CANalytics 2026 in the Press
Thank you to Lev Gringauz and Silicon Prairie News for attending CANalytics (for the second year in a row) and writing this great article!
In case you missed it, here are Lev's 5 key takeaways:
- Solve the right problems
- Know your audience
- Use GEPA to save money on AI tools
- Quality assurance is changing in the age of AI
- Don’t forget to test fairness in AI tools
Read the article for a breakdown of each takeaway.
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We're diving into #3 in this week's 2-minute lesson...
Become Highly Technical in 2 Minutes
This is an excerpt from “Inference management: What to do when your AI costs a fortune to run" presented by Tyler Hayes, Director of AI at CAN, and Ben Zwiener, Senior Data Engineer at CANalytics 2026.
We were promised models would get cheaper. They are not. In fact, they are getting exponentially more expensive, if you don't build cost-saving solutions.
One way to manage both cost and performance is through prompt optimization.
The Proof
Our team built an internal tool called Phosphor, an AI workflow that automatically pulls meeting transcripts and turns them into project management updates. Originally we ran Phosphor on Sonnet, it cost $200–$300 a month. We tried swapping to a smaller model (Qwen 27B) without changing anything else, performance dropped meaningfully.
We began using GEPA to optimize prompts on the small model, and performance didn't just recover, it exceeded the original frontier model. And cost dropped to $21 a month. That's over $2,000 saved per year.
And while GEPA might sound like the star of the show, your optimizer is only as helpful as your evaluation framework.
Understanding Evaluation
An eval has three parts: a dataset of hand-curated golden test cases and production examples you add over time; a metric function that scores outputs on a scale: not pass/fail, but how close or directionally correct the output was; and a process you can rerun anytime.
The eval is a durable asset. It grows over time and is what we fall back on to measure and understand performance. Over time it becomes the most accurate picture of how your AI is actually behaving.
What is an Optimizer?
An optimizer, such as GEPA, takes your eval and continually improves your prompts. It captures full traces of where your current prompt is failing, uses a larger model to diagnose why, proposes targeted mutations, tests them, and keeps the ones that score better.
Optimizers are commodities. New ones come out every six months, and you can swap between them. They're powerful. but only as good as what you're measuring them against. You cannot optimize what you cannot measure.
You want to invest your time in the eval, not so much in the optimizer.
Your Next Step
Build the eval before you touch an optimizer. Pull examples representative of how your system actually gets used, then define what a good output looks like. The scoring criteria is the hard part, it takes longer than building the runner, and it matters more.
Once the eval exists, every other decision, which model, which optimizer, whether a prompt change helped or hurt, has a foundation to stand on.
Not enough time to do it yourself? We do this as a service. Schedule a call with our team today to talk about optimizing your model.
Around the Data Science World
Tokenmaxxing isn't showing direct ROI
Last month, we shared that Uber had used up their entire 2026 AI budget in under four months. (The rapid spike in AI-usage was probably fueled by Uber's use of leaderboards.)
Now, Uber COO Andrew Macdonald says it's getting "harder to justify" the AI spend because there isn't a clear link to... well, to anything meaningful.
"That link is not there yet, right?" Macdonald said "I think maybe implicitly there is more that is getting shipped, but it's very hard to draw a line between one of those stats and, 'OK, now we're actually producing 25% more useful consumer features.'"
Read the snippet on Instagram, or read the full article on Business Insider.
This sentiment isn't just at Uber.
Microsoft is also making moves that employees claim are "financially motivated," such as pulling access to Claude Code after only 6-months. However, Microsoft leadership says this is a move to double-down on Copilot.
There is AI for AI-sake. Or, there is AI as a solution to solve a real problem.
We believe in the latter.
But we also believe there are problems you should use AI to solve... and then there are problems you shouldn't use AI to solve.
Starbucks just found this out the hard way.
Starbucks fire their AI: Automated Counting
In September, Starbucks launched Automated Counting, an AI built by NomadGo, designed to "help stores keep milk, syrups, and other drink ingredients in stock. Instead, it reportedly created frustration by miscounting products and confusing similar items."
Miscounted inventory. Bad labeling. Sounds like bad data and terrible understanding of how AI is to be used.
Don't be like Uber or Starbucks.
We help our clients identify the right problems to solve with AI, and keep cost in mind from the start. Schedule a call to talk about your AI project today.
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Learn New Data Skills
At the ODSA, we don’t believe in generic training or one-size-fits-all degrees. We were built by practicing data scientists who needed more data scientists—so we train people the way we wish we’d been trained. That means real-world skills, taught by professionals who use them every day, in a format designed for working adults...
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We want to hear from YOU
So we may have tried to be too fancy with our feedback form. Turns out, it was skipping all the important questions like "What did you ACTUALLY think of the events?" and "What do you want to see at Omaha DS/AI Week in 2027?"
So, whether you have or haven't filled out the form yet, now's a good chance to share your feedback!
Take this 1-3 minute survey to help create Omaha Data Science and AI Week 2027!
If you were there, we want to know how your experience was. If you weren't, we want to know what would bring you next year.
To evaluations and beyond!
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NATE WATSON
CEO, Contemporary Analysis
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