2.7. Tree-of-thought

When tackling intricate problems that necessitate foresight or exploratory reasoning, the prompting approaches we’ve already explored may fall flat. This is where the tree-of-thought method becomes invaluable. Essentially, the framework operates on several key principles:

Though it may sound complicated on paper, its application is far more straightforward. Let’s dig into a hands-on example.

Three brilliant minds are using the “tree of thoughts” methodology to collaboratively tackle a question. Each expert will thoughtfully build upon the prior contributions of others, acknowledge any mistakes, and enhance the collective understanding. They will iterate on each other’s insights and give due recognition. This iterative process will continue until they arrive at a definitive solution. The entire discussion will be organized in a markdown table for easy reference. The question under consideration is…

In essence, the approach makes the AI act as if it's hosting a roundtable of experts from various fields, all coming together to unpack a single concept. I was unfamiliar with this method until I came across it in the report. I found it enlightening and thought it would be valuable to share this newfound knowledge with you all.

Here’s an example, generated by GPT-4.

Should a startup take as little or as much funding as possible?

Expert 1

Opinion: Startups that take as much funding as possible can more aggressively invest in growth and gain a competitive edge. They can hire top talent, invest in R&D, and enter new markets more rapidly.

Expert 1 thinks it’s important to acknowledge that taking more money often comes with increased pressure for fast growth and high returns, which may not align with every startup’s vision or operational reality.

Expert 2

Opinion: While investing in growth is essential, taking too much funding could lead to inefficiencies and wasteful spending. It also dilutes the ownership, which could demotivate the original team and even lead to a loss of control over the company’s direction.

Expert 2 agrees with Expert 1 on the advantages of ample funding for rapid growth. Startups with less funding often adopt a lean approach, focusing on profitability and sustainability. This can make them more resilient to market downturns and reduce the reliance on further funding rounds.

Expert 3

Opinion: Both approaches have merit but depend heavily on contextual factors such as the competitive landscape, the maturity of the market, and the startup’s unique strengths and weaknesses.

Expert 3 acknowledges points from both Expert 1 and Expert 2. An optimal funding strategy could involve a balanced approach: raising enough capital to achieve key milestones but not so much that it leads to inefficiencies or excessive dilution. This would require careful planning and a deep understanding of the startup’s business model and market conditions.