How AI Is Built

Nicolay here,

most AI conversations obsess over capabilities. This one focuses on constraints - the right ones that make AI actually useful rather than just impressive demos.

Today I have the chance to talk to Dexter Horthy, who recently put out a long piece called the “12-factor agents”.

It’s like the 10 commandments, but for building agents.

One of it is “Contact human with tool calls”: the LLM can call humans for high-stakes decisions or “writes”.

The key insight is brutally simple. AI can get to 90% accuracy on most tasks - good enough for spam-like activities but disastrous for anything that requires trust. The solution isn't to wait for models to get smarter; it's to add a human approval layer for critical actions.

Imagine you are writing to a database or sending an email. Each “write” has to be approved by a human. So you post the email in a Slack channel and in most cases, your sales people will approve. In the 10%, it’s stopped in its tracks and the human can take over. You stop the slop and get good training data in the mean time.

Dexter’s company is building exactly this: an approval mechanism that lets AI agents send requests to humans before executing.

In the podcast, we also touch on a bunch of other things:

• MCP and that they are (atm) just a thin client
• Are we training LLMs toward mediocrity?
• What infrastructure do we need for human in the loop (e.g. DBOS)?
• and more

💡 Core Concepts

• Context Engineering: Crafting the information representation for LLMs - selecting optimal data structures, metadata, and formats to ensure models receive precisely what they need to perform effectively.
• Token Bloat Prevention: Ruthlessly eliminating irrelevant information from context windows to maintain agent focus during complex tasks, preventing the pattern of repeating failed approaches.
• Human-in-the-loop Approval Flows: Achieving 99% reliability through a "90% AI + 10% human oversight" framework where agents analyze data and suggest actions but request explicit permission before execution.
• Rubric Engineering: Systematically evaluating AI outputs through dimension-specific scoring criteria to provide precise feedback and identify exceptional results, helping escape the trap of models converging toward mediocrity.

📶 Connect with Dexter:

• LinkedIn
• X / Twitter
• Company

📶 Connect with Nicolay:

• LinkedIn
• X / Twitter
• Bluesky
• Website
• My Agency Aisbach (for ai implementations / strategy)

⏱️ Important Moments

• MCP Servers as Clients: [03:07] Dexter explains why what many call "MCP servers" actually function more like clients when examining the underlying code.
• Authentication Challenges: [04:45] The discussion shifts to how authentication should be handled in MCP implementations and whether it belongs in the protocol.
• Asynchronous Agent Execution: [08:18] Exploring how to handle agents that need to pause for human input without wasting tokens on continuous polling.
• Token Bloat Prevention: [14:41] Strategies for keeping context windows focused and efficient, moving beyond standard chat formats.
• Context Engineering: [29:06] The concept that everything in AI agent development ultimately comes down to effective context engineering.
• Fine-tuning vs. RAG for Writing Style: [20:05] Contrasting personal writing style fine-tuning versus context window examples.
• Generating Options vs. Deterministic Outputs: [19:44] The unexplored potential of having AI generate diverse creative options for human selection.
• The "Mediocrity Convergence" Question: [37:11] The philosophical concern that popular LLMs may inevitably trend toward average quality.
• Data Labeling Interfaces: [35:25] Discussion about the need for better, lower-friction interfaces to collect human feedback on AI outputs.
• Human-in-the-loop Approval Flows: [42:46] The core approach of HumanLayer, allowing agents to ask permission before taking action.

🛠️ Tools & Tech Mentioned

• MCP
• OpenControl
• DBOS
• Temporal
• Cursor

📚 Recommended Resources

• 12 Factor Agents
• BAML Docs
• Rubric Engineering

🔮 What's Next

Next week, we will continue going more into getting generative AI into production talking to Vibhav from BAML.

💬 Join The Conversation

Follow How AI Is Built on YouTube, Bluesky, or Spotify.

If you have any suggestions for future guests, feel free to leave it in the comments or write me (Nicolay) directly on LinkedIn, X, or Bluesky. Or at [email protected].

I will be opening a Discord soon to get you guys more involved in the episodes! Stay tuned for that.

♻️ I am trying to build the new platform for engineers to share their experience that they have earned after building and deploying stuff into production. I am trying to produce the best content possible - informative, actionable, and engaging. I'm asking for two things: hit subscribe now to show me what content you like (so I can do more of it), and if this episode helped you, pay it forward by sharing with one engineer who's facing similar challenges. That's the agreement - I deliver practical value, you help grow this resource for everyone. ♻️

Nicolay here,

most AI conversations obsess over capabilities. This one focuses on constraints - the right ones that make AI actually useful rather than just impressive demos.

