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AWS Re:cap 01: Coinbase re:Invent Recap (IND3312)

Speaker: AWS re:Invent 2025

Session: 01

Session
Summit Dev Lounge2026 Re:cap
01 Encode Architecture as Steering for AI Agents
Summit Dev Lounge2026 Re:cap
02 Agent Harness Is the Real Engineering Moat
Summit Dev Lounge2026 Re:cap
03 Ask Observability Data in Plain Language
Summit Dev Lounge2026 Re:cap
04 Serverless AR Game with Bedrock AgentCore
Summit Dev Lounge2026 Re:cap
05 Multi-Agent Quant Backtesting on AgentCore
Summit Dev Lounge2026 Re:cap
06 Blog to Slides in Three Minutes with Kiro
Summit Dev Lounge2026 Re:cap
AWS Community Day Hong Kong 2025 Re:cap
02 AWS Compliance with Terraform
AWS Community Day Hong Kong 2025 Re:cap
03 Beginner to Builder An AWeSome Cloud Journey
AWS Community Day Hong Kong 2025 Re:cap
04 Team-First Serverless Engineering with Laravel & Bref
AWS Community Day Hong Kong 2025 Re:cap
05 Event Opening - AWS Community Day Hong Kong 2025
AWS Community Day Hong Kong 2025 Re:cap
06 Agent-to-Agent: Building Interoperable AI on AWS
AWS Community Day Hong Kong 2025 Re:cap
07 Utilize another telemetry data for faster improvement with AI agent
AWS Community Day Hong Kong 2025 Re:cap
08 Graduating from Vibe Coding: Spec-Driven Development with Kiro
AWS Community Day Hong Kong 2025 Re:cap
09 Automated Testing using MCP & AI Agents
AWS Community Day Hong Kong 2025 Re:cap
10 Modernizing Telecom Security ML Powered Approach
AWS Community Day Hong Kong 2025 Re:cap
11 Rethinking GenAI Agent: RAG & MCP
AWS Community Day Hong Kong 2025 Re:cap
12 Disaster and Emergency Response with TAK and AWS
AWS Community Day Hong Kong 2025 Re:cap
13 Rethinking Serverless Application Workflows from a Testing Perspective
AWS Community Day Hong Kong 2025 Re:cap
14 Practical AWS FinOps for Cloud Success
AWS Community Day Hong Kong 2025 Re:cap
15 AI-Powered Global Pure-Alpha Macro Trades on AWS: Revolutionizing Risk-Adjusted Asset Returns
AWS Community Day Hong Kong 2025 Re:cap
FSI Recap
01 Modern Trade Lifecycle: Trading to Settlement
FSI Recap
02 Goldman Sachs: Fast Track your applications onto Cloud - AWS Re:cap Q1/2023
FSI Recap
03 Zurich Insurance Group: Building an Effective Log Management Solution on AWS
FSI Recap
04 FSI Meetup 2025 Q4 - Brex Database Disaster Recovery
FSI Recap
05 FSI Meetup 2025 Q4 - A Graviton Migration Success Story
FSI Recap
06 FSI Meetup 2025 Q4 - Stifel Modern Data Platform
FSI Recap
07 FSI Meetup 2025 Q4 - Financial Transaction Data Reconciler PayPal
FSI Recap
08 FSI Meetup 2025 Q4 - Scaling Resilience
FSI Recap
09 Maximizing AI Inference Cost Efficiency: Strategic Adoption of AWS GPU Instances
FSI Recap
10 Advanced Agentic AI Design Patterns
FSI Recap
11 Build New Modern Apps on AWS
FSI Recap
AWS re:Invent 2025
01 Coinbase re:Invent Recap (IND3312)
AWS re:Invent 2025
02 Building the Future Trading Platform Leveraging AI and AWS
AWS re:Invent 2025
03 Trading Innovation: Jefferies' AI Assistant on Amazon Bedrock (IND3315)
AWS re:Invent 2025
04 How FSI Revolutionized HFT Analytics with Agentic AI (GBL302)
AWS re:Invent 2025
05 Improving Distributed Systems with Amazon Time Sync Featuring Nasdaq
AWS re:Invent 2025
06 Amazon Aurora HA and DR Design Patterns for Global Resilience (DAT442)
AWS re:Invent 2025
07 Building Agentic AI: Amazon Nova Act and Strands Agents in Practice (DEV327)
AWS re:Invent 2025
08 Deep Dive into Amazon Aurora and Its Innovations (DAT441)
AWS re:Invent 2025
09 Deep dive on Amazon S3 (STG407)
AWS re:Invent 2025
10 Nasdaq: Build Resilient Infrastructure for Global Financial Services (HMC327)
AWS re:Invent 2025
11 What's New with AWS Lambda (CNS376)
AWS re:Invent 2025
12 Spec-Driven Development with Kiro (DEV314)
AWS re:Invent 2025
13 Amazon's finops: Cloud cost lessons from a global e-commerce giant (AMZ308)
AWS re:Invent 2025
14 Tick to trade latency trading platforms on aws
AWS re:Invent 2025
Government data
01 The AI Era: The Boundary Between Development and Design Is Disappearing
Government data
02 On-Device Multimodal AI and Smart-City Practice
Government data
03 Large-Model Capability Evaluation and a Method for Landing AI Projects
Government data
04 Controlled End-to-End Automation of Government Development with Cloud Agents
Government data
05 A New Software Ecosystem for the Agent Era, Seen Through Multi-Agent Systems
Government data
06 AI-Driven Macro Quantitative Research and Smart Governance
Government data
07 Authorized Operation of Public Data and Smart-Government Practice
Government data
08 Putting Data Assetization into Practice: Rights, Compliance, Engineering Governance, and Digital-Government Cases
Government data
09 AI for Mental-Health Public Welfare: Governance, Architecture, and Practice of a Trustworthy Platform
Government data
Amarathon 2025 Recap
01 A Developer’s Roadmap to Architecting for Agents
Donnie Prakoso
02 Amazon Bedrock Data Automation
Hafiz Syed Ashir Hassan
03 Multi-Agent on AgentCore
Tan Xin
04 Building Agentic AI Nova Act and Strands Agents in Practice
Haowen Huang
04 Accelerating Migration Projects with Kiro using Spec-Driven Development
Sanchit Dilip Jain
06 From Matching to Understanding: Personalized AI Search Practice Driven by AgentCore Memory
Liu Cao
07 Observe to Optimize – LLM Observability to AIOps Turning real-time insights into intelligent automation
Jimmy Soh
08 Deploying TEAM and Building the Best Engineering Team
Yuji Oshima
09 Five Hard Lessons from Five Years of So-Called Serverless Databases
Renato Losio
14 What if AI does my job How Q Developer CLI and Kiro have changed my daily routine
Miguel Angel Muñoz
16 Velocity with Vigilance: Security Essentials for Amazon Bedrock Agent Development
Brian Tarbox
26 Run OSS LLMs on a Single H100 Smarter, Cheaper, Faster
Adit Modi
28 A Modern Unified Metadata Architecture: New Approaches to Breaking Down Data Silos
Shaofeng Shi
29 Serverless MediaOps: Automating Video Workflows with AI on Amazon Web Services
Luis Valdivia
30 Architecting for Efficiency and Reliability with Performance Testing at Scale
Luis Guirigay
31 Connecting the World Through Open Source: Practical Journey of Technology, Community and Global Developer Relations
Richard Lin
33 Building Streaming Iceberg Tables for Real-Time Logistics Analytics
Fahad Shah
34 Accelerating Large-Scale Robot Strategy Training: An Automated Closed-Loop Architecture Based on Kiro, Trainium, and EKS
Junjie Tang
35 From Vibe to Viable with spec driven development
Ricardo Sueiras
36 Making Cloud Cost Analysis Smarter: Building FinOps Intelligent Agents with Strands and AgentCore
Xiaofei Li
37 Transform Conversational Agentic AIOps for K8s Using CNCF Kagent, K8sGPT, and Nova Sonic
Shaoyi Li

