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What is feature engineering in document prep?
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A futuristic alchemist's lab blending raw data elements into refined features, represented by a stylized figure with flowing lines, surrounded by swirling data particles, geometric shapes, and digital streams converging into structured, glowing forms. Art deco aesthetic, minimalist design, futuristic, and technological themes.---What is feature engineering by Talbot West

What is feature engineering in document prep?

By Jacob Andra / Published September 12, 2024 
Last Updated: September 12, 2024

Feature engineering enhances aspects of your knowledge base that we want to emphasize in a retrieval augmented generation RAG instance or other enterprise AI application. As part of our document preprocessing workflow, feature engineering signals what’s most relevant so that you get the very best performance from your AI implementation.

Main takeaways
Data preprocessing prepares your documents for AI ingestion.
Feature engineering is one step in the process.
Some aspects of your data matter more than others and we want to signal prioritization.
You get better ROI from your AI investment if primary features are emphasized.
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Why is feature engineering important?

AI lecturer Fareesa Khan defines feature engineering as "a critical step in the machine learning pipeline, involving the creation, transformation, and selection of relevant data features to improve model performance."

In enterprise AI implementation, feature engineering often involves synthesizing complex operational data with metadata or other enrichments that orient AI to hierarchies or relationships that may not be immediately apparent.

As an analogy, a corporate organizational chart structures employees not just by name and title, but also by department, seniority, skill sets, and strategic importance. All of these are "features" of the employees, and the chart enriches or "engineers" those features to make them obvious and explicit.

Feature engineering benefits infographic by Talbot West

Here’s why feature engineering is important:

  • Improved accuracy: Well-engineered features highlight important patterns in data so that you get better outputs from your AI instance.
  • Reduced overfitting: If you're fine-tuning an LLM, proper feature engineering reduces the risk of overfitting.

Feature engineering techniques

Feature engineering uses techniques that transform raw data into more useful representations for AI:

  • Feature creation: Generates new features from existing data to capture more complex patterns or relationships.
  • Feature transformation: Modifies existing features to make them more prominent and intelligible.
  • Feature selection: Identifies and selects the most relevant features to improve model performance and reduce noise.
  • Feature extraction: Derives new features from existing ones, often reducing dimensionality while preserving important information.

Feature engineering steps

Our feature engineering strategy is fairly straightforward: We identify issues in your knowledge base and create a tailored strategy to fix them. The roadmap includes any or all of the following interventions as needed:

  1. Consolidation of duplicate records
  2. Augmentation of data to fill gaps that the AI would trip over
  3. Correction of internal inconsistencies
  4. Pruning of irrelevant or outdated data (bloat is the enemy of efficient AI)
  5. Standardization of formats and other conventions

Need help with feature engineering?

Whether you're dealing with text data, images, time-series data, or categorical variables, feature engineering can improve the performance of your AI instance.
If you need assistance with data preprocessing and AI implementation, Talbot West will unlock the full potential of your data for a smooth and successful AI integration.

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Feature engineering challenges and solutions

A minimalist jigsaw puzzle with a few large pieces. Brightly colored pieces symbolize selected, relevant features, while monochromatic or subdued pieces represent irrelevant features. Plain, soft gradient background with faint art deco-style lines around the puzzle. Clean, simple, and elegant design focusing on the concept of feature selection.---Challenges in feature engineering by Talbot West

Here are some of the bottlenecks we often face when engineering features—and how we overcome them.

ChallengeSolution

Time-intensive process

Creating and selecting optimal features from raw data requires extensive manual exploration and testing of various combinations and transformations.

Domain expertise requirement

Effective feature engineering requires a deep understanding of both the data and the specific domain to identify meaningful, pattern-capturing features.

Manual process

Quality feature engineering of your corporate knowledge base is a very human-centric process. We’ve got it down to a science, with repeatable workflows and standardized processes.

Corporate use cases of feature engineering

Semantic search enhancement for legal RAG

A law firm is implementing a RAG system to assist with case research. The large volume of legal documents makes it difficult to retrieve the most relevant information for specific cases. To address this, the firm applies advanced NLP techniques and generates legal-specific embeddings to enhance document retrieval.

  • Industry: Legal
  • Scenario: Implementing RAG for case research
  • Issue: Difficulty retrieving relevant information from large document volumes
  • Solution: Apply advanced NLP and generate legal-specific embeddings
  • Implementation: Create custom embeddings capturing legal concepts and terminology

Customer support automation

An online retailer is using an LLM to automate customer support responses. The LLM struggles to provide accurate responses due to the diverse nature of customer inquiries. To improve this, the company implements feature engineering to extract key information from customer messages and provide structured context to the LLM.