Today I have the chance to talk to Dexter Horthy, who recently put out a long piece called the “12-factor agents”.

It’s like the 10 commandments, but for building agents.

One of it is “Contact human with tool calls”: the LLM can call humans for high-stakes decisions or “writes”.

The key insight is brutally simple. AI can get to 90% accuracy on most tasks - good enough for spam-like activities but disastrous for anything that requires trust. The solution isn't to wait for models to get smarter; it's to add a human approval layer for critical actions.

Imagine you are writing to a database or sending an email. Each “write” has to be approved by a human. So you post the email in a Slack channel and in most cases, your sales people will approve. In the 10%, it’s stopped in its tracks and the human can take over. You stop the slop and get good training data in the mean time.

Dexter’s company is building exactly this: an approval mechanism that lets AI agents send requests to humans before executing.

In the podcast, we also touch on a bunch of other things:

• MCP and that they are (atm) just a thin client
• Are we training LLMs toward mediocrity?
• What infrastructure do we need for human in the loop (e.g. DBOS)? 
• and more

💡 Core Concepts

• Context Engineering: Crafting the information representation for LLMs - selecting optimal data structures, metadata, and formats to ensure models receive precisely what they need to perform effectively.
• Token Bloat Prevention: Ruthlessly eliminating irrelevant information from context windows to maintain agent focus during complex tasks, preventing the pattern of repeating failed approaches.
• Human-in-the-loop Approval Flows: Achieving 99% reliability through a "90% AI + 10% human oversight" framework where agents analyze data and suggest actions but request explicit permission before execution.
• Rubric Engineering: Systematically evaluating AI outputs through dimension-specific scoring criteria to provide precise feedback and identify exceptional results, helping escape the trap of models converging toward mediocrity.

📶 Connect with Dexter:

• LinkedIn
• X / Twitter
• Company

📶 Connect with Nicolay:

• LinkedIn
• X / Twitter
• Bluesky
• Website
• My Agency Aisbach (for ai implementations / strategy)

⏱️ Important Moments

• MCP Servers as Clients: [03:07] Dexter explains why what many call "MCP servers" actually function more like clients when examining the underlying code.
• Authentication Challenges: [04:45] The discussion shifts to how authentication should be handled in MCP implementations and whether it belongs in the protocol.
• Asynchronous Agent Execution: [08:18] Exploring how to handle agents that need to pause for human input without wasting tokens on continuous polling.
• Token Bloat Prevention: [14:41] Strategies for keeping context windows focused and efficient, moving beyond standard chat formats.
• Context Engineering: [29:06] The concept that everything in AI agent development ultimately comes down to effective context engineering.
• Fine-tuning vs. RAG for Writing Style: [20:05] Contrasting personal writing style fine-tuning versus context window examples.
• Generating Options vs. Deterministic Outputs: [19:44] The unexplored potential of having AI generate diverse creative options for human selection.
• The "Mediocrity Convergence" Question: [37:11] The philosophical concern that popular LLMs may inevitably trend toward average quality.
• Data Labeling Interfaces: [35:25] Discussion about the need for better, lower-friction interfaces to collect human feedback on AI outputs.
• Human-in-the-loop Approval Flows: [42:46] The core approach of HumanLayer, allowing agents to ask permission before taking action.

🛠️ Tools & Tech Mentioned

• MCP
• OpenControl
• DBOS
• Temporal
• Cursor

📚 Recommended Resources

• 12 Factor Agents
• BAML Docs
• Rubric Engineering

🔮 What's Next

Next week, we will continue going more into getting generative AI into production talking to Vibhav from BAML.

💬 Join The Conversation

Follow How AI Is Built on YouTube, Bluesky, or Spotify.

If you have any suggestions for future guests, feel free to leave it in the comments or write me (Nicolay) directly on LinkedIn, X, or Bluesky. Or at [email protected].

I will be opening a Discord soon to get you guys more involved in the episodes! Stay tuned for that.