Video: https://www.youtube.com/watch?v=IkK6dSsC5fU

Scaling support, compliance, and productivity with conversational

Overview of Gen AI Development in Financial Services

2023: Introduction of LLMs

● LLMs for customer and enterprise applications began to enter the market.

● Initial focus on trust and security of data.

● Questions about data safety and utility arose.

● Importance of Retrieval Augmented Generation (RAG) for businesses.

● FSI customers had valuable data but were uncertain about safe utilization.

Customer Support Chatbot

● Over 50% of customers prefer chat as their support channel.

● Trained on Coinbase's extensive knowledge base.

● Provides instant, accurate assistance around the clock, adapting to market volatility.

FAQ Style RAG Responses

● Simple, FAQ-style responses to automate common queries (e.g., sign-in issues, two-factor authentication).

● Focuses on accuracy to build a strong foundation.

Cohere's Rerank model enhances search relevance

● Semantically reorders initial search results

● Understands query-document context beyond keywords

● Supports over 100 languages

● Handles complex data like JSON and code

● Improves Retrieval-Augmented Generation (RAG) systems

● Increases enterprise search accuracy

● Provides faster user experiences

● Functions as a powerful second stage in search pipelines

● Sorts results from keyword or vector search by deep relevance scores

● Key Features

● Rerank-v3.5: state-of-the-art performance, enhanced reasoning, and broad data compatibility (text, JSON, code).

