Ben Alarie, founder and CEO of tax AI platform Blue J, explains why earlier supervised learning approaches failed at comprehensive legal research compared to RAG paired with LLMs.
“The big move was retrieval augmented generation, where you kind of run a search. So you have a master corpus of all of the relevant tax research materials. You run an intelligent search, and you've got, like, really good vector embeddings, and you're chunking all this stuff and indexing it in just the right way. You can find the relevant research resources, and then you can Synthesize them and generate a very good synthesis of all of the relevant materials and produce an answer. But you just could not do that reliably prior to the large language models having sufficient natural language, understanding synthesis capabilities.”
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Alarie: Horizontal LLMs generate flawed tax answers from stale web sources
“More commonly, there will be some of the materials that those systems find even on the open web are at a date anachronistic. The law has changed. There's been some statutory amendment or there's some new case law or, you know, some law firm wrote some guidance…”
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“Might it be somebody who's more kind of pure tech, like an AI or machine learning background? And again, I thought, well, probably not because they would need to know a lot more tax law than they do. It'd take them a decade to catch up to where I was in my und…”
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AssertionSupported
Alarie: Blue J's early ML models predicted court rulings with over 90% accuracy
“So we built a bunch of these different predictive models, which performed extremely well, like better than we thought they could perform. And so we're predicting with better than 90% accuracy, how courts would resolve these kinds of cases.”
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Insight
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