♻️ I am trying to build the new platform for engineers to share their experience that they have earned after building and deploying stuff into production. I am trying to produce the best content possible - informative, actionable, and engaging. I'm asking for two things: hit subscribe now to show me what content you like (so I can do more of it), and if this episode helped you, pay it forward by sharing with one engineer who's facing similar challenges. That's the agreement - I deliver practical value, you help grow this resource for everyone. ♻️

Today on How AI Is Built, Nicolay Gerold sits down with Jorge Arango, an expert in information architecture. Jorge emphasizes that aligning systems with users' mental models is more important than optimizing backend logic alone. He shares a clear framework with four practical steps:

Key Points:

• Information architecture should bridge user mental models with system data models
• Information's purpose is to help people make better choices and act more skillfully
• Well-designed systems create learnable (not just "intuitive") interfaces
• Context and domain boundaries significantly impact user understanding
• Progressive disclosure helps accommodate users with varying expertise levels

Chapters

• 00:00 Introduction to Backend Systems
• 00:36 Guest Introduction: Jorge Arango
• 01:12 Podcast Dynamics and Guest Experiences
• 01:53 Timeless Principles in Technology
• 02:08 Interesting Conversations and Learnings
• 04:04 Physical vs. Digital Organization
• 04:21 Smart Defaults and System Maintenance
• 07:20 Data Models and Conceptual Structures
• 08:53 Designing User-Centric Systems
• 10:20 Challenges in Information Systems
• 10:35 Understanding Information and Choices
• 15:49 Clarity and Context in Design
• 26:36 Progressive Disclosure and User Research
• 37:05 The Role of Large Language Models
• 54:59 Future Directions and New Series (MLOps)

Information Architecture Fundamentals

What Is Information?

• Information helps people make better choices to act more skillfully
• Example: "No dog pooping" signs help predict consequences of actions
• Poor information systems fail to provide relevant guidance for users' needs

Mental Models vs. Data Models

• Systems have underlying conceptual structures that should reflect user mental models
• Data models make these conceptual models "normative" in the infrastructure
• Designers serve as translators between user needs and technical implementation
• Goal: Users should think "the person who designed this really gets me"

Design Strategies for Complex Systems

Progressive Disclosure

• Present simple interfaces by default with clear paths to advanced functionality
• Example: HyperCard - visual interface for beginners with programming layer for experts
• Allows both novice and expert users to use the same system effectively

Context Setting and Domain Boundaries

• All interactions happen within a context that influences understanding
• Words acquire different meanings in different contexts (e.g., "save" in computing vs. banking)
• Clearer domain boundaries make information architecture design easier
• Hardest systems to design: those serving many purposes for diverse audiences

Conceptual Modeling (Underrated Practice)

• Should precede UI sketching but often skipped by designers
• Defines concepts needed in the system and their relationships
• Creates more cohesive and coherent systems, especially for complex projects
• More valuable than sitemaps, which imply rigid hierarchies

LLMs and Information Architecture

Current and Future Applications

• Transforming search experiences (e.g., Perplexity providing answers vs. link lists)
• Improving intent parsing in traditional search
• Helping information architects with content analysis and navigation structure design
• Enabling faster, better analysis of large content repositories

Implementation Advice

For Engineers and Designers

• Designers should understand how systems are built (materials of construction)
• Engineers benefit from understanding user perspectives and mental models
• Both disciplines have much to teach each other

For Complex Applications

• Map conceptual models before writing code
• Test naming with real users
• Implement progressive disclosure with good defaults
• Remember: "If the user can't find it, it doesn't exist"

Notable Quotes:

"People only understand things relative to things they already understand." - Richard Saul Wurman

"The hardest systems to design are the ones that are meant to do a lot of things for a lot of different people." - Jorge Arango

"Very few things are intuitive. There's a long running joke in the industry that the only intuitive interface for humans is the nipple. Everything else is learned." - Jorge Arango

Jorge Arango

• LinkedIn
• Website
• X (Twitter)

Nicolay Gerold:

• ⁠LinkedIn⁠
• ⁠X (Twitter)

Modern search is broken. There are too many pieces that are glued together.

• Vector databases for semantic search
• Text engines for keywords
• Rerankers to fix the results
• LLMs to understand queries
• Metadata filters for precision

Each piece works well alone.

Together, they often become a mess.

When you glue these systems together, you create:

• Data Consistency Gaps Your vector store knows about documents your text engine doesn't. Which is right?
• Timing Mismatches New content appears in one system before another. Users see different results depending on which path their query takes.
• Complexity Explosion Every new component doubles your integration points. Three components means three connections. Five means ten.
• Performance Bottlenecks Each hop between systems adds latency. A 200ms search becomes 800ms after passing through four components.
• Brittle Chains When one system fails, your entire search breaks. More pieces mean more breaking points.

I recently built a system where we had query specific post-filters but the requirement to deliver a fixed number of results to the user.

A lot of times, the query had to be run multiple times to achieve the desired amount.

