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Kumo AI's RFM Model Outperforms LLMs in Predictive Analytics

May 20, 2025•Jeremy Kahn•Original Link•2 minutes
PredictiveAnalytics
ArtificialIntelligence
BusinessDecisions

Kumo AI's new RFM model excels in predictive analytics, surpassing LLMs and specialized models in business decision-making.

Kumo AI cofounders standing in a line. From left: Vanja Josifovski, Hema Raghavan, and Jare Leskovec.

From left: Kumo AI cofounder and CEO Vanja Josifovski, cofounder and head of engineering Hema Raghavan, and cofounder and chief scientist Jure Leskovec.
Courtesy of Kumo AI

Predictive analytics is a cornerstone of modern business decision-making, and Kumo AI is making waves with its new RFM (Recency, Frequency, Monetary) model. According to the company, this model outperforms both large language models (LLMs) and specialized models designed for single-prediction tasks.

Key Highlights:

  • Narrow Foundation Models: Kumo AI's RFM model demonstrates the power of more focused, narrow foundation models compared to broader LLMs.
  • Business Applications: The model is particularly effective in scenarios requiring precise predictive analytics, such as customer behavior forecasting and financial decision-making.
  • Performance Metrics: Kumo claims its RFM model delivers superior accuracy and efficiency, making it a compelling choice for enterprises.

The company, founded by industry veterans Vanja Josifovski, Hema Raghavan, and Jure Leskovec, is positioning itself as a leader in the AI-driven predictive analytics space. Their approach combines cutting-edge research with practical business applications, offering a scalable solution for organizations looking to leverage AI for data-driven decisions.

For more details, visit Kumo AI.

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Claudionor Coelho Jr, Chief AI Officer at Zscaler, discusses AI's rapid evolution, cybersecurity challenges, and combining rule-based reasoning with generative models for enterprise transformation.

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August 18, 2025•Bryan Wassel

Human-AI collaboration boosts customer support satisfaction

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About the Author

David Chen

David Chen

AI Startup Analyst

Senior analyst focusing on AI startup ecosystem with 11 years of venture capital and startup analysis experience. Former member of Sequoia Capital AI investment team, now independent analyst writing AI startup and investment analysis articles for Forbes, Harvard Business Review and other publications.

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Startup Analysis
Venture Capital
Market Research
Business Models
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11 years
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