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Generative AIAI Strategy

When NOT to Use Generative AI

MJ

Marcus Johnson

CTO & AI Lead

February 8, 2024

6 min

When NOT to Use Generative AI


Generative AI like GPT-4 is incredibly capable, but knowing when not to use it is just as important as knowing when to use it.


Red Flags for GenAI


1. You Need Deterministic Outputs

If your application requires exact, predictable responses every time, generative AI isn't the answer. Use rules-based systems or traditional programming.


Example: Banking transaction validation, regulatory compliance checks


2. Accuracy Must Be 100%

LLMs hallucinate. If a single error is unacceptable, don't use pure generative AI. Consider hybrid approaches with validation layers.


Example: Legal contract generation without review, medical dosage calculations


3. You Have Structured Data Problems

If you're working with structured data (spreadsheets, databases), traditional ML often performs better and costs less.


Example: Time series forecasting, classification with labeled training data


4. Real-Time Performance is Critical

API-based LLMs add latency (200-2000ms). For <50ms requirements, on-device or traditional models are better.


Example: High-frequency trading, real-time game AI


5. Cost at Scale is Prohibitive

LLM API costs scale with tokens. At high volume, the economics may not work.


Example: Processing millions of short texts daily


Better Alternatives


Traditional ML

  • Faster inference
  • Deterministic outputs
  • Lower cost at scale
  • Better for structured data

  • Rules-Based Systems

  • 100% predictable
  • Easy to explain
  • No training data needed
  • Perfect for simple logic

  • Hybrid Approaches

  • Use GenAI for creative/unstructured tasks
  • Use traditional systems for validation
  • Best of both worlds

  • When GenAI Shines


  • Unstructured text/content generation
  • Conversational interfaces
  • Summarization and analysis
  • When 90-95% accuracy is acceptable
  • Rapid prototyping and iteration

  • The key is matching the tool to the problem, not forcing every problem to fit your favorite tool.

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