So we had an unpredictable latency. A high load on the backend, where some queries hammered the database 10+ times. A relevance cliff, where results 1-6 look great, but the later ones were poor matches.

Today on How AI Is Built, we are talking to Marek Galovic from TopK.

We talk about how they built a new search database with modern components. "How would search work if we built it today?”

Cloud storage is cheap. Compute is fast. Memory is plentiful.

One system that handles vectors, text, and filters together - not three systems duct-taped into one.

One pass handles everything:

Built with hand-optimized Rust kernels for both x86 and ARM, the system scales to 100M documents with 200ms P99 latency.

The goal is to do search in 5 lines of code.

Marek Galovic:

• LinkedIn
• Website
• TopK Website
• TopK Docs

Nicolay Gerold:

• ⁠LinkedIn⁠
• ⁠X (Twitter)

00:00 Introduction to TopK and Snowflake Comparison

00:35 Architectural Patterns and Custom Formats

01:30 Query Execution Engine Explained

02:56 Distributed Systems and Rust

04:12 Query Execution Process

06:56 Custom File Formats for Search

11:45 Handling Distributed Queries

16:28 Consistency Models and Use Cases

26:47 Exploring Database Versioning and Snapshots

27:27 Performance Benchmarks: Rust vs. C/C++

29:02 Scaling and Latency in Large Datasets

29:39 GPU Acceleration and Use Cases

31:04 Optimizing Search Relevance and Hybrid Search

34:39 Advanced Search Features and Custom Scoring

38:43 Future Directions and Research in AI

47:11 Takeaways for Building AI Applications

John Berryman moved from aerospace engineering to search, then to ML and LLMs. His path: Eventbrite search → GitHub code search → data science → GitHub Copilot. He was drawn to more math and ML throughout his career.

RAG Explained

"RAG is not a thing. RAG is two things." It breaks into:

1. Search - finding relevant information
2. Prompt engineering - presenting that information to the model

These should be treated as separate problems to optimize.

The Little Red Riding Hood Principle

When prompting LLMs, stay on the path of what models have seen in training. Use formats, structures, and patterns they recognize from their training data:

• For code, use docstrings and proper formatting
• For financial data, use SEC report structures
• Use Markdown for better formatting

Models respond better to familiar structures.

Testing Prompts

Testing strategies:

• Start with "vibe testing" - human evaluation of outputs
• Develop systematic tests based on observed failure patterns
• Use token probabilities to measure model confidence
• For few-shot prompts, watch for diminishing returns as examples increase

Managing Token Limits

When designing prompts, divide content into:

• Static elements (boilerplate, instructions)
• Dynamic elements (user inputs, context)

Prioritize content by:

1. Must-have information
2. Nice-to-have information
3. Optional if space allows

Even with larger context windows, efficiency remains important for cost and latency.

Completion vs. Chat Models

Chat models are winning despite initial concerns about their constraints:

• Completion models allow more flexibility in document format
• Chat models are more reliable and aligned with common use cases
• Most applications now use chat models, even for completion-like tasks

Applications: Workflows vs. Assistants

Two main LLM application patterns:

• Assistants: Human-in-the-loop interactions where users guide and correct
• Workflows: Decomposed tasks where LLMs handle well-defined steps with safeguards

Breaking Down Complex Problems

Two approaches:

• Horizontal: Split into sequential steps with clear inputs/outputs
• Vertical: Divide by case type, with specialized handling for each scenario

Example: For SOX compliance, break horizontally (understand control, find evidence, extract data, compile report) and vertically (different audit types).

On Agents

Agents exist on a spectrum from assistants to workflows, characterized by:

• Having some autonomy to make decisions
• Using tools to interact with the environment
• Usually requiring human oversight

Best Practices

For building with LLMs:

1. Start simple: API key + Jupyter notebook
2. Build prototypes and iterate quickly
3. Add evaluation as you scale
4. Keep users in the loop until models prove reliability

John Berryman:

• LinkedIn
• X (Twitter)
• Arcturus Labs
• Prompt Engineering for LLMs (Book)

Nicolay Gerold:

• ⁠LinkedIn⁠
• ⁠X (Twitter)

  00:00 Introduction to RAG: Retrieval and Generation
  00:19 Optimizing Retrieval Systems
  01:11 Introducing John Berryman
  02:31 John's Journey from Search to Prompt Engineering
  04:05 Understanding RAG: Search and Prompt Engineering
  05:39 The Little Red Riding Hood Principle in Prompt Engineering
  14:14 Balancing Static and Dynamic Elements in Prompts
  25:52 Assistants vs. Workflows: Choosing the Right Approach
  30:15 Defining Agency in AI
  30:35 Spectrum of Assistance and Workflows
  34:35 Breaking Down Problems Horizontally and Vertically
  37:57 SOX Compliance Case Study
  40:56 Integrating LLMs into Existing Applications
  44:37 Favorite Tools and Missing Features
  46:37 Exploring Niche Technologies in AI
  52:52 Key Takeaways and Future Directions

Kuzu is an embedded graph database that implements Cypher as a library.

