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Home Artificial Intelligence

Why LLMs Aren’t a One-Dimension-Suits-All Answer for Enterprises

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November 18, 2025
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are racing to make use of LLMs, however typically for duties they aren’t well-suited to. In reality, in line with latest analysis by MIT, 95% of GenAI pilots fail — they’re getting zero return. 

An space that has been missed within the GenAI storm is that of structured information, not solely from an adoption standpoint, but additionally from a technological entrance. In actuality, there’s a goldmine of potential worth that may be extracted from structured information, significantly within the type of predictions. 

On this piece, I’ll go over what LLMs can and may’t do, what worth you may get from AI operating over your structured information, particularly for predictive modeling, and business approaches used as we speak — together with one which I developed with my crew. 

Why LLMs aren’t optimized for enterprise information and workflows

Whereas massive language fashions have fully reworked textual content and communication, they fall quick in making predictions from the structured, relational information that strikes the needle, driving actual enterprise outcomes — buyer lifecycle administration, gross sales optimization, adverts and advertising and marketing, suggestions, fraud detection, and provide chain optimization.

Enterprise information, the information enterprises are grounded in, is inherently structured. It typically resides in tables, databases, and workflows, the place that means is derived from relationships throughout entities comparable to prospects, transactions, and provide chains. In different phrases, that is all relational information.

LLMs took the world by storm and performed a key function in advancing AI. That mentioned, they had been designed to work with unstructured information and aren’t naturally suited to cause over rows, columns, or joins. Because of this, they wrestle to seize the depth and complexity inside relational information. One other problem is that relational information modifications in actual time, whereas LLMs are sometimes skilled on static snapshots of textual content. In addition they deal with numbers and portions as tokens in a sequence, moderately than “understanding” them mathematically. In apply, this implies an LLM is optimized to foretell the subsequent most definitely token, which it does extremely nicely, however to not confirm whether or not a calculation is right. So, whether or not the mannequin outputs 3 or 200 when the true reply is 2, the penalty the mannequin receives is similar.

LLMs are able to multi-step reasoning by chain-of-thought-based inferencing, however they’ll face reliability challenges in sure instances. As a result of they’ll hallucinate, and achieve this confidently, would possibly I add, even a small likelihood of error in a multi-step workflow can compound throughout steps. This lowers the general probability of an accurate final result, and in enterprise processes comparable to approving a mortgage or predicting provide shortages, only one small mistake may be catastrophic.

Due to all this, enterprises as we speak depend on conventional machine studying pipelines that take months to construct and keep, limiting the measurable affect of AI on income. If you wish to apply AI to this type of tabular information, you’re primarily teleported again thirty years and wish people to painstakingly engineer options and construct bespoke fashions from scratch. For every single job individually! This strategy is gradual, costly, doesn’t scale, and sustaining such fashions is a nightmare.

How we constructed our Relational Basis Mannequin

My profession has revolved round AI and machine studying over graph-structured information. Early on, I acknowledged that information factors don’t exist in isolation. Quite, they’re a part of a graph linked to different items of data. I utilized this view to my work on on-line social networks and knowledge virality, working with information from Fb, Twitter, LinkedIn, Reddit, and others. 

This perception led me to assist pioneer Graph Neural Networks at Stanford, a framework that permits machines to study from the relationships between entities moderately than simply the entities themselves. I utilized this whereas serving as Chief Scientist at Pinterest, the place an algorithm often called PinSage reworked how customers expertise Pinterest. That work later advanced into Graph Transformers, which convey Transformer structure capabilities to graph-structured information. This permits fashions to seize each native connections and long-range dependencies inside advanced networks. 

As my analysis superior, I noticed laptop imaginative and prescient reworked by convolutional networks and language reshaped by LLMs. However, I spotted the predictions companies rely on from structured relational information had been nonetheless ready for his or her breakthrough, restricted by machine studying methods that hadn’t modified in over twenty years! Many years! 

The end result of this analysis and foresight led my crew and me to create the primary Relational Basis Mannequin (RFM) for enterprise information. Its objective is to allow machines to cause straight over structured information, to know how entities, comparable to prospects, transactions, and merchandise, join. By realizing the relationships between these entities, we then allow customers to make correct predictions from these particular relationships and patterns. 

Key capabilities of Relational Foundation Models. Image by author 
Key capabilities of Relational Basis Fashions. Picture by creator 

Not like LLMs, RFMs have been designed for structured relational information. RFMs are pretrained on plenty of (artificial) datasets in addition to on plenty of duties over structured enterprise information. Like LLMs, RFMs may be merely prompted to provide on the spot responses to all kinds of predictive duties over a given database, all with out task-specific or database-specific coaching. 

We needed a system that might study straight from how actual databases are structured, and with out all the same old handbook setup. To make that attainable, we handled every database like a graph: tables turned node varieties, rows became nodes, and overseas keys linked every little thing collectively. This manner, the mannequin may truly “see” how issues like prospects, transactions, and merchandise join and alter over time. 

On the coronary heart of it, the mannequin combines a column encoder with a relational graph transformer. Each cell in a desk is became a small numerical embedding primarily based on what sort of information it holds, whether or not it’s a quantity, class, or a timestamp. The Transformer then appears throughout the graph to tug context from associated tables, which helps the mannequin adapt to new database schemas and information varieties. 

