OpenAI o1: What the New Model is Capable Of

OpenAIhas embarked on a new direction in the development of its language models.Moving beyond simple text generation, their latest model now tackles tasksusing logic and a step-by-step problem-solving approach.

What is OpenAI o1?

OpenAIo1 is an advanced AI model designed to solve complex business challengesthrough deep analysis and reasoning. Unlike its predecessors, such as GPT-4o,the o1 model not only generates text but also reflects during theproblem-solving process, suggesting optimal solutions and highlightingpotential issues. It’s specifically built for tasks that require analytics,decision-making, and a deeper approach to problem-solving.

Thenew o1 models come with a range of unique features:

-  The ability to analyze and verifysolutions;

- A capability for reflection during theproblem-solving process to propose improved solutions while highlightingpossible problems;

-  Enhanced understanding and adaptability touser requests, including humor and multitasking;

-  The ability to solve mathematical andfinancial tasks.

Comparison with Leading AIModels

Leadingmodels like OpenAI’s GPT-4o and Claude 3.5 from Anthropic deliver excellentresults in text generation, but the new o1 model goes beyond basic textsupport. For instance, in tasks related to recruitment analytics, o1 providesmore detailed information, including metric formulas, advice on theircalculation, and recommendations for process optimization.

Additionally,OpenAI o1 shows a higher level of detail and structure when solving taskscompared to GPT-4o and Claude 3.5. For example, o1 can suggest variousapproaches to data collection for each metric, propose additional datacollection options for greater accuracy, and provide recommendations onorganizing data in tables and charts.

How is AI Used in Business?

Accordingto Forbes Advisor, more than half of businesses use AI for cybersecurity andfraud prevention (51%), while 56% employ it for customer service. Thishighlights how AI is becoming a crucial tool for improving customerinteractions and ensuring their safety.

OtherAI applications include:

- Use as digital personal assistants (47%);

- Customer relationship management (46%);

-  Inventory management (40%);

-  Content creation (35%).

Practical Application:Recruitment Analytics

TheMODUS X team, together with HR expert and HR Partner Olexander Shevchenko,tested OpenAI o1’s capabilities for recruitment analytics, comparing it toother models such as GPT-4o and Claude 3.5. The goal was to determine how eachmodel helps structure analytical processes, collect necessary data, calculatemetrics, and provide visualizations to improve hiring processes.

Query: How to build analytics for therecruitment department?

- OpenAI o1 delivered the most structured and detailed response, outlining everystep of the analytical process. It detailed the type of data needed at eachstage and provided specific recommendations for setting goals and questions tobe asked during the analysis.

- GPT-4o suggested similar steps but limited itself to general phrases, onlyadding a stage for goal-setting and related questions.

- Claude 3.5 gave a brief response with key points but lacked deep detail andexplanations.

Query: How to calculate key metrics?

- OpenAI o1 provided a list of 15 metrics, including formulas, explanations foreach, and advice on how to calculate them. It also highlighted potential difficulties in metric calculation and offered ways to address them.

- GPT-4o gave a similar structured response but included only 9 metrics anddidn’t offer additional advice on calculations. The explanations were less detailed and didn’t account for potential difficulties.

- Claude 3.5 offered a brief description and formulas for 5 metrics withoutdetailed explanations.

Query: What data is needed to calculate these metrics?

- All three models provided basicrecommendations for data collection for each metric.

-  OpenAI o1 offered expanded explanations, including recommendations for gatheringadditional data to enhance analytics, as well as options for ambiguous metricsand data management methods.

●     GPT-4o provided basic recommendations for each metric with slightly moredetail.

●     Claude 3.5 stuck to standard recommendations and briefly mentioned additional datathat could be useful.

Query: Create a table for collecting thisdata.

●     OpenAI o1 created 5 separate tables for different sections: Candidates, JobOpenings, and Recruitment Stages. It also added extra fields for deeperanalysis, provided sample filled-in tables, and offered recommendations forfilling them out and organizing data.

●     GPT-4o split columns by sections, but provided only basic examples of tableswithout further explanations.

●     Claude 3.5 proposed a single table in a convenient format for storage, includingdata types and a few helpful notes.

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Query: Suggest visualizations for trackingmetrics.

●     OpenAI o1 provided several visualization options for each metric, explainingwhat each graph would display and the purpose of these visualizations. It alsooffered tips for creating visualizations and suggested tools for this purpose.

●     GPT-4o made similar suggestions but with less detail and structure.

●     Claude 3.5 proposed a few quick graph ideas and provided sample code for creatingthem.

Query: Explain the purpose of eachvisualization.

●     BothOpenAI o1 and GPT-4o offered comprehensive descriptions of charts,including business questions that could be addressed through them. GPT-4o1 alsoincluded a useful summary of different types of charts.

●     Claude 3.5 detailed how charts help with specific questions and how to interpretthem.

Query: Develop an implementation plan forthe analytics discussed above.

●     OpenAI o1 delivered a more detailed plan, including a timeline, resources,tools, and risk minimization recommendations.

●     GPT-4o presented a similar plan but with less detail.

●     Claude 3.5 outlined the main stages, added a timeline, and provided a separatefile with the plan.

Query: Help to find management decisionsbased on the analysis of the existing set of metrics.

●     OpenAI o1 calculated the basic statistical indicators from the data and gave abrief explanation of the results.

●     GPT-4o1 went further, providing relevant advice on management decisions.

Conclusion: OpenAI o1 significantly outperforms othermodels by independently understanding the required structure and content of theresponse based on a short user query. Consequently, the model demonstrates ahigh level of detail, a structured approach to data collection and metriccalculation, as well as the development of visualizations and implementationplans. This allows for a significant reduction in time spent formulatingqueries and independently processing tasks, ultimately enhancing management decisionswithin recruitment departments.

Data Visualization andInterpretation

Thenew AI models also assist in visualizing data using various types of charts,such as timelines, pie charts, histograms, and heat maps. OpenAI o1 offersmultiple visualization options for each metric, explaining what informationwill be displayed on each chart and how it can be used for processoptimization. This makes it easier to quickly identify trends, compare theeffectiveness of different strategies, and identify areas for improvement.

The Future of AI Assistants

Languagemodels are becoming increasingly similar to human assistants, capable ofperforming various tasks and providing valuable recommendations. In the future,it is expected that ChatGPT will be able to independently choose theappropriate model for each specific task, further expanding its capabilities.

OpenAIo1 opens up new opportunities in business analytics and decision-making throughdeep analysis, detailed data structuring, and practical solutions. Therecruitment analytics case demonstrated that o1 not only offers recommendationsbut also automates complex processes, enhancing management efficiency.

Thismodel simplifies and improves decision-making processes, providing accurate,structured insights and recommendations, making it a crucial tool forbusinesses aiming to optimize internal and external processes, grow, and remaincompetitive.

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