It can be easily integrated into various environments—from scripts and Android apps to serverless platforms.

Its design supports both ephemeral, in-memory graphs (ideal for temporary computations) and large-scale persistent graphs where traditional systems struggle with performance and scalability.

Key Architectural Decisions:

• Columnar Storage:
• Kuzu stores node and relationship properties in separate, contiguous columns. This design reduces I/O by allowing queries to scan only the needed columns, unlike row-based systems (e.g., Neo4j) that read full records even when only a subset of properties is required.
• Efficient Join Indexing with CSR:
• The join index is maintained using a Compressed Sparse Row (CSR) format. By sorting and compressing relationship data, Kuzu ensures that adjacent node relationships are stored contiguously, minimizing random I/O and speeding up traversals.
• Vectorized Query Processing:
• Instead of processing one tuple at a time, Kuzu processes blocks (vectors) of tuples. This block-based (or vectorized) approach reduces function-call overhead and improves cache locality, boosting performance for analytic queries.
• Factorization and ASP Join:
• For many-to-many queries that can generate enormous intermediate results, Kuzu uses factorization to represent data compactly. Its ASP join algorithm integrates factorization, sequential scanning, and sideways information passing to avoid unnecessary full scans and materializations.

Kuzu is optimized for read-heavy, analytic workloads. While batched writes are efficient, the system is less tuned for high-frequency, small transactions. Upcoming features include:

• A WebAssembly (Wasm) version for running in browsers.
• Enhanced vector and full-text search indices.
• Built-in graph data science algorithms for tasks like PageRank and centrality analysis.

Kuzu can be a powerful backend for AI applications in several ways:

• Knowledge Graphs:
• Store and query complex relationships between entities to support natural language understanding, semantic search, and reasoning tasks.
• Graph Data Science:
• Run built-in graph algorithms (like PageRank, centrality, or community detection) that help uncover patterns and insights, which can improve recommendation systems, fraud detection, and other AI-driven analyses.
• Retrieval-Augmented Generation (RAG):
• Integrate with large language models by efficiently retrieving relevant, structured graph data. Kuzu’s vector search capabilities and fast query processing make it ideal for augmenting AI responses with contextual information.
• Graph Embeddings & ML Pipelines:
• Serve as the foundation for generating graph embeddings, which are used in downstream machine learning tasks—such as clustering, classification, or link prediction—to enhance model performance.

Semih Salihoğlu:

• LinkedIn
• Kuzu GitHub
• Kuzu Docs

Nicolay Gerold:

• ⁠LinkedIn⁠
• ⁠X (Twitter)

00:00 Introduction to Graph Databases
00:18 Introducing Kuzu: A Modern Graph Database
01:48 Use Cases and Applications of Kuzu
03:03 Kuzu's Research Origins and Scalability
06:18 Columnar Storage vs. Row-Oriented Storage
10:27 Query Processing Techniques in Kuzu
22:22 Compressed Sparse Row (CSR) Storage
27:25 Vectorization in Graph Databases
31:24 Optimizing Query Processors with Vectorization
33:25 Common Wisdom in Graph Databases
35:13 Introducing ASP Join in Kuzu
35:55 Factorization and Efficient Query Processing
39:49 Challenges and Solutions in Graph Databases
45:26 Write Path Optimization in Kuzu
54:10 Future Developments in Kuzu
57:51 Key Takeaways and Final Thoughts

Metadata is the foundation of any enterprise knowledge graph.

By organizing both technical and business metadata, organizations create a “brain” that supports advanced applications like AI-driven data assistants.

The goal is to achieve economies of scale—making data reusable, traceable, and ultimately more valuable.

Juan Sequeda is a leading expert in enterprise knowledge graphs and metadata management. He has spent years solving the challenges of integrating diverse data sources into coherent, accessible knowledge graphs. As Principal Scientist at data.world, Juan provides concrete strategies for improving data quality, streamlining feature extraction, and enhancing model explainability. If you want to build AI systems on a solid data foundation—one that cuts through the noise and delivers reliable, high-performance insights—you need to listen to Juan’s proven methods and real-world examples.