For customers to enter which predictions they’d prefer to make, we constructed a easy interface known as Predictive Question Language (PQL). It lets customers describe what they wish to predict, and the mannequin takes care of the remaining. The mannequin pulls the correct information, learns from previous examples, and causes by a solution. As a result of it makes use of in-context studying, it doesn’t should be retrained for each job, both! We do have an choice for fine-tuning, however that is for very specialised duties. 

Overview of architecture. Image by author
Overview of structure. Picture by creator

However this is only one strategy. Throughout the business, a number of different methods are being explored:

Business approaches 

1. Inner basis fashions

Firms like Netflix are constructing their very own large-scale basis fashions for suggestions. As described of their weblog, the aim is to maneuver away from dozens of specialised fashions towards a single centralized mannequin that learns member preferences throughout the platform. Analogy to LLMs is evident: like a sentence is represented as a sequence of phrases, a consumer is represented as a sequence of flicks the consumer interacted with. This permits improvements to assist long-term personalization by processing large interplay histories.

The advantages of proudly owning such a mannequin embrace management, differentiation, and the power to tailor architectures to domain-specific wants (e.g., sparse consideration for latency, metadata-driven embeddings for chilly begin). On the flip facet, these fashions are extraordinarily expensive to coach and keep, requiring huge quantities of information, compute, and engineering assets. Moreover, they’re skilled on a single dataset (e.g., Netflix consumer conduct) for a single job (e.g., suggestions). 

2. Automating mannequin improvement with AutoML or Knowledge Science brokers

Platforms like DataRobot and SageMaker Autopilot have pushed ahead the concept of automating components of the machine studying pipeline. They assist groups transfer quicker by dealing with items like characteristic engineering, mannequin choice, and coaching. This makes it simpler to experiment, scale back repetitive work, and develop entry to machine studying past simply extremely specialised groups. In an analogous vein, Knowledge Scientist brokers are rising, the place the concept is that the Knowledge Scientist agent will carry out all of the classical steps and iterate over them: information cleansing, characteristic engineering, mannequin constructing, mannequin analysis, and at last mannequin improvement. Whereas a real progressive feat, the jury continues to be out on whether or not this strategy can be efficient in the long run.

3. Utilizing graph databases for linked information

Firms like Neo4j and TigerGraph have superior the usage of graph databases to raised seize how information factors are linked. This has been particularly impactful in areas like fraud detection, cybersecurity, and provide chain administration, locations the place the relationships between entities typically matter greater than the entities themselves. By modeling information as networks moderately than remoted rows in a desk, graph programs have opened up new methods of reasoning about advanced, real-world issues.

Classes realized

After we got down to construct our know-how, our aim was easy: develop neural community architectures that might study straight from uncooked information. This strategy mirrors the present AI (literal) revolution, which is fueled by neural networks that study straight from pixels in a picture or phrases in a doc. 

Virtually talking, our imaginative and prescient for the product additionally entailed an individual merely connecting to the information and making a prediction. That led us to the formidable goal of making a pretrained basis mannequin designed for enterprise information from the bottom up (as defined above), eradicating the necessity to manually create options, coaching datasets, and customized task-specific fashions. An formidable job certainly.

When constructing our Relational Basis Mannequin, we developed new transformer architectures that attend over a set of interconnected tables, a database schema. This required extending the classical LLM consideration mechanism, which attends over a linear sequence of tokens, to an consideration mechanism that attends over a graph of information. Critically, the eye mechanism needed to generalize throughout completely different database constructions in addition to throughout several types of tables, vast or slim, with various column varieties and meanings. 

One other problem was inventing a brand new coaching scheme, as a result of predicting the subsequent token isn’t the correct goal. As an alternative, we generated many manmade databases and predictive duties mimicking challenges like fraud detection, time sequence forecasting, provide chain optimization, danger profiling, credit score scoring, personalised suggestions, buyer churn prediction, and gross sales lead scoring.

In the long run, this resulted in a pretrained Relational Basis Mannequin that may be prompted to resolve enterprise duties, whether or not it’s monetary versus insurance coverage fraud or medical versus credit score danger scoring.

Conclusion 

Machine studying is right here to remain, and because the subject evolves, it’s our duty as information scientists to spark extra considerate and candid discourse concerning the true capabilities of our know-how — what it’s good at, and the place it falls quick. 

Everyone knows how transformative LLMs had been, and proceed to be, however too typically, they’re carried out swiftly earlier than contemplating inner targets or wants. As technologists, we must always encourage executives to take a more in-depth have a look at their proprietary information, which anchors their firm’s uniqueness, and take the time to thoughtfully establish which applied sciences will finest capitalize on that information to advance their enterprise aims.

On this piece, we went over LLM capabilities, the worth that lies inside the (typically) missed facet of structured information, and business options for making use of AI over structured information — together with my very own answer and the teachings realized from constructing that. 

Thanks for studying. 


References: 

[1] R. Ying, R. He, Ok. Chen, P. Eksombatchai, W. L. Hamilton and J. Leskovec, Graph Convolutional Neural Networks for Net-Scale Recommender Programs (2018), KDD 2018.

Writer bio:

Dr. Jure Leskovec is the Chief Scientist and Co-Founding father of Kumo, a number one predictive AI firm. He’s a Laptop Science professor at Stanford, the place he has been instructing for greater than 15 years. Jure co-created Graph Neural Networks and has devoted his profession to advancing how AI learns from linked info. He beforehand served as Chief Scientist at Pinterest and carried out award-winning analysis at Yahoo and Microsoft.

Jure's headshot
Picture by Jeff Cable
Tags: arentEnterprisesLLMsOneSizeFitsAllsolution

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