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Domain expertise has always been the real moat

brethorsting.com

31–40 of 592 posts

Re: Domain expertise has always been the real moat

#31
Not just domain expertise. The hard part has always been marketing, distribution, risk appetite, motivation, grit, and patience.

There are plenty of things which are "trivial" to produce with no moat and yet are still million dollar businesses. Kebab stands. Water bottles. Barber shops. Movers.

Re: Domain expertise has always been the real moat

#32
Highly agree with much of the article. IMO, this is why many engineers who learned to code in the post-2010 'new hot framework every week' era but before LLM coding took hold are able to get much better results from AI assisted coding than those on either end of that sweet spot. The domain expertise in this case is constantly having to adapt to learning the latest flavor of the week DB or JS framework and adapt existing patterns and paradigms to new ones. Agentic coding itself is, in this case, one of those new paradigms.

Knowing the caveats and pitfalls of this through years of (often-painful) experience is what, at least for me, allows me to preempt a lot of the sloppy assumptions or omissions that even the frontier models make when working on systems at scale. This means I can leverage my domain expertise on these high-level areas while delegating the grunt work that is harder to screw up to the agents. I find this enables me to work faster while avoiding the slop making its way into critical engineering decisions.

Re: Domain expertise has always been the real moat

#33
> inputs and outputs

If the inputs and outputs are only and exactly those of the domain, sure. But software is more than that. And your logistics operator (or my actual work example: our extremely talented designers with deep understanding of our product) can validate parts of the agents output, but the rest of it they can’t and it makes a mess.

I’m sure this will change, but it hasn’t yet.

Re: Domain expertise has always been the real moat

#34
This is not entirely wrong, but oddly describes the major flaw in its own argument: software engineering has tacit knowledge just like every other domain of expertise! And just as you can't become a doctor by just reading textbooks, or an architect by just looking at plans, you can't become a software engineer by just reading a bunch of code.

Successful software results from the intersection of expertise in two domains: the application domain, and software engineering.

Re: Domain expertise has always been the real moat

#35

Agree on this one. As a Civil engineer, I can smell which software ( or some part of) was developed by computer engineers without much understating of the "domain". The worst offenders are software needing multi-domain expertise in the first place. Crude Ex. Payroll (Finance) and Leaves (HR) are 2 seperate domain, and they need to account for each other.

I think you're putting the analogy in the wrong place. In this context, civil engineering isn't a "domain" any more than software engineering. Both are exercised in support of the "actual" domains relevant to business or society.

The more analogous question is: as a civil engineer, could you tell which structure was designed with the help of a civil engineer, and which was designed by a domain expert (e.g. a transportation administrator) with automated civil engineering?

Re: Domain expertise has always been the real moat

#36
Such a good example of this I encountered recently:

I was on a fishing trip. I asked the charter if he’d want to check out a free app I work on (https://oceanconnect.ca) in case it might be useful for his work.

I don’t know how people on the ocean use ocean data. I don’t really know what they want to know, or why. I wasn’t totally prepared for the incredible onslaught of questions and information pertaining to how people use the data or what we can do with the data, and it was so cool and exciting to get that perspective.

It was a good reminder that models are not the same as the systems they abstract, and knowledge to develop them has almost nothing to do with using them. This guy was a wealth of knowledge about how they use weather data on the water. In a sense, he knows more about the data than I do (even if he doesn’t realize it, or doesn’t understand it in its digital representation), and would be far better equipped to make a useful application for people like him if he could program.

I found myself thinking people like him could actually do amazing stuff with LLMs if they sat down and got their ideas out on a screen. I’d really like to interview people on the water daily some day to refine the product if we ever have the funding. That domain knowledge is highly, highly specialized and people know things you’d never guess after living in a complex domain for decades.

Re: Domain expertise has always been the real moat

#37
post #24

Earlier quoted context omitted.

Yes. Audio, video encoders, decoders etc, 3D modeling, rendering etc. That too is "domain" even it feels like it is NOT. Domain of signal processing, Euclidian spaces, information theory and what not. Thar too is all "domain" and that "domain" part is difficult to write.

Then what do you mean by pure software? I think there's essentially zero domain-free software.

I prefer co-domain free software. Has no side-effects.

Re: Domain expertise has always been the real moat

#38
The software generalist described in this post has domain expertise as well. In software.

If you’re a great generalist software engineer today, you aren’t jumping to some random domain to escape AI. Software is your domain. You’re sticking with it as it expands and transforms.

Re: Domain expertise has always been the real moat

#39

This article is wrong. LLM's encode all the domain knowledge you could possibly want. As a software dev I can query an LLM, become a domain expert in a short amount of time, and then code up a solution. If people think their niche is safe from automation, think again. Even the people who think theyre the masterminds at the top. Edit: Yes "expert" was too strong a word. Proficient would be better. A lot of the barrier…

I won't over-generalize here, because maybe your statement is true in some cases, but I will provide a counterpoint: this is not true (in my experience) in real estate title insurance and escrow services.

I've consulted for and led large teams for real estate title insurance and escrow companies for many years, and the domain expertise is so incredibly deep, nuanced, and multivariate (especially depending on jurisdiction) that building valuable and viable products in the space is incredibly difficult - before LLMs, and even now, with LLMs.

Without getting too deep into it, I'm pretty bullish on AI (and have been very close to it and deep in it for a long time, while also very apprehensive about the effects it'll have on society), and I can tell you, from extensive attempts from myself and many on my teams to leverage the latest frontier LLMs to bring deep domain experience to bear to help drive valuable products: we have not yet seen success. It's not helping engineering folks, it's not helping product folks. It's creating a ton of questionable output and hasn't resulted in real ROI, and it's not capable of accurately answering deep domain questions without hallucinations or assuming what works in one jurisdiction works in all.

I've seen success in many other areas, but not this domain - and, importantly, the regulatory environment in which title insurance operates is incredibly complex and strict, meaning you can't just YOLO LLM output into production (as much as we'd love to try so we can learn at a faster clip).

And the kicker: we've found the way for us to build the best products is still going out into the field, sitting with escrow and title folks, watching them work, asking them questions, and designing for the real world, the regulatory nuances, the local client nuances, etc. You can't get that from an LLM.

Re: Domain expertise has always been the real moat

#40
post #24

Earlier quoted context omitted.

> Writing software has never been difficult. That's not true at all, sure CRUD might not have been that difficult, but absolutely there is extremely complicated software out there that is really difficult to write in a performant and correct manner.

Yes. Audio, video encoders, decoders etc, 3D modeling, rendering etc. That too is "domain" even it feels like it is NOT. Domain of signal processing, Euclidian spaces, information theory and what not. Thar too is all "domain" and that "domain" part is difficult to write.

It is kind of funny though how all this hand wringing on performance, graphics, quality quality quality, has just resulted in basically same stuff as what I was doing with my computer in 2000 but with enormous resource use in comparison. Still playing games, still same old discussion forums/social media/whatever on the internet, same email and office suite, same chat, same media players, same everything. I can't even see the difference between 1080p and 4k from a couch, and people are trying to sell me 8k to watch the same stuff.

It just does not matter. The ideas matter. Novel functionality matters. But that isn't what any of that is. Same old. And the effort spent, the resources, the energy. All for more polygons on Lara Croft.

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