AlixPartners

DSPy: The End of Prompt Engineering - Kevin Madura, AlixPartners

Jan 8, 2026 · 1:13:13

Kevin Madura of AlixPartners argues that building robust enterprise AI applications requires shifting from brittle prompt engineering to programming with LLMs using DSPy, a declarative framework that treats prompts as implementation details optimized by the system. He demonstrates how typed interfaces (Signatures) and modular logic (Modules) allow developers to focus on control flow while deferring implementation to the LLM, with Adapters controlling prompt formats (e.g., JSON vs. BAML) to improve performance by 5-10%. The talk's core is Optimizers (like MIPRO and JEPA), which automatically tune prompts by learning from data, shown improving a time entry corrector from 86% to 89% accuracy. Real-world examples include routing files by type (SEC filings vs. contracts), using a 'poor man's RAG' with attachments for multimodal documents, and a boundary detector that segments legal documents from images. Madura emphasizes that DSPy enables transferability across models (e.g., GPT-4.1 to GPT-4.1 Nano) and addresses cost concerns by allowing offline optimization to reduce LLM calls.

The Billable Hour is Dead; Long Live the Billable Hour — Kevin Madura + Mo Bhasin, Alix Partners

Jul 23, 2025 · 17:04

Kevin Madura and Mo Bhasin from AlixPartners argue that AI is reshaping knowledge work by compressing upfront data ingestion from 50% to 10-20% human effort, enabling analysis of 100% of data rather than the top 20%. They detail three use cases: categorization via structured outputs achieving 95% accuracy on 10,000 vendors in minutes; enterprise-scale RAG that democratizes access to siloed data by teaching LLMs to call APIs; and structured extraction from documents using schemas and log-prob-based confidence scoring. They caution that AI investments face a paradox—89% of CEOs plan agentic AI but NBER finds no earnings impact—and stress that success requires people skills, demos, and a focus on NPS and ROI over chasing shiny new tools. The episode concludes that once Excel-powered LLMs work reliably, AGI will be here.