Terms like ontologies, taxonomies, and knowledge graphs aren’t new inventions. Ontologies and taxonomies have been studied for decades—even since ancient Greece. Google popularized “knowledge graphs” in 2012 by building on decades of semantic web research. Despite current buzz, these concepts build on established work.

Traditionally, data lives in siloed applications—each with its own relational databases, ETL processes, and dashboards. When cross-application queries and consistent definitions become painful, organizations face metadata management challenges. The first step is to integrate technical metadata (table names, columns, code lineage) into a unified knowledge graph. Then, add business metadata by mapping business glossaries and definitions to that technical layer.

A modern data catalog should:

• Integrate Multiple Sources: Automatically ingest metadata from databases, ETL tools (e.g., dbt, Fivetran), and BI tools.
• Bridge Technical and Business Views: Link technical definitions (e.g., table “CUST_123”) with business concepts (e.g., “Customer”).
• Enable Reuse and Governance: Support data discovery, impact analysis, and proper governance while facilitating reuse across teams.

Practical Approaches & Use Cases:

• Start with a Clear Problem: Whether it’s reducing churn, improving operational efficiency, or meeting compliance needs, begin by solving a specific pain point.
• Iron Thread Method: Follow one query end-to-end—from identifying a business need to tracing it back to source systems—to gradually build and refine the graph.
• Automation vs. Manual Oversight: Technical metadata extraction is largely automated. For business definitions or text-based entity extraction (e.g., via LLMs), human oversight is key to ensuring accuracy and consistency.

Technical Considerations:

• Entity vs. Property: If you need to attach additional details or reuse an element across contexts, model it as an entity (with a unique identifier). Otherwise, keep it as a simple property.
• Storage Options: The market offers various graph databases—Neo4j, Amazon Neptune, Cosmos DB, TigerGraph, Apache Jena (for RDF), etc. Future trends point toward multimodel systems that allow querying in SQL, Cypher, or SPARQL over the same underlying data.

Juan Sequeda:

• LinkedIn
• data.world
• Semantic Web for the Working Ontologist
• Designing and Building Enterprise Knowledge Graphs (before you buy, send Juan a message, he is happy to send you a copy)
• Catalog & Cocktails (Juan’s podcast)

Nicolay Gerold:

• ⁠LinkedIn⁠
• ⁠X (Twitter)

00:00 Introduction to Knowledge Graphs 00:45 The Role of Metadata in AI 01:06 Building Knowledge Graphs: First Steps 01:42 Interview with Juan Sequira 02:04 Understanding Buzzwords: Ontologies, Taxonomies, and More 05:05 Challenges and Solutions in Data Management 08:04 Practical Applications of Knowledge Graphs 15:38 Governance and Data Engineering 34:42 Setting the Stage for Data-Driven Problem Solving 34:58 Understanding Consumer Needs and Data Challenges 35:33 Foundations and Advanced Capabilities in Data Management 36:01 The Role of AI and Metadata in Data Maturity 37:56 The Iron Thread Approach to Problem Solving 40:12 Constructing and Utilizing Knowledge Graphs 54:38 Trends and Future Directions in Knowledge Graphs 59:17 Practical Advice for Building Knowledge Graphs

Daniel Davis is an expert on knowledge graphs. He has a background in risk assessment and complex systems—from aerospace to cybersecurity. Now he is working on “Temporal RAG” in TrustGraph.

Time is a critical—but often ignored—dimension in data. Whether it’s threat intelligence, legal contracts, or API documentation, every data point has a temporal context that affects its reliability and usefulness. To manage this, systems must track when data is created, updated, or deleted, and ideally, preserve versions over time.

Three Types of Data:

1. Observations:
   • Definition: Measurable, verifiable recordings (e.g., “the hat reads ‘Sunday Running Club’”).
   • Characteristics: Require supporting evidence and may be updated as new data becomes available.
2. Assertions:
   • Definition: Subjective interpretations (e.g., “the hat is greenish”).
   • Characteristics: Involve human judgment and come with confidence levels; they may change over time.
3. Facts:
   • Definition: Immutable, verified information that remains constant.
   • Characteristics: Rare in dynamic environments because most data evolves; serve as the “bedrock” of trust.

By clearly categorizing data into these buckets, systems can monitor freshness, detect staleness, and better manage dependencies between components (like code and its documentation).

