Invest Like the Best with Patrick O'Shaughnessy · Tuesday, September 1, 2026
Sarah Guo highlights the importance of identifying specific application areas for AI models, using Harvey AI in the legal field as an example. She explains that by understanding AI's capability for 'next token prediction,' applications like reviewing legal documents become a natural fit.
“One of the things that we were really looking for in the first year was application areas, workflows and professions, tasks that we thought were a good fit for purpose for the models, which is a very technology forward approach.”
“And if you look at Harvey and the function of the law, rationally, if you think that we can do next token prediction with language, and you knew that in late 2022, then LA is structured language.”
“I'm not a lawyer, but from the outside, I'm like, you need to like read a lot of documents and we had retrieval and you need to generate text. And there's a lot of precedent text both inside firms and in common law. That feels like a really good match.”