● Rerank-english-v3.0: English documents and semi-structured data.

● Rerank-multilingual-v3.0: For non-English content, supporting over 100 languages.

● Rerank 3 Nimble: Prioritize efficiency and lower latency for high-volume use cases like e-commerce search, improving conversion rates.

Cross-encoder architecture

● A model that processes two inputs (like a query and a document) jointly in a single sequence, using cross-attention mechanisms between all tokens to determine their relevance.

● Key Characteristics

● Joint Processing

● Cross-Attention

● Single Output

● First Stage (Bi-encoder)

● Second Stage (Cross-encoder)

Compliance Processes

● Implementation of KYC, KYB, and TMS.

● Heavy reliance on human resources and thorough investigations.

● Need for detailed explainability and adaptability to diverse regulatory requirements across countries.

● Strategy for Compliance

● Leverage of the internal platform for accessing LLMs and data through MCP interfaces.

● Inclusion of a traditional machine learning model to detect high-risk compliance cases, built on the AnyScale-based ML platform.

Ray-powered Scalability

● Optimizes and manages Ray clusters.

● Efficient distribution and scaling across thousands

● of CPUs and GPUs.

● Handles massive datasets and complex models.

● Ray AI Libraries

● Ray Data: For scalable data processing, particularly suited for unstructured data like images, audio, and video.

● Ray Train: For distributed model training, with integrations for frameworks like

● PyTorch, PyTorch Lightning, and Hugging Face Transformers.

● Ray Tune: A framework for scalable and fault-tolerant hyperparameter tuning and experiment execution.

● Ray Serve: For deploying and serving machine learning models as scalable, programmable APIs with low latency.

● RLlib: An industry-grade library for reinforcement learning, supporting a wide range of applications from robotics to finance.

Compliance Auto Resolution Engine (CAR)

● Central to the solution, acting as the orchestrator for the holistic review process.

● Mobilizes both automation and human expertise in an agentic AI-driven workflow.

● Human-in-the-Loop Process

● Interaction with two human personas:

● Compliance Operations Agents: Review AI system findings and provide feedback for improvement.

● End Customers: Reach out for additional information when necessary.

Coinbase re:Invent recap (IND3312)

Scaling support, compliance, and productivity with conversational AI at Coinbase

Customer Support Chatbot

● Over 50% of customers prefer chat as their support channel.

● Trained on Coinbase's extensive knowledge base.

● Provides instant, accurate assistance around the clock, adapting to market volatility.

FAQ Style RAG Responses

● Simple, FAQ-style responses to automate common queries (e.g., sign-in issues, two-factor

● Focuses on accuracy to build a strong foundation authentication).

Cohere's Rerank model enhances search relevance

● Semantically reorders initial search results

● Understands query-document context beyond keywords

● Supports over 100 languages

● Handles complex data like JSON and code

● Improves Retrieval-Augmented Generation (RAG) systems

● Increases enterprise search accuracy

● Provides faster user experiences

● Functions as a powerful second stage in search pipelines

● Sorts results from keyword or vector search by deep relevance scores

Cohere's Rerank model Key Features

● Rerank-v3.5: state-of-the-art performance, enhanced reasoning, and broad data

● Rerank-english-v3.0: English documents and semi-structured data. compatibility (text, JSON, code).

● Rerank-multilingual-v3.0: For non-English content, supporting over 100 languages.- Rerank 3 Nimble: Prioritize efficiency and lower latency for high-volume use cases like e-commerce search, improving conversion rates.

Cross-encoder architecture

A model that processes two inputs (like a query and a document) jointly in a single

sequence, using cross-attention mechanisms between all tokens to determine their relevance.

Key Characteristics

● Joint Processing

● Cross-Attention

● Single Output

● First Stage (Bi-encoder)

● Second Stage (Cross-encoder)

Compliance Processes

● Implementation of KYC, KYB, and TMS.

● Heavy reliance on human resources and thorough investigations.

● Need for detailed explainability and adaptability to diverse regulatory requirements across

countries.

🛠Strategy for Compliance

● Leverage of the internal platform for accessing LLMs and data through MCP interfaces.

● Inclusion of a traditional machine learning model to detect high-risk compliance cases, built

on the AnyScale-based ML platform.

Ray-powered Scalability

● Optimizes and manages Ray clusters.

● Efficient distribution and scaling across thousands

● of CPUs and GPUs.

● Handles massive datasets and complex models.