Integrating Temporal Data into Knowledge Graphs:

• Challenge:
• Traditional knowledge graphs and schemas (e.g., schema.org) rarely integrate time beyond basic metadata. Long documents may only provide a single timestamp, leaving the context of internal details untracked.
• Solution:
• Attach detailed temporal metadata (such as creation, update, and deletion timestamps) during data ingestion. Use versioning to maintain historical context. This allows systems to:
  • Assess whether data is current or stale.
  • Detect conflicts when updates occur.
  • Employ Bayesian methods to adjust trust metrics as more information accumulates.

Key Takeaways:

• Focus on Specialization:
• Build tools that do one thing well. For example, design a simple yet extensible knowledge graph rather than relying on overly complex ontologies.
• Integrate Temporal Metadata:
• Always timestamp data operations and version records. This is key to understanding data freshness and evolution.
• Adopt Robust Infrastructure:
• Use scalable, proven technologies to connect specialized modules via APIs. This reduces maintenance overhead compared to systems overloaded with connectors and extra features.
• Leverage Bayesian Updates:
• Start with initial trust metrics based on observed data and refine them as new evidence arrives.
• Mind the Big Picture:
• Avoid working in isolated silos. Emphasize a holistic system design that maintains in situ context and promotes collaboration across teams.

Daniel Davis

• Cognitive Core
• TrustGraph
• YouTube
• LinkedIn
• Discord

Nicolay Gerold:

• ⁠LinkedIn⁠
• ⁠X (Twitter)

00:00 Introduction to Temporal Dimensions in Data 00:53 Timestamping and Versioning Data 01:35 Introducing Daniel Davis and Temporal RAG 01:58 Three Buckets of Data: Observations, Assertions, and Facts 03:22 Dynamic Data and Data Freshness 05:14 Challenges in Integrating Time in Knowledge Graphs 09:41 Defining Observations, Assertions, and Facts 12:57 The Role of Time in Data Trustworthiness 46:58 Chasing White Whales in AI 47:58 The Problem with Feature Overload 48:43 Connector Maintenance Challenges 50:02 The Swiss Army Knife Analogy 51:16 API Meshes and Glue Code 54:14 The Importance of Software Infrastructure 01:00:10 The Need for Specialized Tools 01:13:25 Outro and Future Plans

Robert Caulk runs Emergent Methods, a research lab building news knowledge graphs. With a Ph.D. in computational mechanics, he spent 12 years creating open-source tools for machine learning and data analysis. His work on projects like Flowdapt (model serving) and FreqAI (adaptive modeling) has earned over 1,000 academic citations.

His team built AskNews, which he calls "the largest news knowledge graph in production." It's a system that doesn't just collect news - it understands how events, people, and places connect.

Current AI systems struggle to connect information across sources and domains. Simple vector search misses crucial relationships. But building knowledge graphs at scale brings major technical hurdles around entity extraction, relationship mapping, and query performance.

Emergent Methods built a hybrid system combining vector search and knowledge graphs:

• Vector DB (Quadrant) handles initial broad retrieval
• Custom knowledge graph processes relationships
• Translation pipeline normalizes multi-language content
• Entity extraction model identifies key elements
• Context engineering pipeline structures data for LLMs

Implementation Details:

Data Pipeline:

• All content normalized to English for consistent embeddings
• Entity names preserved in original language when untranslatable
• Custom Gleiner News model handles entity extraction
• Retrained every 6 months on fresh data
• Human review validates entity accuracy

Entity Management:

• Base extraction uses BERT-based Gleiner architecture
• Trained on diverse data across topics/regions
• Disambiguation system merges duplicate entities
• Manual override options for analysts
• Metadata tracking preserves relationship context

Knowledge Graph:

• Selective graph construction from vector results
• On-demand relationship processing
• Graph queries via standard Cypher
• Built for specific use cases vs general coverage
• Integration with S3 and other data stores

System Validation:

• Custom "Context is King" benchmark suite
• RAGAS metrics track retrieval accuracy
• Time-split validation prevents data leakage
• Manual review of entity extraction
• Production monitoring of query patterns

Engineering Insights:

Key Technical Decisions:

• English normalization enables consistent embeddings
• Hybrid vector + graph approach balances speed/depth
• Selective graph construction keeps costs down
• Human-in-loop validation maintains quality

Dead Ends Hit:

• Full multi-language entity system too complex
• Real-time graph updates not feasible at scale
• Pure vector or pure graph approaches insufficient

Top Quotes:

