AI System-to-Model Innovation

The evolution of AI is no longer just about bigger models—it’s about how those models work within larger systems. This report explores the rise of “compound AI systems,” where multiple components, including AI models and tools like retrievers and sensors, work together to enhance performance or enable entirely new tasks. It highlights how real-world system design is driving innovation back into the models themselves, accelerating progress in both research and applications. These system-to-model feedback loops could shape the future of AI policy, economic growth, and even global security.