Ray AI Libraries

● Ray Data: For scalable data processing, particularly suited for unstructured data like images,

● Ray Train: For distributed model training, with integrations for frameworks like PyTorch,

audio, and video.

● Ray Tune: A framework for scalable and fault-tolerant hyperparameter tuning and

PyTorch Lightning, and Hugging Face Transformers.

● Ray Serve: For deploying and serving machine learning models as scalable, programmable

experiment execution.

● RLlib: An industry-grade library for reinforcement learning, supporting a wide range of

APIs with low latency.

applications from robotics to finance.

Compliance Auto Resolution Engine (CAR)

● Central to the solution, acting as the orchestrator for the holistic review process.

● Mobilizes both automation and human expertise in an agentic AI-driven workflow.

Human-in-the-Loop Process

Interaction with two human personas

● Compliance Operations Agents: Review AI system findings and provide feedback for

● End Customers: Reach out for additional information when necessary improvement.

Coinbase re:Invent Recap (IND3312)

Scaling Support, Compliance, and Productivity with Conversational AI

Customer Support Chatbot

● Over 50% of customers prefer chat as their support channel.

● Trained on Coinbase's extensive knowledge base.

● Provides instant, accurate assistance around the clock while adapting to market volatility.

FAQ-Style RAG Responses

● Simple FAQ-style responses automate common queries, such as sign-in issues and two-factor authentication.

● Focuses on accuracy to build a strong foundation.

Cohere's Rerank Model Improves Search Relevance

● Semantically reorders initial search results.

● Understands query-document context beyond keywords.

● Supports more than 100 languages.

● Handles complex data such as JSON and code.

● Improves Retrieval-Augmented Generation (RAG) systems.

● Increases enterprise search accuracy.

● Provides faster user experiences.

● Functions as a powerful second stage in search pipelines.

● Sorts keyword or vector search results by deep relevance scores.

Key Features of Cohere's Rerank Model

● Rerank-v3.5: State-of-the-art performance, enhanced reasoning, and broad data compatibility across text, JSON, and code.

● Rerank-english-v3.0: For English documents and semi-structured data.

● Rerank-multilingual-v3.0: For non-English content, supporting more than 100 languages.

● Rerank 3 Nimble: Prioritizes efficiency and lower latency for high-volume use cases such as e-commerce search, improving conversion rates.

Cross-Encoder Architecture

A model that jointly processes two inputs, such as a query and a document, in a single sequence and uses cross-attention across all tokens to determine their relevance.

Key Characteristics

● Joint processing

● Cross-attention

● Single output

● First stage (bi-encoder)

● Second stage (cross-encoder)

Compliance Processes

● Implements KYC, KYB, and TMS.

● Relies heavily on human resources and thorough investigations.

● Requires detailed explainability and the ability to adapt to different regulatory requirements across countries.

🛠 Compliance Strategy

● Uses the internal platform to access LLMs and data through MCP interfaces.

● Includes a traditional machine learning model, built on the AnyScale-based ML platform, to detect high-risk compliance cases.

Ray-Powered Scalability

● Optimizes and manages Ray clusters.

● Efficiently distributes and scales workloads across thousands

● of CPUs and GPUs.

● Handles massive datasets and complex models.

Ray AI Libraries

● Ray Data: For scalable data processing, especially unstructured data such as images, audio, and video.

● Ray Train: For distributed model training, with integrations for PyTorch, PyTorch Lightning, Hugging Face Transformers, and other frameworks.

● Ray Tune: A scalable, fault-tolerant framework for hyperparameter tuning and experiment execution.

● Ray Serve: Deploys and serves machine learning models as scalable, programmable, low-latency APIs.

● RLlib: An industry-grade reinforcement learning library supporting applications from robotics to finance.

Compliance Auto Resolution Engine (CAR)

● Central to the solution, acting as the orchestrator for the holistic review process.

● Mobilizes automation and human expertise in an agentic AI-driven workflow.

👥 Human-in-the-Loop Process

Interaction with Two Human Roles

● Compliance operations agents: Review AI system findings and provide feedback for improvement.

● End customers: Are contacted for additional information when necessary.

2024: Adoption and Scaling

● Release of Amazon Bedrock and other solutions for secure data access and management.

● Customers began using AI in key areas like customer support.

● Focus shifted to scale, capacity, and granular security.

● Exploration of applying well-architected frameworks to AI for future growth.

● 2025: Advanced AI Applications

● Emergence of multi-agent autonomous applications.

● Customers aim to transform core business operations and departments.

● Emphasis on measurable impact and business KPIs.

● Shift from singular tools to revolutionizing customer and employee workflows.

AWS Services for Gen AI

AWS Offerings

● Pre-built agents for quick deployment.