• "At its core, context engineering is about how we feed information to AI. We want clear, focused inputs for better outputs. Think of it like talking to a smart friend - you'd give them the key facts in a way they can use, not dump raw data on them." - Robert
• "Strong metadata paints a high-fidelity picture. If we're trying to understand what's happening in Ukraine, we need to know not just what was said, but who said it, when they said it, and what voice they used to say it. Each piece adds color to the picture." - Robert
• "Clean data beats clever models. You can throw noise at an LLM and get something that looks good, but if you want real accuracy, you need to strip away the clutter first. Every piece of noise pulls the model in a different direction." - Robert
• "Think about how the answer looks in the real world. If you're comparing apartments, you'd want a table. If you're tracking events, you'd want a timeline. Match your data structure to how humans naturally process that kind of information." - Nico
• "Building knowledge graphs isn't about collecting everything - it's about finding the relationships that matter. Most applications don't need a massive graph. They need the right connections for their specific problem." - Robert
• "The quality of your context sets the ceiling for what your AI can do. You can have the best model in the world, but if you feed it noisy, unclear data, you'll get noisy, unclear answers. Garbage in, garbage out still applies." - Robert
• "When handling multiple languages, it's better to normalize everything to one language than to try juggling many. Yes, you lose some nuance, but you gain consistency. And consistency is what makes these systems reliable." - Robert
• "The hard part isn't storing the data - it's making it useful. Anyone can build a database. The trick is structuring information so an AI can actually reason with it. That's where context engineering makes the difference." - Robert
• "Start simple, then add complexity only when you need it. Most teams jump straight to sophisticated solutions when they could get better results by just cleaning their data and thinking carefully about how they structure it." - Nico
• "Every token in your context window is precious. Don't waste them on HTML tags or formatting noise. Save that space for the actual signal - the facts, relationships, and context that help the AI understand what you're asking." - Nico

Robert Caulk:

• LinkedIn
• Emergent Methods
• Asknews

Nicolay Gerold:

• ⁠LinkedIn⁠
• ⁠X (Twitter)

00:00 Introduction to Context Engineering 00:24 Curating Input Signals 01:01 Structuring Raw Data 03:05 Refinement and Iteration 04:08 Balancing Breadth and Precision 06:10 Interview Start 08:02 Challenges in Context Engineering 20:25 Optimizing Context for LLMs 45:44 Advanced Cypher Queries and Graphs 46:43 Enrichment Pipeline Flexibility 47:16 Combining Graph and Semantic Search 49:23 Handling Multilingual Entities 52:57 Disambiguation and Deduplication Challenges 55:37 Training Models for Diverse Domains 01:04:43 Dealing with AI-Generated Content 01:17:32 Future Developments and Final Thoughts

When you store vectors, each number takes up 32 bits.

With 1000 numbers per vector and millions of vectors, costs explode.

A simple chatbot can cost thousands per month just to store and search through vectors.

The Fix: Quantization

Think of it like image compression. JPEGs look almost as good as raw photos but take up far less space. Quantization does the same for vectors.

Today we are back continuing our series on search with Zain Hasan, a former ML engineer at Weaviate and now a Senior AI/ ML Engineer at Together. We talk about the different types of quantization, when to use them, how to use them, and their tradeoff. 

Three Ways to Quantize:

1. Binary Quantization 
   • Turn each number into just 0 or 1
   • Ask: "Is this dimension positive or negative?"
   • Works great for 1000+ dimensions
   • Cuts memory by 97%
   • Best for normally distributed data
2. Product Quantization 
   • Split vector into chunks
   • Group similar chunks
   • Store cluster IDs instead of full numbers
   • Good when binary quantization fails
   • More complex but flexible
3. Scalar Quantization 
   • Use 8 bits instead of 32
   • Simple middle ground
   • Keeps more precision than binary
   • Less savings than binary

Key Quotes:

• "Vector databases are pretty much the commercialization and the productization of representation learning."
• "I think quantization, it builds on the assumption that there is still noise in the embeddings. And if I'm looking, it's pretty similar as well to the thought of Matryoshka embeddings that I can reduce the dimensionality."
• "Going from text to multimedia in vector databases is really simple."
• "Vector databases allow you to take all the advances that are happening in machine learning and now just simply turn a switch and use them for your application."

Zain Hasan:

• LinkedIn
• X (Twitter)
• Weaviate
• Together

Nicolay Gerold:

• ⁠LinkedIn⁠
• ⁠X (Twitter)

vector databases, quantization, hybrid search, multi-vector support, representation learning, cost reduction, memory optimization, multimodal recommender systems, brain-computer interfaces, weather prediction models, AI applications