  • Industry: E-commerce
  • Scenario: Using LLM for customer support automation
  • Issue: LLM struggles with diverse customer inquiries
  • Solution: Implement feature engineering to extract key information
  • Implementation: Use named entity recognition, sentiment analysis, and intent classification

Financial report analysis with RAG

An investment firm is using a RAG system to analyze quarterly financial reports. The system struggles to extract and compare financial metrics across different reports. To enhance performance, the firm develops custom feature extractors for financial data and creates standardized representations of financial metrics.

  • Industry: Finance
  • Scenario: Using RAG to analyze financial reports
  • Issue: Difficulty extracting and comparing metrics across reports
  • Solution: Develop custom financial data feature extractors
  • Implementation: Create features for financial ratios, revenue figures, and growth rates

Feature engineering FAQ

Examples of feature engineering include the following:

  • Creating new features by combining existing ones (e.g., multiplying "height" and "weight" to create "BMI")
  • Transforming features using mathematical functions (e.g., log transformations to handle skewness)
  • Encoding categorical variables into numerical values (e.g., one-hot encoding)
  • Extracting date-time components (e.g., extracting "day of the week" from a timestamp).

Feature engineering requires domain expertise, creativity, and a good understanding of how an AI system interprets your documentation. It involves identifying which features are most relevant to AI performance. All in all, it is an iterative and time-consuming process.

Feature engineering is a valuable skill in data science and machine learning. It requires technical knowledge of data manipulation and creativity to derive meaningful features that improve the quality of the responses you get from your AI instance. It requires understanding the problem domain, data types, and the underlying mechanics of machine learning algorithms.

Feature engineering remains highly relevant for enterprise AI integrations. We’d be happy to assess your use case and the state of your knowledge base and recommend whether feature engineering is necessary for you.

To master feature engineering, you should develop a strong foundation in data science, statistics, and domain-specific knowledge. Practice with different datasets to understand how different feature transformations affect model performance. Learn to use tools such as Python’s pandas, scikit-learn, and libraries specifically for feature engineering (such as Featuretools).

Also, we provide tailored feature engineering solutions so that your AI instance is built on the most relevant and impactful data for optimal performance.

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Neural networks, particularly deep learning models, require less manual feature engineering than traditional models because they can automatically learn complex patterns and representations from raw data. Some preprocessing, such as normalization or data augmentation for images, is still necessary to enhance model training and performance.

Feature engineering is not the same as data engineering. Feature engineering focuses on transforming raw data into features that can improve AI performance. Data engineering involves the broader tasks of collecting, storing, processing, and managing data infrastructure.

Feature engineering is part of data preprocessing. Data preprocessing includes all steps taken to clean and prepare your knowledge base for AI ingestion, and feature engineering involves creating and transforming data features to improve accuracy and efficiency.

Principal Component Analysis (PCA) is part of feature engineering. PCA is a dimensionality reduction technique that transforms the original features into a smaller set of uncorrelated components, retaining as much variance as possible. This transformation reduces the feature space's complexity and improves model performance.

Resources

  • Fareesa Khan. (2024). Advancing Machine Learning: Development, Evaluation, and Feature Engineering in Domain-Specific Applications. International Journal on Recent and Innovation Trends in Computing and Communication, 12(2), 415–423. Retrieved from https://ijritcc.org/index.php/ijritcc/article/view/10768
  • Rawat, Tara & Khemchandani, Vineeta. (2019). Feature Engineering (FE) Tools and Techniques for Better Classification Performance. 10.21172/ijiet.82.024. Retrieved from https://www.researchgate.net/publication/333015077_Feature_Engineering_FE_Tools_and_Techniques_for_Better_Classification_Performance
  • Davis, J. J. (2017). Machine learning and feature engineering for computer network security (Doctoral dissertation, Queensland University of Technology). Queensland University of Technology Repository.

About the author

Jacob Andra is the founder of Talbot West and a co-founder of The Institute for Cognitive Hive AI, a not-for-profit organization dedicated to promoting Cognitive Hive AI (CHAI) as a superior architecture to monolithic AI models. Jacob serves on the board of 47G, a Utah-based public-private aerospace and defense consortium. He spends his time pushing the limits of what AI can accomplish, especially in high-stakes use cases. Jacob also writes and publishes extensively on the intersection of AI, enterprise, economics, and policy, covering topics such as explainability, responsible AI, gray zone warfare, and more.
Jacob Andra

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Talbot West bridges the gap between AI developers and the average executive who's swamped by the rapidity of change. You don't need to be up to speed with RAG, know how to write an AI corporate governance framework, or be able to explain transformer architecture. That's what Talbot West is for. 

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