● Experimentation with open-source tools.

● Building a custom agent.

● Provision of models, tools, infrastructure, and expertise.

● AI Infrastructure and Tools

● Robust AI infrastructure, custom silicon, and data foundation tools.

● Decades of experience in secure, resilient, and globally scaled infrastructure.

● Advanced controls for data privacy, access management, monitoring, and observability.

● AWS Transform

● Automation of legacy workload modernization (e.g., .NET frameworks, VMware).

● Agents in Amazon Connect and tools in the marketplace.

● Investment in interfaces, protocols, security, and network enhancements for AI.

Amazon Bedrock

Service Overview

● Fully managed service for building, deploying, and operating Gen AI applications.

● Access to leading foundation models (Anthropic, Meta, Mistral, Amazon) via a single API.

● Continuous addition of new models.

● Customization and Safety

● Tools for privately customizing models and applications with data.

● Application of safety guardrails, cost optimization, and latency reduction.

● Rapid iteration capabilities.

● AgentCore:

● Set of services for secure, scalable agent deployment and operation.

● Serverless nature eliminates infrastructure management needs.

Challenges in Agent Deployment

Gartner Prediction

● Over 40% of agentic AI projects are predicted to be canceled by 2027.

● Reasons: growing costs, unclear business value, insufficient security.

● Key Challenges

● Specialized Runtime: Need for a runtime environment unlike typical applications.

● Stateless LLMs: Agents require memory to retain context and provide personalized experiences.

● Fine-Trained Identity: Access control to ensure agents only access appropriate systems and data.

● Custom Tool Interaction: Ensuring AI agents can discover and interact with custom tools and data sources with proper identity controls.

Autonomous Multi-Step Workflows

● Need for agents to execute complex, multi-step workflows independently.

● Requirement for common tools in workflows that are either shared or restricted.

● Specialized Monitoring

● Necessity for monitoring systems specifically designed for agentic AI.

● Differences between prototyping and production deployment of agents.

Amazon Bedrock AgentCore

Modular and Fast Iteration Approach

● Designed for building scalable production agents.

● Agent Core Runtime

● Secure, serverless runtime for deploying and scaling dynamic agents and tools.

● Supports various frameworks, protocols, and model choices.

● Reliable execution of multimodal, real-time, and long-running agents (up to 8 hours).

● Features checkpointing and recovery capabilities for graceful handling of interruptions or failures.

● Agent Core Gateway

● Facilitates integration of MCP servers and APIs with agents.

● Empowers agents with a variety of tools.

● Agent Core Browser and Code Interpreter

● Allows agents to act autonomously in the browser or execute code under specified terms and rules.

Supporting Tools

Agent Core Identity

● Builds enterprise-ready AI agents with security and identity features.

● Includes standards-based authentication, compatibility with existing identity providers, and OAuth support.

● Features a secure token vault for frictionless user experiences.

● Agent Core Memory

● Enables agents to store and retrieve short and long-term memory for complex workflows.

● Facilitates continuous use of user input and history in shared memory.

● Observability

● Centralizes observability stack for Gen AI, combining logs, traces, and metrics.

● Measures performance and accuracy at scale.

Coinbase's Use of Generative AI

Crypto and Economic Freedom

● Crypto empowers economic freedom and fair participation in the global economy.

● Coinbase’s mission is to expand economic freedom to over a billion people.

● Key Pillars at Coinbase

● Building Trust

● Safeguarding users' assets with top-tier security.

● Implementing strong protections against fraud and account takeovers.

● Making Crypto Accessible

● Designing intuitive and personalized experiences using AI and machine learning.

● Simplifying complicated financial products.

● Scaling Globally

● Operating efficiently and quickly to support millions of users across 100+ countries.

● Managing billions of dollars in trading volume.

User Journey and ML Applications

Login Security

● ML models defend against account takeovers during user login.

● Fiat to Crypto Conversion

● ML models evaluate the legitimacy of users and the risk of credit defaults when moving currency into the crypto exchange.

● Funds Transfer to Blockchain

● ML models assess risks of reversals before releasing funds onto the blockchain.

● Personalization of User Experience

● ML-Powered Personalization

● Personalized search results, tailored news feeds, intuitive recommendations, and real-time price alerts.

● Use of advanced deep learning models trained on massive datasets.

● Adaptive Risk Scoring System

● Built using graph neural networks to score blockchain addresses.

● Detects and blocks malicious blockchain addresses, protecting customers.

● ERC20 Scam Token Detection

● Combines smart contract auditing and machine learning.

● Reviews assets before listing on the exchange, providing additional customer protection.

Predictive Machine Learning Model

Volatility of Crypto Market

● Crypto markets are highly volatile, requiring a reliable infrastructure.

