personalized as well as efficient. This may include managing customer inquiries and assisting in creating tailored responses. This gives organizations the chance to improve customer satisfaction while reducing the workload on service teams.

Optimal innovation and creativity

Sometimes overlooked but still valuable from a business perspective is the creative potential of foundation models. They make it possible to develop innovative AI-generated art, designs, and multi-faceted media content. Expanding the limits of what AI can do, these models are unlocking new opportunities in entertainment, marketing, product design, and any other industries that benefit from a fresh approach to creativity.

What are some challenges of foundation models?

While foundation models offer flexible capabilities and broad use cases, the technology is not without its challenges. These challenges can raise important questions that organizations will need to address as they adopt solutions built on generative AI. Below are some of the key issues that must be considered:

Security

Foundation models, as centralized systems, present some digital-security risks. They act as single points of failure, making them attractive targets for threat actors. A successful breach could compromise sensitive data, disrupt operations, or even alter a model’s behavior to produce harmful outcomes. These vulnerabilities are particularly concerning for industries that routinely handle confidential information.

To address these risks, organizations should invest in comprehensive cybersecurity measures, including encryption protocols, regular vulnerability assessments, and access controls. Developing decentralized approaches, where critical systems are distributed across multiple nodes, can also reduce the dangers of single-point failures. Additionally, AI providers can enhance security by adopting secure model architectures and establishing a consistent schedule for auditing their systems.

Bias

Because foundation models are trained on large datasets, they often reflect the biases present in their training data. From gender stereotypes to cultural prejudices, this issue becomes especially problematic when biased models are used in decision-making systems like hiring platforms or credit assessments.

Developers should prioritize diverse and inclusive datasets during the training process to minimize inherent biases. Regular audits and external reviews of model outputs ensure accountability, and integrating fairness-focused algorithms during training can lead to more equitable results.

Ethical concerns

Foundation models raise ethical questions, particularly when used in applications that have the potential to majorly impact individuals’ lives. In areas such as healthcare diagnostics or legal decision-making, these models may inadvertently produce decisions that violate fundamental rights. They may also create problems through a lack of accountability, especially given their ‘black box’ nature.

To tackle ethical concerns, organizations need to establish clear guidelines for the responsible use of AI. Ethical review boards and cross-disciplinary collaboration can help assess the potential impact of these models before deployment. Transparency is likewise crucial—AI providers should clearly document their models’ training data, limitations, and intended applications so that stakeholders can make informed decisions about their use.

Environmental concerns

The training and operation of foundation models require immense computational resources, contributing to a significant environmental footprint. High energy consumption during training leads to large carbon emissions, raising concerns about the sustainability of this technology.

Organizations can mitigate environmental impacts by optimizing model architectures to require less computational power. Leveraging energy-efficient hardware and prioritizing renewable energy sources in data centers can also help reduce carbon footprints. Collaborative efforts to develop smaller yet equally effective models may further decrease the environmental toll without sacrificing performance.

What industries benefit from foundation models in AI?

Given their inherent adaptability and scalability, the possible applications of foundation models are nearly limitless. That said, some industries are particularly well-positioned to benefit from this technology due to the nature of their challenges and the data they generate. Below are a few key sectors and how they can leverage foundation models:

  • Healthcare

    Foundation models can aid in drug discovery (such as generating potential compounds for treatment) and assist in designing innovative medicines. They also support tasks like medical imaging analysis and personalized patient care.

  • Law

    Legal professionals might use foundation models for tasks like document drafting, contract analysis, and summarizing case law. With advancements in factual accuracy and traceability, their utility could expand even further.

  • Education

    These models could assist in personalized learning by generating practice problems, crafting lesson plans, and offering tailored feedback to students based on their individual learning styles.

  • Finance

    Foundation models enhance fraud detection, analyze market trends, and generate predictive insights to support decision-making, making them invaluable in financial risk management and customer engagement.

  • Manufacturing

    These models can optimize supply chains, predict equipment failures, and design new products using AI-generated prototypes.

  • Retail

    In retail, foundation models support personalized marketing and enhanced customer interactions through AI-driven chatbots and recommendation systems.

What industries benefit from foundation models in AI?

Foundation models in generative AI rely on advanced neural network architectures and training techniques to process data and generate outputs. Their operation involves understanding patterns, relationships, and contexts within large datasets, allowing them to perform tasks ranging from text generation to image creation. Below is a breakdown of the key processes that drive these models:

Transformer architecture

At the core of foundation models is the transformer architecture, introduced by Google researchers in 2017. Unlike traditional recurrent and convolutional neural networks, transformers use an ‘attention mechanism’ designed to weigh the importance of different elements in sequential data. This makes it possible for them to process complex inputs (such as text or images) and accurately predict the next item in a sequence.

Self-supervised learning

Foundation models use self-supervised learning to train on massive amounts of unlabeled data. By creating labels from the input data on their own, these models eliminate the need for manually labeled datasets, making the training process more scalable and efficient. This approach is a key differentiator from traditional machine learning (ML) methods.

Pretraining

During pretraining, foundation models are exposed to vast datasets—often sourced from the internet—to learn the statistical patterns of language or other data types. This stage is computationally intensive and focuses on general understanding, equipping the model with broad capabilities rather than task-specific expertise.

Adjusting

After pretraining, models are fine-tuned using smaller, domain-specific datasets. This phase adapts the model for specialized tasks by refining its outputs, focusing on relevance and accuracy. Fine-tuning often incorporates human feedback to further align the model's behavior with desired outcomes.

What is the future of foundation models?

Foundation models are at the heart of the generative AI. Their ability to adapt and perform a wide range of tasks ensures their continued relevance as AI technology evolves. And while the ultimate goal of artificial general intelligence (AGI) remains distant, the development of foundation models is a critical step toward more advanced, adaptable AI systems.

As foundation models grow more powerful, it is crucial for businesses, regulators, and society to commit to addressing the challenges associated with these advancements. Ensuring responsible development and deployment of foundation models will maximize their benefits while minimizing risks. Continuous education and resources will be essential to keeping professionals and stakeholders informed about advancements in this rapidly evolving field.

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Leveraging ServiceNow for foundation models in generative AI

ServiceNow is today’s leading enterprise AI solution, giving businesses the tools they need to harness the full potential of foundation models. This is all made possible through the AI capabilities of the Now Platform®.

The Now Platform is purpose-built to integrate AI seamlessly into workflows across IT, customer service, HR, and beyond. And with native AI capabilities like natural language understanding, intelligent automation, and advanced data analysis, this comprehensive solution empowers organizations to streamline operations across their business, enhancing productivity and delivering superior user experiences. ServiceNow’s Generative AI Controller further amplifies these capabilities, enabling businesses to connect to, configure, and govern large language models—including OpenAI, Azure OpenAI, and ServiceNow’s own Now LLM—without the complexity of custom scripting.

From automating repetitive tasks to generating actionable insights and improving self-service, ServiceNow is helping companies in every industry unlock new levels of innovation. Demo ServiceNow today, and redefine what AI can do for you.

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