● Predictive Models

● Used to scale backend databases before surges occur, ensuring reliable performance during market volatility.

New Generation of AI Investments

Large Language Models (LLMs)

● Transformative impact since November 2022, marking a historic moment in AI.

● Key Areas of Application

● Customer Support: AI-powered virtual assistants and advanced tools for human agents.

● Compliance: Generative AI (GenAI) streamlines complex investigations and navigates regulatory landscapes.

● Developer Productivity: Improving developer productivity at Coinbase.

● Challenges in Crypto Customer Support

● Volatility: User activity can fluctuate by up to 50% within a month, requiring scalable support systems.

● Trust: Customers need to feel safe and supported regardless of market conditions.

● Global Operations: Supporting users across different languages, regulations, and expectations.

GenAI Strategy

● Internal GenAI platform integrating multiple LLMs and data sources via standard interfaces (OpenAI API standards

● and Model Context Protocol).

● Depth

● Targeted investments in high-impact areas within customer support:

● Automating customer-facing workflows with conversational chatbots.

● Providing human support agents with intelligent tools to improve effectiveness.

● Extracting valuable insights from support tickets to continually improve products and services.

● Use Cases

● Customers requires help, initiating a cycle of support interactions enhanced by GenAI.

Customer Support Chatbot

● Over 50% of customers prefer chat as their support channel.

● Trained on Coinbase's extensive knowledge base.

● Provides instant, accurate assistance around the clock, adapting to market volatility.

Development of the Chatbot

FAQ Style RAG Responses

● Simple, FAQ-style responses to automate common queries (e.g., sign-in issues, two-factor authentication).

● Focuses on accuracy to build a strong foundation.

Agentic Architecture

User Input and Conversation History

● Stored in a vector database serving as the memory layer.

● RAG Retriever

● Uses Bedrock knowledge bases to vectorize and store Coinbase help articles.

● Employs Cohere’s rerank models for high accuracy in retrieved articles.

● Response Generation

● Mixture of LLMs, including cloud models served through Bedrock.

● Involves a sub-agent developed in an actor-critic architecture for precise response generation.

● Guardrails

● Input and output guardrails powered by Bedrock guardrails.

● Protects against harmful content and sensitive PII leakage.

● Custom domain-specific filters to minimize prompt injection.

● Custom rules to keep responses grounded and reduce hallucinations.

Next Layer of Development

● Industry and LLM Capability Evolution

● Recognition of the need to achieve more than the initial RAG layer.

Cohere's Rerank model enhances search relevance

● Semantically reorders initial search results

● Understands query-document context beyond keywords

● Supports over 100 languages

● Handles complex data like JSON and code

● Improves Retrieval-Augmented Generation (RAG) systems

● Increases enterprise search accuracy

● Provides faster user experiences

● Functions as a powerful second stage in search pipelines

● Sorts results from keyword or vector search by deep relevance scores Key Features & Models

● Rerank-v3.5: state-of-the-art performance, enhanced reasoning, and broad data compatibility (text, JSON, code).

● Rerank-english-v3.0: English documents and semi-structured data.

● Rerank-multilingual-v3.0: For non-English content, supporting over 100 languages.

● Rerank 3 Nimble: Prioritize efficiency and lower latency for high-volume use cases like e-commerce search, improving conversion rates.

● How They Work

● Input: A user query and an initial list of documents (from a keyword search like Elasticsearch or a vector search).

● Processing: The Rerank model, using a cross-encoder architecture, jointly processes the query and each document to understand their semantic relationship.

● Output: An ordered list of documents, each assigned a relevance score, with the most contextually relevant results at the top.

● Use Cases & Benefits

● Enhanced Enterprise Search: Surfaces highly relevant information from complex internal data (invoices, code).

● Improved RAG Systems: Ensures factual grounding by providing the most pertinent snippets to LLMs.

● Multilingual Applications: Semantic search across diverse languages.

● Cost & Complexity Reduction: Integrates easily with existing search stacks (e.g., Elasticsearch) via a single API call, adding semantic power without a full overhaul.

Cross-encoder architecture

● A model that processes two inputs (like a query and a document) jointly in a single sequence, using cross-attention mechanisms between all tokens to determine their relevance.

● Key Characteristics

● Joint Processing: The core feature is that the query and the candidate document are concatenated into a single input sequence, separated by a special token.

● Cross-Attention: Within the transformer layers, the model's self-attention mechanism can directly compare every token in the query with every token in the document. This fine-grained interaction allows for a deep, nuanced understanding of their relationship and semantic relevance.

● Single Output: The model typically outputs a single relevance score (e.g., a number between 0.0 and 1.0) for the pair, often using the embedding from the token passed through a classification layer.

● Role in Modern AI Systems:

● They are primarily deployed as re-rankers in a two-stage retrieval process, particularly in Retrieval-Augmented Generation (RAG) systems:

● First Stage (Bi-encoder): A fast, efficient bi-encoder model quickly narrows down a vast corpus of documents to a smaller, manageable list of potentially relevant candidates (e.g., the top 100).

● Second Stage (Cross-encoder): The cross-encoder then meticulously re-evaluates and re-ranks this smaller subset of candidates with high precision, ensuring the most accurate and contextually appropriate results are presented to the final LLM for generating a response.

Business Procedure Layer

● Enhanced Chatbot Capabilities

● As LLM capabilities improved, the chatbot was enhanced to follow business procedures autonomously.

● Collects information conversationally and takes direct actions on behalf of the user.

● Business procedures serve as a single source of truth, used by both humans and AI agents.

● Automates queries about user accounts and pending transactions.

Agentic Architecture

● Introduction of the Business

● Procedure Classifier.

● Routes queries to the correct sub-agent emulating specific business procedures.

● RAG agent as a specialized sub-agent executing procedures involving the RAG knowledge base.

Proactive Issue Resolution Layer (Anticipatory Capabilities)

● AI agents anticipate common user problems using user signals and active incidents on the platform.

● Proactive issue resolution layer added to the agentic design.

● Proactive agents fall back to the business procedure classifier if no proactive resolution is found.

● Data access for proactive agents powered through standardized MCP servers.

Key Design Principles

Model Selection

● Balanced approach considering accuracy, latency, and scalability.

● Continuous reevaluation as model capabilities evolve.

● Tool Standardization

● Standardization of tool access through

● Model Context Protocol (MCP).

● Strong foundation for customer support and other domains.

● Business Adaptability

● Single source of truth for business procedures powering both humans and AI.

● Enhanced business adaptability.

● Grounded Responses

● Emphasis on factual correctness in responses.

Monitoring and Evaluation

● LLM as a Judge Evaluations

● Assessment of chatbot responses for relevancy, accuracy, potential bias, hallucinations, and more.

● Active tracking of quality metrics and trends to quickly identify anomalies.

Agent Assist Tool

Purpose

● Designed to help human customer support agents handle complex issues.

● Provides real-time assistance for diagnosing and mitigating customer issues.

● Features

● Draws from account signals, ongoing incident data, and past customer support tickets.

● Offers personalized guidance and generates precise responses in multiple languages.

● Impact

● Faster resolutions, happier customers, and improved efficiency for support teams.

● Close to 65% of customer contacts are handled automatically by AI systems.

● Annual savings of nearly 5 million employee hours and significant cost savings.

● 65% of automated cases are resolved in a single interaction, enhancing user experience.

Importance of Compliance

● Critical for a fintech entity like Coinbase to uphold standards in AML/CFT (Anti-Money

● Laundering/Countering Terrorist Financing).

● Commitment to preventing malpractices on the platform.

● Compliance Processes

● Implementation of KYC, KYB, and TMS.

● Heavy reliance on human resources and thorough investigations.

● Need for detailed explainability and adaptability to diverse regulatory requirements across countries.

● Strategy for Compliance

● Leverage of the internal platform for accessing LLMs and data through MCP interfaces.

● Inclusion of a traditional machine learning model to detect high-risk compliance cases, built on the AnyScale-based ML platform.

● Depth

● Advanced deep learning models for detecting high-risk cases

● in KYC, KYB, and TMS.

● Automation and acceleration of complex investigations through AI.

● Gathering and synthesizing data from various sources for rigorous investigations across compliance workflows.

Compliance Assist Tool

Purpose

● Assistive tool for compliance agents, analogous to the customer support agent assist tool.

● Features

● AI-powered gathering and synthesis of information from internal systems and open-source intelligence.

● Composition of a narrative summary and clear risk review signals.

● Provides compliance agents with a fully documented, explainable investigation for well-informed, confident decision-making.

● Impact

● Empowerment of compliance teams and elevation of compliance operation standards.

Ray-powered Scalability

● Optimizes and manages Ray clusters.

● Efficient distribution and scaling across thousands

● of CPUs and GPUs.

● Handles massive datasets and complex models.

● Unified Developer Experience:

● Streamlined workflow from experimentation to production.

● Interactive development consoles.

● Built-in IDEs.

● Tools for debugging distributed workloads.

● Aims to accelerate developer productivity.

● Production Readiness:

● Adds enterprise-grade features on top of Ray.

● Advanced observability.

● Data governance.

● Cost tracking.

● Robust administration tools.

● Ensures reliability, security, and performance of ML models.

● Cloud Agnostic Deployment:

● Supports deployment across various cloud providers

● (AWS, Google Cloud).

● Supports on-premise Kubernetes clusters.

● Allows organizations to leverage existing infrastructure.

● Maintains control over data and resources.

● Optimizations and Integrations:

● Includes optimizations for performance and cost reduction.

● Integrations with essential ML tools:

● Weights & Biases for experiment tracking.

● Astronomer for workflow orchestration (using

● Apache Airflow).

● Focus on AI Democratization:

● Simplifies complexities of distributed computing.

● Aims to make advanced AI and ML capabilities more accessible.

● Ray AI Libraries

● Ray Data: For scalable data processing, particularly suited for unstructured data like images, audio, and video.

● Ray Train: For distributed model training, with integrations for frameworks like

● PyTorch, PyTorch Lightning, and Hugging Face Transformers.

● Ray Tune: A framework for scalable and fault-tolerant hyperparameter tuning and experiment execution.

● Ray Serve: For deploying and serving machine learning models as scalable, programmable APIs with low latency.

● RLlib: An industry-grade library for reinforcement learning, supporting a wide range of applications from robotics to finance.

Agentic Architecture for Compliance

Initiation

● The process begins when deep learning compliance risk models trigger alerts on high-risk cases.

● Initiates a holistic review, a comprehensive investigation of high-risk compliance cases.

● Compliance Auto Resolution Engine (CAR)

● Central to the solution, acting as the orchestrator for the holistic review process.

● Mobilizes both automation and human expertise in an agentic AI-driven workflow.

● Human-in-the-Loop Process

● Interaction with two human personas:

● Compliance Operations Agents: Review AI system findings and provide feedback for improvement.

● End Customers: Reach out for additional information when necessary.

● Data Aggregation and Synthesis

● Engine aggregates and synthesizes data from various sources (internal, external, open-source intelligence) via standardized MCP data connectors.

● Results in a robust AI-generated report called the narrative summary.

● Final Decision

● Human compliance operations agent reviews AI's reasoning and compliance evidence.

● Determines whether a case warrants filing a suspicious activity report with government authorities.

Developer Productivity

AI in SDLC

● AI agents assist engineering teams at various stages of the software development life cycle (SDLC).

● Consolidates tasks like coding, ticketing, documenting, pull request creation, and reviewing pull requests.

● Focus Areas

● Code-Authoring

● Code Reviewing

● Quality Assurance

Code-Authoring Tools

Cloud Code

● State-of-the-art coding assistant integrating directly into IDEs or command line.

● Cursor

● Intelligent, context-aware IDE designed for faster, more collaborative, and efficient software development.

● Offered as an option for developers to choose based on their preferences.

● Powering Models

● Tools powered by Anthropic models served through Bedrock.

Pull Request and Code Reviewing

Homegrown Tool

● Adapted from an open-source tool and enhanced with models from Bedrock.

● Implemented as an AI-powered GitHub action to automate PR reviews.

● Definition:

● A "Homegrown Tool" is software, applications, or solutions developed internally by a company or community to address specific, unique problems.

● Development Approach:

● Often created using custom scripts.

● Utilizes existing platforms like Visio or Excel.

● Avoids reliance on off-the-shelf products.

● Features

● Summarizes pull requests and underlying code changes.

● Generates clear natural language review comments.

● Enforces coding conventions.

● Highlights gaps in unit testing coverage.

● Provides tips for debugging CI failures.

● Impact

● Automates routine aspects of code review, allowing human developers to focus on nuanced aspects and deliver higher value.

Quality Assurance

Automated UI Testing Tool

● Homegrown AI-powered tool for end-to-end quality assurance automation for web and mobile UI.

● Converts natural language test descriptions into autonomous browser actions.

● Features

● Performs browser actions in various form factors using services like BrowserStack.

● Emulates browser actions through frameworks like Playwright.

● Benefits

● Allows testing UI like a human would, enhancing the effectiveness of quality assurance processes.

Impact of AI on Developer Productivity

Code Generation

● Nearly 40% of all code written daily at Coinbase is AI-generated or AI-influenced.

● Goal to surpass 50% soon, with human review and understanding still required.

● Automated PR Reviews

● Estimated annual savings of about 75,000 hours.

● Raises code quality by enforcing coding conventions.

● Quality Assurance

● AI-powered UI testing tool achieves accuracy on par with human testers.

● Detects three times as many bugs as a human in the same amount of time.

● Dramatically speeds up the process of introducing new tests (as little as 15 minutes).

● 86% cost reduction compared to traditional manual testing.